Monday, January 30, 2012

Iraqi National Movement Ends Its Boycott In Face Of Possible Break-Up Of Party


Iraqi Natonal Movement spokeswoman Maysoun al-Damlouji announcing the end of the list's boycott of parliament (Reuters)
The Iraqi National Movement (INM) gave up on its boycott of parliament after a meeting on January 29, 2012. Official spokesmen said the decision was made to improve the political atmosphere in the country, and to prepare the way for a planned national conference. Behind the scenes one leader anonymously said that the real reason was that the list was about to break-up if it continued on with its course of action. The party was deeply divided over not attending the legislature and the cabinet. The hopes for a successful meeting of national leaders is also not likely to resolve anything either. That shows that the National Movement has overplayed its hand once again due to its bad leadership.

On January 28, 2012, the major leaders of the Iraqi National Movement (INM) met to discuss their stance towards the government. Those in attendance included Iyad Allawi, Speaker of Parliament Osama Nujafi, Finance Minister Rafi Issawi, and Deputy Premier Saleh al-Mutlaq. The major topic of discussion was whether they would maintain their boycott of parliament. At first, the list denied that it would return to the legislature, but the next day it revealed that it actually would. The official explanation was that they wanted to help with the planned national conference of the country’s leaders, which is supposed to work out all of the political differences between the major parties. One senior leader however, told Reuters that it was because the list was about to break-up if it didn’t change direction. The main players within the INM had different positions on how to deal with their problems with Prime Minister Nouri al-Maliki. Allawi and Vice President Tariq Hashemi were for leaving the government, and moving into the opposition. Speaker Nujafi and Jamal Karbuli, who leads the Solution Movement within the INM felt that they should stay part of the national coalition, and Deputy Premier Mutlaq was split between the two sides. At the beginning of January, six members of the National Movement also attended parliament, and were kicked out of the INM as a result. The list has always been a large and unwieldy collection of parties. Maliki was able to play upon these differences when putting the government together by giving many of the individual leaders positions within the government to buy them off, while excluding Allawi. The boycott was also ineffective, because the INM did not have enough seats to stop parliament from having a quorum to conduct business. Important laws like the 2012 budget were coming up as well, which all parties will benefit from as they run ministries that they use to dole out patronage and projects to their followers. All together, this put tremendous pressure upon the National Movement to give up its boycott.

The Iraqi National Movement is supposed to have another meeting to decide what to do with not attending the cabinet. That has been poorly followed by the list, with up to five of the nine INM ministers attending the cabinet at one time or another. Again, the ministers hold actual power with large staffs and budgets to administer. Those were too much for the majority of INM members to give up, and thus they went to sessions of the cabinet despite the directions of their list. That boycott is likely to collapse officially as well.

Finally, the hopes of a successful conference are disappearing with every day. On January 27 for example, Moqtada al-Sadr said he would not attend, because he was a religious figure, not a politician. Allawi has called for all of the major leaders to be there, so this was another major setback. Not only that, but there is no reason for Maliki to compromise if the meeting ever takes place. The INM does not have the votes to hold a no confidence vote against him, they do not have the seats in parliament to stop it from holding a quorum, and half the INM ministers are showing up to the cabinet anyway. The National Movement simply does not have any leverage in this dispute with Maliki.

The Iraqi National Movement ended up winning the most seats in the 2010 parliamentary elections, but has been consistently outmaneuvered since then. Its major leaders were each given top positions in the new government, and left Allawi out in the cold hoping for a committee to be formed, which he would lead, but that has been completely dropped. Since then, Allawi has been left to constantly snipe at Maliki, while he barely attends parliament, and spends large amounts of time outside the country. This latest crisis was badly played by the list once again. Its responses to Mailiki’s call for a no confidence vote against Deputy Premier Mutlaq and the arrest warrant for Vice President Hashemi have been completely ineffective. Not only that, but they have shown how deeply divided and fragile the list is. That has left Maliki in the enviable position of simply waiting out the crisis knowing full well that the INM could not keep up its tactics, and in this case, would likely come out even weaker than before. The final episode of this drama has not been played out, but it shows that the party may do better without following Allawi and Mutlaq the next time something like this happen, which it definitely will given the personal animosities amongst Iraq’s leading politicians.

SOURCES

AIN, “Majority of IS members supports withdraw from Government,” 1/26/12
- “MP rules out IS withdrawal from political process,” 1/26/12

Mardini, Ramzy, “Iraq’s Post-Withdrawal Crisis, Update 6,” Institute for the Study of War, 1/27/12

National Iraq News Agency, “BREAKING NEWS Iraqiya decides that its law makers attend Parliament’s session to debate the Budge, General Amnesty Law,” 1/28/12

Al-Salhy, Suadad, “Iraq’s Sunni-backed bloc faces key decision,” Reuters, 1/25/12
- “Iraq’s Sunni-backed bloc to end parliament boycott,” Reuters, 1/29/12

Al-Shummari, Yazn, “Where? Not bothered really – no red lines for Allawi on conference location,” AK News, 1/17/12

Sowell, Kirk, “Inside Iraqi Politics No. 31,” 1/25/12

PRESS TV VIDEO: Iraqiya party ends parliament boycott

AP VIDEO: Bomb Kills Dozens At Iraq Funeral Procession

AP VIDEO: Insurgents Kill 7 Police In Iraq

REUTERS VIDEO: Bomb Blast Strikes Iraq

Thursday, January 26, 2012

Iraq In The Middle East And North Africa, A Regional Comparison


From 1990 to 2003, Iraq was under United Nations sanctions for its invasion of Kuwait. As a result, the country’s living standards and infrastructure all deteriorated as it was cut off from many trade goods, and was still suffering the affects of the 1991 Gulf War. It has been almost nine years since those restrictions were lifted. Despite its constant political disputes and the sectarian civil war that lasted from 2005-2008, Iraq is finally beginning to show some signs of recovery. Now seems as good as time as any to see how it is doing in comparison to other countries in the Middle East and North Africa. Iraq finds itself with an incredibly young and growing population, but with persistent health issues, and an oil dependent economy that needs to be diversified if it hopes to provide jobs and income for its people.

Out of the 17 countries in the Middle East and North Africa, Iraq has the fifth largest population at approximately 30,399,572 in 2011. Only Morocco, Algeria, Iran, and Egypt have more people. Having a large population in the region is both a cost and a potential benefit. It can provide a large workforce, but at the same time huge demands upon the government to provide services and jobs for them.
 
Population 2011
Egypt 82,079,636
Iran 77,891,220
Algeria 34,994,937
Morocco 31,968,361
Iraq 30,399,572
Saudi Arabia 26,131,703
Yemen 24,133,492
Syria 22,517,750 (2010)
Tunisia 10,629,186
Israel 7,473,052 (2010)
Libya 6,597,960
Jordan 6,508,271
UAE 5,148,664
Oman 3,027,959
Kuwait 2,595,628
Bahrain 1,214,705
Qatar 848,016

Iraq’s large populace is incredibly young, and getting younger. It has the second youngest median age in the region at 20.9 years old. Only Yemen at 18.1 has a lower median figure. Incredibly, the country is getting younger, with 38% of Iraqis only 14 years or under, a 2.399% population growth rate, the fourth highest in the region, and 28.81 births per 1,000 people, which is the second highest. This is a trend in much of the Middle East and North Africa with 13 out of 17 countries having a median age under 30.


Median Age 2011
Yemen 18.1
Iraq 20.9
Syria 21.9
Jordan 22.1
Oman 24.1
Egypt 24.3
Libya 24.5
Saudi Arabia 25.3
Iran 26.8
Morocco 26.9
Algeria 27.6
Kuwait 28.5
Israel 29.4
Tunisia 30
UAE 30.2
Qatar 30.8
Bahrain 30.9


2011
Age Structure
Yemen
0-14 43%
15-64 54.4%
65+ 2.6%
Iraq
0-14 38%
15-64 58.9%
65+ 3.1%
Jordan
0-14 35.3%
15-64 59.9%
65_ 4.8%
Syria
0-14 35.2%
15-64 61%
65_ 3.8%
Libya
0-14 32.8%
15-64 62.7%
65+ 4.6%
Egypt
0-14 32.7%
15-64 62.8%
65+ 4.5%
Oman
0-14 31.2%
15-64 65.7%
65+ 3.1%
Saudi Arabia
0-14 29.4%
15-64 67.6%
65+ 3%
Morocco
0-14 27.8%
15-64 66.1%
65+ 6.1%
Israel
0-14 27.6%
15-64 62.2%
65+ 10.1%
Kuwait
0-14 25.8%
15-64 72.2%
65+ 2%
Algeria
0-14 24.2%
15-64 70.6%
65+ 5.2%
Iran
0-14 24.1%
15-64 70.9%
65+ 5%
Tunisia
0-14 23.2%
15-64 69.3%
65+ 7.5%
Qatar
0-14 21.8%
15-64 76.7%
65+ 1.5%
Bahrain
0-14 20.5%
15-64 77%
65+ 2.6%
UAE
0-14 20.4%
15-64 78.7%
65+ 0.9%




Pop. Growth Rate
Qatar
0.81%
Syria
0.913%
Tunisia
0.978%
Jordan
0.984%
Morocco
1.067%
Algeria
1.173%
Iran
1.248%
Saudi Arabia
1.536%
Israel
1.584%
Egypt
1.96%
Kuwait
1.986%
Oman
2.023%
Libya
2.064%
Iraq
2.399%
Yemen
2.647%
Bahrain
2.814%
UAE
3.282%


 2011
Birth Rate
Bahrain
14.64 per 1,000
Qatar
15.48 per 1,000
UAE
15.87 per 1,000
Algeria
16.69 per 1,000
Tunisia
17.4 per 1,000
Iran
18.55 per 1,000
Morocco
19.19 per 1,000
Israel
19.24 per 1,000
Saudi Arabia
19.34 per 1,000
Kuwait
21.32 per 1,000
Syria
23.99 per 1,000
Libya
24.04 per 1,000
Oman
24.15 per 1,000
Egypt
24.63 per 1,000
Jordan
26.79 per 1,000
Iraq
28.81 per 1,000
Yemen
33.49 per 1,000

Iraq is towards the bottom in terms of urbanization at 66%. That is tied with Algeria for 12 out of the 17 regional nations. In comparison, most of the people in Saudi Arabia, the Gulf States and Israel are anywhere from 82%-98% living in cities. With two famous rivers the Tigris and Euphrates running through it, and a history of agriculture dating back to the birth of civilization it should be no surprise that Iraq still has lots of people living in the countryside. Unfortunately, that lifestyle is running into huge environmental problems with a recent drought lasting several years, increasing salinization, and neighboring countries building dams that will only decrease the amount of water flowing through the country in coming years.
 

Urbanization
Yemen
32%
Egypt
43.4%
Syria
56%
Morocco
58%
Iraq
66%
Algeria
66%
Tunisia
67%
Iran
71%
Oman
73%
Libya
78%
Jordan
79%
Saudi Arabia
82%
UAE
84%
Bahrain
89%
Israel
92%
Qatar
96%
Kuwait
98%

One major problem that resulted from the international sanctions was the destruction of Iraq’s health care system. Many medicines and modern equipment were denied to the country under the guise that they could be used for the creation of weapons of mass destruction. It is just beginning to emerge from this period with the free flow of trade, and is trying to make up for those lost years. As a sign of that, it spends the highest percentage of its GDP, 9.7%, of any country in the Middle East and North Africa on health.


Health Expenditures
Syria
2.9% of GDP (2009)
Iran
3.9% of GDP (2009)
Qatar
2.5% of GDP
UAE
2.8% of GDP
Oman
3% of GDP
Bahrain
4.5% of GDP
Jordan
4.5% of GDP (2009)
Saudi Arabia
5% of GDP (2009)
Morocco
5.5% of GDP
Yemen
5.6% of GDP
Algeria
5.8% of GDP (2009)
Tunisia
6.2% of GDP
Egypt
6.4% of GDP  (2009)
Libya
6.6% of GDP (2009)
Kuwait
6.8% of GDP (2009)
Israel
9.5% of GDP  (2009)
Iraq
9.7% of GDP (2009)

The affects of the 1990s are still visible. Iraq ranks fifth worst in terms of maternal mortality rate with 75 deaths per 100,000 live births. Only Egypt, 83 deaths, Morocco, 110 deaths, Algeria, 120 deaths, and Yemen at a whopping 210 deaths, did worse. In contrast, only 10 mothers die on average per 100,000 births in the United Arab Emirates, only 8 in Qatar, and 7 in Israel.


Maternal Mortality Rates
Kuwait
NA
Israel
7 deaths per 100,000 live births
Qatar
8 deaths per 100,000 live births
UAE
10 death per 100,000 live births
Bahrain
19 death per 100,000 per live births
Oman
20 deaths per 100,000 live births
Saudi Arabia
24 deaths per 100,000 live births
Iran
30 deaths per 100,000 live births
Syria
46 deaths per 100,000 live births
Jordan
59 deaths per 100,000 live births
Tunisia
60 deaths per 1,000 live births
Libya
64 deaths per 100,000 live births
Iraq
75 deaths per 100,000 live births
(2008)
Egypt
82 deaths per 100,000 live births
Morocco
110death per 100,000 live births (2008)
Algeria
120 deaths per 100,000 live births (2008)
Yemen
210 deaths per 100,000 live births
Iraq didn’t do much better with its infant mortality rate. It has the third worse rate at 41.68 deaths per 1,000 live births. Iran with 42.26 deaths and Yemen at 55.11 were at the bottom of the region. Again, these are both signs that Iraq still has a long way to go to repair its health care system.



Infant Mortality Rate
Israel
4.12 deaths per 1,000 births
Kuwait
8.07 deaths per 1,000 live births
Bahrain
10.43 deaths per 1,000 live births
UAE
11.94 deaths per 1,000 live births
Qatar
12.05 death per 1,000 live births
Oman
15.47 deaths per 1,000 live births
Syria
15.62 deaths per 1,000 live births
Saudi Arabia
16.16 deaths per 1,000 live births
Jordan
16.42 deaths per 1,000 live births
Libya
20.09 deaths per 1,000 live births
Egypt
25.2 deaths per 1,000 live births
Algeria
25.82 deaths per 1,000 live births
Tunisia
25.92 deaths per 1,000 live births
Morocco
27.53 deaths per 1,000 live births
Iraq
41.68 death per 1,000 live births
Iran
42.26 deaths per 1,000 live births
Yemen
55.11 deaths per 1,000 live births

A third sign of its problems is Iraq’s low life expectancy. Iraqis live an average 70.55 years. That was the third lowest in the region. Yemen, 63.74, and Iran 70.06 had the shortest average life spans, while Bahrain, 78.15, Jordan, 80.05, and Israel, 80.96, had the highest. That showed that while Iraq has many children, they will on average, not live as long as many of their neighbors. The civil conflict and sanctions were two major factors that put Iraq towards the bottom in this category.

2011
Life Expectancy
Yemen
63.74
Iran
70.06
Iraq
70.55
Egypt
72.66
Saudi Arabia
74.11
Oman
74.22
Algeria
74.5
Syria
74.69
Tunisia
75.01
Qatar
75.7
Morocco
75.9
UAE
76.51
Libya
77.065
Kuwait
77.09
Bahrain
78.15
Jordan
80.05
Israel
80.96

Serviceable water and sanitation facilities can have a huge impact upon a country’s health as they help control the spread of diseases and sickness. Again, Iraq is almost at the bottom in both of these categories. Only 79% of Iraqis drink from an improved drinking source, which was third worse in the region, and only 73% used improved sanitation facilities, second worse. Improving major infrastructure such as pipes, and building waste water plants have been difficult for Iraq. The fighting in the country made such large projects almost impossible to complete such as the Waste Water Treatment Plant in Fallujah. Now that the civil war is over, red tape, the lack of capacity, and budget execution by the government still hinders such work. That means Iraq will likely remain lacking in these services for the foreseeable future.


Drinking Water Source
Bahrain
NA
Libya
54% improved, 46% unimproved
Yemen
62% improved
38% unimproved
Iraq
79% improved
21% unimproved
Morocco
81% improved
19% unimproved
Algeria
83% improved
17% unimproved
Oman
88% improved
12% unimproved
Syria
89% improved, 11% unimproved
Saudi Arabia
89% improved
11% unimproved
Iran
93% improved
7% unimproved
Tunisia
94% improved
6% unimproved
Jordan
96% improved
4% unimproved
Egypt
99% improved,
1% unimproved
Kuwait
99% improved
1% unimproved
Israel
100% improved
Qatar
100% improved
UAE
100% improved


Sanitation Facility Access
Saudi Arabia
N/A
Yemen
52% improved
48% unimproved
Iraq
73% improved
27% unimproved
Morocco
69% improved
31% unimproved
Iran
83% improved
17% unimproved
Tunisia
85% improved
15% unimproved
Oman
87% improved
13% unimproved
Egypt
94% improved
6% unimproved
Algeria
95% improved
5% unimproved
Syria
96% improved
4% unimproved
Libya
97% improved
3% unimproved
UAE
97% improved
3% unimproved
Jordan
98% improved
2% unimproved
Israel
100% improved
Kuwait
100% improved
Bahrain
100% improved
Qatar
100% improved

A more recent casualty in Iraq was the school system. During the chaos that was unleashed by the fall of Saddam, it was unsafe for many children to get an education. Kids were routinely kidnapped and ransomed by gangs and militants to raise money. As a result, a whole generation of Iraqis might have missed out on their formative years to build up their skills. As a result, Iraq has a poor literacy rate of 74.1%, fifth lowest in the region.


Literacy
Yemen
50.2%
Morocco
52.3%
Algeria
69.9%
Egypt
71.4%
Iraq
74.1%
Tunisia
74.3%
Iran
77%
UAE
77.9%
Saudi Arabia
78.8%
Syria
79.6%
Oman
81.4%
Libya
82.6%
Bahrain
86.5%
Qatar
89%
Jordan
89.9%
Kuwait
93.3%
Israel
97.1%

One thing that has finally begun to recover since 2003 is the Iraqi economy. Gross Domestic Product (GDP) Purchasing Power Parity is a way to compare costs across different countries. From 2003-2008 Iraq’s economy declined, because the violence disrupted businesses and work. Since then, things have begun to get better. Today Iraq has a GDP Purchasing Power Parity figure of $113.4 billion in 2010, which places it right in the middle of the region. It is doing better than Syria, Tunisia, Libya, Oman, Yemen, Jordan, and Bahrain in that category.


2010
GDP
Purchasing
Power
Parity
Bahrain
$29.71 bil
Jordan
$34.53 bil
Yemen
$63.4 bil
Oman
$75.84 bil
Libya
$90.57 bil
Tunisia
$100 bil
Syria
$107.4 bil
Iraq
$113.4 bil
Kuwait
$136.5 bil
Qatar
$150.6 bil
Morocco
$151.4 bil
Israel
$219.4 bil
UAE
$246.8 bil
Algeria
$251.1 bil
Egypt
$497.8 bil
Saudi Arabia
$622 bil
Iran
$818.7 bil

Its overall GDP was estimated at $82.15 billion in 2010, again placing it right in the middle of the Middle East and North Africa. Much of the growth in its economy is due to its oil industry, which has finally returned to pre-invasion levels.


2010
GDP
Bahrain
$22.66 bil
Jordan
$27.53 bil
Yemen
$31.27 bil
Tunisia
$44.29 bil
Oman
$55.62 bil
Syria
$59.33 bil
Libya
$74.23 bil
Iraq
$82.15 bil
Morocco
$103.5 bil
Qatar
129.5 bil
Kuwait
$131.3 bil
Algeria
$160.3 bil
Israel
$213.1 bil
Egypt
$218.5 bil
UAE
$301.9 bil
Iran
$357.2 bil
Saudi Arabia
$443.7 bil

According to the Central Intelligence Agency, Iraq had a anemic 0.8% GDP growth rate in 2010. That was because of the lingering affects of the world recession. Since then, Iraq is expected to have one of the fastest growing economies in the world. The IMF for example, predicted that the GDP would grow 12.2% in 2011. Again, this is because Baghdad has signed deals with foreign companies to develop its oil industry, which drives the entire country.
 
2010
GDP
Growth
Rate
Iraq
0.8%
Iran
1%
Kuwait
2%
Jordan
3.1%
Morocco
3.2%
UAE
3.2%
Syria
3.2%
Algeria
3.3%
Tunisia
3.7%
Libya
4.2%
Oman
4.2%
Israel
4.6%
Egypt
5.1%
Saudi Arabia
3.7%
Bahrain
4.1%
Yemen
8%
Qatar
16.3%

The dominance of petroleum is shown by what contributes to Iraq’s GDP. 60.5% comes from industry, 58% of which is oil. Another 9.7% comes from agriculture, which is still one of the largest employers in Iraq. Finally services, contribute 29.8%. Similar trends are apparent in other major oil producing countries from the region.
 

2011
GDP
By Sector
Iraq
Agriculture 9.7%
Industry 60.5%
Services 29.8%
(2010)
Algeria
Agriculture 8.3%
Industry 61.6%
Services 30.1%
(2010)
Bahrain
Agriculture 0.5%
Industry 58%
Services 41.5%
Egypt
Agriculture 14%
Industry 35.7%
Services 48.3%
Iran
Agriculture 10.9%
Industry 41.2%
Services 47.9%
(2010)
Israel
Agriculture 2.4%
Industry 32.6%
Services 65%
(2010)
Jordan
Agriculture 4.4%
Industry 30.3%
Services 65.3%
Kuwait
Agriculture 0.3%
Industry 48%
Services 51.7%
Libya
Agriculture 2.7%
Industry 66.7%
Services 30.5%
Morocco
Agriculture 17.1%
Industry 31.6%
Services 51.4%
Oman
Agriculture 1.6%
Industry 51%
Services 47.5%
(2010)
Qatar
Agriculture 0.1%
Industry 71.8%
Services 28.1%
(2010)
Saudi Arabia
Agriculture 2.6%
Industry 61.8%
Services 35.6%
Syria
Agriculture 17.1%
Industry 27.3%
Services 55.7%
Tunisia
Agriculture 10.6%
Industry 34.6%
Services 54.8%
(2010)
UAE
Agriculture 0.9%
Industry 55.5%
Services 43.6%
Yemen
Agriculture 8.3%
Industry 38.5%
Services 53.3%

Because Iraq has such a large population it has a large work force. There are approximately 8.5 million laborers in Iraq, the fifth most in the region. Only Algeria, 10.81 million, Morocco, 11.44 million, Iran, 25.7 million, and Egypt, 26.2 million, have more people at work. Because of its high population growth rate, it is adding hundreds of thousands of new workers to the economy each year as well, placing huge strains on the economy to find gainful employment for them.



Labor Force
Bahrain
654,900
Oman
968,800
Qatar
1.242 mil
Jordan
1.719 mil
Libya
1.728 mil
Kuwait
2.158 mil
Israel
3.147 mil
UAE
3.705 mil
Tunisia
3.769 mil
Syria
5.529 mil
Yemen
6.823 mil
Saudi Arabia
7.337 mil
Iraq
8.5 mil
Algeria
10.81 mil
Morocco
11.44 mil
Iran
25.7 mil
Egypt
26.2 mil

The problems with having an oil dependent country are shown in what fields people work in. In 2008, services were the largest employer at 59.8%, but that sector only contributes 29.8% of the GDP. 21.6% also work in agriculture, which is less than 10% of GDP. 18.7% work in industry, which would seem to point out that a large number of people find work in the petroleum and related businesses, but that would be untrue. That only employs 1% of workers, and almost 58% of the GDP. Most of the country’s industrial workers are at state-run businesses, which specialize in useless employees who are simply given jobs to keep people off the streets, or for political patronage. Again, this is a common problem amongst many of the oil dependent countries in the region.


Labor Force by Occupation
Iraq
Agriculture 21.6%
Industry 18.7%
Services 59.8%
(2008)
Algeria
Agriculture 14%
Industry 13.4%
Construction 10%
Trade 14.6%
Government 32%
(2003)
Bahrain
Agriculture 1%
Industry 79%
Services 20%
(1997)
Egypt
Agriculture 32%
Industry 17%
Services 51%
(2001)
Iran
Agriculture 25%
Industry 31%
Services 45%
(2007)
Israel
Agriculture 2%
Industry 16%
Services 82%
(2008)
Jordan
Agriculture 2.7%
Industry 20%
Services 77.4%
(2007)
Kuwait
NA
Libya
Agriculture 17%
Industry 23%
Services 59%
(2004)
Morocco
Agriculture 44.6%
Industry 19.8%
Services 35.5%
(2006)
Oman
NA
Qatar
NA
Saudi Arabia
Agriculture 6.7%
Industry 21.4%
Services 71.9%
Syria
Agriculture 17%
Industry 16%
Services 67%
(2008)
Tunisia
Agriculture 18.3%
Industry 31.9%
Services 49.8%
UAE
Agriculture 7%
Industry 15%
Services 78%
(2000)
Yemen
NA

That also has an affect upon people finding work. In 2009, Iraq had a 15.3% jobless rate. Recently, a survey done by the Iraqi government and United Nations found that the jobless rate had gone down to 11% in 2011, but unofficially the rate is at 30%. Underemployment is even higher. That places Iraq towards the bottom in finding jobs for people, with only Libya and Yemen doing worse. Obviously, with the largest business in Iraq, providing hardly any work opportunities causes tremendous strains upon the country. Until it diversifies its economy, this will continue. Instead of trying to find new industries however, Baghdad has just attempted to create more public sector work, which does not solve anything, because many of these positions are useless, and only adds to underemployment.


Unemployment
Qatar
0.5% (2010)
Kuwait
2.2% (2004)
UAE
2.4% (2001)
Israel
6.7% (2010)
Syria
8.3% (2010)
Egypt
9% (2010)
Morocco
9.1% (2010)
Algeria
10% (2010)
Saudi Arabia
10.8% (2010)
Jordan
12.5% (2010)
Tunisia
13% (2010)
Iran
13.2% (2010)
Oman
15% (2004)
Bahrain
15% (2005)
Iraq
15.3% (2009)
Libya
30% (2004)
Yemen
35% (2003)

Along with high unemployment, Iraq also suffers from high rates of poverty. In 2008, 25% of the population was below the poverty line, which is just $2 per day. That is the third worse rate out of the figures available in the region. Poverty is said to be shallow in Iraq however, which means a small increase in income would raise a large number of people up out of the bottom. (1) Again, a major problem in the government’s anti-poverty programs is reliance upon public sector jobs. Better solutions have been proposed by government agencies, but Iraq has a bad rate of implementing its development plans, while making more government positions is much easier.


Pop. Below poverty level
Tunisia
3.8% (2005)
Syria
11.9% (2006)
Jordan
14.2% (2002)
Morocco
15% (2007)
Iran
18% (2007)
UAE
19.5% (2003)
Egypt
20% (2005)
Algeria
23% (2006)
Israel
23.6% (2007)
Iraq
25% (2008)
Libya
Approx. 33%
Yemen
45.2%
Bahrain
NA
Kuwait
NA
Oman
NA
Qatar
NA
Saudi Arabia
NA

An economic issue that has recently improved for Iraq is inflation. The insurgency and civil war shot up prices in the country. It has only just recovered from this, and inflation stood at a modest 2.4% in 2010.

2010
Inflation Rate
Qatar
-2.4%
UAE
0.9%
Morocco
1%
Bahrain
2%
Iraq
2.4%
Libya
2.5%
Israel
2.7%
Oman
3.2%
Algeria
3.9%
Kuwait
4%
Tunisia
4.4%
Syria
4.4%
Jordan
5%
Saudi Arabia
5.4%
Iran
10.1%
Egypt
11.1%
Yemen
11.2%

Electricity is another service that has suffered since the 1990 invasion of Kuwait. During the 1991 Gulf War, the Coalition bombed the power network to try to undermine Saddam. This was partially rebuilt afterward. Then after the 2003 American invasion, the power grid became a target of insurgents. Despite that, electricity output has steadily increased. The problem is that so has consumption, which has taken off at an even higher rate. That’s because Iraqis have been able to buy a wide variety of consumer goods since 2003 that were once denied them under sanctions such as refrigerators and air conditioners. Most Iraqis also do not pay electricity bills, so there is no control over usage. Together this means that Iraq does not produce enough power to meet demand, which leads to a reliance upon private generators. There are also constant blackouts through much of the country. It was no surprise then when electricity became a major cause of protests in Iraq in 2010 and 2011. The government’s plans to build new power plants to finally fix this problem have largely failed, because the bureaucracy cannot handle such large projects for a variety of reasons. That’s why Iraq is one of only two countries, Morocco, being the other in the Middle East and North Africa that has a power deficit.


Power Production
Power Consumption
Difference
Iraq
46.39 bil kilowatts/hr
(2009)
52 bil kilowatts/hr
(2009)
-5.61 bil kilowatts/hr
Morocco
19.49 bil
kilowatts/hr
(2008)
21.47 bil kilowatts/hr
(2008)