Iraq Wants To Become Even More Oil Dependent To Develop Economy

  

At the start of July it was reported that Iraq wants to boost its oil production to increase its revenues before the global economy begins moving away from petroleum. Prime Minister Ali al-Zaidi said that he set a goal of 7 million barrels a day of output in three years. The premier also told the media that a 10 year economic plan is being created whose goal is reducing the budget’s reliance upon oil from 90% down to 45%. This isn’t much different from all the previous Iraqi PMs that have all spoken about dramatically increasing the oil industry to diversify the economy. The problem is Baghdad has never achieved any of these goals.

Iraq Considering Emergency Economic Plan Until Oil Exports Revived

   

An economic advisor to Prime Minister Ali al-Zaidi said that the government was considering a 100 day emergency economic plan to cover spending and the budget until oil exports could return to pre-war levels.

Iraq Keeps Releasing Old Economic Data As New To Claim Progress

  

The Iraqi government is not always the best source of information. One thing it often does is release old information as new to claim it is making progress in improving the country. There were recent examples of this regarding the economy.

Iraq’s Financial Woes Continue Due To Iran War And Trump Administration

  

A combination of foreign events is undermining Iraq’s fragile economy. On the one hand the Strait of Hormuz Iraq’s main oil export route remains closed cutting off the country’s main source of revenue. On the other hand, the money Baghdad is making from petroleum is being held hostage by the Trump administration that wants the new Prime Minister Ali al-Zaidi to crackdown upon the pro-Iran Resistance. Together this is driving the government towards insolvency.

Iraq’s Oil Exports Take Another Hit As Strait Of Hormuz Remains Closed

  

Iraq’s main oil export route through the Strait of Hormuz remains closed due to the U.S.-Iran conflict. This is having a deleterious effect upon Iraq’s petroleum industry and economy.

Iraq Starts Shutting Down Its Oil Industry Due To Iran War

  

Iraq Oil Report had an article on what everyone expected to happen. The Oil Ministry started major production cuts amongst southern oil fields. A Basra Oil Company official said the government may cut output from over 4 million barrels a day down to just 1 million. Kurdistan has already halted all of its production.

Iraq’s Economy Could Collapse During Iran War

  

Iraq is the most oil dependent country in the world. It’s entire economy is now under threat due to the war with Iran.

Iraq’s Oil Economy Threatened By Iran Conflict

  

As the war with Iran enters its third day Iraq continues to be impacted. There were continued strikes within its territory while the country’s oil industry is coming under threat which may undermine the state.

Review Committee Against Repression and For Democratic Rights In Iraq, Saddam’s Iraq Revolution Or Reaction? Zed Books Ltd, 1989

  

Saddam’s Iraq Revolution Or Reaction? was an anthology put together by the Committee Against Repression and For Democratic Rights In Iraq. It is part history and part diatribe against Saddam Hussein. Like any collection the chapters are up and down. The historical sections are good as well as the analysis of the development of the economy. That’s thanks to the inclusion of authors such as historians Marion and Peter Sluglett.

Iraq Unable To Pay Its Obligations As Financial Crisis Grows

 

 

For months there have been warnings of an impending financial crisis for the Iraqi government. That finally started to hit in February 2006 as Baghdad wasn’t able to pay all of its workers their full wages.

Iraq Remains Most State/Oil Dependent Country In World

Each prime minister of Iraq talks about diversifying the economy and promoting the private sector. In reality every government is increasing state control funded by oil to maintain its political power.

Iraqi Govt Salaries Continue To Explode In Cost

The ruling parties in Iraq use government jobs as a way to battle unemployment and to maintain the support of their followers by handing out positions in their patronage networks. This has led to an explosion in the civil service which has become a major drain upon the budget. Al Mada recently reported on how much the public sector has dramatically increased.

Iraq’s Public Employment Policies Unsustainable

The International Monetary Fund (IMF) recently said that the Iraqi government’s public employment policies are unsustainable. It is a drain upon the economy which is dependent upon fluctuating oil prices.

Iraq Presents 2023 Changes In Poverty/Unemployment As New Progress

On January 27 Iraq’s Planning Ministry reported progress in fighting inequality in the country. It said that unemployment dropped from 16% to 14% and poverty went down from 23% to 17%. It claimed this was the result of the government promoting the private sector, new laws to help workers and the expansion of social security. 

Money Laundering and Dollar Smuggling Continues In Iraq

Iraq’s Central Bank is expected to auction around $75 billion in U.S. dollars by the end of the year. That is above previous years leading observers to believe that the government has failed once again to stop the Bank’s auctions being used for criminal activity.

Iraq Unveils Environmental Strategy

In September Iraq announced a six year national environmental strategy. While having backing of the international community it is unlikely to go anywhere like Iraq’s economic plans.

News Of Iraq’s Environmental Degradation Continues

Iraq continues to face the dire consequences of climate change. Each week new stories appear about environmental degradation.

World Food Programme Warns About Impact Of Climate Change Upon Iraq

In July the World Food Programme released a report on the current drought in Iraq. It was the latest warning about the devastating affects climate change is having on the country.

Influx Of Foreign Workers Into Iraq Increases Unemployment For Youth

The advisor to Iraq’s prime minister on labor affairs said that the number of foreign workers in the country is constantly increasing. There are around 1.5 million right now. That exacerbates unemployment especially amongst the youth.

US Continues To Push Iraq To Better Regulate Dollar Auctions To No Avail

(Al Sharqiya)

The United States continues to push the Iraqi government to better regulate its dollar auctions but it is a losing battle. At the start of February Baghdad banned 8 banks from the Central Bank of Iraq’s (CBI) currency sales to try to stop money laundering. This came after a visit by a delegation from the U.S. Treasury. In July 2023 another 14 banks were banned. A Treasury official said that Iraq needed to do more against pro-Iran groups abusing the financial system to raise funds.