Introduction economic predictions? Must Iraq start over as

 

Introduction

Economy is
an important aspect in every country in this report I will talk about Iraq
economy. It will include
information about the economy of Iraq in the recent past and on current
conditions. It also discusses matters such as the several conflicts and wars
between several countries e.g. the first gulf war. What the results were and
how the economy was ramified under these conflicts.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

This
report provides background on the different sectors and institutions of the
Iraqi economy. It also identifies some questions and issues which may have
significant bearing on Iraq’s future views. In addition what are the main causes
and reasons that will likely effect Iraq’s future on economic predictions?

Must
Iraq start over as it rebuilds its economy? Its huge oil resources can serve as
an engine of future growth and improvement. It does not start, though, with a
blank slate. The experience, opportunities, and targets of the past will have
important – if unknown – effects on Iraq’s future economy. What Iraq learns
from its past and how it familiarizes itself for the future will be important
concerns?

 

 

 

 

 

 

 

 

Body

Iraq economic situation and history during the 20th
century

How did the first gulf war affect the economy?

 

 

Iraq
had one of the Arab world’s most progressive economies.

Though
buffeted by the strains of the Iran-Iraq war, it had – besides petroleum — a considerable
industrial sector, a relatively well-developed transport system, and
comparatively good infrastructure. Iraq had a relatively large middle class,
per capita income levels similar to Venezuela, Trinidad or Korea, one of the
best educational systems in the Arab world, a well-educated population and
generally good standards of medical care. Yet, Iraq was a centrally directed
command economy that was heavily dependent on oil revenue to deposit its key
foundations and its development program. Iraq investigated in the late 1980s
with transfer, useful independence for some elements of the economy, and
limited use of market services. This advantage ended, however, with the start
of the first Gulf war.

In
the dozen years since 1991, Iraq’s industrial and agricultural capacity has
decayed, its transportation and infrastructure systems have failed, and the
education levels and standard of living for its population have fell. Oil
exports continued under the U.N. Oil for Food Program (OFFP) after 1995, albeit
at a lower rate. However, its production capacity weakened from lack of inputs.
Some economic services were damaged in the recent war and its chaotic result.
In effect, Iraq must start over as it rebuilds its economy. Its huge oil
resources can serve as an engine of future growth and improvement. It does not
start, though, with a blank slate.

 

 

 

 

 

 

 

 

Government and the
Economy

 

The history
of Iraq during the 20th century falls into three fairly distinct periods:

·        
1921-1958: A constitutional monarchy under direct
British control at first and later under significant British influence.

·        
1958-1968: A series of nominally republican regimes
headed by military officers who assumed power in most cases through a military
coup d’etat.

·        
1968-2003: A government controlled by the socialist,
pan-Arab Baath Party, which quickly developed into a vehicle for one-man rule
by leading party official Saddam Hussein.

·        
2003-present: Democratic government, parliament has
been organized but because of the Daash everything went not as required.

 

The Constitutional
Monarchy

 

                Government.
During the first period, Britain established a monarchy in Iraq under King
Faysal I, a leading member of the respected Hashemite family (of which a
collateral branch continues to govern Jordan). In 1932, Iraq became an
independent country, but the bilateral treaties replacing the British command
provided for a continued British role in Iraq, particularly in protection and
foreign affairs. Rising opposition to Iraq’s western ties and mounting
nationalist sentiment among younger Iraqis including the armed forces created
growing disaffection from the regime. In July 1958, a group of army officers
led a coup in which the King and leading officials were killed, many other
officials imprisoned, and a republic was proclaimed.

 

The Military Regimes

 

                Governments.
Three military leaders ruled Iraq in succession during the decade that followed
the defeat of the Iraqi monarchy by left-wing nationalist army officers. The
somewhat weird General Abd al-Karim Qasim, who led the coup of 1958, terminated
Iraq’s ties with the West, withdrew Iraq from the Baghdad Pact, and aligned
Iraqi policies to a considerable degree with those of the Soviet Union. Steady
loss of his power base, exhausted by growing domestic unrest (including the beginning
of a Kurdish insurgency) and regional quarrels, led to a second revolution in
which Qasim was overthrown and killed in February 1963. Qasim’s successors,
Generals Abd al-Salam Arif and Abd al-Rahman Arif,5 took somewhat more moderate
positions on regional and international affairs, established better relations
with other Middle Eastern states (particularly Egypt under then President Gamal
Abd al-Nasser), and approved a friendlier attitude toward the West, while
recollecting relations to the Soviet Union. However, the Arif regimes faced
further domestic instability, the Kurdish insurgency continued to simmer, and
the government lost much of its authority–as did other Arab regimes–after
Israel quickly defeated Arab armed forces during the “six-day war” in June
1967. A year later, on July 17, 1968, the Arif regime was overthrown by the
Baath Party.

Economy at the time of
Saddam

Economic
data were considered state secrets, under the rule of Saddam; thus, dependable
data for the era was limited. According to the Economist Intelligence Unit
data, Iraq’s GDP stood at approximately $38 billion in 1989, measured in
constant 2003 dollars. Starting from 1990 till Saddam established the terms and
conditions of UN Resolution 986 in 1996 the GDP in Iraq continued at less than
30 percent of the 1989 value. In the 1996 to 2002 period, the data appearances
a gradual recovery as GDP increased from $10.6 billion in 1996 to $33 billion
in 2000 before dropping back to $29 billion in 2001.

Per
capita GDP during the period followed the downward development seen in overall
GDP. GDP per capita went from approximately $2304 in 1989 to $938 in 1990. From
1991 until 1996 per capita GDP never rose above $507. During this period income
inequity was a problem as the wealth was concentrated in the hands of Regime
loyalists and traders while most Iraqis subsisted on much less income.

Because
of the lack of exact economic data, it is difficult to disaggregate the Iraq
GDP into sectors. It is estimated that in 1989 oil comprised about 61 percent
of the economy. However, following the attack of Kuwait and agreements on the
oil exports, this steadily dropped until 1996 when the UN OFF program allowed
Iraq to restart controlled export of oil using UN approved contracts. The
Agricultural zone of the GDP, was quite small when compared to oil and
services, though larger than some neighboring states. Iraq’s rich agricultural
land covers about one-fifth of its area and has allowed Iraq to withstand a
notable agricultural system that is based mostly on barley and dates.

 

 

 

 

Economy at the present

 

Iraqi forces have made significant improvement against
Islamic State (IS) in 2017, with the jihadi group to be territorially defeated
round end-2017. This, along with the swift redoing of uncertain places from the
Kurds, following the late September independence referendum, place prime
minister, Haider al-Abadi, in a strong position to win re-election in 2018.
However, he will remain under some pressure owing to the impact of low oil
prices and huge reconstruction costs on the budget.

The statistic shows the growth in real GDP in Iraq between
2012 to 2014, with plans up until 2022. In 2014, Iraq’s real gross domestic
product reduced by around 0.74 percent compared to the previous year.
GDP is a reliable tool used to indicate the shape of a national economy. It is
one of the most well-known and well-understood measurements of the state of a
country. Gross domestic product, or GDP, is the total market value of all final
services and goods that have been produced in a country within a given period
of time, usually a year.

 

 

 

 

 

Conclusion

 

While making this report I have concerned how Iraq has grown
to this today, even though all the situations that has happened to the country
it still tries to stay on feet and move on to a better country. If the citizens
work along with the government the situation will become even better than it is
now.

Even though Increase in oil and gas production abilities and
infrastructure has been abrupt by security concerns in the last few years, Iraq
has come a long way in terms of oil-production in the last decade and currently
sits behind Russia, Saudi-Arabia and U.S, as the 4th biggest oil-producer.
Iraq’s has been able to keep production costs low due to easy to drill
formation and infrastructure that has been in place, built by former
governments. Iraq has the advantage of negotiating contracts on a formal governmental
level with drilling and service companies and is able to sell the crude oil on
a market-based level compared to the Kurdistan Regional Government. Iraq has
pledged to increase oil-infrastructure spending by 20 billion dollars in the
next 5 years to develop the rich fields it has and will probably reach 6
million barrels of oil production in the next decade. 

KRG has in place what is called Production Sharing Contracts
(PSC) with companies such as DNO, TAQA and Genel Energy etc. These contracts
share the production revenue and the cost of the exploration and receive a
percentage of the overall production of their respective fields. KRG’s oil
production suffers from unstable political situation, the lack of proper outlet
for the oil to be exported and in many areas difficult formation and poisonous
H2S gas. Kurdistan’s oil fields are mainly on a exploration stage, and due to
the dropping of oil-prices, companies have little money to spend on
exploration. KRG also has a difficult time selling the crude oil on proper
market price, due to the central governments objections. Also current air travel
blockade has made it difficult for materials needed to be imported to the area.
KRG’s oil revenue and current production depends on the agreement that will be
agreed upon in the future with Baghdad and weather Baghdad will respect or
disallow the contracts KRG has made with international corporations. 

 

Author:

x

Hi!
I'm Eileen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out