Reforming the Iraqi economy

[RJG]

Reforming the Iraqi economy

Economic  2026/09/03

 

 

Zuhair Kazem Aboud

The Iraqi state is constitutionally obligated to reform the Iraqi economy according to modern economic principles, ensuring the full utilization of resources, diversification of income sources, and the encouragement and development of the private sector. This obligation is stipulated in Article (25) of the Constitution. If this obligation rests with the state, what is the role of the people in supporting the government to improve the Iraqi economy and expedite overcoming the crisis inherited from the previous era?

The Iraqi economy is currently experiencing a multifaceted crisis. Its reliance on oil revenues makes the government vulnerable to fluctuations in global prices, compounded by US restrictions on dollar transactions and the damage inflicted on the Iraqi treasury by the expansion of sanctions on commercial and financial networks. The difficulties are most evident in managing public spending and ensuring the continued payment of salaries to employees and retirees. The government also faces obstacles that discourage investment across all sectors, in addition to the volatile exchange rates used to import food.

The government is facing debts that are burdening the treasury, and it is trying, as much as it can, through plans and foundations that are capable of reducing or controlling those debts. It warns against relying on loans and borrowing, given the existence of a parasitic economic class that has benefited and continues to benefit from the fragile financial situation that the country is going through. In light of all this, it is incumbent upon any group that takes responsibility for the course of executive power to exert all efforts to repair and reform the foundations of the Iraqi economy, and to elevate it in a way that enables it to control and monitor the economic and financial affairs of the country.

However, the government's confrontation with this dilemma, which concerns the lives and future of Iraqis, requires support and national stances from all sectors of the Iraqi people. The confrontation cannot be completed through mere wishes and solidarity, nor by finding ways to impose taxes that burden citizens or hinder investment. Everyone here is responsible for playing a positive role in curbing the corruption that is draining the state's vast resources. This is what the government has begun to do, supported by the judiciary, to shoulder the burden of a national stance that supports Iraqi agriculture and industry. It is also crucial to navigate the critical phase Iraq is going through without resorting to disrupting stability or security, sabotage, or road blockades. Furthermore, it is essential to contribute to diversifying the structure of the Iraqi economy by engaging in the productive private sector as an alternative to reliance on public sector jobs. This includes expanding savings, restoring confidence in Iraqi banks, and promoting digital transactions as much as possible instead of cash transactions. It also involves controlling tax revenues, border crossings, and customs. Simply put, the problem is not merely a passing liquidity crisis or a lack of confidence in Iraqi banks among Iraqi citizens, but rather the anxiety they experience as a result of rumors and news spread by biased media outlets. Iraq is a productive and economically capable country whose governments have inherited a legacy of destruction and violations. Economically, he has further distorted his economy, which requires interaction between government reform and popular support.

We do not suffer from a lack of resources, but rather from poor management of these resources and their conversion into production and job opportunities. In addition, oil should not be relied upon and treated as a source of funding for salaries and current expenses, but rather it should be considered as capital for building a diversified economy that contributes to raising growth potential.

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