Studies Center: Urban prosperity in Iraq hides corruption and bureaucracy behind it

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[size=52]Studies Center: Urban prosperity in Iraq hides corruption and bureaucracy behind it[/size]

[size=45]Translated by / Hamed Ahmed[/size]
[size=45]A report by the Institute for Regional and International Studies (IRIS) at the American University in Sulaymaniyah addressed the bright urban boom that Iraq is witnessing, including residential complexes, malls, resorts, entertainment venues and restaurants, at a time when other vital projects and investments are facing obstacles, as well as the private sector who wants to open a project or small commercial activity, as it faces great challenges. It is represented by corruption, bureaucracy, and bribes that hinder any solid economic development in the country.[/size]
[size=45]The report indicates that the lavish development of these urban investments raises questions about the extent of their benefit and economic return and how they are facilitated and implemented, while there are development projects that should be paid more attention to, as gas is still burned in the air in oil wells instead of benefiting from it economically on the one hand and avoiding environmental pollution and what it causes. This is a disease of the population on the other hand.[/size]
[size=45]The report states that only those with huge funds and those with connections are able to implement construction projects and entertainment complexes, while the majority of the general public who has a desire to implement a small project or a simple investment are forced to enter the network of an economic system controlled by influential political parties and forces, and for this reason, it confirms The report states that there must be strategies by the government and organizations to support and empower small business owners from the private sector and remove many of the obstacles that limit the growth of these projects.[/size]
[size=45]During recent years, many cities in Iraq, especially the capital, Baghdad, have witnessed a wave of local investments to implement huge urban projects through illegally earned money and through corrupt deals that found in these projects a safe haven to launder that money. What facilitated this trend was the sectarian and ethnic quota system that ruled the country after 2003, and the dominant political parties divided state institutions and ministries among themselves. As a result, the distribution of lucrative government contracts is often controlled by partisan interests.[/size]
[size=45]The report indicates that most of these huge projects, including luxury residential complexes and large private universities, are not available to low-income simple Iraqis who suffer from great economic difficulties and challenges. To illustrate this, the cost of obtaining a seat at a private university for the Faculty of Dentistry is approximately $6,000 annually, while a small meal for one person at a resort costs 30,000 dinars. These expenses contradict the average monthly salary in Iraq, which amounts to 750 thousand dinars, as the general Iraqi public felt that they were a victim of the high prices of real estate, goods, and basic services. The price of a square meter in areas without electricity or water services in Baghdad reached more than $2,300.[/size]
[size=45]During interviews conducted with small business owners and investors in the private sector, they mentioned that difficult bureaucratic procedures interspersed with corruption and bribery in a complex economic environment pose challenges to the implementation of their projects. The complex procedures start from registering the company and paying the tax to dealing with the customs authority and logistical matters. The owner of a small technical project said that contradictory government decisions can greatly affect the implementation of such projects, especially in sectors that require frequent reviews.[/size]
[size=45]Even when it comes to influential international companies and commercial entities that want to work in Iraq, the procedures for doing so often pass through complex routine bureaucratic corridors and political interference as well, marred by cases of corruption and bribery that prevent the implementation of any project. The report indicates that the Al-Rafail City project on the outskirts of Baghdad is one example of such obstacles that hinder foreign investments in the country. When the Emirati company, Emaar, was chosen to work on the project, political interference and an attempt to pay bribes led to the obstruction of its participation. According to the latest report issued by the World Bank published under the title “Doing Business,” Iraq ranked 172nd out of a total of 190 countries with regard to procedures to facilitate doing business.[/size]
[size=45]The report indicates that the initiative, the White Paper, for economic reform has provided solutions to the obstacles facing commercial projects, represented by reviving the private sector and financial support for it by reducing bureaucratic procedures and supporting small and medium-sized business projects, but the methods of implementing these instructions were not effective in introducing these reforms. . As a first step towards economic reform, there must be transparency in the procedures for supporting the private sector and preventing political interference that prevents this from being implemented. The second step is to move to digital transactions in implementing and granting projects to put an end to cases of corruption and red tape that hinder the growth and prosperity of the private sector.[/size]
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