An American analysis 'raises the alarm' .. 3 challenges facing the path of development in Iraq
[ltr]2021.05.07 - 18:28[/ltr]
[ltr]2021.05.07 - 18:28[/ltr]
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Baghdad - People
An American analysis shed light on three challenges facing Iraq, on the civilian side, that prevent reform of the political and economic conditions, and while noting the country's need for more jobs in the future, he stressed the importance of reducing public employees, in proportion to the actual need for them.
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The report, prepared by researcher Anthony Corrisman, and translated by the Independent Research Group, said, "The United States of America has allocated about 8 billion dollars to support its military and security operations in Iraq, including support and training of Iraqi security forces and the protection of the embassy. In return, only 75 million dollars have been allocated for assistance. The economic construction processes in Iraq, although the latter is no less important than the topic of now.
He added, "Although there is another budget allocated to help the United Nations mission in Iraq, provide some humanitarian aid and protect religious minorities, the fact remains that the American aid allocated to developing the religious aspects that Iraq badly needs is much less than the American security and military aid."
The text of the report follows:
Three major challenges facing Iraq on the civilian side
Demographic pressures
Population growth in Iraq is a major problem that has not been properly considered and handled. According to World Bank estimates, Iraq's population grew from 7.3 million in 1960 to 39.3 million in 2019 (more than five times).
And that the size of the available workforce grew from 3.97 million to 10.47 (less than three times) during the same period.
Meaning, the dependency ratio has increased dramatically. This means that fewer residents are responsible for providing for a greater number of young and old who are outside of working age.
This was accompanied by a clear shift in the economy of Iraq from a rural agricultural country to an urban country that depends on government salaries and trade.
In spite of all the wars that Iraq has fought for more than 40 years, the demographic pressure has been growing strongly.
Since the Iran war until the war to eliminate ISIS, the population of Iraq has more than tripled to reach about 40 million people now, up from 13 million in 1980, and is expected to reach 63 million by 2050.
These wars, which increased the economic problems of Iraq, as well as its social, administrative and political problems, accompanied by this increasing and continuous growth of the population, caused problems and double economic pressures.
These conditions helped to limit the growth of the average Iraqi income per capita in order not to match the same percentage in which the Iraqi oil exports grew.
It also limited the per capita share of other resources such as water and arable land, jobs and government services. This phenomenon also led to an increase in the levels of urbanization (migration from the countryside), and it created a very young people, which increased dependency rates so that every Iraqi worker is responsible for the support of approximately 6 persons. About 40% of the population of Iraq are under the age of 14 years and 50% are under the age of 19, and that the equivalent age in Iraq in Iraq is 21 years.
This has created a lot of pressure on the job market. According to the expectations of the CIA annual report, the CIA World Factbook, the unemployment rate in Iraq is currently at 25.6%, which is a conservative estimate, as the actual rate of unemployment in Iraq is expected to exceed 30%.
This was accompanied by a significant increase in the poverty rate, which, despite the many varying estimates, is not less than 25%.
The neglect of agricultural and water, accompanied by population growth in Iraq, has led to the devastation of the agricultural sector in Iraq, so that the percentage of arable and arable lands does not exceed 18.1% of the area of Iraq, there are 9% forests, and 80% are deserts and mountains.
The proportion of the rural population in Iraq is less than 30% compared to 70% urban. And that the percentage of urbanization is increasing annually by 3%. The contribution of agriculture to the Iraqi GDP has decreased to less than 3%.
On the other hand, the problem of the need to create new jobs in Iraq will increase dramatically. According to the World Bank, Iraq needs to create 5-7 million jobs by 2030. This increase, which ranges between 100-180%, makes the job and unemployment challenge a short-term challenge that increases the potential for political, social and economic instability, as well as the likelihood of youth emigration or being targeted by groups. Terrorist.
This problem will be multiplied if we know that the Iraqi government needs to reduce the number of its employees by half. The problem will also be complicated when we know that a large percentage of Iraqi youth do not possess the skills necessary for the job market. A third of Iraqis between 15-29 years of age are illiterate, a third of them have completed primary school only, 28% have completed secondary school or its equivalent, and only 8% have completed post-secondary education.
Ethnic and sectarian divisions:
On the other hand, Iraq and its system, which was established after 2003 on the basis of the distribution of power between the ethnic and sectarian components, suffers severely from these divisions and their reflection on its political system. In spite of the recent shift in the rift points from conflicts between sects to conflicts within sects, the struggle for influence and power still controls politics and prevents politicians from focusing on providing services to citizens and drawing long-term policies.
The political concern of the politicians has become how to obtain power, and this conflict has been reflected in Iraqi society, so that 64% of Iraqis believe that their country is divided and that only 10% of Iraqis trust each other. Despite the improvement shown in opinion polls in the percentage of those who consider themselves Iraqis compared to those who refer to religion, sect, or ethnicity, this division provided a suitable platform for investments and the mobilization of sectarian and ethnic divisions by political parties and armed groups.
The internal conflict in Iraq has added another dimension to the rift, represented by the clear differences in poverty rates between the traditionally poor Shiite regions and the newly impoverished Sunni areas on the one hand, and the richer Shiite and Kurdish regions. The wealth gap has also increased dramatically between families displaced as a result of the war on ISIS and other regions.
Governance, corruption, banditry
This is the third challenge facing the development and development in Iraq, as demographic pressures are only one part of the obstacles to civil and economic development. Poor governance, political division, and widespread corruption are what make all foreign aid to Iraq require strict impartiality before it is provided.
And as the 2020 World Bank report described the situation in Iraq, it is catastrophic and is still governed by ethnic and sectarian divisions, corruption and a loss of confidence in the state. The downturn and the pandemic exacerbated this tragedy.
The new system has destroyed the Iraqi professional bureaucracy and replaced it with a layer whose primary criterion in employment is loyalty. Public resources were also wasted according to the new system in three main ways:
- Distribution of government jobs among the parties based on loyalty
- Using government contracts to enrich those close to political leaders
C. Theft of budgetary funds allocated to ministries, either through personal embezzlement or transferring them to the ruling parties.
It is clear that the economic crisis in Iraq is linked to one of the worst and most corrupt systems of government in the world, and the World Bank figures show a significant deterioration in all indicators of good governance in Iraq since 2003, such as: corruption index, rule of law, ease of business, political stability, and government effectiveness, And accounting.
Iraq has become kleptocratic states (the rule of thieves). According to international reports, there have been 300 billion dollars of fake projects since 2003. More than half of the 50,000 private industrial projects are idle. More than 250 governmental industrial establishments are unemployed despite receiving monthly government aid.
In addition, bribery, favoritism, money laundering and misuse of public funds have become common practices at all levels of government.
Here you will find an indication of the recent efforts of the Al-Kazemi government to combat corruption represented in the committee that arrested 19 government officials, as well as the anti-money laundering department in the Central Bank that investigated 400 cases in 2019 and referred 34 of them to the judiciary.
However, Iraq is still classified among the high-risk countries in terms of terrorist financing and money laundering. It is also necessary to mention the efforts of the Al-Kazemi government to prevent smuggling and corruption on the Iraqi borders.
These three previous challenges must be emphasized, just as the security and military aspects of US-Iraqi relations are emphasized. This means that America must exert greater pressure on Iraqi officials to confront these challenges.
Despite the recent positive signs that the Al-Kazemi government has sent in facing these challenges, progress has been slow. It should be noted here that the Mayor of Baghdad, Manhal al-Haboubi, resigned on October 27, due to corruption.
The recent optimistic reports of the International Monetary Fund and the World Bank regarding the Iraqi economy as well as the efforts of the Iraqi government represented in the White Paper are still far from the above. Reform efforts must be extended to address problems of demography, corruption, good governance, and ethnic and sectarian divisions.
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