American report: great risks threaten the Iraqi economy because of its dependence on oil

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[size=52]American report: great risks threaten the Iraqi economy because of its dependence on oil[/size]

[size=45]Translated by: Hamed Ahmed[/size]
[size=45]An American report warned of great dangers that the Iraqi economy might be exposed to, attributing this to its continued dependence on oil at a time when the world is turning to renewable energies, criticizing the increased reliance on government jobs and the absence of private sector support.[/size]
[size=45]A report by the (Institute for Middle East Studies) in Washington stated that "the next few decades will be decisive for the Iraqi economy at a time when international changes are reformulating the energy sector."[/size]
[size=45]The report, which was translated by (Al-Mada), added that "the trend towards sustainable development and the goals of the Paris climate agreement and the associated efforts in areas such as renewable energy, climate change and environmental protection, would bring about a transformation in all this sector."[/size]
[size=45]He pointed out, "This will have an impact on all aspects of the economy in the country, from employment and work formulas to management style."[/size]
[size=45]The report expected that "these changes will cause a number of challenges for Iraq, especially if the country fails to take important radical steps to adapt to the transformation taking place in the energy sector."[/size]
[size=45]He pointed out that "oil-consuming countries, including the United States and the countries of the European continent, will reduce during the year 2035 their demand for oil and fuel to mitigate harmful emissions."[/size]
[size=45]The report noted that "the demand for oil will decrease, according to estimates, by the year 2050 by 70% from what it is now, at a time when the population of Iraq has reached 75 million people, in addition to the number of its current population, which is estimated at about 42 million people."[/size]
[size=45]He believed, "This situation heralds a looming crisis, with Iraq's economy continuing to rely heavily on oil imports, which constitute 94.4% of the state budget."[/size]
[size=45]And the report continues, “Iraq is still burning natural gas associated with oil production, whose lost financial revenues are estimated at about $2.5 billion annually.” He explained, "The process of burning associated gas in oil fields contributes to exacerbating the problems of climate change, environmental pollution and the spread of diseases."[/size]
[size=45]The report recommended, “The Iraqi government and the Kurdistan Regional Government to take serious action to address these problems and to prepare better for the upcoming changes in the energy sector and the transformation process taking place in this sector, while taking important steps in this regard.” And he added, “Among the proposals is to facilitate the process of engaging new young graduates to work in the energy sector and to exploit their energies in introducing modern technologies and applications in production processes due to the importance of this sector, especially the renewable energy sector, and the procedures for implementing this transformation.”[/size]
[size=45]The report finds, "This is a fundamental matter related to the management style aspect and enabling it to make better choices."[/size]
[size=45]And he stated, "Iraq needs to develop work in the energy market, especially in the field of renewable energy, and the transformation taking place in this sector."[/size]
[size=45]And the report added, “This is done by facilitating the process of hiring graduates of transformational sciences, technology, engineering and mathematical sciences in the energy sector.”[/size]
[size=45]And he stated, "These graduates face difficulty entering the energy labor market, and this matter helps bridge the gap between educational institutes and the energy sector."[/size]
[size=45]The report talked about "the possibility of developing the skills of these young people, training them in the technology of renewable energy projects, and providing financial allocations for these projects."[/size]
[size=45]He continued, "The Central Bank of Iraq launched, in January 2022, a financial initiative with a capital of $685 million to encourage renewable energy projects, and in order to expand financing for clean energy projects."[/size]
[size=45]The report stressed, “the importance of involving other governmental and private banks in financing clean energy projects, and that there be funding sources available for young people and graduates of science, technology, engineering and mathematics faculties to employ their energies in this field.”[/size]
[size=45]And he concludes, by the need for “the authorities in the country to work to put policies, legislation and capabilities in place to create an appropriate environmental system that would develop the growth of the commercial and economic side in the non-traditional energy sectors.” The better administrative aspect will help create opportunities for sustainable development, which includes the continuation of commercial work and making it easier for the youth segment to enter this work sector.[/size]
[size=45]And the report added, "If the concerned authorities fail to keep pace with developments in this field at the world level, the Iraqi economy may face great risks in the future."[/size]
[size=45]He added, "These risks are represented in the absence of opportunities to diversify the sources of the economy and the increase in reliance on unproductive government jobs, which adds another burden to the state's expenditures."[/size]
[size=45]The report believes that "the results will be painful, especially for young people, and may lead to cases of displacement, migration, conflicts and social instability, exposing society in general to risks and difficulties."[/size]
[size=45]For: Middle East Institute for Studies[/size]
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