Structural Distortions in the Iraqi Economy

Authors

  • Hasan Khalaf Radhi
  • Imad Ashour Mohammed
  • Ahmed saad Mutlag
  • Jamal Dawood Salman
  • Saad Abed Najim Al najm
  • Abdulkhudhur Salman Hamad

Abstract

The Iraqi economy relies heavily on the oil sector, with low contribution rates for other economic sectors to the GDP. Of course, this indicates fragility and weakness in the production structure due to the increasing dependence on the only rent resource, which is the oil sector, and this made it vulnerable to changes in prices supplier globally. The importance of the research comes from the fact that the conditions and wars had a clear impact on the collapse of the real economic sectors, not to mention the spread of the phenomenon of financial and administrative corruption, which became the main obstacle to economic reform policies, as well as a clear absence of economic planning and the desired development trends. The imbalance in the economic structure resulting from the income derived from the oil sector and the dependence of economic activities in financing on this resource only, made the national economy vulnerable to fluctuation and fluctuation of oil prices globally or subject to the influence of external factors, which led to a clear confusion in the financing of government budgets, and created a repulsive environment For investment and the flight of national capital abroad, therefore, the contribution of the private sector to the development process has receded, despite the economic openness that the national economy witnessed after 2003. On economic thought, development priorities, and the rules of the relationship between economic policy on the one hand and fiscal and monetary policies on the other hand... the fiscal policy has failed to perform its role in the economy, and the monetary policy's preoccupation with restoring the outputs of the confused fiscal policy made the process of coordination and interaction between the fiscal and monetary policies weak, which had an impact. negatively on their performance. Also, the poor financial management in Iraq, and limiting its role to distributing oil resources to meet life-sustaining requirements (such as salaries and operational requirements), the financial policy has lost its leading role and position in economic affairs, with its lack of many economic and financial information that enables the decision maker to take the right decisions that That would bring about a astate of economic development.

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Published

2023-01-31