MACROENONOMIC TWINGES IN IRAQ AGAIN Cover Image

IRAK’TA YENİDEN MAKROEKONOMİK SANCILAR
MACROENONOMIC TWINGES IN IRAQ AGAIN

Author(s): Ceren Türkmen
Subject(s): Supranational / Global Economy, Economic history, International relations/trade, Political economy, Economic development, Present Times (2010 - today), Public Finances
Published by: Sage Yayınları
Keywords: Iraq; Macroeconomic fragility; Unemployment; Economic growth;

Summary/Abstract: Among the countries that have a coast to the Persian Gulf, Iraq, which is the third in terms of surface area, has been established on fertile lands where the Tigris and Euphrates rivers meet. In addition, its oil reserves and the economic potential it carries, emphasizes its geopolitical importance in the region. The wars and embargoes that have been subjected during the Saddam Hussein's government have largely prevented the unlocking of the country's potential. Security and instability issues depict the country's macroeconomic ecosystem since the US intervention that ended Saddam's rule (2003) and the Coalition administration and other local political wills that subsequently came to power could not significantly reduce ethnic or sectarian conflicts. On the other hand, despite the aforementioned structural-chronic problems, the Iraqi economy got to be one of the quickest growing economies in 2010-2013. The main locomotive of the country's economy is oil exports. Therefore, oil price volatility in global markets increases macroeconomic fragilities in Iraq. On the other hand, as the infrastructure and housing sectors are suffering from the ongoing wars and conflicts, they require a high amount of investment, and the government's strategy to develop sectors other than the hydrocarbon industry increases the country's investment needs. This situation attracts the attention of foreign construction companies, foreign investors and creditor institutions. However, in addition to the attacks of the radical ISID, possible military-political interventions between the USA and the Iran against Iran's plans to establish a Shiite state in the region, have started to increase the tension in the country.

  • Issue Year: 12/2020
  • Issue No: 45
  • Page Range: 58-65
  • Page Count: 8
  • Language: Turkish