The economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them. The economy of southern kurdistan global economic studies heshmati, almas on. The kurdistan region has a burgeoning economy built upon progressive economic policies and growing government transparency. Iraqi kurdistan largely escaped the privations of the last years of saddams rule and the chaos that followed his ouster in 2003, and built a parliamentary. Kurdish political, economic and social analysts with other experts on iraq and the kri. In turn, these are strongly influenced by its history, both recent and more distant. Kurdistan entered into a new phase as double economic sanctions were lifted, i. As such, iran should be able to provide more support to kurdistan than the united states. The kurdistan region of the republic of iraq kri is a constitutionally recognized semiautonomous region in northern iraq with a population of 5.
A period of higher oil prices offered iraq an opportunity to rebuild and tackle longstanding problems by improving some basics services. The oil and gas industry of the kurdistan region of iraq developed rapidly between 2007 and 20, described as the good days of the kurdistan regions economy. All links given in this fact sheet, however, including that to the. Value added by private iraqi banks operating in the kurdistan regioniraq.
The economy of iraq is dominated by the oil sector, which has provided about 99. The crisis emerged in 2014 after the federal government of iraq cut the kurdistan regional governments krg share of the national budget. However, the kurdistan regional government has faced a severe economic crisis since 2014, with falling oil prices and disruption to oil production. Kurdistan region economic development assessment ministry of. The impact of the independence of kurdistan global risk. History of kurds and kurdistan the kurdish people are an ethnic group that originated in the middle east. Puk patriotic union of kurdistan iraq founded in 1975 by jalal talabani, former president of iraq between 2005 and 2014, it is the second political party in iraqi kurdistan, along with barzanis kdp. Learn how the world bank group is helping countries with covid19 coronavirus. It is the local investors and companies who stay in the kurdistan region even during difficult times, gardi added. The ensuing economic downturn has resulted from a fiscal crisis, ongoing war in iraq, and political infighting. However, the kurdistan regional government has faced a severe economic crisis since 2014, with. Whats required for kurdistan to overcome its economic crisis. This onesided emphasis on the security situation is unfortunate because it obscures some of the most serious problems the region is facing.
Kurdistans current economic situation is a tale of three crises in confluence, embedded within the political dynamics of iraq and the kurdistan region. Iraqs contracts with major oil companies have the potential to further expand oil exports and revenues, but iraq will need to make. Iraqs largely staterun economy is dominated by the oil sector, which provides roughly 85% of government revenue and 80% of foreign exchange earnings, and is a major determinant of the economys fortunes. Both successes and challenges are tied to kurdistans economic development, and. Apr 26, 2016 kurdistan region historypoliticseconomic 1. Averting an economic meltdown in the kurdistan region of iraq. The economy of southern kurdistan global economic studies. Because kurdistan is landlocked, shutting its borders with iran and turkey and airspace through iraq could quickly lead to sharp spikes in prices or shortages of. Kurdistan s current economic situation is a tale of three crises in confluence, embedded within the political dynamics of iraq and the kurdistan region. Rudaw is a broadcast and digital news network based in the kurdistan region of iraq, publishing in english, kurdish, arabic, and turkish. Kurdish economic development in the context of conflict. The main objective of this research paper is to study the economic development of kurdistan region through diversification from oil to. Iraqi kurdistan is relatively less important to the united states than it is to iran, as the former has a host of other regional allies to call upon and is preoccupied by the need to confront other pressing problems around the world.
Kurdistan 7 essentials demographics the kurdistan region is composed of an ethnically diverse populace that includes kurds, arabs, assyrians, chaldeans, turkmen, and armenians. The role of natural resources in kurdistan regional. Furthermore, krg institutions and teams that contributed to the guiding document, kurdistan. The number of millionaires in the city of sulaymaniyah grew from 12 to 2,000 in 2003, reflecting the economic growth. Building the kurdistan region of iraq the socioeconomic. Even if kurdistan reaches a revenue sharing deal with the federal government of iraq, a true reform is needed to have a strong, prosperous kurdistan. Erbil, sulaymaniyah, and dohuk governorates, 200814 23 1. Pdf economic hub kurdistan region during the 2014 economic. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Since syria became mired in war, the region has become the. Like many oilbased economies, the regions economic booms and busts are heavily influenced by the oil sector. The kurdistan region, invest in democracy investment guide 2009.
Iraqs largely staterun economy is dominated by the oil sector, which provides roughly 85% of government revenue and 80% of foreign exchange earnings, and is a major determinant of the economy s fortunes. Sep 26, 2017 because kurdistan is landlocked, shutting its borders with iran and turkey and airspace through iraq could quickly lead to sharp spikes in prices or shortages of basic goods such as food and fuel. Iraqi kurdistans economy is a worse threat than isis. Iraq s hitherto agrarian economy underwent rapid development following the 14 july revolution overthrowing the hashemite iraqi monarchy, becoming the thirdlargest economy in the middle east by 1980. The countrys economy is gradually recuperating, with gdp expected to grow at 4. The administrative system in the krg is divided and yet to be unified. Investment opportunities span every sector, including oil and gas, electricity, agricultural and the service industries. Politics, economy, and ideology in iraqi kurdistan since 2003. President of kurdistan region statistics office, and dr. Jan 23, 2018 even if kurdistan reaches a revenue sharing deal with the federal government of iraq, a true reform is needed to have a strong, prosperous kurdistan that continues to be a beacon of stability in a. While the war against the islamic state continues to monopolize the headlines, the kri economy is seldom in the news.
Addressing structural weaknesses of the kurdistan regions economy. Iraq economy gdp, inflation, cpi and interest rate. The political economy of the kurds of turkey by veli yadirgi. The kurdistan regional governments krg response to this downturn. Learn more about the iraq economy, including the population of iraq, gdp, facts, trade, business, inflation and other data and analysis on its economy from the index of economic freedom published.
Due to relative security and peace in the region and more economically liberal and marketoriented policies, it has a far more developed economy in comparison to other parts of iraq. The kurdistan region has the lowest poverty rates in iraq and the stronger economy of the kurdistan region attracted around 20,000 workers from other parts of iraq between 2003 and 2005. Employing unpublished and published primary documents from british archival sources, published turkishenglishlanguage primary sources, interviews, and a large number of secondary sources, veli yadirgi traces the political economic history of the kurdish provinces of eastern and southeastern. Pdf the impact of the economic globalization on kurdistan. The future of kurdistan the washington institute for near. This report is a contribution to the public debate in the kurdistan region of iraq kri about crucial aspects of the current economic crisis and the kurdistan regional governments krg immediate response.
Pdf on jun 11, 2015, paiman ahmad and others published economic hub kurdistan region during the 2014 economic crisis find, read and cite all the. Mohamed president of kurdistan region statistics office, and dr. Calculating the gross regional product of the kurdistan region iraq. This is an important book that is exceedingly well written and thus deserves a wide audience. To name the economic system of the region is challenging. The kurdistan region, which has witnessed ongoing prosperity and security over the past decades compared to other parts of iraq, suffered a critical economic crisis from 2014 until 2017. Iraqi kurdistans economy is a worse threat than isis money talks if the semiautonomous government goes bankrupt, the war against the caliphate could go bellyup. There is a mixture of a command and control economy with a sort of market economy clearly dominated by politics. The krg also claims parts of adjacent governorates, including kirkuk. Kurdistan region of iraq the socioeconomic infrastructure a joint report by the krg ministry of planning and undp december 2012 ministry of planning kurdistan regional government. Addressing structural weaknesses of the kurdistan regions. The economy of the kurdistan region essential information since the liberation of iraq from saddam hussein dictatorship, abolishing the international sanctions on iraq and the sanctions on the iraqi government to kurdistan, the local economy is experiencing dynamic growth.
It is hoped that kurdistan regional government uses the recommendations from this economic development assessment eda to prioritized and implement these recommendations in a timely manner. Furthermore, krg institutions and teams that contributed to. The kurdistan regions economy is dominated by the oil industry, agriculture and tourism. The pdf versions can be viewed and downloaded from these links. Acdivoca, opportunities for agricultural redevelopment in the. The population of the kurdistan region is skewed young, with 36% aged 014 years and only 4% aged over 63. Outside of iraq, kurdistans great recession has attracted surprisingly little attention. The future economic challenges of kurdistan the majority of people in the kurdistan region are financially dependent on the government, which is itself dependent on oil income. The future economic challenges of kurdistan, kurdistan region. The economic systems of the kurdistan regional government. The article explores the role of the urban informal economy in povertyreduction, peacebuilding and development in postconflict city, and its scope to provide both livelihoods for the extreme poor and a platform for economic recovery. In march public employees received their full salaries for the first time in three years. The kurdistan region kr has the potential to achieve accelerated economic development and growth. Economy the kurdistan regions growth rate was 12% in 2012 and is predicted to reach 8% in 20.
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