The reality of the productive economic sector in Iraq: obstacles and reform policies

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The reality of the productive economic sector in Iraq: obstacles and reform policies

Abstract

All countries work to develop and grow their national economy, especially the development and growth of the real economy sectors. This is attributed not only to the importance of these sectors in forming the country’s gross domestic product (GDP) but also to the pivotal importance of these sectors that directly affect human needs, in addition to the fact that these sectors represent a significant financial resource for the state’s general budget. Therefore, governments of countries, especially capitalist ones, strive to rehabilitate and develop these sectors. In Iraq, the matter is somewhat different. Although Iraq has many components to advance and develop the country’s real economy sectors, the reality is different. Despite this importance, the sectors that represent the real productive economy in Iraq are still backward and suffer from great neglect. Policymakers in Iraq after 2003 relied on the financial abundance provided by the export of crude oil. Accordingly, successive governments in Iraq focused on developing the oil sector in extraction and marketing, neglecting all sectors of the country’s production Until the national economy became, with all its details, indicative of the extraction and export of crude oil. Instead, the state’s economic, financial, monetary, and commercial policies depend on oil revenues. This situation threatens the future of the national economy. Based on this, all specialists needed to think of real solutions and mechanisms far from utopianism to restore balance to the sound economic equation through the rehabilitation and development of the productive economic sectors in Iraq. This is precisely what our research will focus on, through investigating the causes that led to the decline in the contribution of the productive sectors to the Iraqi GDP to less than (6%)—and trying to propose a reform program after identifying the most critical challenges facing the real economy sector in Iraq.

Muthanna Journal of Administrative and Economic Sciences, 2024,Volume 14, Issue 4, Pages 58-70

DOI:10.52113/6/2024-14-4/58-70

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