Iraqi Ability for Economic Diversification and Methods of Avoiding the Rent Trap

Authors

  • Ibrahim Jasim Jabbar ALyaseri, Mohammed Klaf Abbas

DOI:

https://doi.org/10.17762/msea.v71i4.803

Abstract

Economic diversification in developing countries in general and rentier countries, in particular, has received significant attention because of its role in bringing about radical changes in economic and social institutional structures and expanding the monetary base. In Iraq, particularly since 2003, succeeding governments have been unable to accomplish economic progress in line with the material potential that Iraq possessed; instead, gradual and failing development has resulted. Iraq's economic institutions, similar to those in unstable, low-income nations, have not undergone significant structural reforms. Oil earnings instead contributed to the underdevelopment of the structure of other economic sectors, especially the agricultural and industrial sectors, rather than the development of the most significant productive sectors of the economy as a result of several challenges that impeded its development and caused its decline and collapse. Most of the time, there was no clear plan for economic growth, which had a detrimental impact on the Iraqi economy by causing a decrease in many of its key indicators and leaving it subject to variations in the global market brought on by changes in oil prices. Due to this reality, the government must work to develop and diversify non-oil economic sectors in a way that increases the sources of revenue for the overall budget. To do this, the government must create an economic development strategy that encourages economic diversification, eliminates reliance on a single resource, and prevents the continuation of the rent trap. This calls on the government to undertake a series of development policies and methods to reduce the rentier issue before addressing it.

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Published

2022-09-14

How to Cite

Ibrahim Jasim Jabbar ALyaseri, Mohammed Klaf Abbas. (2022). Iraqi Ability for Economic Diversification and Methods of Avoiding the Rent Trap. Mathematical Statistician and Engineering Applications, 71(4), 2440–2451. https://doi.org/10.17762/msea.v71i4.803

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Articles