Foreign Ministers of Turkey and Iraq Discuss Accelerating ‘Development Road’ Project, 20 DEC
In a significant move for regional development, the Foreign Ministers of Turkey and Iraq, Mevlut Cavusoglu and Fuad Hussein respectively, convened in Ankara to discuss intensifying efforts on the ‘Development Road’ project. This ambitious initiative aims to construct an expansive network of road and rail routes stretching over 1200 kilometers, connecting the Iraqi port of Faw at the northern tip of the Persian Gulf to the Turkish border.
The ‘Development Road’ Project
Anchored in strategic connectivity, the project is often called Iraq’s ‘project of the future’. Upon completion, it will afford Iraq direct access to Europe, a milestone that is expected to significantly enhance the nation’s global standing. The venture involves comprehensive negotiations between Iraq, the United Arab Emirates, Turkey, and Qatar, underscoring its international significance.
With an estimated cost of $17 billion, the project includes a 745-mile railway and road network, set to be completed in three distinct phases. The target years for these phases have been marked as 2028, 2033, and 2050. Beyond its infrastructural implications, the project is a testament to the shared political will of Turkey and Iraq to strengthen bilateral ties and joint endeavors.
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Addressing Regional Threats
Alongside discussions on infrastructural development, the ministers addressed the threats posed by the PKK terror group, emphasizing the importance of security cooperation. The meeting highlighted their joint commitment to enhancing Iraq’s political unity, sovereignty, and territorial integrity.
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Implications for Iraq’s Economy
The ‘Development Road’ project is set to significantly impact Iraq’s economy. With non-oil GDP slated to grow by 5 percent in 2023, the new infrastructural connectivity could further fuel this growth. However, lower oil production due to the closure of the Iraq-Turkey pipeline and OPEC+ production cuts might pose challenges to overall GDP growth in 2023 and 2024.
The three-year budget approved in June 2023 signals a shift in Iraq’s budgeting practice. While the fiscal balance is expected to transition from a surplus in 2022 to a deficit in 2023, measures to ensure fiscal sustainability and strengthen public financial management are being considered. The project also aligns with the need for structural reforms to spur private sector-led economic diversification and job creation.
The meeting in Ankara was a significant stride towards the realization of the ‘Development Road’ project. This venture is not just about roads and railways, but about paving the path for a prosperous future of enhanced connectivity for Iraq and its partners.
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