Diversifying Iraq's Economy And Combating Corruption Is A Path Towards Sustainable Economic Growth, 27 FEB

 Diversifying Iraq's Economy And Combating Corruption Is A Path Towards Sustainable Economic Growth

Posted On 02-27-2024 By Sotaliraq  Translated by / Hamed Ahmed  A report by Frontier Post, the economic website, pointed out that the elements for the prosperity and growth of Iraq’s economy in a sustainable manner lie in several main factors, the most important of which is diversifying the sources of the economy, combating corruption, enhancing confidence in attracting investments, and strengthening the private sector, which helps the country reduce its dependence on oil towards a more prosperous economic future.

The report indicated that the Iraqi Parliament, in its drive towards achieving development in the country, voted last year on a record budget for a period of three years from 2023 to 2025, with a total value of approximately 198.9 trillion Iraqi dinars ($153 billion), which will provide funding for important infrastructure projects.

Long years of neglect and lack of investment have called for an urgent need to rebuild dilapidated infrastructure and repair and modernize necessary service facilities such as roads, bridges, schools and hospitals.

The report states that by giving priority to the development and development of infrastructure, the country is preparing a launching pad towards economic prosperity and providing room for the private sector that would provide job opportunities that contribute to the process of economic growth.

Another important aspect that the report pointed out is the government’s strict approach towards an anti-corruption campaign, as the corruption factor hinders development and weakens confidence in state institutions. It leads to the depletion of public funds, which hinders the financing of important service projects, and at the same time constitutes a frustration factor for investors, creating an unencouraging business environment for them.

Therefore, anti-corruption efforts are a fundamental pillar of good management, as strengthening accounting, accountability and transparency is a factor that attracts foreign investments that enhance the country's economic growth.

Another important factor in promoting sustainable economic growth in Iraq is to focus on the need to achieve economic diversification of the country's resources, and this was represented by ambitious initiatives to attract foreign investments and form international and regional economic partnerships. Among these initiatives is the Development Road Project, which would enhance the importance of the diversification of the Iraqi economy, and it represents a vital step in Iraq’s journey towards economic diversification and communication with the economy of the outside world.

This project has two benefits: reducing the country's dependence on oil revenues and enhancing, at the same time, Iraq's position as an important station for international and regional trade.

The fact that Iraq occupies an important geographical location linking the Gulf, Asia and Europe, thus provides an important corridor for transporting goods through this project between Europe and Asia, which constitutes an important factor towards a prosperous economic future.

By developing modern transportation infrastructure and logistical support networks, the country's ambition for this project includes the flow of commercial lines, reducing expenses, enhancing efficiency, and thus attracting investments that promote sustainable economic growth.

The report indicates that partnerships with global economic powers and investment companies indicate the country's direction towards strengthening international cooperation that is beneficial to both parties, and through this Iraq can transfer expertise, resources and advanced external technological technologies that contribute to enhancing its goals in economic development. ‘

The report states that as Iraq seeks to enter into joint infrastructure projects and investments and exchange technology, it will reap multiple benefits that go beyond abstract economic benefits. The country can obtain the latest technology and the best solutions, thus enhancing Iraq's capabilities towards achieving sustainable development and achieving external economic competition.

Other benefits of this economic cooperation are the transfer of knowledge, the enhancement of local skills, and the development of human resources, which in turn strengthens Iraq’s economy and builds more sustainable economic components that can withstand future challenges.

The report stressed that by giving priority to development, fighting corruption, and promoting foreign investment, Iraq is setting a road map for sustainable growth and a prosperous economy. The more the country seeks in its efforts to carry out economic reforms and renewal, this is considered a pillar of hope for a strong economy. ‘

The Iraqi government's officials, economists, and economic advisors have expressed their concern about the future of the country's economy, focusing on the need to achieve diversification in the sources of Iraq's economy in order to confront any future shocks related to the fluctuation of oil prices and the possibility of their decline, and to have sustainable sources of financing other than oil resources. LINK