Wednesday, September 11, 2024

DINAR REVALUATION REPORT: Understanding Between the Iraq Federal Government and the Kurdistan Regional Government in 2024, 12 SEPT

 Understanding Between the Iraq Federal Government and the Kurdistan Regional Government in 2024

The relationship between the Iraq Federal Government and the Kurdistan Regional Government (KRG) in 2024 is complex and multifaceted, marked by ongoing negotiations and disputes over key issues such as budget shares, elections, and oil autonomy.     

Political Dynamics and Governance

In 2024, Iraq continues to face challenges in governance, with a weak state structure influenced by non-democratic forces and a power system dominated by ethnic-confessional elites.  Mohammed Shia’ al-Sudani, the prime minister since October 2022, had difficulties in finalizing his cabinet, reflecting internal political tensions. The KRG, under the leadership of Masrour Barzani, has been seeking to strengthen its economy and renew its relationship with the federal government. 

Disputes Over Budget and Elections

A significant point of contention is the KRG's share of the federal budget. President of the Kurdistan Region Nechirvan Barzani has met with Iraqi leaders to address this issue, aiming for a consensus on budget allocations.  Additionally, the electoral process in the Kurdistan Region has been impacted by legal challenges. In 2024, the Iraqi Supreme Court ruled that the 11 seats reserved for religious and ethnic minorities in the Kurdistan Parliament are unconstitutional, leading to the postponement of regional elections scheduled for June 2024. 

Oil Autonomy and Legal Rulings

Oil remains a critical component of the Iraqi economy and a source of tension between Baghdad and Erbil. The Federal Supreme Court of Iraq has ordered the KRG to hand over all oil and non-oil revenues to the federal government, a move seen as another blow to the region's oil autonomy.  This ruling has implications for international oil companies operating in the region, as it changes how they operate and negotiate contracts.

Security Cooperation and Interstate Relations

Security cooperation between the KRG and the federal government has improved due to the presence of fighters from the Kurdistan Workers Party (PKK) in Sinjar. However, this has also escalated conflict with Peshmerga forces affiliated with the Kurdistan Democratic Party (KDP).  External threats, such as attacks by Türkiye and Iran on the PKK inside Iraqi territory, pose additional challenges to regional stability. 

Conclusion

The understanding between the Iraq Federal Government and the KRG in 2024 is characterized by a series of negotiations, disputes, and legal rulings. Key areas of contention include budget shares, electoral processes, and oil autonomy. Security cooperation and external threats also play significant roles in shaping the relationship between the two governments.

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