Topic: Sustainable Economic Policy
Country: Iraq
Delegate Name: Hudson Yu
School: Williamston High School
Topic page: background guide and all position papers All Iraq position papers GLIMUN 2015 committees
In recent years, economic recession, poverty and inflation has plagued the global economy. With worsening economic issues, the world’s economy has questions that must be answered. First and foremost, is creating a sustainable economic policy that promotes economic growth while avoiding bailouts of failing economic sectors. Second of all, in most countries, government spending exceeds their tax deficit. These issues are growing in urgency and they must be resolved as soon as possible.
In Iraqi soil, our government has been avoiding foreign trade and investment in corporations overseas, but the economic system has been undermined by political uncertainty. Iraq is slowly being pushed to an economic recession. This is caused by two primary factors. First of all, The Islamic State, or ISIS is launching an invasion throughout Iraq. Controlling its spread has been very expensive and the war against terrorism has drained Iraq’s economy. Second of all, dropping oil prices has been painful for the economy of Iraq. Crude oil accounts for 84% of the Iraq’s exports, so needless to say, it is a centerpiece of the Iraqi economy. Iraq’s economic stability is critical to the stability of global oil markets since Iraq is the 4th largest exporter of oil globally.
However, Iraq hasn’t had any major corporate bailouts and in recent years, the oil industry has carried Iraq’s economy and restored economic stability to a historically violent country. However, after the Iraq war launched in 2004, Iraq’s economy took a huge hit. It has since recovered, but given the pressures ISIS applies and several other factors, Iraq is in need of financial support from more powerful western countries.
To add on to Iraq’s economic issues, their national debt has been steadily rising. The largest contributor to this issue is Iraq’s poorly enforced tax laws. Also, compared to many other countries, Iraq’s tax rates are relatively low, but in exchange for low taxes, the national debt increases. To resolve this issue, Iran plans to have enforce its tax laws and increase corporate taxes. With more tax revenue, Iraq’s national debt should steadily decrease yearly.
As of now, Iraq suggests that military aid is sent to stop the tide of Isis which has been ravaging the Middle East, and Iraq also requests financial aid to help wipe out the national debt. On a global scale, all countries are responsible for each other. For the advancement of the world and the advancement of our own countries.
