Topic: Bypassing the Manufacturing Stage of Development
Country: Iraq
Delegate Name: Kevin Portinga
School: Grand Rapids City High School
Topic page: background guide and all position papers All Iraq position papers GLIMUN 2017 committees
As a nation struggling to create and maintain stable economic development, Iraq is on the front lines when it comes to transitioning economies. Plagued by political instability and terrorist incursions Iraq has largely been unable to provide investors with a secure private market where investors can feel confident in their investments. The exception to this is Iraq’s oil industry, which has been a driving economic force for decades. Both Kurdish and Iraqi oil companies have both benefitted Iraq’s economy greatly, and one of Iraq’s key goals in the coming years is to safeguard and expand Iraqi oil production and exportation. With that being said, Iraq is also painfully aware of the unsustainability of oil markets, especially considering the recent extreme drop in oil prices.
Despite instability in the oil markets, things are looking up for Iraq’s economy. Iraq entered into a Stand-By Agreement with the International Monetary Fund in 2016, with the IMF recently completing its second scheduled review. So far the IMF Executive board has found Iraq complied appropriately with the IMF, working to reduce money laundering and providing key anchors to the Iraqi dinar. With Daesh on the retreat Iraq and its Kurdish northern region are again gaining access to rich oil fields, which should hopefully counteract slowly rising oil prices. Along with the short-term benefits, the eventual expulsion of Daesh from Iraq will likely grant investors increased confidence in the safety and stability of Iraq private markets, spurring economic development in the nation. This economic development is severely needed, with an unemployment rate of approximately 16% in 2016. However, Iraq is wary of an immediate transition to a full service based economy, due to a 79% literacy rate and lack of widespread formal higher education in the country.
Iraq looks forward with working with the committee and its fellow nations in order to facilitate and jumpstart stable and strong economic growth in the countries that need it the most. However, Iraq also wishes to remind all delegates that the decision on how to grow those nation’s economies should not be made for the nations, and instead those nations should be given the tools and abilities they need to facilitate the type of economic growth best for their economy and country. Namely, Iraq would like to see Stand-By Agreements and similar loan opportunities amended to include a seal of investment stability given by the IMF at the end of the agreement if the country complies with the IMF’s terms and conditions and the IMF agrees it has taken appropriate action and worked prevent future fiscal crises.
