Millions of Iraqis are still living below the poverty line, despite the tremendous wealth that their country enjoys, which could make it ranks among the richest countries in the world.
Iraq is ranked ninth in the world in natural resources, as it contains about 11% of global oil reserves, 9% of phosphates, as well as other precious resources.
But most of Iraq's wealth has not been invested due to corruption, years of wars and political conflicts, amid calls to activate the exploitation of resources and revive the Iraqi economy.
Poverty rate in Iraq is about 25% of the total population, according to the Ministry of Planning (Al-Jazeera)
The poverty line
The poverty rate in Iraq is about 24.8%, according to the latest study conducted by the Iraqi Ministry of Planning in cooperation with the World Bank, in the second half of 2020, and this means that about 10 million Iraqis live below the poverty line, according to the spokesman for the Ministry of Planning, Abdul Zahra Al-Hindawi.
Al-Hindawi explained to Al-Jazeera Net that the southern governorates are still at the forefront of poverty rates, with Al-Muthanna governorate at the forefront of which is 52%, followed by Al-Diwaniyah Governorate with 49%, and Dhi Qar with 48%, then the rest of the governorates follow in different proportions.
Al-Hindawi: There are 10 million Iraqis living under the poverty line (Al-Jazeera)
Al-Hindawi added that the poverty rate has reached an average of 40% in the governorates of Anbar (west), Salah al-Din and Nineveh (north), due to its impact on the conditions of the war against ISIS, and the resulting displacement and devastation.
The poverty rate in the capital Baghdad was 13%, and in the Kurdistan region 12.5%, while in the central governorates, the poverty rate reached 18%, and Karbala and Najaf were the most affected by the repercussions of the Corona pandemic due to its heavy reliance on religious tourism.
Al-Hindawi points to security, economic, political and even social reasons that have led to an increase in poverty, as well as low oil prices, political conflict and rampant corruption.
And he talks about the government's orientation towards sectors other than oil, as Iraq has good development potential in agriculture and tourism, as well as manufacturing industries, border outlets and others, to improve the economic conditions in the country.
Al-Shamaa called for activating the sectors of mineral extraction, petrochemicals, manufacturing industries, agriculture and tourism (Al-Jazeera)
Iraq resources
Economist Hammam Al-Shamaa says to Al-Jazeera Net that crude oil constitutes about 90% of the revenues of the Iraqi state’s budget, while other imports are marginal in the form of taxes and customs revenues, and some revenues from the transport, communications and other sectors, and he called for activating the sectors of mineral extraction, petrochemicals, manufacturing industries, and agriculture. Tourism and services.
On estimating the wasted Iraqi wealth, he said that it is not possible to estimate the total financial value expected in the event that all resources are exploited, explaining - for example - that the value of 4 million barrels of crude oil is not less than 100 billion dollars. If we assume that half of this production is transformed into Petrochemical industries, which are worth 10 times the value of crude oil, meaning adding half a trillion dollars, other than other resources such as sulfur, phosphates, iron and mercury.
Iraq is the ninth in the world in possessing natural resources and contains about 11% of the world's oil reserves (Al-Jazeera)
Al-Shamaa adds that the value of the extraction sector may reach 800 billion dollars in the gross domestic product, and if the industrial sector reaches 15% of the GDP, it adds 150 billion dollars to the treasury, as well as agriculture and tourism can contribute 300 billion dollars each, while The service sector adds about $ 300 billion.
And he expresses his belief that the total contribution of the sectors will be about 1.8 trillion dollars, according to estimates, as the per capita income in Iraq becomes the highest in the world.
Yawar believes that having money is not sufficient to eradicate poverty and fill the needs of society, but rather it is related to good management and integrity (Al Jazeera)
Disrupting riches
It cannot be said that the governments did nothing or did not want to do what should be done for their people, but the problem lies in two things: integrity and management, in which Iraq has not reached acceptable levels, according to researcher and political analyst Kazem Yawar.
He adds to Al-Jazeera Net, "Iraq had budgets described as explosive after 2008 until 2014, but the economic and political situation did not improve at that time, and this is evidence that the presence of funds is not enough to eradicate poverty and fill the needs of society."
It is likely that the presence of little money, great integrity and rational and wise management are the key to solving economic, political and social problems.
On the other hand, Yawer notes that there are significant political influences that interfere with the work of Iraqi governments by regional and international countries, in addition to the problems of demarcating borders and common fields, Iraq's rights in the Shatt al-Arab waters, the problems of maritime trade ports, and power transmission lines.
The researcher and political analyst points out that Iraq is the country of oil and energy, and because of the state’s interference in the fate and management of these resources, we find that today it imports energy from abroad, and the world's major disputes over energy sources show their effects on the land of Iraq, for example between America and China, as well as the effects of America’s disagreements with Iran. Causing the restriction and paralysis of the Iraqi economy.
Yawar confirms that there are internal obstacles that hinder the investment of wealth, and are no less negative than the international and regional affairs, such as the proliferation of so-called economic offices of parties and movements, and even leaders of armed organizations, which have a negative and dangerous role in the deterioration of the Iraqi economy, and caused the poverty of large segments of the people. .
Al-Saffar confirmed that there is no law to eradicate and address poverty in Iraq (Iraqi Press)
Parliament's role
In turn, a member of the Finance Committee in the Iraqi Parliament, Dr.Ahmed Al-Saffar reveals that there is no law for the eradication and treatment of poverty in Iraq, and all that exists is attempts by the ministries of finance, planning and work to provide aid to the vulnerable and poor classes, and there are articles in the budget that try to do justice to these groups .
He explains to Al-Jazeera Net that the role of the House of Representatives in the advancement of the Iraqi economy comes through the enactment of laws, the most important of which is the Budget Law, which the Finance Committee made great efforts to adopt an economic and social vision, and includes economic goals that will move the economic sectors such as agriculture, industry and trade, as well as service sectors such as health, education, etc. .
Al-Saffar pointed out that the new budget included several articles in order to control non-oil resources, including obligating the government to "automate" (automate) border crossings, as well as the departments for collecting public money, of which less than 20% reaches the state treasury.
And stresses that the loss of these funds has a negative impact on the Iraqi economy and public revenues, and if this matter is reformed, the deficit will be reduced and more services will be provided in the areas of operating expenses and investment spending.