The current policies may cause an economic crisis equal to what happened in Lebanon after the sharp drop in oil prices, the budget deficit, and the delay in paying salaries.

The current government has been working on immediate economic reform to push the financial crisis for some time. It has started some changes, including the deductions of double salaries, seeking borrowing internally and externally. However, all these measures may not help the current or future government avoid a real economic crisis that pushes the country to collapse. There is not yet a concrete strategic plan that can help to overcome this crisis.

Iraqis have always faced crises in different periods like what happened after the United Nations Security Council issued economic sanctions against Iraq in 1990, which lasted for years. They have adapted to a way of life to interact smoothly with the crisis. The situation is different now. The economy is still rentier, and the public budget suffers from many problems due to sluggish employment, massive government spending, and high population growth. Getting used to a different lifestyle than before will mean the increase in the payment of other bills, including water, electricity, and housing expenses.

Download PDF