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Iraq
| Beyond oil score(out of 100 points) |
33.0 |
| Index ranking(out of 26 countries ranked) |
22 |
| Overall status* |
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| General Economic Framework |
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| Political Framework |
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| Society and Future Skills |
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| (Beyond) oil related factors |
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According to the US energy information, Iraq contains 115 billion barrels of proven oil reserves, the third largest in the world (behind Saudi Arabia and Canada), concentrated overwhelmingly (65 percent or more) in southern Iraq. Estimates of Iraq's oil reserves and resources vary widely. Some high estimates (by institutes such as (the Baker Institute, Center for Global Energy Studies, the Federation of American Scientists), suggest that only about 10 percent of the country has been explored. Others estimates put forward by U.S. Geological Survey put Iraq’s oil reserves at closer to 45 billion barrels.
Beyond-oil investments to drive future growth
Eight years of war against Iran, followed by invasion of Kuwait, sanctions imposed by the UN which were followed by the allied invasion has caused hundreds of billions of dollars worth of damage to the Iraqi economy. This has meant that Iraq has not had the necessary funds to invest in its Beyond Oil infrastructure. Furthermore lack of effective Beyond Oil planning by the Saddam regime has meant that the non oil sector of the Iraqi economy has been ignored. This situation has not improved since the allied invasion, as bombing by the allied forces and attacks by terrorist organizations have destroyed Iraq’s infrastructure, and attractiveness as an investment destination. Although the allies have tried to rebuild Iraq’s oil infrastructure, if and when Iraq’s infrastructure is up and running, it will mean that due to absence of other alternatives, the Iraqi economy will become more dependent on oil, rather than less. Furthermore, due to the country’s massive rebuilding cost, it is difficult to see where the funds will be found for allocation to Iraq’s Beyond Oil infrastructure even when the economy is up and running. Meanwhile other problems threaten the viability of Iraq’s Beyond Oil economic future. Corruption is one of the major hindrances which block distribution of economic funds, and central authority. Transparency international has consistently included Iraq in its lower rankings. Also simmering internal disputes between Shiites, Sunnis and Kurds have hindered the political consensus required to set up an overseeing body to control Iraq’s oil and Beyond Oil economy.
Beyond Oil Summary
Iraq’s low ranking in the Beyond Oil index is text book example of how despite a high oil and gas reserve, a country’s Beyond Oil could still be in jeopardy in the absence of affective political management. Despite the fact that the allies have damaged Iraq’s infrastructure, the fact remains that much of Iraq’s economy was plundered by Saddam’s disastrous military adventures, and faulty economic plans, which spent billions of dollars on weapons, instead of development. Iraq of 2006 is one of the most unprepared countries for the day oil runs out due to lack of past and current planning. Although the newly democratic regime has done a good job of devising a political map for the future of the country, the same has not been done for the future of Iraq, especially for the day when oil, one of Iraq’s most precious economic resources run out. In that case, Iraq’s rulers better hope that the high estimates for Iraq’s oil reserves are proven correct, otherwise hard economic times are forecasted when oil runs out.
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Indicates high preparedness
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Indicates deficits but potential for development
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Indicates unfavourable preconditions.
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