Iraq's Dysfunctional Elite

Maliki has exploited the failures and gaps of this system to create a shadow state that is loyal and responsive to him. He managed to maneuver this system and build strong personal influence within the security institutions, armed forces, independent institutions and Iraq’s judiciary.

In an oil-dependent country like Iraq, the executive branch tends to become stronger than the legislative branch because it manages more resources and more complex networks of patronage. But these measures have only intensified political conflict while failing to make the state more efficient.

Divided between Maliki’s camp, whose authoritarian disposition is increasing, and his rivals’ camp, whose only alternative is more "apportionment" politics, the political elite is evidently out of touch with the demands of average citizens. Maliki accuses his rivals of doing everything to hinder his government; his rivals say that the failure is caused by his policies. Their contest is more about finding a scapegoat and less about identifying new ways to address the state’s failure.

The problem overrides this short-sighted dispute among opportunistic politicians. It is rather about the way Iraq’s economy is working and the way in which the lack of strong institutions affects a responsible and wise management of the wealth. The Iraqi constitution stipulates: “Oil and gas are the Iraqi people’s property,” but the true story is different.

According to the UN Development Program, 75% of Iraqis identified poverty as the most pressing need, 79% of households rated electricity as "bad" or "very bad," and only 26% of the population is covered by the public sewage network. This, despite Iraq’s GDP growth from $20 billion in 2002 to $128 billion in 2012, thanks to growth in oil production, which accounts for 60% of GDP and 90% of government revenue.

For years, it has been repeated that Iraq is a rich state and a poor society. The path Iraq has taken has only confirmed this saying, despite the improvement in per capita income. Powerful political parties managed to extract their revenues through the networks of patronage they run within state bodies. One way to do so was by awarding governmental contracts to real or fake companies in exchange for bribes or commissions.

One example is the Ministry of Interior's $40 million contract with a British businessman, James McCormick, to import "bomb detectors" that turned out to be dressed-up divining rods. McCormick was convicted on four accounts of fraud in England, yet his devices were still used by Iraqi security. Some officials, including the prime minister himself, insist that not all these devices were fraudulent.

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