The role of the private sector becomes more prominent during crisis and economic hardship, as we have seen in the Kurdistan Region. As you are aware, Baghdad's decision to cut the Kurdistan Region's share of the federal budget, the war against ISIS terrorist organization, hosting more than 1.8 million Syrian and Iraqi refugees and internally displaced persons, and the drop of oil prices, all contributed to creating a major economic and financial crisis that has affected all aspects of life in the Kurdistan Region.
Due to these reasons, which are beyond our control, dozens of projects have been halted. As a consequence, jobs, businesses and the daily life of citizens have been hurt. However, despite these challenges, Kurdistan's economy is still functioning, thanks to the private sector. Tens of thousands of workers, which provide for thousands of families, are still working in the private sector.
If not for the budget cut, ISIS war, high number of refugees, which puts a huge financial burden on the government, and drop of oil prices, the Kurdistan Regional Government could have provided more support and coordinated better with the private sector, and could have had a stronger and more robust economy.
As we mention these reasons, we don't mean to say that we are free of any shortcoming. The weakness of our administrative system, high expenditures, multi-salaries, excessive hiring, and other faults in our administrative and financial management systems also contributed to the financial crisis. We need to admit that and address these issues. The financial crisis is a major challenge that is hurting the government and the people of Kurdistan Region and Iraq; however, it offers a golden opportunity to reform our administrative and financial systems. The Kurdistan Regional Government is very serious to make the best use of this opportunity to reform its systems.
Distinguished participants,
The Kurdistan Regional Government's vision for 2020, which has been drafted with the help of the World Bank, along with indicators and recommendations of the World Bank, which are in accordance with global standards and benefit investors and private sector, are an integral part of the Kurdistan Regional Government's policy to further strengthen the private sector in the Kurdistan Region.
If we examine the Kurdistan Regional Government's policy of supporting the private sector, we find that there has been major improvements in economic indicators between 2004 and 2013. For example, a year after the fall of Saddam Hussein regime in 2003, the unemployment rate was 10.4 percent, and it had declined to 5.2 percent in 2013.
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