What will it take to bring back Growth in Iraq?

By Bledi Celiku and Wael Mansour, for the Brookings Institution. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The resource curse refers to the failure of resource-rich countries to reap benefits from their natural wealth.

Resource-cursed countries tend to be more prone to conflict, corruption, and economic instability. Competitiveness is eroded as the real exchange rate appreciates, growth is jobless, governments adopt pro-cyclical fiscal policies, commodity dependency intensifies, and vulnerability to external shocks increases.

There might be few deadlier curses than the combination of a corrupt government and a sick private sector.

Unfortunately, as a recent report shows, Iraq is afflicted with exactly such a curse.

The full report can be read here.

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