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Crisis management

When it was announced that the Arab League summit would take place in Baghdad, many leaders expressed concerns for the safety of the event. Now, several months later, the tables have turned in the Middle East, and some of those leaders are facing a much more hazardous situation at home.

It has been some time since so many crises affected the region. Many companies have been caught on the back foot. Those who were comfortable to work in relatively crime-free Libya found themselves in a war-zone overnight. Tourists in Tunisia, Egypt and Bahrain were presented with chaos at the airport and the risk of violence in the streets. Firms have abandoned properties and employees found themselves stranded in compounds, unable to organise a proper evacuation.

Protests have taken place in Iraq like elsewhere in the region, but they are not having the same impact on commerce. The underlying grievances such as unemployment, impoverishment and a lack of services are as much of a concern here as anywhere else, but private companies have not been significantly affected.

One of the reasons they will not be as badly affected as firms elsewhere in the region is readiness. Companies operating in Iraq (should) have a series of measures in place to mitigate risks. Crisis management is much more likely to be part of the everyday culture of a firm working in the country. The security environment has necessitated it.

Nonetheless, now may be an opportune moment for companies to re-assess their crisis management procedures.

Contingencies

Having contingency guidelines in the first place is a good step. However, it is no use to have them stored in a document, gathering dust on a shelf. They need to be in the minds of people on the ground and even support staff outside of the country. In the event of a crisis there will be little time to read a book. Actions will need to be swift and fluid, by both those initiating crisis response steps in the country, and those with the responsibility of assisting them from outside of the country - such as travel planners, health and safety officers and even those with the responsibility of liaising with employee families. The only way to ensure fluidity is to undertake training and to practise measures on a regular basis, amongst all of the members of staff who will be involved in a crisis when it takes place.

If you have to get out

Evacuation plans should also be reviewed. Many companies will already have evacuation cover in place, but contracts should be checked in light of recent events. Examine the small print of your cover document, because many providers will only guarantee evacuation from the nearest safe airport. In crises in Libya and Egypt these airports were often in another country, which proved little use for employees stuck in gridlock in Cairo or worse - left stranded in the Sahara desert. Measures need to be in place to organise an evacuation by other means, such as boat or car.

Contracting firms should also review how their contingency plans will fit in with those of their client. With more than one organisation operating on a rig it should not be assumed that security will be provided by the largest company. This is often not the case, and certainly should not be something given over to chance.

Evacuation procedures will also vary from company to company, depending on their personnel, activities, location and resources. Evacuation plans therefore need to be bespoke. There is no one-size-fits-all contract that companies can sign and hope for the best. An energy firm with staff in the desert will have completely different evacuation requirements from a hotel firm in a busy tourist resort, or a banking office, construction company or consultancy firm.

Working towards managing a crisis is no easy undertaking. It can be costly and time consuming and will be an entirely different process for every company.

The Benefits

However, crisis management works, and while it has been less documented in the news there are numerous firms that managed to escape the situations in Libya and Egypt at the appropriate time. With a speedy response to the emerging crisis they were able to evacuate their personnel on a standard flight at standard cost before conditions deteriorated. Those that were less prepared and did not react in time were faced with either locking down and staying put or risking dangerous road movements and the elevated cost of chartering a plane once the situation had deteriorated.

Crisis management preparation quickly became a more cost effective policy than simply waiting to respond to a crisis if and when one arose. Furthermore, in the event that employees suffer harm the cost can be unquantifiable. You cannot put a value on the impact on their family, or indeed a company's reputation.

There are no quick solutions and crisis management should be regarded as a long-term process. Nonetheless the potential benefits in the event of an emergency can be immeasurable. The cost of a crisis can very quickly outweigh the cost of mitigating a crisis, and the impact on company staff, assets and reputation can be irreparable.

As such, firms need to begin implementing measures sooner rather than later because if contingency plans are only reviewed when a crisis is taking place, it may be too late.

John Drake is a senior risk consultant with AKE Group, a British private security firm working in Iraq from before 2003. For further information on crisis management please contact [email protected].

You can obtain a free trial of AKE’s intelligence reports here http://www.akegroup.com/intelligence/trial-subscriptions.php

You can also follow John Drake on twitter at www.twitter.com/johnfdrake

www.akegroup.com/iraq

By Tariq Abdell, Iraq’s political risk analyst, and Founder & CEO of Mesopotamia Insight.

The opinions expressed here are those of the author, and do not necessarily reflect the views of Iraq Business News.

In light of ongoing socio-political changes in MENA region, Iraq's massive protests, from Zakho to al-Faw, accentuate the political astuteness and the frustration of the Iraqi people with their elected officials. Disenfranchised Shiites, Sunnis, Kurdish, Arabs, and Christians are all demanding the same: an end to ethno-sectarian quota-sharing system, corruption, and, most importantly, universal access to basic services such as potable water, electricity, housing, education, healthcare, and jobs.

Nonetheless, given the legitimacy and urgency of the protestors' demands, the government nebulous responses (halving of some officials' salaries, 100-day ultimatum to incumbent ministers, boosting food ration with extra cash, etc...) are mere cosmetic measures to allay people's frustration and anger. Unarguably, the cumulative effects, hitherto, of the elected officials' ineptitude and schism are protracting decades of erroneous policies and, subsequently, the people's tribulations. Impelling the majority of the Iraqi people to question the legitimacy of their government and the effectiveness of its institutions, a dangerous threshold that could hastily throw the country back into its darkest years of sectarian violence and lawlessness.

Notwithstanding Iraq's colossal energy resources, billions of oil and natural gas reserves, Iraq fragile democracy and ineffectual institutions, in a restive region, are the breeding ground for societal and political upheavals and foreign interventions. In fact, Iraq's daunting and intricate challenges are both internal and regional:

Internal challenges:

• Lack of basic services, e.g., six million people with no access to clean water -UNICEF.
• 20 to 25 percent of Iraqis still live below the country’s poverty line.
• Unemployment rates hover around %18, notably among military-age male population.
• Higher illiteracy rates, exacerbated with massive brain drain, are eroding Iraq's skilled and professionally literate workforce.
• Rampant corruption and nepotism undermine the efficiency of the State institutions.
• Inequitable distribution and mismanagement of oil's revenues - no hydrocarbon law.
• Parliament still faces a backlog of sensitive issues.

Regional challenges:

• Given the region new geopolitical developments, heightened tensions between Iran and Saudi, Iraq could easily turn into a sectarian proxy war battleground - Shiite Vs. Sunnis.
• The fallouts of Iran's nuclear standoff with the West could easily spillover to Iraq’s already contentious politics and further undermining its stability.
• Given Kirkuk's enormous oil reserves and ethnic diversity (Arabs, Kurds, and Turkmen), it's protracted dispute is a timed bomb, which could expeditiously reignite Iraq's civil war.
• Turkey’s recurrent incursion into Northern Iraq in the pursuit of the Kurdish workers party (PKK) elements and PKK assiduous attacks on the northern oil pipelines are a major threat to the country’s resources and sovereignty.
• Given the hostile intentions of some neighboring counties, the U.S. planned troops withdrawal, by the end of the year, could further jeopardise Iraq's defense capabilities.

Thus, given the enormity and complexity of the aforementioned challenges, Iraq only viable mean to fend off political instability and chaos is to renounce its sectarian-based policies and espouse an inclusive and genuine democratic system that heads to the people aspirations and protects their rights (UN Universal Declaration of Human Rights). Furthermore, both the government and opposition ought to consolidate their efforts to bolster accountability, eradicate corruption and, subsequently, strengthen the State institutions, an essential prerequisite for a rapid socio-economic recovery. To this end, the new government’s long-term vision should entail an action plan that reflects the country strategic and pressing priorities, namely:

• Genuine national reconciliation to overcome sectarian and political schism and violence.
• Overhauling of State institutions to rein in corruption and enhance efficiency.
• Merit-based appointments to promote efficiency and accountability.
• Providing access to basic services (e.g., potable water, electricity, running sewer, etc)
• Equitable distribution of oil revenues.
• Investing in human capital through education and training.
• Job creation to fend off societal and political unrest (Organized crime, for instance).
• Advancing the principles of human rights and rule of law.
• Diversifying and reviving of Iraq' strategic industries to curb its dependence on a single commodity - fossil fuel.

Conversely, in the absence of a comprehensive and inclusive socio-economic development strategy, aiming at strengthening State institutions, eradicating corruption, and addressing the aspirations of the Iraqi people, regardless of their political and religious believes, Iraq may revert to its darkest years of sectarian violence and lawlessness (05-07), giving regional players (Iran, Saudi, Turkey, Syria) a free hand in Iraq's affairs - exploiting Iraq's vulnerabilities (Shiite-Sunni strife, for instance)- to further their national interests and, subsequently, turning Iraq into a prime battleground for proxy wars, or worse, a pariah State. Simply put, “a house divided against itself cannot stand” Abraham Lincoln.

The opinions expressed here are those of the author, and do not necessarily reflect the views of Iraq Business News.

The author, Tariq Abdell, Iraq's political risk analyst, and Founder & CEO of Mesopotamia Insight

He can be contacted at: [email protected]

or

Followed on twitter: http://www.twitter.com/atariqx

An economist from the Central Bank of Iraq (CBI) has said that per capita income in the country is projected to more than double within the next four years as a result of a sharp increase in Iraq’s oil output and higher market prices for oil, according to a report from RFE/RL’s Radio Free Iraq (RFI).

Majid al-Suri told RFI that per capita income in Iraq is expected to reach $10,000 by the end of 2015 compared with about $4,500 at present.

He said the projections are based on data provided by the Oil Ministry showing that oil contracts signed with major energy firms such as ExxonMobil, Shell, and BP will boost Iraq’s oil production to an estimated 12 million barrels per day, including 3 million barrels that will be used domestically.

But he said he does not expect the considerable increase in oil revenue to guarantee proportionally higher living standards for the populace due to the “rampant corruption” in the country and the “mismanagement of public funds.”

Iraq affairs analyst Bassim Jamil Anton told RFI that emphasis should be placed on promoting other economic sectors to help increase Iraq’s per capita income rather than putting all of the country’s development prospects on the oil sector.

He said Iraq can only hope to match the prosperity of its oil-rich Arab counterparts with growth in such potentially promising sectors as agriculture and tourism and by attracting foreign investment.

Anton said that despite the continuing terror attacks in some parts of Iraq, economic progress is being made and the number of Iraqis living below the poverty line is projected to decline in the coming years to some 5 million people from the current 7 million.

He said that in the meantime, the government’s priority should be lowering the country’s high unemployment rate of 30 percent.

(Source: RFI)

The parliamentary economic committee will oversee all commercial contracts signed by the Trade Ministry in order to eliminate corruption, a committee member announced today.

Salman al-Moussawi told AKnews that the intervention of the commission is backed by the government in a bid to accelerate the work of the ministry and negate the possibility of fraudulent contracts being signed.

“The Parliamentary Economic Committee will hold weekly talks with Ministry directors to ensure the smooth distribution of ration card items without any delays,” he said.

Moussawi said the committee will also ensure the quality of the food items bought by the ministry for distribution under the system.

The head of the economic committee warned in February his committee’s intention to summon the Iraqi Trade Minister, Rozh Nouri Shaways [Roz Nouri Shawes, Roz Nuri Shaweis], and connected officials over the failings of the ration card system.

Ahmed al-Alwani told AKnews at the time that the Commission would demand disclosure of the accounts relating to the controversial ration card and a detailed explanation of funds allocated and the way they were spent.

“The commission will take serious stance on this issue to ensure that the money spent corresponds to the ration card items and covers all the provinces without exception," Alwani said.

Last year the Trade Ministry announced cuts to the ration card system that provides economically challenged Iraqi families with cut price staple food items. The cuts effectively reduced the scope of the subsidies to include just four items; flour, sugar, cooking oil and rice.

Overview

Conditions continue to worsen in Iraq, with civil unrest gripping cities from Arbil in the north to Basrah in the south over the past week. As well as demonstrations in Kurdistan there has also been a lesser reported rise in ethnic tensions around the city of Kirkuk. The past week has also seen a spate of incidents running along a belt of towns from eastern Anbar province to western Diyala province in the centre of the country. The south has also seen a scattering of militant activity, comprising of bombings and rocket attacks, primarily targeting US military interests.

North

In the ethnically divided city of Kirkuk there has been a rise in clashes between armed Arab, Kurd and Turkmen residents over recent weeks. At present Arab and Turkmen sensitivities are being exacerbated by the presence of a significant Kurdish Peshmerga security force on the northern boundaries of the city. The Kurdish authorities state that the force is in the area to maintain stability but many non-Kurdish residents fear the force has ulterior motives as it patrols the outskirts of what many regard as a rightfully Kurdish city.

Discontent with unemployment, nepotism and a lack of political reform continues to prompt demonstrations in Kurdish cities in the north. The response from the authorities has been to deploy Peshmerga forces to restrict traffic and control crowds, occasional resorting to the use of violence to achieve this. However, political concessions will have to be made if the demonstrations continue and become more violent.

Finally, the Kurdistan Workers’ Party (PKK) released a statement on 28 February announcing it had called-off a six-month ceasefire, raising fears of renewed violence in the Qandil Mountains. However, if the coming weeks see a rise in clashes it is not likely to affect the majority of business interests in the region. Activity will likely remain concentrated around isolated parts of the border.

Centre

Like many parts of the country, the central provinces saw bouts of unrest over the past week, particularly on Friday. However, the majority of incidents did not involve fatalities, unlike the protests in the north and south of the country. Indeed the imposition of heightened security measures in Baghdad meant that overall violent activity was particularly low in the city.

Violent Unrest in Iraq

Unrest aside, however, the central region was blighted with a number of more bloody terrorist attacks over the course of the week. A series of suicide bombings left numerous people dead, with the police suffering the majority of attacks. Several shootings also targeted individuals deemed to be pro-state and anti-radical, such as Sahwah members and at least one mosque imam. In the end, it was the bloodiest week in the central province since Ramadan in 2010.

South

Even the more quiet south of Iraq saw its share of violent protests last week, with a fatality reported at a rally in Baghdad and numerous injuries in Amarah (Maysan province) and Nassiriyah (Dhi Qar province). Three bomb blasts were also reported around Basrah city, with armour-piercing devices used on at least one occasion. The majority of targets were US military convoys, although private security vehicles – and by default the clients they escort – are also at potential risk, particularly if they travel high profile. Blending in with the use of low visibility vehicles may be a more preferable option in the region.

AKE ltd

John Drake is a senior risk consultant with AKE Group, a British private security firm working in Iraq from before 2003. Further details on the company can be found here

You can obtain a free trial of AKE’s intelligence reports here

You can also follow John Drake on twitter at www.twitter.com/johnfdrake

By T. Keyzom Ngodup, co-founder and Executive Director at Ideas sYnergy, an Iraq based private sector development consulting company.

Recent demonstrations across the country in Sulimaniya, Kirkuk, Basra, Kut and other provinces are indicative of the growing disenchantment among the youth who are often jobless or underemployed despite Iraq’s tremendous oil and gas resources. According to the Iraqi Ministry of Planning and Development Corporation, unemployment is estimated at 35-40% as of 2009.

Drawing parallels from similar resource-based countries, oil & gas sector’s contribution to GDP is among the highest while contribution to employment as a percentage is as low as 1%. Historically, resource-based economies have made clear attempts to diversify their economies through focus on niche markets or exploitation of relative advantage, both in real economy and in financial markets. Supporting the development of micro, small and medium enterprises (MSMEs) has been inherent to economic diversification and employment generation.

MSMEs are recognized as the engine of economic growth and for their role in promoting equitable development. Globally, they constitute over 90% of total enterprises in most economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. In Iraq, the exact number of MSMEs and their characteristics are largely unknown, however it is estimated that there are over a million MSMEs, most of them operating informally, and contribute almost two thirds of private sector employment. Despite their rapid growth in recent years, MSMEs face two major obstacles: access to sustainable financing (Iraq ranks 168 out of 181 countries in ‘Ease of Getting Credit’) and access to business development services. Donor agencies such as USAID Economic Development Program Tijara, UNDP Private Sector Development Program among others are attempting to address these gaps, however progress has been limited due to lack of scale, albeit the aforementioned interventions have generated positive attention from local and federal governments. Government of Iraq’s Ministry of Labor and Social Affairs (MOLSA) launched a nation-wide micro-credit scheme in 2007 targeting unemployed youth, however without a sector development approach to improving the overall ecosystem within which the MSMEs operate, all interventions will generate short-lived results without sustainable impact.

Iraq’s ‘Ease of Doing Business’ ranking at 166th is indicative of the difficult bureaucratic registration procedures for MSMEs. In addition, current supply of credit through 12 NGO Microfinance Institutions (MFIs) and SME Lending Units at 14 private banks, supported by USAID-Tijara, outstrips demand. MSMEs require better access to financing and BDS––this includes the deepening and development of financial markets (e.g., improved banking services, venture capital and SME financing) along with systemic improvements in the provision of non-financial business services. Please click here to see a diagram of the challenges in a MSME’s lifecycle.

Despite absence of conducive regulatory environment, business infrastructure and scalable financing mechanisms, Iraqi MSMEs have demonstrated an ability to thrive and provide a basis for the expansion and diversification of the economy. Ideas sYnergy, a recently established multiple bottom line consulting company focused on inclusive private sector development in Iraq, aims to support the creation of MSME lobby clusters/groups in a range of sectors. Ideas sYnergy will work in partnership with ‘enablers’ to build collective capabilities of MSMEs and a wide array of knowledge products towards comprehensive understanding of the MSME landscape in the country.

In world-acclaimed economist Thomas Friedman’s words, ’20-year-olds’ are one of the three major sources of change in today’s world against forces that are upholding the status quo. The Government of Iraq has an opportunity to listen to Iraq’s youth and create opportunities towards building an inclusive economy, where no one is left behind.

T. Keyzom Ngodup is co-founder and Executive Director at Ideas sYnergy, an Iraq based development consulting company committed to economic and social development through market-based solutions that help build and scale innovative businesses for sustainable and inclusive private sector development.

With popular uprisings sweeping across the Middle East in recent weeks, Iraq too has seen its share of protests, but the focus here is different. Rather than trying to bring down the (elected) government, the people are expressing their anger at problems such as unemployment, sub-standard public services, scarcity of food, and the corruption and cronyism at the heart of the problem.

It has surprised many that Sulaimaniyah, with its relatively good public services, has been the main hotspot for demonstrations, but protesters here allege that the PUK and KDP have a strangle-hold on the economy.

Government action, such as cutting ministerial salaries and deferring the purchase of F-16 fighters in order to buy food, has not been enough to quell the anger. A 'day of rage' has been planned for tomorrow (Friday), with a major protest expected in Baghdad.

But perhaps most surprising of all is the apparent U-turn from Shia-ite leader Muqtada al-Sadr, reportedly returned again to Najaf, who has called for this day of protest to be deferred for six months to give the government a chance to implement reforms. While only representing one section of the population, his call is likely to take some of the steam out of the situation.

For information on how Upper Quartile and AAIB can assist your business in Iraq, please contact Gavin Jones or Adrian Shaw.

AKnews reports that the Vice Chairman of the Babil Investment Commission has complained that Iraq’s investment law has been “paralyzed” by the state’s failure to implement it effectively in ministries and government departments.

Abbas al-Tai told the agency that Iraq is one of the best places in the world for investors as it lacks many basic commodities such as housing, sewerage systems and electricity, but the government’s delay in adopting the investment law has left foreign investors reluctant to implement projects in the country.

"Iraq depends mainly on its oil revenues and a large part of public expenditure goes on salaries that take the largest share of the state budget," he said.

"Investment is the best solution to address the deteriorating economic situation in Iraq and radically resolve the problem of unemployment” Tai continued, emphasizing that it would depend on “the state's encouragement and support to set up investment projects.”

Tai attributed the delays in effectively adopting the investment law to lengthy bureaucratic procedures and the long time periods required to attain administrative approval.

“The investment law is good,” he said, “but its implementation and activation are the problems we face in our work”.

Giving the example of a residential construction project approved by the Babil Investment Commission but rejected by the federal Ministry of Municipalities, Tai complained: “The Kawthar housing project was obstructed by all government departments in the province,” and that the Ministry of Municipalities “gave itself the right to decide about investment projects although the Investment Authority is the only party in the country authorized in this matter according to law.”

“The Ministry of Municipalities has hindered our projects completely.”

The solution to this problem according to Tai is the establishment and activation of an investment body that includes representatives of government departments and ministries that has the power to facilitate the implementation of investment projects.

In conclusion, Tai called on the federal government to "…take swift action to resolve this problem and instruct the relevant government institutions to adopt the investment law to avoid future consequences on investment in Iraq."

(Source: AKnews)

Violent protests have broken out at various locations in Iraq, with anti-government protesters rallying against corruption, poor basic services and high unemployment.

Basra: In the country's second largest city, about 1,000 people protested on Friday, demanding better services, jobs and improved pensions. They called for the provincial governor to resign, and blocked a bridge for an hour.

Kurdistan: Seven offices of the Goran party in Erbil and Dohuk were attacked, in what officials say was a response to an attack on the ruling Kurdistan Democratic Party (KDP) offices in Sulaimaniyah a day earlier. Two people were killed in that protest, after security forces opened fire on demonstrators. Many Kurds complain that the two dominant political parties in the Kurdish region have a stranglehold on jobs and the economy.

President Barzani, of the Kurdish region, said in a statement: "I call on all parties to behave calmly and to preserve the peace in Kurdistan. I call on the KRG to open an immediate investigation into this incident and hold those responsible for today’s violence accountable."

Meanwhile, Prime Minister Nouri al-Maliki said at a news conference in Baghdad: "The demonstrations are protected and here I say that the security forces are not allowed to use any force against any demonstrations. I say to the protesters, this is your right, (but) without violence. Don't allow troublemakers to incite problems and burn offices because this sabotage and corruption."

Protests were also held in Kut, where one person was killed on Thursday, Kirkuk, Nasiriya, and other towns.

(Sources: Reuters, Al Jazeera, Associated Press, AKnews, KRG)

By Tariq Abdell, Iraq's political risk analyst,  and Founder & CEO of  Mesopotamia Insight.

The opinions expressed here are those of the author, and do not necessarily reflect the views of Iraq Business News.

 As Iraq-business news celebrates its one year anniversary, MENA region is witnessing a fundamental political upheavals and changes,  costing Mubarak of Egypt and Ben Ali of Tunisia their presidencies, as result of decades of unpopular and undemocratic policies and, most importantly,  for injudiciously disenfranchising  a crucial segment of their societies: their younger constituents.

  Unarguably, Iraq is undergoing major socio- economic changes, among them, the formation of a new and inclusive government, following months of political horse-trading, improved security conditions due to a strong and nonsectarian Army, and surge of foreign companies and investors' interest in Iraq's potentials. However, Iraq's severely languished infrastructure,  lack of basic services, impoverished and disgruntle  population  - decades of wars and despair-  could easily jeopardize its hard-earned achievements.

 According to the Iraqi Institute for economic reforms, Iraq's agricultural output had fallen from 8% to 3.5%, industrial output  from 7% to 1.5%,  estimated poverty rate  of almost 23%, unemployment still hover above 18%,  the appropriation of credit to the economy  as % of GDP is 3.37 % in 2008,  current power output at 6,5000 megawatts  is less than half of Iraq's needs, national debt amounts to $33 billion.

 Given the aforementioned challenges, it's an absolute imperative for the Iraqi government to devise a comprehensive and inclusive post-conflict reconstruction strategy, taking into account the aspirations of its people and current  budget constraints, which estimates overall expenditure at $81.86 billion and income at $68.56 billion, leaving a shortfall of $13.3 billion.  Drawing on past experiences (BRIC countries, for instance) and the support of the international agencies (IMF and WB, for instance), Such a strategy ought to:

• Create a conducive and transparent business environment, compatible with Iraq's new constitution,  that is legally and politically permissive (adoption of a new investment law, for instance),  and susceptible to attract foreign capital, foster Iraq's political capital, and reinvigorate the efficiency of its institutions .  According to the world bank, Iraq ranks 166 on the ease of doing business -next to Afghanistan.
• Institute an independent and inclusive  Petroleum Council — reflecting  the geographic distribution of Iraq’s energy resources — that is responsible for formulating oil strategies (hydrocarbon law, for instance), deflecting the politicization of the oil sector, enforcing transparency and accountability as bulwarks against corruption , and robust enough to reign in SOC, NOC, and IOCs.
• Set a mechanism that will allow for an equitable distribution of the oil revenues and avoid the resource-rich nations’ deleterious disease, the resource war. Historically, the bulk of Iraq’s oil revenues are distributed along ethno-sectarian, political, and tribal allegiances, as opposed to inclusive and growth-oriented economic policies.
• Foster strategic partnership with the private sector and academia. For instance,  GOI could seek foreign companies’ expertise to help revamp its oil sector by introducing technological know-how, the industry best practices, and foster a professionally literate workforce. With such perspicacious initiative, Iraqi government will definitely enhance its oil sector efficiency, boost production, and, eventually, spur economic recovery.
• Revive Iraq's strategic industries(Petrochemicals, for instance) to curtail its dependence on a single commodity, fossil fuel, and, consequently,  avoiding its hasty depletion. Furthermore, given Iraq's acute electricity and water crisis, direct solar energy is by far the most abundant renewable energy source in Iraq which can be used for power generation for domestic and international markets , and seawater desalination to help alleviate southern regions water shortage.

 Conversely, in the absence of a concerted and inclusive national development strategy that reflects the needs of the Iraqi people (e.g.,  more jobs, better wages,  universal access to basic services, health care, and education) and help resuscitate the country’s weakened economy, Iraq may risk reverting to its years of lawlessness, sectarianism,  and chaos, which is far worse than Egypt and Tunisia combined. Irrefutably, "A nation’ s strength ultimately consists in what it can do on its own, and not in what it can borrow from others." Indira Gandhi

 The opinions expressed here are those of the author, and do not necessarily reflect the views of Iraq Business News.

The author, Tariq Abdell, is an Iraq's political risk analyst, and Founder & CEO of Mesopotamia Insight

He can be contacted at: [email protected]

or

Followed on twitter: http://www.twitter.com/atariqx