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On the 20th June, Sheikh Mohammed Alkhouzai, Iraqi Prime Ministerial candidate, attended meetings in London to discuss the current social pressures and political issues in Iraq.

Sheikh Mohammed met with the Hon Matthew Offord MP, the Chairman of the United Kingdom Parliament's All Party Parliamentary Group on the Republic of Iraq at the Palace of Westminster. The meeting was positive with both sides agreeing to the importance of unity in national politics. The discussions covered topics such as security, the future of Iraq's economy and the role of international actors in the future of Iraq.

Sheikh Mohammed said:

"Iraq faces some real struggles in the near future. Electricity blackouts, water shortages and rising unemployment all at a time of soaring summer heat is going to create significant stress within communities. Now is not the time for siding with division; now is the time for cooperation and working together to solve these nation-wide issues. There must be political leadership to confront these harsh realities"

At the end of the meeting both Mr Offord and Sheikh Mohammed confirmed their desire to work together in the future and to support Sheikh Al-Khuzai's program to solve crises in Iraq.

Sheikh Mohammed then met with Chairman of the Royal United Services Institute (RUSI), The Rt Hon Sir David Lidington. Sir David is a former foreign Minister and former Deputy Prime Minister. Given the nature of RUSI's work the discussion was focused on the security of Iraq and the potential for unrest in the forthcoming summer months.

Sheikh Mohammed spoke passionately about the importance of both the tribal and religious leaders of the country, army officers and members of the judiciary, whose leadership are critical in the forthcoming months in ensuring the unity of the nation. He also spoke about the importance of creating new economic opportunities to deliver new jobs for the young adults of Iraq.

The discussion also centred on the role of foreign actors and his name being nominated for prime minister. Both men agreed that while Iraq is not currently able to build its future alone, its future and the road to get there must be decided by Iraq and the Iraqi people. While Sheikh Mohammed welcomed foreign investment he also said that he would not allow foreign countries to determine the future of the nation.

The end of the meeting came as both Sir David and Sheikh Mohammed agreed to work towards the potential of creating a bridge between RUSI and the leading actors that help to make up Iraqi political society.

Speaking about the meetings Sheikh Mohammed said:

"It is clear that senior people within the political sphere of the United Kingdom want to see a bright future for Iraq and are willing to help the nation achieve it. But, they will not waste their time on a country that is trying to tear itself apart. Strong leadership and a unified Iraq, based on our shared ambitions from Zakho to Fao is how we will build a better Iraq."

(Source: Mohammed Alkhouzai)

From Al Jazeera. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraq's smelters: Workers risk their health for gold and silver

Decades of instability and corruption in Iraq have led to high unemployment.

That is forcing some people to resort to dangerous work to make a living - including panning for precious metals in wastewater.

Al Jazeera's Mahmoud Abdelwahed reports from the Iraqi capital Baghdad:

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Tension simmers on Iraqi street as food prices rise

Already faced with chronic issues such as persistently high unemployment and a lack of access to basic services, Iraqis are now hit by skyrocketing prices for food staples.

Observers blame the jump in prices on both the Russia-Ukraine war and endemic corruption.

The rising consumer price inflation has sparked street protests in different parts of the country.

The full report can be viewed here (registration required).

(Photo Credit: Fared Baram/ NRC)

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Why foreign oil companies in Iraq need oil wealth to trickle down

Iraq's oil wealth is among the greatest on the planet.

Total proven crude reserves are estimated at 150 billion barrels, and daily output is over 4.6 million barrels-making it the fifth-largest producer in the world.

But much of this wealth does not trickle down, and that is perhaps paradoxically particularly the case in the oil-rich south.

The full report can be viewed here (registration required).

Iraq Business News Expert Blogger, Dr Amer K. Hirmis, has just published a book that takes readers 6000 years back to early Mesopotamian polity, culture, and religious codes which shaped the economy, and continue to shape much of the body of Iraq's polity, economy and society today.

Economic inefficiency, inequality and lack of sufficient employment are common threads that run throughout Mesopotamian/Iraqi economic history. The persistence of poverty, high unemployment, conscious discrimination against women, and a polity dictating blind allegiance and obedience from the subjects to the ruler, denied the Iraqis achieving economic development, the ultimate aim of which is the sustained improvement of the well-being of the people. Even when economic growth was attained, it was desperately non-inclusive.

With a novel approach to economic development, this book examines Iraq's economy over the past 100 years. It establishes the historical roots in the consumption patterns, nature of the producers, the economic structure, trade, monetary and fiscal policy and resource allocation. In all these areas the echoes from the ancient past are striking. The principles of Sumerian taxes are still applied in present-day Iraq.

The book proposes a set of conditions, which will need to be created for Iraq to achieve economic development and functional democracy, in the distant future.

Download the book free of charge.

By Harith Hasan, for Carnegie Middle East Center. Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Eden Denied: Environmental Decay, Illicit Activities, and Instability in Iraq's Southern Border Area

Iraq's Basra Governorate, on the border with Iran, has endured environmental degradation due to conflict and a reduction of water flows into the Shatt al-Arab waterway.

The ensuing decline in agriculture has led to rural migration, unemployment, poverty, a flourishing of informal and illicit economies, and the growth of violent groups.

Iran's dominant influence in Iraq has sustained this situation.

Unless these problems are addressed, instability in Basra will increase and will have long-term consequences for Iraq and the Middle East.

Click here to read the full report.

New partnership supports private sector development in Iraq's Kurdistan Region

The United Nations Development Programme (UNDP) in Iraq and the Kurdistan Regional Government's Ministry of Planning (MoP) have today signed a new Memorandum of Understanding (MoU) that will boost the private sector by encouraging the growth of micro, small and medium enterprises (MSMEs).

The MoU provides a general framework for cooperation between the two parties to conduct a survey of MSMEs, funded with the generous support of the American people through the United States Agency for International Development (USAID) in all governorates of the Kurdistan Regional Government (KRG): Dohuk, Erbil, Halabja and Sulimaniyah.

The survey, which follows a similar survey conducted in Federal Iraq across Baghdad, Basra and Ninewa, will build a comprehensive understanding of MSME structure, development trends and operations, MSMEs a sustainable economic base in the Kurdistan Region of Iraq.

"Micro, small, and medium enterprises are the lifeblood of a healthy economy. They are also exceptionally vulnerable to risk. The U.S. Government, through USAID, is proud to contribute to this important research that sheds light on the opportunities and challenges of this critical sector and promote sustainable economic growth in the Iraqi Kurdistan Region," says USAID Mission Director to Iraq John Cardenas.

"The KRG is very grateful to USAID and UNDP for their assistance in conducting a Micro, Small and Medium Enterprises (MSMEs) Survey, which will be held for the first time throughout the Kurdistan Region. This will help identify deficiencies and provides recommendations for developing these institutions to provide job opportunities for young people in the private sector and reduce the unemployment rate, especially among young people." says Minister of Planning of KRG, Dr. Dara Rashid.

"This partnership is critical to enhancing livelihoods creation through strengthening the development of MSMEs in the Kurdistan region. We have already derived some extremely valuable insights through the Federal Iraq survey which has helped us develop a roadmap on the way forward - ensuring business owners and those thinking of starting their own business have the necessary support and encouragement they need," says Resident Representative of UNDP Iraq Zena Ali Ahmad.

"This memorandum is another testament to the excellent cooperation between UNDP Iraq and the Kurdistan Regional Government - a key partner across many of UNDP's initiatives - as well as the partnership with our generous donor, USAID. We are extremely grateful for its ongoing commitment to fostering private sector growth in both Federal Iraq and the Kurdistan Region of Iraq," she added.

(Source: UN)

From the Iraq Britain Business Council (IBBC):

Professor Frank Gunter of Lehigh University gave a webinar on the recently published 2nd edition of his book -- 'The political economy of Iraq, restoring balance in a post-conflict Society' -- interviewed by Lizzie Porter, Senior correspondent at Iraq Oil Report, for the IBBC.

In a wide-ranging talk, the key themes that Professor Gunter articulated included three main observations, mainly the challenges and solutions to be faced, which are namely the regulatory hostility to the private sector, the growing demographic time bomb of unemployment and under-employment, especially among young people, and the issue of corruption.

Iraq is deemed by the World Bank as 172 out of 190 in difficulty of doing business and the regulatory environment and corruption. The Government of Iraq (GoI) could tackle this firstly by focusing on elementary schools to iron out its acceptability at an early stage, strengthening and consolidating the commission of integrity, as well as reducing the bureaucratic burden of decision making to businesses.

The GOI could also easily adopt the World Bank's commercial code, or that of the Emirates. Many questions and issues were aired, including the cost of corruption, and the opportunity to create a free zone to trial a new commercial code, and the establishment of a sovereign wealth fund or an Energy fund. Iraq does not have the luxury time to implement the necessary changes as the unemployment drum is beating fast, with all the attendant political and economic issues it may bring if Iraq fails to develop the private sector fast enough.

For a full view of this interesting discussion please see the video below:

New Report Identifies Drivers of Informality in Iraq's Labour Market

A new diagnostic report examining the drivers of informality in Iraq's labour market highlights the multiple and wide-ranging factors contributing to informality and the burdens imposed on the formalisation of enterprises and workers in the country.

Iraq's private sector, which accounts to roughly 40 per cent to 50 per cent of employment, is mainly informal. Compared to the public sector, employment in the private sector has lower average wages, job security, benefits, and often lacks formal contracts.

Some of the barriers identified in the report include gaps in the legal framework for employment and enterprises, in terms of labour and social security coverage and protection, barriers related to the structure of the labour market and macro-economic conditions, limited awareness among workers and enterprises of their rights and obligations, and the lack of incentives by workers and employers to formalise. The report also highlights a gap in up-to-date and representative data on the labour market that can feed into decision-making processes.

The report was launched in Baghdad on Saturday (November 27), during an event which brought together key stakeholders, including representatives from the Government and social partners, UN and development partners, and civil society organisations.

"The formalisation process is a long road, which requires all of society's efforts. With all the resources, both financial and human resources in Iraq, we are confident that this will be a successful road," said Ms. Irena Vojáčková-Sollorano, UN Deputy Special Representative and Resident Coordinator and Humanitarian Coordinator for Iraq, during the event.

Findings from a second assessment examining more specifically the state of small-scale enterprises and vulnerable workers eight months into the COVID-19 pandemic were also presented, further highlighting the significant vulnerabilities resulting from high levels of informality in Iraq. It found that the vast majority of surveyed enterprises were economically and operationally affected by the pandemic and relevant containment measures, with many closing down and others being forced to adapt.

This also had a direct effect on workers themselves: indeed a significant share of surveyed workers had faced temporary or permanent unemployment, a fall in their income, and a reduction in working hours. The high level of informality entails that most of these affected enterprises and workers were not able to access government support to weather the economic impact of COVID, including due to the lack of social security coverage.

Both reports were developed in partnership between the Government, the International Labour Organization (ILO), and in collaboration with the United Nations Development Programme (UNDP), the International Organization for Migration (IOM), UN Women, the European Union (EU), the Fafo Institute for Labour and Social Research (Fafo) and the Cash and Livelihoods Consortium for Iraq (CLCI), which is comprised of the Danish Refugee Council (DRC), the International Rescue Committee (IRC), Mercy Corps, the Norwegian Refugee Council (NRC) and Oxfam.

They are part of efforts to promote a transition from the informal to the formal economy in Iraq.

"The evolving impact of the COVID-19 crisis on Iraq's labour market has highlighted the critical need to adequately address the underlying challenges faced by informal enterprises and workers in the economy," said the partners in a joint statement. "Through this collaboration, we seek to address the root causes of these challenges and find practical solutions that would pave the way for a transition to greater formality, which will ultimately lead to better working and living conditions for workers and their families."

For workers, this means providing them with adequate labour and social protection, which would involve extending legal coverage to those excluded or insufficiently covered and providing them with an adequate level of legal protection. For employers, it includes the extension of the scope of labour and social security regulation as well as laws relating to economic units, the registration of enterprises, and their compliance with legal requirements.

The report also presents a National Framework, in line with ILO's Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

"This report highlights the need for a National Framework for the transition to the formal economy, which provides a road map for a national strategy that would guide the Government and its partners to promote decent work and strength the formal economy," said Mr. Raed Jabbar Bahedh, Director General of the Department of Labour and Vocational Training at the Ministry of Labour and Social Affairs.

The informality diagnostic report lays out a set of recommendations to address barriers to formalization and promote the transition to formality. They focus on four key aspects, namely mainstreaming data collection on informality; strengthening governance and coordination between government ministries, agencies and programmes to promote an integrated approach to formalization; reducing barriers to formalization; and strengthening incentives to formalize, such as through providing better access to services that promote decent jobs and business development.

Click here to download the full report.

Workshop: National Employment Policy to facilitate job creation and decent work in Iraq

A committee, composed of government officials, social partners and other relevant stakeholders met in Amman to discuss the development of a comprehensive national employment policy for Iraq that will facilitate job creation, decent work and social protection for all workers in the country.

Organised by ILO, the week-long event brought together representatives of various ministries, including His Excellency Minister of Labour and Social Affairs, Adel Al-Rikabi. It was also attended by representatives of the General Federation of Iraqi Trade Unions and academics.

"One of our main challenges in Iraq is unemployment and the lack of clear plans to address these challenges," said Minister Al-Rikabi. "It is important to ensure not only the development of a modern policy for employment but also its implementation, based on your visions and ideas."

The event focused on the employment policy-making process; elements of a policy implementation strategy; relevant monitoring and evaluation systems and impact assessment techniques. It examined some of the major challenges facing Iraq and the role of social dialogue in improving labour market conditions and promoting decent work for all.

"The participation from multiple sectoral stakeholders and the dialogue process will be critical to ensuring national ownership of the employment policy. Having the tripartite inter-ministerial committee present with us here today is the right start," said Acting Decent Work Team Director and Senior Employment Policy Specialist at the ILO Regional Office for Arab States, Tariq Haq.

The ILO is providing technical support, including policy advice and capacity building to the Government of Iraq and its social partners across the different phases of the process; from the design and implementation to the monitoring and evaluation of the national policy. It is also working with the Central Statistical Organization and the Kurdistan Statistical Organization on the development of a national Labour Force Survey, the first to be implemented in over a decade.

The survey results will feed into the development of the national employment policy, focusing on the immediate needs of livelihoods and employment creation in addition to the longer- term structural and decent work needs of Iraq's labour market.

"The national employment policy will be based on a clear understanding of the strengths, challenges and needs of Iraq's labour market, to promote employment, especially among women and youth," said ILO Country Coordinator in Iraq, Maha Kattaa. "The national Labour Force Survey will provide the basis to formulating this employment policy."

The development of the national employment policy is part of broader efforts being implemented under the Iraq Decent Work Country Programme,  in partnership between the ILO, the Government and social partners. The programme focuses on supporting private sector development and job creation; strengthening social protection and addressing child labour; and strengthening labour governance and social dialogue.

(Source: UN)