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By John Lee.

Prime Minister Adil Abd Al-Mahdi and Jordan's Prime Minister Dr. Omar Razzaz have agreed a series of measures to increase cooperation between the two countries.

Following a meeting at the weekend, they announced that, among other steps, they will finalize the framework agreement for the Iraqi-Jordanian pipeline which will run from Basra through Haditha to Aqaba in the first quarter of 2019.

The full (unedited) list of measures outlined in their joint statement is shown below:

In the transport sector:

• Opening the Jordanian-Iraqi border crossings (Al Karama-Trebil) in front of the (door to door) traffic to start the journey of goods that are perishable on 2-2-2019 and include all types of goods thereafter.
• Granting facilities for imported Iraqi goods via Aqaba, whose final destination is Iraq, a discount of 75% of the fees charged by Aqaba Economic Authority.
• Make an Agreement between the Royal Jordanian and Iraqi Aviation for mutual cooperation in various fields: (Code share).
• Training and cooperation in all areas of aviation and air transport.

In the industry and trade sector:

• Activating the Iraqi Cabinet decision for the year 2017 exempting a number of Jordanian goods from customs starting from 2-2-2019.
• The two councils of the two countries decided to allocate the agreed land on the Iraqi-Jordanian border to reach a depth of 2 km on the two sides of the border and a length of 6 km for the Iraqi-Jordanian Company. By 2-2-2019, in preparation for the company's presentation of the industrial zone to the private sector for operation and management on the basis of BOT.

In the financial sector:

• Forming a technical and financial legal committee between the two sides to develop solutions to the outstanding financial files between the two countries.

In the energy sector:

• The agreement was reached on the Jordanian-Iraqi electricity link through the network of interconnection, where the memorandum of understanding was signed in the presence of the prime ministers, in which the parties agreed to take the necessary measures to accelerate the exchange of electrical energy between the two parties through direct electrical connection to the electricity networks of Iraq and Jordan.
• It was agreed to finalize the framework agreement for the Iraqi-Jordanian pipeline which will extend from Basra through Haditha to Aqaba in the first quarter of 2019
• It was agreed that the technical committees will arrive to determine the details of transportation and pricing for the export of Iraqi crude oil to Jordan before 2-2-2019.

In the agriculture sector:

• Training in the fields of optimal use of water in the fields of aquaculture, water harvesting, seed propagation, biological control, the use of environmentally friendly pesticides and the training of Iraqi environmental police.

In the communications and IT sector:

• It was agreed to pass the Iraqi Internet capacity from Jordan in 2019 to support Iraq build the infrastructure.
• It was agreed on transport Jordan's experiences in the field of the financial technology to brothers in Iraq.

(Source: Media Office of the Iraqi Prime Minister)

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

There is a fight over energy in Iraq between the US and Iran. Iraq relies on Iranian gas for nearly half of its energy - gas that is now subject to US sanctions on Iran.

The Iraqi government originally obtained a 45-day sanctions waiver from the US, but that waiver is set to expire next week.

Iraq is particularly sensitive to the issue after protests against electricity cuts rocked Basra earlier in the year and Iraq's new government is treading a thin line trying to keep both the US and Iran happy, and its people satisfied.

Al Jazeera's Charlotte Bellis reports:

This week the German Federal Foreign Office bolstered IOM’s Community Policing (CP) programme in Iraq by providing an additional 1.7 million Euros, raising Germany’s total contributions to this important effort to 5.7 million Euros.

IOM’s CP programme aims to contribute to enhanced security and stability in Iraq, by facilitating dialogue between communities and law enforcement actors, through Community Policing Forums (CPF) in communities affected by conflict and displacement.

In the last three years 101 Community Policing Forums (CPFs) have been established across Iraq with the support of IOM. CPFs aim to resolve a variety of security concerns at the community level, including those related to housing, land and property (HLP) disputes, access to water and electricity, civil unrest, documentation for internally displaced persons (IDPs) and returnees, child protection, human trafficking, sexual harassment and domestic violence.

The German Ambassador to Iraq, Dr. Cyrill Nunn, said:

“Community Policing is an important strategy to bring together socially fragmented communities in Iraq to peacefully resolve security related problems. Germany supports Community Policing to build and strengthen mutual trust between citizens and law enforcement agencies, contributing to safe and stable communities - the building blocks of a stable Iraq.”

CPFs are facilitated by a CP officer from the local police department and by elected community members. IOM guides CPFs in the development of community safety plans which identify the most critical security and safety issues that can be addressed and tackled by the community and the police.

Gerard Waite, IOM Chief of Mission in Iraq commented:

“Issues are resolved mainly through identifying the correct entity to refer to, either law enforcement, public institutions, civil society organizations, or the community themselves.”

“The success of these forums can be seen through a variety of indicators, such as a decrease in crime, an increase in the level of cooperation from the community in solving security problems, and less use of force by police towards members of the community.”

Brigadier Khalid Falah Kadhim, head of Iraq CP Directorate within the Government of Iraq’s Ministry of Interior, testifies to the positive impact the CP model has had on local police structures at the community level:

“The logistical and technical support provided by IOM to rebuild infrastructure and strengthen the capacity of community policing has played a fundamental role in peace building in communities, and we are thankful to the Government of Germany for providing this support.”

(Source: IOM)

The German Ministry of Foreign Affairs has contributed an additional EUR 22 million to the UNDP Funding Facility for Stabilization (FFS), which finances fast-track initiatives in areas of Iraq liberated from the Islamic State of Iraq and the Levant (ISIL). This brings the Ministry’s contribution to EUR 80.2 million and the total support from the Government of Germany to EUR 209.9 million.

Acting UNDP Resident Representative for Iraq, Mr. Gerardo Noto, said:

“Enormous progress continues to be made across the liberated areas of Iraq, with seventy percent of those who were displaced during the conflict now returned home. UNDP deeply appreciates the timely funding provided by the German Ministry of Foreign Affairs, and while there remains a great deal of work to do, this generous contribution will help re-establish public services and rebuild social cohesion in the most vulnerable areas.”

The German Ambassador to Iraq, H.E. Dr. Cyrill Nunn, said:

“Germany continues to support Iraq’s stabilization efforts to shore up the progress made to date. As we look to the new Government to step forward to take increasing ownership of stabilisation and more long term development efforts, we will remain a committed partner for the people of Iraq and a strong supporter of the efforts of the United Nations.”

In addition to its Ministry of Foreign Affairs, Germany also contributes to FFS through its Ministry for Economic Cooperation and Development implemented by KfW, the German development bank.

At the request of the Government of Iraq, UNDP established the FFS in June 2015 to facilitate the return of displaced Iraqis, lay the groundwork for reconstruction and recovery, and safeguard against the resurgence of violence and extremism.

The Facility has a portfolio of over 3,000 projects – half of which are already completed – in the provinces of Ninewah, Anbar, Salah Al-Din, Diyala and Kirkuk.

The FFS repairs essential public infrastructure such as electricity, water and sewage system grids. It rebuilds schools, health centres and homes, and provides people with short-term employment through public works schemes in areas directly impacted by ISIL.

This investment in critical services sets the stage for recovery and resilience work, as well as longer-term reconstruction and development activities. Over 95 percent of all stabilization projects are carried out by local private sector companies, providing a key source of employment for local people.

(Source: UN)

Statement by Alice Walpole, Deputy Special Representative of the Secretary-General

Iraq’s Democratic Experience - Prospects and Challenges

Rafidain Centre, Najaf

4 December 2018

Excellencies,

Ladies and Gentlemen,

Dear friends,

Thank you for the invitation to speak here today, at the Al-Rafidain Center, on Iraq’s democratic experience.

2018 has been both an encouraging and challenging year for Iraq and its citizens. On the positive side, we witnessed two broadly successful electoral processes, consolidating Iraq’s democratic credentials. In May, within the constitutional time-frame, Iraq held its national parliamentary elections. Candidates and political parties conducted largely honourable campaigns, under an Electoral Code of Conduct drafted by the United Nations Assistance Mission for Iraq, free from sectarian-based discourse or inflammatory statements. There was, however, disappointing abuse of some, primarily female, candidates. Elections were held on time, and most people (including the displaced) were able to cast their votes and select their representatives freely and safely. The liberated areas witnessed an open voting process for the first time since the defeat of Da’esh. I commend the efforts of electoral officials, party agents and the security forces in making the elections largely peaceful, secure and orderly.

But we should not be complacent. The national elections were marked by a low voter turnout of just 44%. The decision by more than half of the voting population not to exercise their democratic right sends a strong signal of dissatisfaction to politicians over failures to meet people’s expectations or to provide for their needs, and a strong message to place the interests of the Iraqi people and the nation above partisan, sectarian, individual or group interests. I encourage the Iraqi political elites, specifically incoming ministers and members of parliament, to draw the necessary conclusions on the need for improved representation, justice for all, democratic accountability and good governance free of corruption, sectarian quotas, nepotism and patronage.

You will recall that the post-election phase was marked by widespread complaints. Allegations of electoral fraud and mismanagement resulted in the decision, which the United Nations supported, to conduct a partial manual ballot recount. I would like to note the transparent, credible and well-organised conduct of the recount (which I myself witnessed in several recount locations). I commend the professionalism of all recount staff, both Independent High Electoral Commission and judiciary personnel, under the capable, impartial supervision of the Board of Judges. I believe the recount increased public confidence in the election results. I hope it also increased confidence more generally in the electoral process.

Ladies and Gentlemen,

Throughout the post-election and government formation period, the people took to the streets to express their dissatisfaction with the management of state affairs. Their demands must be taken seriously if the democratic process is to succeed in Iraq. The demonstrations which began in Basra in July and spread to other southern governorates including Missan, Muthanna, Qadisiya, Dhi Qar, Najaf, Karbala, Babil, Wasit, and then to Baghdad, were a clear call on the government to address the basic rights and needs of the people. The gravity of further violent protests in Basra in September sent a signal to the government to find tangible solutions to local problems of lack of delivery of basic services, shortages of electricity, lack of jobs and pervasive corruption. The protestors accused national leaders and successive governments of ignoring them and expressed deep and growing frustration with the political system, including a sectarian quota system they deem corrupt and dysfunctional, and perceived foreign interference in internal affairs.

While many political leaders expressed their support for the demands of the protesters, there has been little actual progress in effecting change. Former Prime Minister Abadi and the Council of Ministers made commendable efforts to implement some rapid relief measures, but these remain insufficient to address the depth of people’s needs and concerns. The new government now needs to prioritise political, economic and social reforms, justice, equality and accountability, reconciliation and the fight against corruption. Job creation will enable economic development, stability and prosperity, while Iraq should maintain its sovereignty and independence, free from foreign interference. The challenges faced by Iraq are deep-rooted and can only be tackled by strong and unified governance. Prime Minister Abdul-Mahdi and his cabinet of ministers must engage in a fight against corruption, while the new Council of Representatives should reform laws that do not embed justice and equality.

Ladies and Gentlemen,

I commend the successful completion of the Kurdistan Region parliamentary elections. Again, accusations of electoral fraud were fully investigated. On 30 October, the Electoral Judicial Panel of the Kurdistan Region Court of Cassation approved the election results. The Kurdistan Democratic Party and the Patriotic Union of Kurdistan have assured us of their intention to consult closely with all local political parties on government formation. The Kurdistan Islamic Union and the New Generation Movement have announced that they will form an Opposition in the Kurdistan Parliament. All this is welcome progress. However, to date there have been no formal agreements on government formation. In this regard we urge the Kurdish parties to complete negotiations and the formation of the parliament to ensure that the needs of the people can be proactively addressed.

Ladies and Gentlemen,

The United Nations was reassured to note that Mr Abdul-Mahdi, as PM-designate, received the endorsement of many prominent parliamentary blocs to choose his ministers freely, on the basis of their capabilities and experience rather than sectarian or political quota systems. We commended the democratic transfer of power between the outgoing Prime Minister, Haider al-Abadi and incoming Prime Minister Abdul-Mahdi within the Constitutional timeline. At the handover ceremony on 25 October, Mr. Abadi recalled the achievements of his government. He and his government, the Kurdistan regional government, the armed forces and the people of Iraq do indeed deserve acknowledgment and gratitude for the progress made thus far. While the government formation process has not been without difficulty, the political blocs have demonstrated willingness to act in support of the Prime Minister. Competition and differences have been largely political and not sectarian, and in this way, a break from the past. Iraq must now build on these foundations.

I remain concerned that the government formation process has stalled as disagreements over some ministerial posts continues to divide political parties and blocs. The United Nations urges Prime Minister Abdul-Mahdi and the political parties to reach agreement and complete the cabinet. All political forces now share a responsibility for creating an enabling environment for the new Prime Minister and government to deliver on their programme and for ensuring political stability. The Government’s new programme, on which the United Nations was invited to offer advice is ambitious and forward looking. It outlines specific plans for reform, investment and the private sector, tackling corruption and for transitioning Iraq from a crisis context to sustainable development. It prioritises job creation, greater governorate-level participation, rehabilitation and reconstruction of liberated areas and the return of the displaced. It focuses on strengthening security, fighting terrorism, enhancing law and order and the rule of law. Special attention will be given to resolving pending challenges with the Kurdistan Region, including the issues of budget allocation and financial resources, oil and disputed areas. For this programme to be achieved, Iraq will require the continued support of the international community but also sustained political support from political leaders and parties within the parliament. On international relations, I commend Iraq’s new leaders who have acted without delay in engaging regional governments - fostering bilateral relations, tackling regional challenges such as terrorism, water issues, and discussing economic cooperation and investment for the reconstruction of Iraq.

Ladies and Gentlemen,

Among the priority tasks for the new parliament is preparing the upcoming provincial council elections. With the expanding role of provincial councils in governance, the candidate choices made freely and fairly by the electorate will be extremely important for the country’s development. I welcome the Electoral Commission’s announcement of resumption of the biometric voter registration process. And I am pleased that for the first time since 2005, the Kirkuk governorate will participate in these elections - a critical step on the path to the normalisation of Kirkuk’s status and of politics in the governorate. Negotiations on the reactivation of the Kirkuk Provincial Council continue, with United Nations-supported discussions between local political actors from the Kurdish, Arab and Turkmen communities.

Ladies and Gentlemen,

I am pleased that several female candidates received a high number of votes within their political lists, and that 19 female candidates were elected to parliament on this basis. Our expectation for the future is that the 25% quota which currently guarantees 83 seats for women, will represent a minimum threshold, not a fixed number. I urge political leaders to ensure the full participation of women within the new government and their representation at the highest levels in Iraq’s political and decision-making structures in the parliament and the government. I very much regret that no female or minority candidates have yet been appointed to ministerial positions; and while I welcome assurances that Prime Minister Abdul-Mahdi will include them in future governmental posts, I feel that an opportunity has been missed. Women must get a full chance to play key roles in shaping the post-Da’esh future of their country. Equality and empowerment of women must be central to all peace, justice, legislative, reconciliation and reform efforts.

Ladies and Gentlemen,

Democracy and improved standards of living cannot be realised within an environment of persistent insecurity. Although Da'esh's so-called caliphate has been defeated, the terrorist organisation continues to pose a threat. Iraqi Security Forces and the Popular Mobilisation Forces have maintained constant pressure on the remaining Da’esh presence and activities across North, Central and West Iraq throughout the year through successive security clearance operations. Challenges however remain for improving the overall security environment. The new government must reform and rehabilitate its security sector, putting it firmly under state control.

Ladies and Gentlemen,

The United Nations works hard to support Iraq and its people. With the government formation process now close to completion, we hope that the country will continue on its journey to democracy. We will continue to offer advice and engagement. We will continue to work in partnership with the government and the people of Iraq to build progress. A prosperous future built on democracy and the rule of law – an Iraq in which the rights and needs of every citizen are recognized and fulfilled.

Thank you.

(Source: UN)

Cash-for-Work project in Halabja paves a safer and easier road to school for local children

42 host community members, IDPs and refugees employed to restore roads and walkways that will enable safe access to schools and markets for families in Halabja.

To neighbours in the communities of Azadi and Sirwan, in northern Iraq, paved roads mean much more than improved accessibility for cars. Once loose dust and rock, the road network connecting homes and markets posed a hazard for children during the regions season of heavy rainfall.

“They had to put those plastic bags and boots which was especially difficult for the kids to go to school,” described 15-year-old Shahad, an IDP from Baghdad.

“Especially in this area in winter we have a high rate of rainfall. And the land here was agricultural land before – so when it rains, it becomes mud, also posing health-hazards for pedestrians,” added Mr. Omed Noori Hama-Salih, Supervising Engineer, Municipality of Sirwan Subdistrict.

UNDP’s Iraq Crisis Response and Resilience Programme (ICRRP) recently supported a project that would enable the Governorate of Halabja to restore this essential basic service.

Following the launch in September, 42 individuals (host community members, internally displaced people (IDPs) and refugees) received temporary employment opportunities to work on the project as engineers, labourers and administrative support.

This project is one of 28 that were made possible with generous funding from the Federal Government of Germany, supporting the construction and restoration of critical services such as sewerage, electricity, water and roads for some 680,000 people across the Sulaimaniyah & Halabja Governorates and Raparin & Garmiyan Administrations, in the Kurdistan Region of Iraq.

In Azadi and Sirwan, IDPs, refugees and host community members are working together to improve the road and walkway networks for the benefit of all 1,500 community members. “In the past years, this was muddy and all children could not go to school easily and people could not go to do their services and visit market, but now when it will be paved of course it will ease our lives,” said Mr. Othman Aziz, a resident since 1978. “We consider that we will be having a new life because then our kids can go to school easily and our families will have an easy and nice access road to go and run their daily lives.”

Since 2014, Halabja Governorate has become host to more than 653 refugees and 7,177 IDPs, leaving their homes to find safety and security. Today, the pressure to ensure the provision of basic infrastructure and services is intensified by severe financial crisis, ultimately affecting the quality of life in the region for the host communities, as well as the IDPs and refugees they host.

In Azadi and Sirwan, IDPs, refugees and host community members are working together to improve the road and walkway networks for the benefit of all 1,500 community members. “In the past years, this was muddy and all children could not go to school easily and people could not go to do their services and visit market, but now when it will be paved of course it will ease our lives,” said Mr. Othman Aziz, a resident since 1978.

“We consider that we will be having a new life because then our kids can go to school easily and our families will have an easy and nice access road to go and run their daily lives.”

Since 2014, Halabja Governorate has become host to more than 653 refugees and 7,177 IDPs, leaving their homes to find safety and security. Today, the pressure to ensure the provision of basic infrastructure and services is intensified by severe financial crisis, ultimately affecting the quality of life in the region for the host communities, as well as the IDPs and refugees they host.

(Source: UNDP)

By Ahmed Mousa Jiyad, Iraq/ Development Consultancy & Research, Guest Editor IJCIS-SI, Email: mou-jiya(at)online.no.

2018 is, in more than one aspect, rather an important year; It commemorates the 60 anniversary of 14 July revolution 1958; it registers thirty years of ending the eight years long Iran-Iraq war; it counts fifteen years of the country’ invasion by the Anglo-American lead troops; it also marks a ten year period of grand opening of the petroleum sector to foreign companies; it witnessed the almost end of the “triple shocks” that paralyzed the country and finally, it testifies a minor change of the dysfunctional democracy and plaguing Kleptocracy.

This is the “Introduction” I wrote, as the Guest Editor, for the special issue of the academic International Journal of Contemporary Iraqi Studies-IJCIS, due for release before year ends (by Intellect Books, UK)*

14 July 1958 revolution is still vivid in the memories of many of us who actually witnessed and lived that day and what followed to date. Much has been written about July Revolution during the six decades since that day, but for 2018 two important observations worth making.

First, despite a relatively short tenure of General Abd al-Karim Qasim government (14 July 1958 to 8 February 1963) its record of social economic and development achievements were not matched by achievements of all regimes since Qasim’ assassination, particularly those of post 2003. An article published on the local akhabaar news-site[1] lists most of Qasim achievements, which should make every post 2003 politician, decision maker, parliamentarian, minister among others feel ashamed.

Second, Iraq witnessed during July this year a popular mobilizations in all southern oil producing provinces protesting against lack of employment, deteriorated standard of living, insufficient basic social services especially electricity and safe drinking water and condemning the corruption in the country. In a way, July-September 2018 popular protest vindicates July 1958 revolution achievements comparative to the apparent failures of all post 2003 governments.

Thirty years ago Iran-Iraq war ended; a war that caused too much death, devastation, sufferings and pushed Iraq on the brinks of degeneration; further wars and sever comprehensive sanction led eventually to invading the country.

American and British troops invaded the country in 2003, toppled Sadam régime and, again, brought too much death and destruction but with dismantling most state institutions, inflict serious blows to social fabric and institutionalized sectarianism and ethnicity. Over these 15 years, much of oil export revenues were the target of an unprecedented cronyism and corruption, mostly Kleptocracy (defined here as formalized corruption by formal entities and influential political groups and oligarchy) with meager, if any, of actual economic and social development as manifested by spreading July 2018 demonstrations that left many dead, injured and good number of arrests.[2]

The security situation in Basra deteriorated dramatically on 4 September when the number of killed demonstrators rose to 9 with many more injured on both sides i.e. the demonstrators and security forces, and a number of local government building set on fire.[3] By 7 September number of fatalities in Basra increased to 15 dead and 190 injured with more building including private, foreign consulate and offices of some political parties put ablaze.[4]

Post 2003 democracy was basically confined to national and provincial elections, which were run on regular intervals, but none was without accusations, irregularities and corruption practices. National election of May 2018 has been the most challenged and precarious among them all.  Election results were not approved until three months after the election day even with recounts and involvement of High Judicial Council and the Federal Supreme Court-FSC; the term of the parliament ended on 30 June and the new parliament remains in limbo and was not convened and thus nominating the heads of the presidencies was delayed and the same applies to forming the new government.

FSC approved the recounted results on 19 August 2018 indicating the start of the constitutional process for forming the new government. The new parliament was finally convened, amid rather a different and also divisive political landscape post 2003, on 3 September. Not until 16 September the election of the president of the parliament was elected and on 2 October Dr. Barham Salih was elected the president of the republic- representing serious setback for Barzani’s party-  and on the same day Salih  asked Adil Abdul Mahdi, a pro privatization, the Kurds and IOCs,  to form the government within 30 days!

Provincial elections are scheduled for year ends unless they are impacted by the negative environment that tarnished the latest recent national election; the current political confused order would suggest strongly the likelihood of postponing the provincial election to further date.   But these too were and could be subject to even more irregularities with influential forms within sectarianism, tribalism and religious personality cult. Moreover, the aftermath of July demonstrations could effectively impacts holding, the process and the outcome of the elections.

The local parliamentary election in Kurdistan Region in Iraq was held over 28-30 September and again with different contested claims on its transparency, credibility and results.

2018 marks ten years of the big-push strategy or grand opening of the upstream petroleum for foreign investment and direct involvement that validates, initially, the school of thoughts that invasion was all about oil but the actual development questions that validation. The big-push strategy began by converting a production sharing agreement, was concluded during Sadam’ era when Iraq was under the severest sanction in history, into a long term service contract.

That conversion sets the main premises of a hybrid model contract that was adopted through four major bidding rounds. However, upstream petroleum since the cabinet shift of August 2016 witnessed a departure from previous practices by the return of deals concluded behind closed doors, lack of transparency and adoption of a net revenues sharing model contract that gives IOCs much more a share than offered under the previous four bid rounds.

2018 witnessed the beginning of the end of the triple-shocks i.e., low oil prices, Da’esh presence and retaking Kirkuk back from KRG seizure.

Da’esh (or ISIS/ISL) began by controlling Mosul in mid-2014 then moved to many parts of other governorates particularly Kirkuk, Salahuldeen, Dayala, Al-Anbar and came close to Baghdad. That caused untold destruction, killing, internal displacement and threatened the security and integrity of the country. The military operations to defeat Da’esh drained serious part of the annual state budgets in addition to officially estimated $100 billion reconstruction requirements.[5]

What made the situation even more alarming and drastic are the dramatic decline in oil prices and the prevailed motion of “lower for longer” that coincided with Da’esh attacks. Iraq oil export prices per barrel declined from $102.61 in June 2014 to $22.21 in January 2016 then improved gradually to exceed $74 during September 2018.

Further deterioration in Iraq financial situation was caused by the cessation of Kirkuk oil export when KRG took control of the province’s oil facilities. Though that seizure ended during the fourth quarter of 2017, export from Kirkuk still on hold at the time of writing.

The work on this special issue took eighteen months of concerted efforts, follow-up and back and forth communication involving all editorial colleagues, publisher’s team, anonymous reviewers and contributors. Well-deserved sincere and wholehearted words of thanks and appreciation are due to all of them.

Ahmed Mousa Jiyad provides review of the development of the Iraqi petroleum sector during the period 2008-2018 as post 2003 period witnessed grand opening of the sector for International Oil Companies- IOCs, particularly for upstream sub-sector. The article argues that, analytically and empirically, a sub-sector focused policy impacts, negatively, the development in that sub-sector, in the sector itself and on the sector’s contribution to the development of the national economy. The outcomes would exacerbate structural imbalances, vulnerabilities to external factors and increase dependency on oil revenues, which prohibits desirable structural change, diversification and transformation.

He also highlights the presence and impacts of the “triple shocks” combined with the prospect of “lower-for- longer” oil price that prevailed almost a year ago, contributing to continue deepening the fiscal crisis of the state and elevated the “fear-factor” among Iraqi decision makers. That, with apparent human, systemic and institutional capacity-gaps limitations resulted in Iraq giving important concessions to IOCs without having tangible benefits in return.

Juman Kubba asserts that Iraq, over the past fifteen years, took huge leaps backwards. Thus, she argued it is very important for politicians, historians, experts and judicial bodies to analyse what happened, why it happened, who is responsible and how to hold them accountable. But what is more important now is to ensure that Iraqi society recovers from the calamities of the past fifteen years as well as the preceding thirty years; and that the country’s resources are used to serve Iraqis and provide them with good living conditions and never again be wasted and dissipated. Accordingly, here article focuses on the pathway of healing Iraqi society from the aftermath of decades of war, poverty and immense suffering.

Restoring good education and healthcare is the first step on the pathway of healing and recovery. Also, neutralizing and reversing several dangerous post conflict societal problems that have arisen over the years such as traumatized war children, war injured young men, drug abuse among youth and alarming increase in neoplastic disease just to name a few.  Given the weakness of the government, corruption, and contradictions between legislation and jurisdiction, one must consider new non-traditional approaches to solving these problems; a few are presented in the article. The success of any future government should be measured by how much it can ameliorate the essential life sustaining services for ordinary citizens.

Monetary policy and particularly the role of the Central Bank have important function in the development of the country. Debating this issue, our late colleague Muwafaq Hassan Mahmood  addresses four topics; the first offers an empirical examination of the performance of the banking sector during the period 2010-2015; the second discusses banking sector reform requirements; The third topic will shed light on: i) the environments under which the Iraqi banking industry operates highlighting the limitations and obstacles that impedes the sector’s growth and ii) the investment environment and whether it's an attractive for the business community to invest and doing businesses in Iraq. Finally, he examined the CBI’s dollar window impacts on the banking industry.

Human skills, systemic and institutional capacity gaps impact the performance of the petroleum sector and these have been the subject of international cooperation between Iraq and other entities e.g., countries, organizations and even companies. Usama Karim article focuses on one of such initiatives i.e., the establishment of the European Iraqi Energy Centre-EUIEC. He argues that knowledge acquisition and development leading to such endeavour is a process that takes long time and much resources needing meticulous planning. This process can be facilitated by the use of expertise and technology transferred by international companies and their networks engaged in ramping up energy production in Iraq.

EUIEC has four components, however, the article elaborates on the research component but Karim suggests that the final EUIEC organization, structure and facilities integrating all its components will require further efforts from the consultants, lead stakeholders and experts in setting up such complex endeavour building up on preliminary results from this study.[6]

Greg Muttitt article reviews what is now known about discussions of oil that took place during the invasion planning and execution, based on documents that have been released in the fifteen years since.

He examines the nature of the strategic objectives, how the US and UK governments planned to achieve them, and how they decided to talk about them in public. Reflecting on this evidence will allow us to revisit the question: was oil a major reason for the war and invasion of Iraq?

Federalism, an outcome of the regime change brought by the 2003 invasion and was enshrined in 2005 Constitution, needs fixing. Since 2003, Luay al-Khatteeb argues, Iraq’s experiment with federalism has in many ways benefitted Iraq, though, he asserts, functioning federalism was never given a chance to be tested in Iraq as there are various factors that have contributed to hinder the formation of a Federal Iraq. Thus, because implementation has been imperfect, it has not solved Iraq’s fundamental economic flaws, which promote the waste of oil revenues, promote oil revenue dependence and allow for local level corruption to flourish. This situation can still be remedied, he argued, but that requires time and may take generations to materialise.

Omar Eljoumayle article summarises his PhD dissertation in economic development of contemporary Iraq. The article traces the role of institutions, institutional policies and how the rapid and frequent institutional changes have driven the Iraqi economy for decades. Though applying the New Institutional Economic-NIE to Iraq expands the range of choices of institutions that could be examined, the choices have been narrowed down by revolving around three central issues: agriculture, oil and wars. The picture painfully presented is one of abrupt and instantaneous institutional changes, through which institutions were repeatedly subject to reshuffle and facing changing circumstances. Consequently these changes have severely affected the path of economic development in Iraq.

The book review part of this volume covers to recently published, in Arabic, important books: one on Iraq’s nuclear program and the other on the Iraqi economy.

While it gives me a great professional scholarly satisfaction to be the guest editor for this issue I regret to report that our colleague and contributor, Muwafaq Hassan Mahmood, passed away on 28 June 2018. Despite his illness and he and I knew he would be not with us for long,  Muwafaq (Abu Rand) was very determined and enthusiastic to deliver his article and honors his commitment before leaving us. I have known Abu Rand since mid-sixties and his early departure was indeed a devastating painful loss. My colleagues, Professor Tareq Ismael (Calgary, Canada) and Professor Bill Haddad (California, USA), and I convey our wholehearted condolences to his family, friends and colleagues and we sincerely thank Muwafaq for his contribution to this special issue.

Ahmed Mousa Jiyad,

Guest Editor, IJCIS-SI,

Norway

4 October 2018

*Jiyad, Ahmed Mousa, Introduction, IJCIS, Volume 12, number 3, 2018 (forthcoming)

[1] 1958 revolution the 60^th anniversary (Performance of Qasim in akhabaar  http://www.akhbaar.org/home/2018/7/246337.html (in Arabic) accessed 14 July 2018

[2] As on 22 July the Iraqi Human Rights Commission announced 13 dead, 729 injured, including 460 from security forces, 757 arrested temporarily and release later and  91 government and private buildings and vehicles were damaged. http://www.akhbaar.org/home/2018/7/246645.html  accessed 23 July 2018.

[3] As reported by IOR, 5 September 2018

[4] http://www.akhbaar.org/home/2018/9/248576.html Accessed 8 September 2018

[5] On Da’esh effect, Kuwait conference and cost of reconstruction see , $100 billion for reconstruction https://www.iraq-businessnews.com/2018/02/12/video-iraq-seeks-100bn-for-post-is-reconstruction/

[6] Actually, I was the leader of a team that prepared the “Formulation study for the EU-Iraq Centre for Economic Partnership and Business Cooperation (DCI-ASIA part)”, which was commissioned and funded by the European Commission-EC during the period January-June 2012. The study resulted in formulating and recommends the establishment of EUIEC with four major components: Research, Training, Energy Debate and Business Cooperation. The EC adopted our proposal and started the implementation in 2014 through the Service contract notice “Iraq-Baghdad: ICI+ — EU–Iraq energy centre (EUIEC) 2014/S 074-126988”

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.

By John Lee.

Gas exports from Iran to Iraq have reportedly been interrupted as authorities in Iran repair pipeline damage caused during a recent earthquake.

The gas is used for electricity generation, with the cut reducing available power by 2,500 megawatts (MW).

Supplies are expected to be restored over the coming days.

(Sources: Iraq Oil Report, Reuters)

(Picture: Iran-Iraq gas pipeline during construction. Picture credit: Shana)

By John Lee.

General Electric (GE), Standard Chartered Bank and the state-run Trade Bank of Iraq (TBI) are reported to have jointly closed a $600-million financing agreement to fund the ambitious electricity project 'Power Up Plan' in Iraq.

According to Trade Arabia, the project will be implemented in two phases, providing more than 2 gigawatts (GW) of new power, and ensuring continuity of supply of up to 6.7 GW to Iraq's grid.

The financing arrangement is said to be the largest bespoke Letter of Credit (LC) confirmation and discounting transaction of its kind in the region.

(Source: Trade Arabia)

By John Lee.

Iraqi President Barham Salih has told an international conference in Rome that Iraq will remove any impediments to Iraqi and foreign private sector companies, as well as international financial institutions, donor countries and sovereign wealth funds, to invest in major infrastructure projects in the country.

He added that these projects may include deep port facilities in Basra, a highway network, new railways, airports, industrial cities and dams, and irrigation projects in the Nineveh Plain, Garamian, Erbil, as well as land reclamation in the south.

The following is the full text of the speech delivered by His Excellency President Barham Salih at the Conference of the Mediterranean Dialogues on Thursday afternoon, November 22, 2018:

Excellencies,
Distinguished Guests,

First of all, I’d like to thank the Italian Ministry of Foreign Affairs and ISPI for organizing this conference and the opportunity to address this distinguished audience. I also want to thank His Excellency President Sergio Mattarella and His Excellency Prime Minister Giuseppe Conte for their kind invitation to Italy.

Many may say there is nothing unique about the present day Middle East — we are living through yet another phase of conflict— as we have been plagued by conflict and powers struggles for much of our contemporary history.

However, the military defeat of DAESH and the formation of a new government in Baghdad may well represent a turning point not only for Iraq, but also potentially for the wider Middle East. Iraq has been the epicenter for change in Middle East- for millennia, Iraq has often been the catalyst, the precursor regional order— or disorder!

I dare say that there is now an opportunity to reorient Iraq’s trajectory and propel the country towards prosperity and stability. This will require embarking on fundamental internal reforms, both political and economic.

As such, Iraq is in need of an internal dialogue to address the underlying structural flaws at the crux of the post-2003 political order. Iraqis are indignant at years of conflict and the failure to deliver services. Restoring basic services like water and electricity, reconstruction of the devastated communities by the war with DAESH and repatriation of our IDPs to their homes is an urgent challenge. Corruption and abuse of public funds undermine the viability of the Iraqi state and sustains the cycle of conflict and terrorism. It is imperative to dry up the swamp of corruption.

The defeat of ISIS was undeniably a monumental challenge and impressive success for Iraqi armed forces— the Army, Police, Hashd Al Shabi mobilized by the fatwa of Ayatollah Sistani and Peshmerga forces fought side by side and have become battle hardened. In this context, we are grateful for the help rendered by our allies in the international coalition, led by the United States and which comprised many nations including our generous host Italy. The task ahead is to enhance our defense and intelligence capabilities, integrate our armed forces within the framework of our national defense institution and affirming accountability of all armed forces to the state.

There remain issues of contention between the Kurdistan Region and federal government— time to resolve these issues in a fundamental way through adhering to the constitution. There is renewed hope as the our new PM Dr Adil Abdul Mahdi and the Kurdistan leadership have pledged to move on to resolve these outstanding issues. The recent agreement to resume oil exports from Kirkuk to Ceyhan is a welcomed gesture in this context.

However, ending the crises that plague Iraq also require a reconstruction of the current political order to restore citizen trust in the government. A reformed political order must be based on the protecting constitution, the civil state that strengthens civic values, supports the role of women and their rights, and ensures a commitment to human rights.

A most important and consequential challenge for Iraq today is economic reform and regeneration. Iraq is endowed with immense natural resources, water and fertile land— and an indispensable geopolitical position that can become the hub for regional trade and economic integration. Yet decades of war, sanctions, conflicts, economic mismanagement and corruption have tuned Iraq into an extreme rentier state. This is unsustainable— we are today a 38 million population, and increasing at a rate of one million each year— youth unemployment is rampant— this is a profound security, social and development challenge.

The new government, led by Adil Abdul Mahdi, a pragmatic reformer and economist, is pursuing an ambitious economic restructuring agenda based on empowering the private sector and promoting investment. The unity of Iraq and its security is crucially dependent on strengthening infrastructure links within Iraq and with the neighborhood. This is imperative to bind the country together and to promote common interests with the neighbors and to ensure job opportunities for our youth.

Iraq will be eliminating impediments to Iraqi and foreign private sector companies, as well as international financial institutions, donor countries and sovereign wealth to invest in major infrastructure projects. These projects may include deep port facilities in Basra, a highway network, new railways, airports, industrial cities and dams, and irrigation projects in the Nineveh Plain, Garamian, Erbil, as well as land reclamation in the south. Similar experiences can be seen in Thailand, Vietnam and India, which attracted investment funding from sovereign wealth funds in Japan, China and the Gulf.

In addition to local economic growth, these projects could also contribute to regional economic prosperity. Iraq is an important strategic hub that joins the Arab world with Iran and Turkey and connects the economies of the Gulf and Europe. These could connect the countries of the region so that Iraq could become the heart of a new Silk Road to the Mediterranean.

But for Iraq to succeed and stabilize, it requires a regional order that can embrace and nurture its stability. Iraq has been the domain for regional power struggles— the rivalry over Iraq, and within Iraq, among regional and global actors have sustained and deepened Iraqi crisis. For the last forty years, Iraq has been moving from a war to a war, sanctions and terrorist onslaught and condemned to en ever deepening cycle of crises. This is got to end. It is time Iraq’s stability and prosperity is turned into a common intertest in the neighborhood. Iraq is an important country in the Arab world— This Arab anchor for Iraq is vital economically and politically, and we are emphatic about fully developing our relations with our Arab and Gulf neighbors. Our relations with Iran is also important, we share a border of 1400 km, and much social and cultural bonds — and it is in our national interest to promote good relations with Iran and alike with our northern neighbor, Turkey, which is undeniably an important economic geopolitical actor.

I just come back from a tour to our neighbors in Kuwait, UAE, Jordan, Iran and Saudi Arabia— our message was that Iraq is adamant to protect its independence and sovereignty— our priority is economic regeneration and jobs for our youth— and that we want Iraq’s stability, sovereignty and prosperity to be shared interests for the neighborhood. I made the point that Iraq’s prospects for success is real, but remains precarious, so it should NOT be burdened with further tensions and escalations in the neighborhood. The Middle East needs a regional order based on shared security interests in the face of violent extremists and also rooted in economic collaboration and integration. As in the past, sovereign Iraq with its geopolitical, cultural and economic relevance can be a catalyst for such an order.

I am sure many of you will consider this as too ambitious— perhaps mere wishful thinking. Europe did it after two devastating World Wars— many other regions of the world have moved away from decades of conflict. We must pursue this agenda for our region with vigor and determination— it is primarily our responsibility in the region— and our people deserve better. However, legions of unemployed youth, millions of IDPs in camps— poverty and conflict are the incubators for terrorism, extremism and yes immigrants fleeing our fertile an rich lands to come to the shores of Europe— this should also be shared global interest— certainly a European interest.

This conference theme is about youth and women empowerment. The agenda of reform in Iraq, and the vision for a durable regional order in the Middle East, is what will defeat violent extremism through providing education, meaningful job opportunities for our youth and prioritizing human development as a core aim for our governments and for the global powers.

Thank you.

(Source: Office of the Iraqi President)