The Kurd's Winning Card in Iraq
First Kurdish oil pipeline shipment and the government in Baghdad
Kurds has sent the first oil shipment through its own pipeline to the international market, bypassing the Central Government in Baghdad; this will increase the tension between Kurds and the government in Baghdad on one side and between Baghdad and Turkey on the other.
The Kurds could boycott the national government and parliament if their demands are not met. They could seek to use their political leverage to persuade Baghdad to offer concessions during the oil negotiations. Kurds and the Central Government have a running dispute over the right to develop and export natural resources, and both rely on different interpretations of the Iraq's constitution.
The Iraqi Prime Minister Nouri al-Maliki's bloc emerged as the biggest winner. His party, The State of Law, won 92 seats in the 328-member Parliament, but it failed to gain the majority needed to govern alone. Kurds gained a total of 62 parliament seats. The movement of Al-Sadr, won 28 seats, and the Islamic Supreme Council of Iraq, won 29 seats. While the Sunnis won at least 33 seats by both their two main coalition parties.
The Kurdistan Region has the potential to achieve accelerated economic development and growth. The Economic, trade and industrial sectors, though damaged by incessant conflicts have witnessed considerable development. The extractive industries sector can be tapped into the growing global demand for crude oil, natural gas and minerals. The Region's bright economic future is clouded, however, by several factors common to developing economies. Kurds officially started pumping crude oil to the international market through a pipeline that goes through Turkey's Ceyhan Mediterranean port, but shipments were interrupted many times over revenue disputes with the Iraqi Central Government.
The KRG is dedicated itself to operate as the servant of the people in a transparent and accountable way. This requires the regional ministries to collect and disseminate key economic data. Local businesses, as well as the international investors, can make important decisions that will help the economy of the Kurdistan Region to grow. Following the international standards of transparency and accountability, the KRG will be better able to position itself for international investments. The Kurdistan Regional autonomy had originally been established in 1970 with the creation of the Kurdish Autonomous Region following the agreement of an Autonomy Accord between the government of Iraq and the leaders of the Iraqi Kurdish community led by Mulla Mustafa Barzani, the father of the current President. A Legislative Assembly was established and Arbil became the capital of the new entity which lay in Northern Iraq, encompassing the Kurdish authorities of Erbil, Dohuk and Sulaimania.
The Iraqi Kurdistan is a parliamentary democracy with a regional assembly, comprise around 40,000 square kilometers and have a population of 5.5 million. The stability of the Kurdistan region has allowed it to achieve a higher level of development than other regions in Iraq. Their income is 25% higher than in the rest of Iraq. The government continues to receive a portion of the revenue from Iraq's oil exports. The Kurds constructed a separate pipeline and started pumping to separate storage facilities at Ceyhan in January. The Kurdistan region's economy is dominated by the oil industry, agriculture and tourism. The Kurdistan Region has a more developed economy compared to the other regions in the country.