The effect of ISIS on the Kurdish economy
There is a famous saying in Arabic which translated says: the calamity of a nation is the prosperity of another. This saying rings true of what's happening right now in the Kurdistan and Iraq region.
ral punishment of beheadings and amputations. The Central Iraqi government led by Noori Al Malaki, together with its disintegrating Iraqi army that the U.S spent over 25 billion dollars on couldn't hold back the Sunni tide.
What's all this got to do with the Kurdish economy in the Kurdistan region? Well, if there was such a thing as luck, you could call it an economically lucky window of opportunity for the Kurds to expand and create a powerful economy.
Since the cutting off of the Kurdistan Region's share of the Iraqi petrodollar which is over ten billion US dollars per annum, the Kurdistan economy has almost reached a grinding halt with depleting money supplies. The massive welfare state of over a million wages paid by the government has been financially affected. And the strategic infrastructure projects have been halted.
The solution that the Kurdistan Regional Government (K.R.G) came up with was the direct selling of crude oil via Turkey. This was a daring move by the K.R.G which caused a lot of resentment from Noori- Al- Maliki. The Iraqi government initiated a lawsuit of 250 million dollar compensation against the Turkish government for the apparent 'smuggling' of the crude oil via oil tankers.
This seems to have taken a decisive turn with the ISIS coup in Mosul. AlMalaki is now in a weakened position and is in need of Kurdish cooperation to resolve this national crisis. Now the K.R.G is in a stronger position to continue its ambitious venture of exporting crude oil. It is bringing Kurdistan a step closer towards generating its own national source of income and economic independence.
The icing on the cake is that the oil rich, contested city of Kirkuk is now in the processor of being absorbed back into the Kurdistan Region since the withdrawal of the Iraqi forces which created a vacuum for the Peshmarga (Kurdish armed forces) to move in and take control. If this absorption of Kirkuk becomes permanent the enlarged Kurdistan region would have over 60 billion oil barrels in underground reserves making it a key oil economy in the world.
While at the outset, the security situation with the spread of Sunni fanatics may look gloomy, but what will follow is a golden economical age for Kurdistan with the increasingly eminent prospect of Declaration of Independence that will give Kurdistan the freedom it needs to sell its own oil.