Sta­bil­ity or Oil ?

The Kurdish Globe - - NEWS - By Swara Kadir

As the world econ­omy learns to adapt to mod­ern ter­ror­ism ex­em­pli­fied by ISIS, sta­bil­ity in the Mid­dle East­ern re­gion be­comes a de­ci­sive fac­tor that de­cides whether a na­tion can be­come eco­nom­i­cally pros­per­ous or not. One would go fur­ther and say sta­bil­ity is more im­por­tant than the ex­is­tence of nat­u­ral re­sources like oil.

Two good ex­am­ples will help il­lus­trate this point. The UAE pos­sesses lit­tle nat­u­ral re­sources in com­par­i­son to its neigh­bors yet it has man­aged to at­tract sub­stan­tial for­eign in­vest­ment mak­ing it a lead­ing eco­nomic force in the re­gion. The op­po­site is true, Iraq, ex­clud­ing the Kur­dis­tan re­gion of course, has enor­mous nat­u­ral re­sources of oil and gas, yet it hasn't been able to pros­per eco­nom­i­cally be­cause of the on­go­ing vi­o­lence and strife.

The model of sta­bil­ity with good nat­u­ral re­sources is the Kur­dis­tan Re­gion. In­ter­nal sta­bil­ity is there but due to the ISIS threats to in­sta­bil­ity, the econ­omy has slowed down. How­ever, it's not as se­ri­ous a threat to growth as the in­ter­nal in­sta­bil­ity. The threat is ex­ter­nal, that's why the Kur­dis­tan econ­omy is start­ing to re­cover.

The main stum­bling block for the Kur­dis­tan econ­omy is not ISIS but Bagh­dad. The Kur­dis­tan Re­gional Gov­ern­ment won a mi­nor bat­tle with the oust­ing of the Prime Min­is­ter Ma­liki, now three main points need to be re­solved: first is the pay­ment of the Kur­dis­tan bud­get to pay off peo­ple's wages. Sec­ond is the free­dom to sell Kur­dish oil via Ci­han Turk­ish port, and the third is the res­o­lu­tion of dis­puted ar­eas like Kirkuk.

The Kur­dis­tan econ­omy is grow­ing. What the fu­ture holds is not quite clear, but if the ISIS threat is con­tained and the dis­putes with the cen­tral Iraqi gov­ern­ment are solved, then the fu­ture for the Kur­dis­tan econ­omy will be a very promis­ing one be­cause it has the es­sen­tial in­gre­di­ents of sta­bil­ity and the nat­u­ral re­sources like oil.

Newspapers in English

Newspapers from Iraq

© PressReader. All rights reserved.