Another debt- rid­den third world na­tion!

The Kurdish Globe - - Sports News - By Swara Kadir

Debts are mount­ing up on the Kur­dis­tan Re­gion. As oil prices are get­ting lower and lower, na­tional ex­pen­di­ture is get­ting harder and harder to cover as Bagh­dad is not keep­ing its prom­ises. What is go­ing to be­come of the Kur­dis­tan econ­omy?

The Kur­dis­tan Re­gional Gov­ern­ment (K.R.G) is bor­row­ing money from the in­ter­na­tional banks. Money from Bagh­dad is not com­ing as promised by the cen­tral Iraqi gov­ern­ment. This money was in re­turn for Kur­dish crude oil. As a re­sult the Kur­dis­tan Re­gional Gov­ern­ment be­gan bor­row­ing money from in­ter­na­tional fi­nan- cial in­sti­tu­tions. The latest at­tempt is to bor­row around five bil­lion U.S dol­lars by ne­go­ti­at­ing with the ma­jor oil com­pa­nies to lend money in re­turn for crude oil.

The Kur­dis­tan Re­gion has learnt its les­son the hard way when oil rev­enue share from Cen­tral Iraqi Gov­ern­ment stopped and it started bor­row­ing money. The debt maybe quite dif­fi­cult to re­turn and may put Kur­dis­tan at the mercy of the in­ter­na­tional fi­nan­cial in­sti­tu­tions con­trolled by the U.S gov­ern­ment and the multi­na­tional com­pa­nies. Kur­dis­tan may be­come another debt-rid­den coun­try like Kenya or Peru whose debts are ac­crued and their com­pound in­ter­est is mak­ing it im­pos­si­ble to pay them off. This may ren­der Kur­dis­tan a slave to debt and in­stead of us­ing its oil money for eco­nomic growth it would just be pay­ing back what it has bor­rowed!

Ac­cord­ing to the pop­u­lar con­spir­acy the­o­ries, this is the ex­act aim of the U.S and other Euro­pean coun­tries. Put third world coun­tries with oil nat­u­ral re­sources un­der its do­min­ion and con­trol through debts. This way it can ma­nip­u­late the global energy mar­ket and pre­vent a sup­ply cut sim­i­lar to what hap­pened to the 1973 oil em­bargo im­posed by OPEC (Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries) which caused a global re­ces­sion.

Does the K.R.G have another op­tion? Not right now, as the needs of the gen­eral pop­u­la­tion are press­ing, bor­row­ing money seems to be the only short term op­tion. How­ever it quickly needs to make big changes in the econ­omy and turn it from a spend­ing econ­omy to a pro­duc­tive econ­omy with a labour force that is ac­tu­ally con­tribut­ing to the na­tional in­come.

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