Economic diversification in Iraq Reality, challenges and solutions

Abstract

A country with a unitary economy, especially if it is rentier, i.e. an economy that depends on one source or a very few group of sources, is exposed to many economic, social, political and other problems, due to the problems and fluctuations that occur to this source on which the single economy depends Local, international, or both. In order to avoid these problems and fluctuations, the issue of economic diversification becomes one of the urgent and necessary issues for countries with single economies from the point of view of economic logic, as it is not possible to get rid of these problems and fluctuations in light of the continuity of the single economy, in addition to achieving economic diversification contributes to imparting the character of strength for growth The economic and financial sustainability of the state and the achievement of social justice between generations, it became clear through the research that the Iraqi economy was not only a non-diversified economy, but was and still is a monolithic economy par excellence, as it depends on oil in a very large way, and that Iraq suffers from challenges that impede its path. Towards the process of achieving economic diversification, as economic diversification cannot be achieved without addressing these challenges, represented by the high volume of corruption, the collapse of infrastructure, the weakness of human capital, the dominance of the public sector and the fluctuations of oil prices that negatively affect the performance of the Iraqi economy through the emergence of the Dutch disease, which makes the relationship inverse Between the contribution of the rentier sector and that of other sectors. At the same time, solutions related to addressing the aforementioned challenges were identified, the private sector was identified, and the proposed Iraqi fund established as mechanisms to achieve economic diversification.