Economic Reform in the Kurdistan Region, its Justifications and Obstructions during (2005-2019)

Abstract

The Kurdistan Region has been suffering for several years from economic instability and successive economic and financial crises. The deep economic problems and the various imbalances in its economic structure that have accumulated over the past several decades, especially the weakness of the non-oil economic sectors to produce and generate income and absorb employment, and the Imbalances in the structures of public finance, foreign trade, and the labor market among the main reasons why the region’s economy is constantly exposed to major economic crises and problems, These problems and imbalances in general are among the most important justifications that make economic reform in the Kurdistan Region an urgent need. There have been attempts and efforts to reform the economy by the Kurdistan Regional Government during the past years, but they did not succeed in achieving its goals. The economy’s fall into a rentier closed cycle and weak institutions are among the main reasons that have led to the failure of these attempts. Exiting the rentier closed cycle in which the economy of Iraq and the Kurdistan Region has continued for more than fifty years is an essential step and a necessary condition for the success of any attempt in this direction. This can only be achieved under qualified institutions.