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The World Bank warns: The doors of the world will be closed in the face of Iraqi oil

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The World Bank warns: The doors of the world will be closed in the face of Iraqi oil

economic      2022/06/22 | 9:46 am
The Information/Baghdad..

The World Bank warned of the risks of climate impacts on Iraq, from an economic point of view, and while

it called for “structural” reforms and for the formation of an Iraqi government,

it stressed that the doors of the world will be closed to Iraqi oil if this economic approach continues.

The Special Representative of the Bank in Iraq, Ramzi Noaman, said in an interview followed by "The Information", that

"economic reform must converge and harmonize with looking at the climatic effects in the country."

He added that Iraq is an oil country par excellence and depends on oil for its economy, while

the world has begun "to place restrictions on crude oil," stressing that

"if these restrictions are placed on oil and on oil exports, Iraq must take (reform) steps, otherwise global markets will become closed to Iraqi oil.

He explained, that Iraq is on the verge of “a crisis that may be the most dangerous,” which is the climate impacts crisis, “and

how can the Iraqi economy adapt to these climatic effects in accordance with the development plans set by the government, and

how is the process of gradual transition towards a clean economy with the financial consequences that follow.” economic and human capital.

Noman pointed to the climatic changes that Iraq is going through, stressing that

they "affected the quality and quality of the available water,

which negatively affected agricultural lands,

increased desertification rates,

prompted the migration of citizens from the countryside to the city."

The World Bank official said that the climate also had an “impact on food security” in the country, as food and agricultural production declined,

which had consequences “currently caused by the rise in commodity prices at the global level and also because of the Ukraine crisis, which was considered one of the most important sources of food in the world.”“.

Noman pointed out that the World Bank sees that Iraq is currently going through a period of growth, after reaching 11 percent in 2021, compared to stagnation in 2020 due to low oil prices and a decrease in economic activity due to Covid-19, noting that

while things are going better with Increasing oil revenues, the structural crises that afflicted the Iraqi economy previously are still present, and

therefore the risks remain for the economy even with the rise in oil revenues.”

He stressed the importance of

"looking at reforms at this stage and that the

government should look at reform in an integrated way", taking into account the importance of

"addressing the social crises that may arise as a result of some of these steps, and it is necessary to work on

approaching them in a way that prevents the occurrence of the most vulnerable groups by increasing poverty and increasing The unemployment".

He continued, "Iraq has gone through multiple crises as a result of the drop in oil prices," stressing that

"the World Bank has repeatedly spoken about the

importance of economic diversification and the

importance of looking at non-oil sectors that can be invested in to

increase growth,

create job opportunities and

open the way for investment, especially investments from the private sector

Noaman pointed to a decline in services, an increase in poverty rates, and an increase in regional differences between the different governorates, stressing that

in a society 60 percent of it is under thirty years old and there is a population increase, it is very important to take into account the availability of resources.”  He added that "the increase in the population at a time when food is lacking as a result of low agricultural work and the high prices of food commodities in the world and their shortage in some places puts us in front of a dilemma that manifests itself seriously, which is the issue of food security, and this is a national danger."  He added:

"Iraq is facing a reality that is reflected in that the largest percentage of spending is on salaries and pensions, in the absence of the investment aspect that allows creating job opportunities."
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