He called for an end to the rivalry between Al-Sadr and his rivals.. Report: The Iraqi political conflict dampens hopes of saving the economy
Reports & Analytics breaking Sadrist Movement Iraqi economy coordinating framework The Carnegie Institution of America
Shafaq News / A report by an American institute issued today, Friday, revealed the impact of the current political impasse on the rival political blocs and the Iraqi people, and indicated that
ending the economic crisis may be "more difficult", Al-Sadr and his opponents called in the coordination framework to transform competition to achieve economic reforms urgent.
The American "Carnegie Institution" said in a report translated by Shafak News Agency;
The economic consequences of the political impasse that Iraq is witnessing at the present time will not be in the interest of the rival political blocs nor in the interest of the Iraqi people, as
ending the economic crisis may be more difficult than expected, especially in light of the escalation of the political conflict between Muqtada al-Sadr's supporters and Shiite parties.
The conflict, which leads to an escalation of the cost of economic reform. The US report stated that
"this matter has weakened the prospects of adopting a practical and effective budget, impeding the necessary progress that has been achieved in the areas of infrastructure spending and delaying efforts aimed at achieving urgent economic reforms." The report pointed out that
"the political crisis after the recent elections, caused the collapse of popular support that the country needed in order to address the most important problems facing the Iraqi economy, which are represented in the deterioration of public services and the spread of unemployment." And after the report pointed out that
"these two problems were briefly addressed during the discussion of the (Emergency Support for Food Security and Development) law that was passed in June and whose expenditures were set at (17 billion dollars)," he considered that
"bureaucratic complications raised many questions about the possibility of Implement this law transparently as it is "too brief and somewhat contradictory." And the institute continued in its report that
"at a time when the competing Shiite blocs are seeking to control the country's resources,
including record-breaking oil revenues,
directing public spending towards creating job opportunities and improving health care has become an almost impossible task,
especially in light of the steady rise in rates of Unemployment, as official figures show that more than a third of young people are not in school, in work, or in training. The report pointed out that
"international support was a major factor in pushing Iraq to achieve economic and administrative reforms," noting that
"in 2017, Iraqi government officials and academics partnered with international specialists to formulate what they called (Economic Vision 2030), explaining that
"This vision was aimed at addressing the gap in wealth distribution and income and paving the way for spending on infrastructure needs.” The report indicated that
"political instability conditions eventually dampened the momentum of that vision, in light of the refusal of the competing blocs to resolve acute disputes related to revenue sharing." Despite this, the report confirmed that
“the Iraqi economy has shown some positive indicators in recent months, as
it is expected that oil and non-oil growth will return to pre-Corona pandemic levels, and that
the economy will record an average growth rate of 5.4% annually between 2022 and 2024.” The institute also points out that
“the economic prospects appear murky due to the delay in forming a new government, as
the absence of an effective government creates great challenges to the transparent use of more than $60 billion in oil revenues recorded during the first half of this year,” adding that
“Al-Sadr and his competitors At the same time, they are not interested in introducing legislation that would help diversify the sources of expenditure in order to achieve the improvement of public services.
The report urged the two competing Shiite blocs to
"put aside their internal political fighting, and
turn the competition between them into a competition to achieve urgent economic reforms,
which was demanded by Al-Sadr himself in the post-election stage when he stressed the need for gradual reform that eliminates poverty and rampant corruption, and demanded the representation of All sects are in state institutions. The report emphasized that
"political paralysis affects about 370,000 families, who live without money in light of fears of looming unrest in some of the electoral districts of these Shiite blocs," noting that
"while the prospects for reconciliation between al-Sadr and the coordinating framework forces seem murky so far.
The Iraqis will continue to bear the burden of economic neglect once again."
Translation: Shafak News Agency