Poverty as a Consequence of Structural Imbalances and State-led Growth Failure in Iraq and the Kurdistan Region (1970--2020)

Abstract

This paper sheds light on economic contradictions, or structural imbalances, of the Middle East and North Africa (MENA), with special references to Iraq and the Kurdistan Region of Iraq (KR-I), which occurred across the last 50 years. These contradictions, or imbalances, have resulted in a weak economy and political instability, and gradually generated a high level of poverty. The study emphasizes the correlation between state-led growth, structural imbalances, resource curse, and socio-economic outcomes such as poor economic performance, low levels of private-sector development, and increasing poverty rate. It also analyzes the constraints of reforms by social actors. The paper relies on secondary data collected by NGOs, government organizations, researchers, etc. It concludes that poverty is first and for most a consequence of the economic contradictions, or economic imbalances and state-led growth including but not limited to instability in oil rents versus high growth rate of population, and a large public sector versus a weak private sector.