Iraqi Oil Potential

Iraq the Model reports that Iraqi oil revenues are expected to jump in the coming year, and this presents a problem. 

According to a recent paper published last November by Dow Jones (don't have a link, read a summary on paper) after the world economic forum in the dead sea, Iraq's income from oil exports for this year was at 35 billion dollars with a 14.3% increase from last year's total.

And that if oil export levels retain the current level and under stable prices, the coming year will witness a record income that was never reached in the history of modern Iraq and revenues will jump up to 40 billion dollars; a huge figure given the humble plans of the government and a figure that will put the government in a position where it must come up with new and ambitious plans to match the new revenue figures.

Apparently government departments have not spent all of the funds allocated to them, even though there are several regions in the country that are relatively stable and where planned projects could be completed.  ITM blames corruption and red tape.  But question is what to do with all the money.  Solution:  pass it out.

I think this was what pushed the government to announce a number of new measures to cope with the condition, perhaps the easiest measure to come up with was to announce plans for massive raises for civil servants; according to al-Sabah the raise will be as high as 60% of current payments in some cases, especially to those with lower incomes.

Another announcement followed soon, yesterday al-Sabah brought the news that the parliament is discussing a suggestion to set aside 30% of oil sales income to distribute among the citizens of Iraq. The draft law sets 3 classes of payments according to age and subsequent needs and responsibilities; from one month to 6 years, from 6 to 18 years and the third one 19 years and older.

Not a bad idea since the private sector has been churning right along in spite of all the hardship.

The private sector in Iraq had witnessed giant leaps immediately after the fall of Saddam; that could be seen in the form of the thousands of private businesses that were established in the course of the past three years and that had a direct positive effect on the standards of living after long years of deprivation.

It's worth mentioning that between 1946 and the beginning of 2003 a total of 8374 businesses were registered while between April 2003 and the end of 2005 more than 20,000 have been registered. During last month alone 286 new businesses were added.

If Iraq actually embarks upon this distribution plan how long will the average Iraqi tolerate religious zealots as morality police behaving like common thugs.  I wonder if there is anyone who still considers the various murderous factions sowing bloodshed in Iraq to be freedom fighters. 

Comments

[SkyWatch]

I like the idea of distributing it but I am guessing they would need a census for that. They don't have that and it would be near impossible to make one since they change thier names on a wim.