Republic of Iraq : Oil Revenue Management for Economic Diversification
This report - the first phase of a programmatic Iraq country economic memorandum (CEM) is structured around the themes of revenue management and economic diversification. These themes accord with the economic challenges faced by Iraq in the medium...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/669171643036848080/Iraq-Oil-revenue-management-for-economic-diversification http://hdl.handle.net/10986/36938 |
| Summary: | This report - the first phase of a
programmatic Iraq country economic memorandum (CEM) is
structured around the themes of revenue management and
economic diversification. These themes accord with the
economic challenges faced by Iraq in the medium term but
contrast with the short-termism of current Iraqi decision
making, which is pushing for a rapid ramp-up of oil
production - reducing diversification to finance a large
up-front spending program which is detached from a vision of
how to diversify the economy. Iraq's oil revenue boom
will not be able to meet the expectations placed upon it
without a range of supporting policies. Iraq should aim
towards adapting its economy to strong weight of oil, as
opposed to complete insulation of the non-oil economy from
it or dependence on it. To address the myriad links between
Iraq's economic challenges, the report takes a
sequential approach to the analysis. Chapter one presents an
overview of the fiscal aspects of prospective developments
in the energy sector, and an outline of major obstacles to
growth in the non-oil economy. Chapter two, a relatively
high-level and abstract economic model is developed to study
the impact of various options for spending the oil revenue
windfall on the non-oil economy. Chapter three, the
opportunities for the development of the non-oil economy are
set out in more detail along with recommended next steps in
the World Bank support to the government of Iraq. |
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