Middle Eastern Summit 2013

Economic Development Committee Republic of Iraq Policy Statements

In the aftermath of Iraq War, a more secure environment and increased foreign investment has helped spurred economic growth in Iraq. Having said that, the country is still operating below its potential as it faces a number of obstacles such as outdated infrastructure, insufficient essential services and a shortage of skilled labour. One way to alleviate those problems and maximise its economic potential is through economic integration. This will also translate into welfare benefits such as increased standard of living, reduced youth unemployment rates. As such, the Republic of Iraq is extremely supportive of economic integration and believes that it is imperative to boost growth and living standards, and promote political stability. However, considering the current political climate and economic disparity of the region, a staggered approach must be implemented for any solution to be sustainable. Situated in a strategic geographical location, Iraq believes that she will be a key player in helping to establish a stronger regional market. Currently Iraq has large amounts of undeveloped oil and gas resources and a significant domestic market. This means that Iraq can help to provide the necessary ingredients and incentives for the various Arab nations to come together and be part of this larger economic union. Hence, Iraq proposes a simple three step approach toward economic integration. 1. Development of Infrastructure Richer nations could help provide infrastructural support for the poorer nations or countries that are currently in a state of transition. This will not only help to develop the raw resources in the country but also increase Foreign Direct Investment for the non-oil economies. In the long run, this will be beneficial to all members as the region grows stronger economically. 2. Free Trade Agreements for non-oil related goods Eliminating tariffs and other taxes for non-oil related goods will help to encourage trade growth in the region, but will allow oil economies to fully engage with non-oil economies. 3. Establishment of Common Markets By agreeing upon common policies on product regulation and the movement of factors of production, barriers between the difference nations will be completely eliminated. This will allow for the factor of production to be more efficiently allocated. Taking into account the volatile political climate of the Arab states, it must be stressed that the process of economic integration should not be rushed and only implement when the circumstances permit, to ensure that these measures will not be counterproductive.