A COUNTRY REPORT OF IRAQ

TEACHER: MR. ROY B. GACUS

ANA LEAH DELFIN

3/BSACCTY/A
INTRODUCTION

Mesopotamia ("Land Between the Rivers") was the ancient name for the lands that are now Iraq,
an area whose vast alluvial plains gave rise to some of the world's earliest civilizations, including Sumer,
Akkad, Babylon, and Assyria. After the 7th century, this prosperous region, which included most of what is
now known as the Fertile Crescent, became a valuable part of larger imperial polities, including various
Persian, Greek, and Roman dynasties. After that, it became a central and integral part of the Islamic
world. The modern nation-state of Iraq was established from the Ottoman provinces of Baghdad, Basra,
and Mosul following World War I (1914–18).

Iraq is a country in South-West Asia that borders Turkey, Iran, Kuwait, Saudi Arabia, Jordan, and
Syria. With 39.2 million people, it is the world's 35th most populous nation. Baghdad, the capital, is also
the country's most populated metropolitan area, with 6.6 million people. Iraq's official languages are
Arabic and Kurdish, while Turkmen, Syriac, and Armenian are recognized in small towns where native
speakers predominate. The most common religion is Islam, which is practiced by 55-60% of the
population, with the Sunni sect accounting for the remaining 40%.

Due to the continuing risks of insurgency, military operations, ethnic tensions, and illegal activity,
Iraq is currently classified as a 'very high risk' destination for travel and business. Daesh's territory has
been limited to the Iraqi-Syrian border's sparsely populated areas in the provinces of Ninewah and Anbar.
However, they still can carry out terrorist attacks throughout the country.

Moreover, the country is divided into 18 governorates, which are further divided into districts and
subdistricts. Iraq has the potential to be one of the richest countries in the region and the world thanks to
its natural resources. Iraq, a founding member of the Organization of Petroleum Exporting Countries
(OPEC), has more than 112 billion barrels of proven oil reserves, making it the world's second largest.

Iraq's GDP has dropped by 27% since 2014 and now stands at US$171.49 billion, but it is
projected to rise slowly but steadily from 2018 onwards. The Iraqi Dinar is the official currency.

POLITICAL ECONOMY

Iraq is an oil-saturated island adrift in the sea. It is widely regarded as having the world's
fourth-largest petroleum reserves, but ongoing surveys suggest it might overtake its neighbor, Saudi
Arabia, to take first place. Oil export revenues account for nearly all government revenue and more than
two-thirds of the country's GDP. The Iraqi oil industry, on the other hand, only employs a small
percentage of the country's workforce. Dealing with oil price fluctuations is one of the ongoing problems
that the Iraqi government faces. While oil output and export volumes fluctuate slowly, oil prices fluctuate
quickly. As a result, government revenue is on the increase and drop.

Iraq's oil fortune has been squandered for the past 30 years due to war, corruption, and
mismanagement. However, due to the high population growth rate, the average Iraqi's living standards
are much lower than three decades ago. Rapid population growth, combined with the devastation caused
by recent wars, has made it difficult for the government to provide universal elementary education and
basic essential services.

Furthermore, hundreds of thousands of Iraqis join the labor force each year and begin searching
for jobs in an economy marked by high unemployment and underemployment. It would be economically
destabilizing if these people are unable to find valuable jobs. The pervasive corruption and
mismanagement of a transitional government make meeting these challenges much more difficult. The
evolution of Iraq's political settlement has had a significant effect on the essence of (economic)
policymaking. In particular, a more inclusive but elite political settlement has increased incumbent
politicians' incentives to follow short-term policies aimed at appeasing clientelist supporters rather than
providing public goods. This is because, as a sectarian mechanism for allocating public office has evolved
and solidified, the relative cost of ensuring longevity in office has moved away from providing widely
accessible public goods and toward satisfying clientelist supporters. As a result, the government has
become overwhelmingly dependent on creating public-sector employment while neglecting resources and
long-term investments.

POLITICAL SYSTEM

The Baath (Arabic: "Renaissance") Party-controlled Iraq from 1968 to 2003. Iraq was confirmed
as a republic under a provisional constitution adopted by the party in 1970, with legislative power vested
in both an elected legislature and the party-run Revolutionary Command Council (RCC), without whose
approval no legislation could be passed. On the other hand, the political system worked with little regard
for constitutional requirements, and President Saddam Hussein had practically unrestricted power from
1979 to 2003.

Following the Baath regime's overthrow in 2003, the US established the Coalition Provisional
Authority (CPA), which a senior American diplomat leads. In October 2005, the IGC adopted a permanent
constitution via a national plebiscite. This document defined Iraq as a federal state with the national
government having limited control over matters such as security, foreign relations, and customs
regulations. Several topics (such as general planning, education, and health care) are mutual
competencies, while others are handled at the discretion of the district and regional constituencies.

Iraq is divided into 18 mufat (governorates) for administrative purposes, with three of them
forming the autonomous Kurdistan Region. The president appoints a governor, known as a mufi, for each
governorate. Iraq's judicial affairs are overseen by the Supreme Judicial Council, which appoints
Supreme Court judges, the national prosecutor, and other high-ranking judicial officials to the Council of
Representatives for approval. Members of the Supreme Court are appointed by a two-thirds majority of
the legislature and must be specialists in civil law and Muslim canon law.

ECONOMIC SYSTEM

Iraq's economy has started to recover after years of sanctions and the immediate
destruction brought about by the US-led invasion. Improvements in oil and electricity production,
according to experts, are putting the country back on track. However, ongoing security issues, such as
suicide bombings, attacks on foreign workers, and sabotage of oil infrastructure, deter foreign investment
and halt many reconstruction projects in the run-up to the handover of sovereignty on June 30.

According to Thomas Foley, the founder, and chairman of the investment company NTC Group,
much of Iraq's economy is still informal, with the significant economic activity carried out by unregistered
companies. This makes determining the size of the economy challenging. Foley reports that the country's
gross domestic product (GDP), excluding the oil industry, is about $10 billion per year. Iraq's oil sales
nearly double its GDP to $20 billion per year, almost the same as Latvia or Bolivia.

Iraq is not a World Trade Organization participant. International trade and investment continue to
be hindered by security issues and structural deficiencies. A large number of state-owned enterprises
distort the economy. Iraq's cash economy lacks the requisite infrastructure for a fully functional financial
system. Despite some improvement, banks' regulatory mechanisms have not been sufficiently
strengthened to allow for greater financial intermediation.
 The government's economic policy goals should
corruption, reforming fiscal management, and strengthening
economic freedom. A strengthened investment climate to
critical to Iraq's long-term economic growth, necessitating
restoration of the rule of law.
include reining fiscal spending, combating
the financial sector to lay the groundwork for
boost private-sector participation would be
an improved security environment and the

LEGAL SYSTEM

Civil law, Sharia law, as well as statutes and legislation are both parts of Iraq's legal system. The
Iraqi Constitution of 2005 reigns supreme, and any legal document that contradicts it is deemed null and
void. It also ensures Iraq's territorial integrity. Within Iraq's legal structure, Islam plays a key role: laws that
contradict existing Islamic provisions can not be enforced, and Islam serves as a base source for
legislation.

Article 87 of the Constitution guarantees the independence of the judiciary. The Iraq Federal
Judiciary supervises the federal court system, which includes political, labor, personal status, criminal
courts, and the Central Criminal Court. The Supreme Court is made up of judges who are "experts in
Islamic jurisprudence," is in charge of interpreting the Constitution, deciding the constitutionality of new
laws and rules, and serving as a final court of appeals. In court cases, constitutional and statutory law
predominate. However, in the absence of laws, courts adjudicate according to tradition, and in the
absence of custom, a decision should be made based on the applicable Sharia rules.

PROPERTY RIGHTS

Corruption and dispute jeopardize property rights security. Constant executive

intervention, tribal and religious powers, and bureaucratic bottlenecks all undermine the politicized and
corrupt judiciary. Economic growth and foreign direct investment are hampered by deeply institutionalized
corruption. Efforts to combat corruption are met with skepticism and intimidation. Bribery, money
laundering, nepotism, and misuse of public funds are all too normal.

"No one shall be unlawfully deprived of property and possessions," according to the Guiding
Principles. Property left behind by internally displaced people should also be safeguarded against
destruction or appropriation. According to the Pinheiro Principles, "everyone has the right to the peaceful
enjoyment of his or her possessions" and "everyone has the right to be safe against being unlawfully
removed from his or her house, territory, or habitual residence." The Pinheiro Principles also require
States to include anti-displacement provisions in their domestic laws that are compliant with international
human rights and related requirements and to extend such protections to all within their legal jurisdiction.

CONCLUSION

Despite everything they have gone through as a nation, Iraq is in its best effort to be an efficient
and progressive state. This report's importance is for the reader to discover and understand that every
nation has unique characteristics, especially in regulations and systems. Also, it is essential to learn the
differences in political, economic, and legal systems Iraq, the Philippines (as our country), and other
countries as these are some of the challenges international business operations are facing. To end this,
every country's state of productivity and success lies in how the government leads its nation.

REFFERENCES:

https://www.britannica.com/place/Iraq/Baghdad#ref22941
 https://education.stateuniversity.com/pages/682/Iraq-HISTORY-BACKGROUND.html

Political Economy of Iraq by Frank R. Gunter (2013)

http://eprints.lse.ac.uk/104086/4/Hamilton_political_economy_of_economic_policy_iraq_publishe
d.pdf

https://proeliumlaw.com/iraq-legal-country-profile/

https://www.heritage.org/index/country/iraq

https://www.usip.org/sites/default/files/Of_Principles_and_Property_Law_edited3.pdf