The
Islamic State in Iraq and Syria
Terrorist
organization born out of the womb of the Iraqi crisis and the political vacuum
left behind, this organization became more powerful after the Syrian crisis.
The international system inadvertently contributed to the emergence of an
oppressor through the long-standing marginalization of the crisis in Syria.
ISIS
received the armed support from the spoils that he had plundered from the
armies of the state, and Mujahedeen of various parts of the world, thus being a
strong basis contributed to the control of a large area, the most important
province of Nineveh and a section of Anbar in western Iraq, and the province of
Raqqa, which was considered the capital of the caliphate of the Islamic State,
in addition to large areas of Syrian territory.
It
does not rely on jihad in the traditional sense. It has strong plans, which
explains its strong desire to build a state with economic resources by imposing
its control over the oil and gas wells in Deir al-Zour and Mosul. As well as
water resources in the provinces of Raqqa and Deir al-Zour.
Iraq's Economy
The
oil sector dominates the country's economy, accounting for 95% of Iraq's
national income.
After
the 1991 Gulf War, Iraq's gross domestic product fell by almost two-thirds as a
result of an 85% drop in oil production than before the war, and the
destruction of the industrial and service sectors. Iraq's external debt now
stands at $ 100-150 billion.
Following
US invasion, successive governments have ignored since the fall the question of
managing the economy or, rather, a clear economic policy, unemployment in Iraq
is more than 25 percent and the proportion of citizens below the poverty line
is more than 30 percent, according to official data from the Central Bureau of
Statistics and the United Nations Development Program.
The Entry of the Islamic State to Iraq
On Tuesday, June 10, 2014, newspapers and television stations around the world were seized with the sudden news of the fall of Iraq's second-largest city by dozens of militants from the "Islamic state". Dozens of ISIS militants managed to drop Mosul and then the rest of the northern cities to take up about 40 percent of Iraq's total territory within days.
1276
days The period of "Islamic State" in Iraq, which was open and
uncompromising war, left its mark on everything in Iraq, from humans to stone.
The Effect of the War on ISIS Over the Economy
Billions of Dollars "Bill" War
The war in Iraq has not left the door of Iraq since 2014, but every second, when Iraq was losing millions of dollars, and with the end of the last battles against "ISIS" in Iraq, Iraqi former Prime Minister Haider Abadi estimated the economic losses at 100 billion dollars.
Military
Spending
The
military spending incurred by Iraq from the purchase of arms and ammunition,
that the cost of the Iraq war on the organization «ISIS » amounted to 300
billion dollars, of which $ 100 billion went to armament and purchase of
equipment and ammunition.
The
Impact of the Islamic State on the Oil Sector
As
mentioned above 95 percent of the national income depend on oil, Islamic State
has taken control of large areas, including several oil wells and the most
important refinery in Iraq, which was under the control of the Islamic state
refinery of Baiji, and led to a fuel crisis.
Disruption
of Domestic and Foreign Trade
The
growth in the non-oil sector in Iraq has also deteriorated since the start of
the conflict with the state organization due to the destruction of the
infrastructure, the disruption of internal and external trade, and the closure
of border crossings with neighboring countries.
The
Withdrawal of Many International Companies
After
the entry of the Islamic state, many international companies began to leave
Iraq for fear of their lives and their personal interests, as many of the
international companies are not ready to work in an insecure environment, which
does not have the necessary security protections.
Stop
Commercial Projects
Due
to the preoccupation of the government and the people in the war on terrorism,
many commercial projects have stopped, according to President of the Federation
of Businessmen about nine thousand projects worth 270 billion dollars, most of
them are idle, because of the lack of follow-up and monitoring by the
regulators.
In
addition to the emergence of fictitious companies quickly fled outside the
country and many of them had received a cash payment from the government.
The
Collapse of the Economic Infrastructure
the
absence of an effective free-market linked to the global market. In fact, the
weakness of Iraq's economic infrastructure is due to Iraq's long war and the
international sanctions imposed on it. Despite the growth of the private sector
market, it is still weak, as local markets have not been able to participate in
the global market or even compete in it.
Some
Recovery in the Iraqi Economy
The
International Monetary Fund (IMF) said on Tuesday that the recovery of Iraq's
growth in 2018 and 2019, indicating that the current temporary rise in oil
prices provides an opportunity for producing countries to rebuild their
reserves.
The
IMF predicted "the recovery of growth in Iraq in 2018 and 2019, which is
mainly due to the continuation of reconstruction efforts." And
reconstruction will open the Iraqi market to foreign companies and investments
to return.
Edited
by – Adrija Saha
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