All of a Sudden Iraq Has Billionaires! You're Not Going to Like Why or How
In the midst of Iraq's economic challenges, there is a surge of billionaires and rampant corruption. (You should remember that a billionaire in Iraqi Dinars is way different than a billion in USD)
There are more billionaires in Iraq than in nine other countries combined, a stark indication of the state's deep-rooted corruption. We are not happy to report this news story. However, it is called journalism, and we must report the good, the bad, and the ugly.
In Iraq, corruption has plagued the state for decades, exacerbated by the misuse of its budget, which, according to official statements, has cost $250 billion over the past 17 years. However, economists argue that the real loss could be nearly twice that amount.
There are more billionaires in Iraq than in nine other countries combined, a stark indication of the state's deep-rooted corruption.
The Commission of Integrity (COI) is expected to reveal the amount of money recovered and the measures taken to prevent further financial waste.
A number of Iraqis are asking for transparency regarding government agreements, imports, and expenditures. The amended Federal General Budget Law No. 2024 was approved by the Council of Representatives on June 3, 2024. The budget for 2024 is 211.9 trillion dinars, an increase of 7% over the previous year.
According to former Iraqi Finance Minister Ali Allawi, more than $250 billion of Iraq's over $1 trillion budget was lost due to administrative corruption from 2003 to 2020. According to economists, Iraq's budget was lost between $400-450 billion, nearly 40% of its total. In exchange for this squandered amount, 400,000 modern schools or 20,000 hospitals could have been built.
According to experts, the financial drain has been primarily caused by fake and overpriced contracts, corrupt officials, mismanaged investment projects, and poor economic planning. While Iraq's workforce has grown from 850,000 to over 4.5 million since 2003, public service efficiency remains low, with only 30% of the budget being used effectively.
According to Haider Hanoun, chairman of the COI, Iraq ranks 154th out of 180 countries in the global corruption index. According to Hanoun, a large sum of money has been stolen and transferred to international banks, and some funds have even been used to finance terrorism. A COI report for 2023 shows that over 391 billion Iraqi dinars and $500,000 have been recovered, while an additional 82 billion dinars and $5 million were prevented from being wasted.
Poverty levels in Iraq
As reported by the Strategic Center for Human Rights in Iraq, more than 10 million Iraqis live below the poverty line, and the budget for 2024 will not be able to support more than one million needy families.
The Strategic Center for Human Rights reports that over 10 million Iraqis live in poverty
The ongoing economic crisis and the appreciation of the dollar have driven up commodity prices, exacerbating poverty. Muthanna Governorate experiences a 52% poverty rate, followed by al-Diwaniyah, Maysan, and Dhi Qar at 48%. Baghdad and Nineveh have poverty rates of 13% and 34.5%, respectively, while central provinces average 18%.
Basra corruption, service failures highlighted by Iraqi official
Labor and Social Affairs Minister Ahmad al-Assad announced government measures to combat poverty on July 21, 2023.
The economic challenges and rampant corruption in Iraq continue to hamper the country's development and exacerbate poverty. The COI's efforts to recover stolen funds and prevent further financial mismanagement are critical to rebuilding trust and ensuring a more equitable distribution of wealth.
Where did this story originate?
This story first appeared on Kurdistan24.net. Here is the link because we initially didn't believe the article. Iraq's billionaire surge, rampant corruption amid economic challenges
