The Divide in Iraq; Sunni and Shia - How the Divide Has Affected the Currency Adjustment

 Understanding the Two Main Groups in Islam: Sunni and Shia

Islam is one of the world’s major religions, with over 1.9 billion followers. Like Christianity, Islam also has two main branches: Sunni and Shia. While both groups follow the teachings of the Prophet Muhammad and believe in one God (Allah), they have some differences in beliefs, history, and leadership. Let’s break it down in simple terms.

How Did the Divide Start?

The split between Sunni and Shia Muslims began over 1,400 years ago, shortly after the Prophet Muhammad died in 632 AD. The big question at the time was: Who should lead the Muslim community now that Muhammad was gone?

• Sunnis believed the new leader should be someone chosen by the people—someone qualified and respected. They supported Abu Bakr, a close companion and father-in-law of Muhammad. He became the first caliph (leader).

• Shias, on the other hand, believed the new leader should be a direct family member of Muhammad, specifically his cousin and son-in-law, Ali. They thought leadership should stay in Muhammad’s bloodline.

This disagreement led to a political and spiritual divide. Over time, the differences grew deeper, resulting in two major branches that remain distinct today.

Main Beliefs: What’s the Same and What’s Different?

Similarities:

• Both believe in one God (Allah).

• Both believe Muhammad is the last prophet.

• Both pray, fast during Ramadan, give to charity, and make a pilgrimage to Mecca if able.

• Both read the Qur’an, Islam’s holy book.

Differences:

Topic	Sunni Muslims	Shia Muslims
Leadership	Believe the leader (caliph) should be chosen by the people.	Believe only descendants of Muhammad (called Imams) should lead.
Authority	Religious scholars have authority, but no divine powers.	Imams are seen as divinely guided and have special spiritual knowledge.
Prayer	Pray 5 times a day at set times.	Often, they combine some prayers and pray three times a day instead.
Religious Events	Celebrate different holy days more lightly.	Ashura (the death of Imam Hussein) is deeply mourned.
Population	About 85-90% of Muslims are Sunni.	About 10-15% are Shia.

What Happened After the Split?

Following the initial disagreement, battles and conflicts arose, particularly during the early years of Islam. One major event was the Battle of Karbala in 680 AD, where Imam Hussein, the grandson of Muhammad and a key figure in Shia Islam, was killed. This tragedy is a very emotional and sacred event for Shia Muslims and is still remembered each year on a day called Ashura.

Where Are Sunnis and Shias Today?

Most Muslim-majority countries are Sunni, such as Egypt, Turkey, and Saudi Arabia. Shia Muslims are the majority in countries like Iran, Iraq, and Bahrain. In other countries like Lebanon, Pakistan, and Yemen, there are both Sunni and Shia communities.

Why Is This Important to Know?

Understanding the Sunni-Shia divide enables us to gain a deeper understanding of the history, politics, and religious beliefs of the Muslim world. It also reminds us that, like in many religions, differences in opinion can lead to divisions—but also to diversity in practice and culture.

Even though there are differences, most Muslims live peacefully and share the same core beliefs: faith in one God, the teachings of Muhammad, and the importance of compassion, prayer, and community.

Understanding the Sunni-Shia Divide and Its Impact on Iraq's Economic Progress

Islam, one of the world's major religions, comprises two primary branches: Sunni and Shia. While both groups share foundational beliefs—such as the oneness of God (Allah), the prophethood of Muhammad, and the importance of the Qur'an—they differ in certain theological interpretations and historical perspectives.

Note: Iran is 90 to 95% Shia.  Iraq is 64% Shia  

Origins of the Divide

The split between Sunnis and Shias dates back to the 7th century, following the death of the Prophet Muhammad in 632 AD. The central issue was about who should succeed Muhammad as the leader of the Muslim community:

• Sunnis believed that the leader (caliph) should be elected from among those capable of the job. They supported Abu Bakr, a close companion of Muhammad, who became the first caliph.

• Shias held that leadership should stay within the Prophet's family, supporting Ali, Muhammad's cousin and son-in-law, as his rightful successor.

This disagreement led to political and spiritual divisions that have evolved over centuries.

Impact on Iraq's Economic Progress

Iraq's population is diverse, with approximately 60% Shia Arabs, 20% Sunni Arabs, and 17% Kurds, among other groups. This sectarian composition has had a significant impact on the country's political and economic landscape.

1. Political Fragmentation and Governance Challenges

Following the 2003 invasion, Iraq adopted a power-sharing system designed to represent its diverse groups. However, this system often led to:

• Sectarian-based appointments: Key government positions were distributed based on sectarian affiliations rather than merit, leading to inefficiencies.

• Policy gridlocks: Divergent interests among sectarian groups led to delays in decision-making and the implementation of economic reforms.

2. Resource Allocation and Economic Disparities

Iraq's economy heavily relies on oil revenues. Disputes over the distribution of these revenues have been a source of tension:

• Sunni regions have often felt marginalized, believing they receive less investment and fewer services compared to Shia-majority areas.

• Kurdish regions have sought greater autonomy over their oil resources, leading to conflicts with the central government.

3. Security Concerns and Investment Deterrents

Sectarian violence has periodically erupted, undermining security and deterring foreign investment:

• Infrastructure damage: Conflicts have destroyed vital infrastructure, increasing reconstruction costs.

• Investor hesitation: Persistent instability makes Iraq a high-risk environment for investors, limiting economic diversification.

4. Challenges in National Projects

Major development initiatives, like the Development Road Project, aimed at connecting Asia to Europe through Iraq—face hurdles due to internal divisions:

• Implementation delays: Sectarian disagreements can stall project progress.

• Uneven benefits: There is a risk that certain regions may benefit more than others, thereby exacerbating existing inequalities.

Path Forward

For Iraq to achieve sustainable economic growth:

• Inclusive governance: Transitioning from sectarian-based politics to a merit-based system can enhance efficiency and foster public trust.

• Equitable resource distribution: Ensuring all regions receive fair investment can reduce grievances.

• Security improvements: Addressing the root causes of sectarian violence can create a more stable environment conducive to investment.

By fostering unity and focusing on inclusive development, Iraq can harness its rich resources and strategic position to build a prosperous future for all its citizens.

The divide between the Muslim faith and the Christian faith is entrenched.  Yet there are many similarities.  If you want to know how the United States helped war-torn countries to re-value their currencies within 7 to 10 years, read the article on why this has not happened for Iraq.