Analyzing the relationship between energy supply and economic development)

Selected international experiences with the potential to benefit from them in Iraq

A thesis submitted to

Council of the College of Administration and Economics – University of Karbala

It is part of the requirements for the degree of Doctor of

Philosophy in Economic Sciences

by the student

Hussein Basim Mohammed

Supervised by

P. hd. Prof. Kazem Ahmad Hamada Al-Battat    

Supervised by

P. hd. Prof. Ammar Mahmood Hameed Al-Rubaie

Abstract:

         The fragility of energy supplies constitutes an obstacle to economic development in Iraq, as securing energy supplies is one of the most important factors affecting economic development. Although Iraq possesses huge reserves of crude oil and associated natural gas, it suffers from a lack of energy supplies for domestic consumption, which constitutes an obstacle to economic progress. This is largely due to the inability of the energy supply to meet local demand, as Iraq faces a deficit in electrical energy and energy sources (gas oil and natural gas), which hinders its ability to meet the increasing demand for energy by the population and economic sectors.

In addition to the crises and disturbances in which the lack of energy leads to frequent power outages, which leads to the aggravation and failure of the performance of economic sectors, and its negative effects on low productivity, increased unemployment and a decrease in local income, and thus the lack of energy leads to increased dependence on energy imports, which leads to competition Rentier exports direct a significant portion of financial revenues to energy imports and lose the benefit from rents in economic development, in addition to their effects on the general budget deficit and lack of economic stability. Therefore, decision-makers must take serious steps to address the fragility of energy security and support economic development.

Therefore, the research aims to study and analyze the relationship between energy supplies and economic development (the experiences of selected countries with the possibility of benefiting from them in Iraq) by presenting a strategic proposal to address the energy shortage by benefiting from the experiences of the selected countries, and drawing a proposed strategy that would identify solutions for securing energy supplies for the economy.

The hypothesis has been proven correct that energy shortages have a negative role on the performance of economic sectors through weak supplies for local consumption, the low level of local industry, paralysis of the economy, and heavy reliance on importing energy sources and electrical energy, and financing this from oil revenues exported to global markets.