Analysis of the evolution of the Iraqi balance of payments For the period(2021-2003) and ways to address imbalances

A Thesis Submitted By

Russell of Hatem Faleh Jaber Al-Fawadi

To the Board of the Faculty of Management and Economics – Karbala University, which is part of the requirements of obtaining a master’s degree in economics

Under the supervision of

Prof. Dr. Tawfeeq Abbas Abd oun Al-Masoudi

Abstract

       The study and analysis of the Iraqi balance of payments is a basic necessity for the purpose of identifying the imbalances that afflicted the Iraqi economy and that led to the deficit and imbalance in this balance because it reflects the structure and composition of the national economy in terms of strength and weakness and constitutes a major tool for analyzing the effectiveness of financial, monetary and commercial policies, as the imbalance in  The Iraqi balance of payments was a result of the conditions that the country went through in the decade of the nineties and its aftermath, represented by the second Gulf War and the imposition of the economic blockade, and then the occupation of Iraq in 2003, which led to a significant deterioration in all economic systems in general and its monetary system in particular, as the period witnessed (2003  -2021) Some declines in GDP growth rates, a decrease in the value of the Iraqi dinar against other currencies, and an increase in the degree of commercial exposure to the outside world.

     The importance of our selection and study of this topic lies in shedding light on the reality of the balance of payments in Iraq by examining the reality of economic policies and their impact on the balance of payments.

    The research is based on the hypothesis that there is an imbalance in the balance of payments in Iraq resulting from the adaptive policies used in that period, and that this imbalance can be corrected in light of the available capabilities in this economy.  The study aims to define the nature of the balance of payments in general, and to identify the most important reasons that contributed to its imbalance, and to try to find solutions that can limit this imbalance.  In order to prove the hypothesis and achieve its objectives, the study relied on the analytical approach. The study also reached a number of results that resulted from it, and presented a number of proposals and recommendations to overcome the obstacles that faced the development of the balance of payments in Iraq, as a result of it being a rentier economy that depends on a primary commodity (oil). Hence, a number of conclusions and recommendations necessary for the study were drawn.