Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Economic Woes Threaten Iraq's Stability

Declining oil prices and aid cancel urgently needed rebuilding

By Jason Farago,  Newser Staff

Posted Feb 26, 2009 7:56 AM CST
Email

(Newser) – Countries around the world are suffering budget shortfalls and declining exports, but few nations have seen as calamitous a fall in revenues as Iraq. As oil prices have plummeted and American financial support has dried up, Iraq is canceling projects and struggling to pay government employees. As the New York Times reports, many in Iraq worry that the economic crisis could threaten the hard-won stability crucial to President Obama's plan to withdraw troops.

As the Iraqi parliament debates the budget this week, the country's treasury said it would withdraw about $20 billion in oil surpluses to cover shortfalls. But that sum is insufficient for the reconstruction projects and improvements to public services, like water and electricity, that Iraqis are demanding. "It’s a disaster," said one Iraqi MP of the country's limited savings. "What are we going to do in 2009, 2010, 2011?"

Iraq's parliament is debating the annual budget this week, as the government said it would tap into oil surpluses to fund shortfalls.
Iraq's parliament is debating the annual budget this week, as the government said it would tap into oil surpluses to fund shortfalls.   (AP Photo/APTN)
A US Marine takes cover behind an Iraqi Army humvee during the beginning of combat operations in Amarah, Iraq.
A US Marine takes cover behind an Iraqi Army humvee during the beginning of combat operations in Amarah, Iraq.   (AP Photo/Hadi Mizban,. File)
Iraq's Prime Minister Nouri al-Maliki addresses a news conference in Berlin, Wednesday, July 23, 2008.
Iraq's Prime Minister Nouri al-Maliki addresses a news conference in Berlin, Wednesday, July 23, 2008.   (AP Photo/Markus Schreiber)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 2 of 2 comments
Guest
Feb 27, 2009 5:05 AM CST
Iraq is stable?
Sammy
Feb 25, 2009 8:06 PM CST
Wonder what happened to the millions if not billions that the US handed out in paper bags for aid and reconstruction over the last 6 years.

Economy threatens Iraq's young democracy
New York Times

Maliki pushes Iraq to diversify its economy
Reuters

 
Iraq • oil • Iraqi Parliament • recession • Iraq reconstruction • economic downturn

More Newser Stories

As Bad as the Depression? If Only

Iraqis Hold 'Day of Regret'

Iraq Confirms New Government

Sunni Bloc Walks Out on Iraqi Parliament

In Secret Talks, Iran Forged Deal for Pro-Tehran Iraq
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne