Managing Costs for Iraq’s Reconstruction and Recovery

Abstract

Aims: To analyze the current situation in Iraq in terms of government expenditure, allotment of funds to different sectors and cooperation with international organizations, in the light of its urgent need of reconstruction and recovery. Methodology: The patterns for managing costs during the past years were examined in order to assess the efficiency of the new government, estimated budget and development plans, as well as the results of the past involvement of international organizations in the stabilization of the Middle East stage. Results: It appears that the limited credibility of the government of Iraq has its roots in years of poor governance, inconsistent regulations, corruption and security issues, in spite of the numerous foreign investments; the aforementioned problems have been causing structural weakness and extensive damage to the economy as a whole and thus, we find imperative that the international institutions intervene actively and set strict standards for proceeding in the reconstruction of Iraq as a high-potential country. Conclusion: Relying on significant achievements in the global fight against terrorism and in high hopes of the declaration of the Middle East as a peace zone, Iraq will be able to fully recover over an extended period of time with the aid of international authorities, by developing its non-oil industries, introducing far-reaching reforms, properly managing investments and shrinking costs.