In May 2020, Mustafa Al Kadhimi became Prime Minister of Iraq during a time of national unrest and economic difficulty. His launch of the ‘White Paper’ for economic reform was hailed as a major milestone in Iraq’s return to economic prosperity, outlining more than 200 measures designed to promote fiscal responsibility, reduce corruption and increase transparency.
Implemented in October 2020, Moustafa Al Kazemi’s White Paper effectively served as a roadmap to reform and economic development. The White Paper included a swathe of ambitious reforms designed to develop Iraq’s private sector with the ultimate goal of stimulating economic growth and reducing dependence on the state.
Reflecting on the White Paper, the Iraqi Deputy Prime Minister and Minister of Finance Ali Allawi noted that despite the challenges, the White Paper had achieved great results in its second year, particularly in terms of overcoming the financial collapse and global indebtedness and achieving a cash surplus, providing a basis for moving forwards in addressing the deterioration of productive economic sectors in the country.
Confirming the possibility of continued work on the paper by the Iraqi Government, Mazhar Mohammed Saleh, the Prime Minister’s Advisor for Economic Affairs, highlighted it as a reform project that seeks to ensure Iraq’s financial sustainability. In an interview with Al-Jazeera Net, Mr Saleh explained that the White Paper had been created to establish a practical path to economic reform. Likening the paper to ‘economic surgery’ that requires determination and patience, he suggested that it effectively served as a roadmap to development and stability, pointing out that it was actually closer to an economic constitution than mere government policy.
Reflecting on the potential lifespan of results achieved through the White Paper, Mr Saleh underscored its role in providing a route towards a broader reform path. He pledged that the paper would be evaluated in its first year, with its course modified and important procedural issues deleted or added in line with its successes and failures.
According to economic researcher Mortada Al-Azzawi, if the Iraqi Government can achieve just half of the targets stipulated in the White Paper, this would be a ‘great achievement’. Speaking in an interview with Al Jazeera Net, Mr Al-Azzawi asserted that, had the reforms been implemented a decade ago, their impact would not have been as severe on citizens. Explaining that the strategies outlined in the paper are to be worked upon over the ensuing five-year period, Murtaza Al-Azzawi suggested that, although difficult in a country such as Iraq, the government’s move to restructure salaries of state employees, bringing them down from 25% of the GDP to 12%, could be offset by advancement of the private sector, enabling it to absorb employment.
Announcing the start of administrative and executive mechanisms for reforms on Twitter, Prime Minister Mustafa Al Kadhimi highlighted the role of his White Paper in providing an economic roadmap for Iraq, enabling the government to fulfil its promises despite all the challenges. Describing the White Paper as ‘a strategy for a prosperous, modern, productive Iraq’, Al Kadhimi pledged to fight corruption, prevent waste and invest in the country’s enormous potential. Mustafa Al Kadhimi indicated that his administration had launched the White Paper to address the ‘rampant corruption’ seen in the country, adding that his government aspired to restore the country’s economy after it fell to low levels as a result of corruption. Al Kadhimi stressed that his plan would help rebuild the economy, ensuring the sustainable economic development of the country.