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ERBIL, Kurdistan Region – There is "strong political will" to solve Iraq’s economic crisis, said Britain's ambassador to Iraq Stephen Hickey this week.
Speaking to Rudaw’s Shaho Amin on Tuesday, the UK’s top diplomat discussed Iraq and the Kurdistan Region’s looming budget dispute, the broader economic situation of the country, as well as possible ways for the UK to support Baghdad and Erbil.
“As the UK, we are here as the friends of Iraq and friends of the KRG. If there is a scope for us to play a role to help [Iraq and Kurdistan Region to improve their relations] we are ready,” claimed Hickey.
Due to continued budget issues, the global plunge in oil price as well the dramatic plummet of domestic revenues due to the coronavirus containment measures, the Kurdistan Regional Government (KRG) and Iraq has been struggling to pay its civil servants.
The diplomat stressed the importance of local actors taking the initiative to tackle Iraq’s economic woes.
“Fundamentally, it is for Iraqi leaders, whether in Erbil or Baghdad, to lead in solving these problems,” said Hickey.
The top diplomat mentioned the work the UK was already doing to aid their counterparts in Iraq confront these issues.
“We have already offered technical assistance. We are ready to provide expertise when it comes to economic reforms,” said the ambassador. “We have created a major fund together with the World Bank that provides over $30 million for this kind of technical expertise to help develop economic reforms and implement them.”
The diplomat sees the development of the country’s private sector as a possible tool to move toward prosperity, saying diversifying Iraq’s economy is paramount.
“It is a good thing for Iraq that there is this fantastic energy wealth [oil] but we want to see more private sector development. I think there is one lesson from this recent economic crisis - Iraq and the Kurdistan region of Iraq need to wean themselves of a dependence on oil and gas revenues because that makes the economic situation very vulnerable to changes in the oil price.”
Russia's consul-general in Erbil Oleg Levin made similar remarks Wednesday, noting that the Kurdistan Region’s economy is mainly dependent on oil.
In an interview with Rudaw TV’s Shahyan Tahsin aired late Friday, Levin said that Russia's experts can help the Region make use of other resources.
Iraq’s newly-inaugurated Prime Minister Mustafa al-Kadhimi told journalists on Thursday that Iraq has failed to develop a “real economy" over the last two decades due to mismanagement, corruption and a reliance on oil revenues.
“When oil prices fall, so does the economy. Who shoulders the responsibility? Why did the previous cabinets not build an economy? When countries faced setbacks due to coronavirus they relied on their economy. Where is our economy?” asked the premier.
“Do not tell us that our economy is strong because it is a lie as we do not have an economy at all. We only have finance which relies on oil … We do not have a real economy,” he added.
Speaking to Rudaw’s Shaho Amin on Tuesday, the UK’s top diplomat discussed Iraq and the Kurdistan Region’s looming budget dispute, the broader economic situation of the country, as well as possible ways for the UK to support Baghdad and Erbil.
“As the UK, we are here as the friends of Iraq and friends of the KRG. If there is a scope for us to play a role to help [Iraq and Kurdistan Region to improve their relations] we are ready,” claimed Hickey.
Due to continued budget issues, the global plunge in oil price as well the dramatic plummet of domestic revenues due to the coronavirus containment measures, the Kurdistan Regional Government (KRG) and Iraq has been struggling to pay its civil servants.
The diplomat stressed the importance of local actors taking the initiative to tackle Iraq’s economic woes.
“Fundamentally, it is for Iraqi leaders, whether in Erbil or Baghdad, to lead in solving these problems,” said Hickey.
The top diplomat mentioned the work the UK was already doing to aid their counterparts in Iraq confront these issues.
“We have already offered technical assistance. We are ready to provide expertise when it comes to economic reforms,” said the ambassador. “We have created a major fund together with the World Bank that provides over $30 million for this kind of technical expertise to help develop economic reforms and implement them.”
The diplomat sees the development of the country’s private sector as a possible tool to move toward prosperity, saying diversifying Iraq’s economy is paramount.
“It is a good thing for Iraq that there is this fantastic energy wealth [oil] but we want to see more private sector development. I think there is one lesson from this recent economic crisis - Iraq and the Kurdistan region of Iraq need to wean themselves of a dependence on oil and gas revenues because that makes the economic situation very vulnerable to changes in the oil price.”
Russia's consul-general in Erbil Oleg Levin made similar remarks Wednesday, noting that the Kurdistan Region’s economy is mainly dependent on oil.
In an interview with Rudaw TV’s Shahyan Tahsin aired late Friday, Levin said that Russia's experts can help the Region make use of other resources.
Iraq’s newly-inaugurated Prime Minister Mustafa al-Kadhimi told journalists on Thursday that Iraq has failed to develop a “real economy" over the last two decades due to mismanagement, corruption and a reliance on oil revenues.
“When oil prices fall, so does the economy. Who shoulders the responsibility? Why did the previous cabinets not build an economy? When countries faced setbacks due to coronavirus they relied on their economy. Where is our economy?” asked the premier.
“Do not tell us that our economy is strong because it is a lie as we do not have an economy at all. We only have finance which relies on oil … We do not have a real economy,” he added.
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