In April 2010 the Iraqi government adopted a national development plan for the period 2010-2014. Ambitious targets were set - prerequisites existing - since Iraq has plenty of resources. However, there are also many challenges after decades of dictatorship, repeated wars and economic sanctions. After the American troops left Iraq in the autumn of 2010 more eyes are now focusing on the Iraqi government’s ability to tackle the enormous problems the country is facing and also effectively utilise the existing potential in Iraq.
The new government of Iraq came into office in autumn 2010, after parliamentary elections were held in March the same year. Its first and most difficult challenge is attempting to create stability. The violence which still plagues the country complicates all efforts to achieve reconciliation and development.
Although Iraq sits on the world's third largest oil reserve, 7 million out of 31 million Iraqis live in poverty mostly in the countryside. Corruption is rampant and Iraq is ranked 175 out of 178 countries on Transparency International's list of corrupt countries. Unemployment is high and rapidly growing among Iraqi youth, a strong concern as half the population is under 15 years old. 3.7 million Iraqis have fled the country under the threat of violence, mostly to the neighbouring countries of Jordan and Syria. A further 1.5 million domestic refugees have fled their homes in Iraq with many living in substandard refugee camps, or squatter camps, throughout the country. These refugees and many other Iraqis cannot, in today's Iraq, enjoy human rights because fundamental systems and institutions for a democratic society do not exist.
The Iraqi development plan has as its goal to diversify the national economy from being entirely based on oil revenue to include revenue from agriculture and industry. The hope is this will contribute to high annual growth and up to 4.5 million much needed new jobs. The goal is to reduce poverty by 30 per cent and increase investments in infrastructure and public services (healthcare, education, electricity and water).
Sida is working together with Iraqi counterparts both within the state and in civilian society to support the implementation of the national development plan placing focus on two areas:
• Democratic social government and human rights
• Trade, enterprise and economic systems
