In 2009 Sweden opened an embassy in Baghdad and the government made a decision on a strategy for the development cooperation with Iraq applicable from 2009 to 2014. The objective for Swedish financial assistance in Iraq is lasting peace, improved standards of living and democratic development.
Sida is now increasing its financial assistance to Iraq focusing on support for democracy and human rights, opportunities for increased trade and positive economic development. It is also important to counteract corruption and work towards gender equality so women and children can exercise these rights.
Democratic government and human rights
Sida supports projects aiming to strengthen local governments and works with both central institutions in Baghdad and municipalities in the countryside. Over the past few decades all power and resources have been concentrated in the capital leaving large parts of Iraq without investments in infrastructure or economic development. This has also resulted in neglecting the municipalities' administrative capacity. The purpose of these projects is to support Iraq in turning this development around and help increase public participation in decision-making procedures on all levels.
After the war with Iran during the 80s and the two U.S. led invasions Iraq is severely affected by land mines and unexploded remnants from the conflicts. Long stretches of the border with Iran are heavily mined, while large areas inside the country are contaminated with unexploded bombs and grenades, making these areas useless for agriculture and other activities. Sida is supporting projects in northern and southern Iraq to clear mines as well as in cooperation with the civilian population and national mine clearing authorities to identify priorities regarding demining and strengthen their ability to remove these threats themselves.
In northern Iraq where the security level has been better than in the central and southern parts Sida is also working with gender equality and children's rights.
Trade, enterprise and economic systems
The goal within this area is "greater opportunity for poor people in Iraq to become self-sufficient". In order to contribute to this goal Sida is working to enhance the international capacity within trade and support private sector development while strengthening economic systems. For example, financial assistance is provided to the World Bank for the development of the private sector on several different levels, such as the reform of laws and regulations both on central and regional levels, corporatization and commercialization of state-owned enterprises and the micro-financing of small businesses.
Sida also funds four courses specifically for Iraq within the International Training Programmes (ITP) . These offer technical support and education to government officials and financial actors within trade policy development focusing on international trade, negotiation techniques, WTO agreements, technical trade barriers and risk management within the banking sector. Sida also supports a study conducted by the Swedish Trade Council regarding possibilities of knowledge transfer from Swedish to Iraqi companies.
