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The role of foreign aid in the transformation of Iraq's society and economy

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  • Jaber Hadi

    (SGH Warsaw School of Economics, Warsaw, Poland .)

Abstract

Foreign aid helps in transforming nations and ensuring that they attain economic development. Foreign aid levels in Iraq are higher than those of its oil-producing neighbors due to numerous factors that are discussed in the present study. Iraq is the second largest oil producer in the Middle East after Saudi Arabia, but some activities within the country have curtailed development, leaving it at the mercy of foreign nations and investors. The present study aims to evaluate the level of foreign aid in Iraq, comparing it to its oil-rich neighbors. It highlights various factors that have increased Iraq's dependence on foreign aid and the role and management of this assistance. The article shows how negative factors like war, poor governance, and corruption have contributed to the over-reliance on foreign aid, in spite of Iraqbeing endowed with natural resources. The qualitative evaluation of the development of Iraq's oil aid reveals that continued reliance on foreign aid will jeopardizes the country's economic development.

Suggested Citation

  • Jaber Hadi, 2022. "The role of foreign aid in the transformation of Iraq's society and economy," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(2), pages 218-232, June.
    • Handle: RePEc:vrs:ijomae:v:58:y:2022:i:2:p:218-232:n:3
    DOI: 10.2478/ijme-2022-0010
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    References listed on IDEAS

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    1. Eric Werker & Faisal Z. Ahmed & Charles Cohen, 2009. "How Is Foreign Aid Spent? Evidence from a Natural Experiment," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(2), pages 225-244, July.
    2. Nancy Qian, 2015. "Making Progress on Foreign Aid," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 277-308, August.
    3. Morgenthau, Hans, 1962. "A Political Theory of Foreign Aid," American Political Science Review, Cambridge University Press, vol. 56(2), pages 301-309, June.
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    More about this item

    Keywords

    foreign aid; Iraq; MENA; neighbors; OECD;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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