São Paulo – The World Bank announced on Tuesday (18) that it should lend US$ 900 million to Iraq over the next four years. The funds will be used in the development of a strategy to supply Iraqi institutions, generate jobs and promote the private sector and social inclusion.
According to a press statement disclosed by the World Bank, the Iraqi state is still fragile due to the conflict of recent years and its economy is centralized and based on the public sector. To change this reality, the World Bank should promote improvements in governance in the country, the growth of the private sector, improvement in administration of natural resources and diversification of the economy. The World Bank stated, for example, that better management of resources from the oil sector are among the best ways to generate jobs in the country.
The strategy to be adopted up to 2016 was defined after inquiries made to the government of Iraq, to the regional governments of the country, civil society groups, the private sector, donors and scholars. The main demands arising in these consultations, said the World Bank, were diversification of the economy, the strengthening of Iraqi institutions and improvement of basic services provided to the population.
“Iraq is opening a new chapter in its long and deep history. This is a chapter where the people come first and where the immense human potential of the country, its vast natural resources and its strategic location will be central to its socio-economic recovery," said Ferid Belhaj, World Bank Country Director for Iraq, Syria, Iran, Lebanon and Jordan.
Mouayed Makhlouf, the regional director for the Middle East and North Africa at the International Finance Corporation (IFC), one of the World Bank institutions participating in the project, stated that support for the diversification of the economy of Iraq through the strengthening of the private sector will be fundamental for the country to follow a route of sustainable growth and generation of jobs.
*Translated by Mark Ament
