Baghdad Holds Solution to Ending Economic Paralysis in Iraqi Kurdistan

The economy in Iraqi Kurdistan has suffered due to ongoing political disputes with Baghdad. (Reuters)
The economy in Iraqi Kurdistan has suffered due to ongoing political disputes with Baghdad. (Reuters)
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Baghdad Holds Solution to Ending Economic Paralysis in Iraqi Kurdistan

The economy in Iraqi Kurdistan has suffered due to ongoing political disputes with Baghdad. (Reuters)
The economy in Iraqi Kurdistan has suffered due to ongoing political disputes with Baghdad. (Reuters)

The Iraqi Kurdistan region witnessed during the past decade remarkable economic development in wake of the 2003 collapse of the former regime in Baghdad.

That period witnessed a period of prosperous trade with Iraq to reach tens of billions of dollars annually. The real estate sector in the region’s three provinces, most notably Irbil, witnessed a sharp rise in real estate prices, even exceeding those in the world’s most famous capitals.

Experts said that the economic boon could be attributed to the dozens of foreign and Arab investments that were attracted to the Kurdish market. They benefited from facilitations provided by the regional government, which included tax exemptions and property ownership rights.

This positive investment atmosphere helped boost the economy at the time and improve living conditions in the region by creating thousands of job opportunities, reviving the private sector and attracting foreign capital.

This consequently led private sector companies to limit their dependence on foreign labor.

This general revival in Iraqi Kurdistan however was followed with a gradual decline with mounting political disputes with Baghdad starting mid 2013.

This culminated with the Iraqi federal government’s decision in 2014 to completely cut Kurdistan’s share of the annual budget, said the regional government.

This was followed with Kurdistan’s war against the ISIS terrorist organization and the flow of refugees from Iraq and Syria that topped 2 million. This dealt a strong blow to the already fragile economy in the region.

This forced dozens of investment companies to quit the region within only two years. Hundreds of local firms also filed for bankruptcy amid a sharp rise in foreign debt that reached nearly 22 billion dollars, said parliamentary and semi-official sources from the region.

This was all coupled with the local government’s inability to pay pubic employee salaries, which it was forced to cut back by 75 percent since 2015. This weakened the individual’s purchasing power, especially since several citizens ran out of their savings.

As the economic crisis enters its fifth year, economy professor at the Catholic University in Irbil Dr. Salahaddin Kako told Asharq Al-Awsat that the primary cause for this poor situation is the government’s inability, for more than three years, to pay employee salaries.

In addition, he said that the purchasing power is determined by the level of a person’s income and the prices of goods in the market. The purchasing power will naturally decrease with the drop in salaries. He noted however that the prices of goods have remained stable and at times even dropped.

Kako explained that Kurdistan’s economy could be revived if the Iraqi federal government agreed to dispense public employee salaries, which will in turn improve living conditions.

Foreign debt, he said, can be paid through various means, such as proposing attractive investment opportunities.

An oil sector employee said that prior to the economic crisis in Kurdistan, he used to earn $1,200 a month, which allowed him and the five members of his family to live comfortably.

When the company he was working for decided to quit Kurdistan, he was left with a monthly salary of barely $200.

“I was no longer able to buy a kilogram of meat per month,” he lamented.

Many locals believe that key to ending the crisis lies in Baghdad’s hands and in resolving its pending disputes with Irbil.



Harris, Endorsed by Biden, Could Become First Woman, Second Black Person to Be President

Vice President-elect Kamala Harris delivers remarks in Wilmington, Delaware, on November 7, 2020, after being declared the winners of the presidential election. (AFP)
Vice President-elect Kamala Harris delivers remarks in Wilmington, Delaware, on November 7, 2020, after being declared the winners of the presidential election. (AFP)
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Harris, Endorsed by Biden, Could Become First Woman, Second Black Person to Be President

Vice President-elect Kamala Harris delivers remarks in Wilmington, Delaware, on November 7, 2020, after being declared the winners of the presidential election. (AFP)
Vice President-elect Kamala Harris delivers remarks in Wilmington, Delaware, on November 7, 2020, after being declared the winners of the presidential election. (AFP)

She's already broken barriers, and now Kamala Harris could shatter several more after President Joe Biden abruptly ended his reelection bid and endorsed her.

Biden announced Sunday that he was stepping aside after a disastrous debate performance catalyzed fears that the 81-year-old was too frail for a second term.

Harris is the first woman, Black person or person of South Asian descent to serve as vice president. If she becomes the Democratic nominee and defeats Republican candidate Donald Trump in November, she would be the first woman to serve as president.

Biden said Sunday that choosing Harris as his running mate was “the best decision I've made" and endorsed her as his successor.

“Democrats — it’s time to come together and beat Trump,” he wrote on X, the social media platform formerly known as Twitter. “Let’s do this.”

Harris described Biden's decision to step aside as a “selfless and patriotic act,” saying he was “putting the American people and our country above everything else.”

“I am honored to have the President’s endorsement and my intention is to earn and win this nomination," Harris said. “Over the past year, I have traveled across the country, talking with Americans about the clear choice in this momentous election.”

Prominent Democrats followed Biden's lead by swiftly coalescing around Harris on Sunday. However, her nomination is not a foregone conclusion, and there have been suggestions that the party should hold a lightning-fast “mini primary” to consider other candidates before its convention in Chicago next month.

A recent poll from the AP-NORC Center for Public Affairs Research found that about 6 in 10 Democrats believe Harris would do a good job in the top slot. About 2 in 10 Democrats don’t believe she would, and another 2 in 10 say they don’t know enough to say.

The poll showed that about 4 in 10 US adults have a favorable opinion of Harris, whose name is pronounced “COMM-a-la,” while about half have an unfavorable opinion.

A former prosecutor and US senator from California, Harris' own bid for the 2020 Democratic presidential nomination imploded before a single primary vote was cast. She later became Biden's running mate, but she struggled to find her footing after taking office as vice president. Assigned to work on issues involving migration from Central America, she was repeatedly blamed by Republicans for problems with illegal border crossings.

However, Harris found more prominence as the White House's most outspoken advocate for abortion rights after the US Supreme Court overturned Roe v. Wade in 2022. She has also played a key role in reaching out to young people and voters of color.

In addition, Harris' steady performance after Biden's debate debacle solidified her standing among Democrats in recent weeks.

Even before Biden's endorsement, Harris was widely viewed as the favorite to replace him on the ticket. With her foreign policy experience and national name recognition, she has a head start over potential challengers, including California Gov. Gavin Newsom, Michigan Gov. Gretchen Whitmer and Pennsylvania Gov. Josh Shapiro.

Harris will seek to avoid the fate of Hubert Humphrey, who as vice president won the Democratic nomination in 1968 after President Lyndon Johnson declined to run for reelection amid national dissatisfaction over the Vietnam War. Humphrey lost that year to Republican Richard Nixon.

Nixon resigned in 1974 during the Watergate scandal and was replaced by Vice President Gerald Ford. Ford never won a term of his own.

Vice presidents are always in line to step into the top job if the president dies or is incapacitated. However, Harris has faced an unusual level of scrutiny because of Biden’s age. He was the oldest president in history, taking office at 78 and announcing his reelection bid at 80. Harris is 59.

She addressed the question of succession in an interview with The Associated Press during a trip to Jakarta in September 2023.

“Joe Biden is going to be fine, so that is not going to come to fruition,” she stated. “But let us also understand that every vice president — every vice president — understands that when they take the oath they must be very clear about the responsibility they may have to take over the job of being president.”

“I’m no different.”

Harris was born Oct. 20, 1964, in Oakland, California, to parents who met as civil rights activists. Her hometown and nearby Berkeley were at the heart of the racial and social justice movements of the time, and Harris was both a product and a beneficiary.

She spoke often about attending demonstrations in a stroller and growing up around adults “who spent full time marching and shouting about this thing called justice.” In first grade, she was bused to school as part of the second class to integrate Berkeley public education.

Harris’ parents divorced when she was young, and she was raised by her mother alongside her younger sister, Maya. She attended Howard University, a historically Black school in Washington, and joined the Alpha Kappa Alpha sorority, which became a source of sisterhood and political support over the years.

After graduating, Harris returned to the San Francisco Bay Area for law school and chose a career as a prosecutor, a move that surprised her activist family.

She said she believed that working for change inside the system was just as important as agitating from outside. By 2003, she was running for her first political office, taking on the longtime San Francisco district attorney.

Few city residents knew her name, and Harris set up an ironing board as a table outside grocery stores to meet people. She won and quickly showed a willingness to chart her own path. Months into her tenure, Harris declined to seek the death penalty for the killer of a young police officer slain in the line of duty, fraying her relationship with city cops.

The episode did not stop her political ascent. In late 2007, while still serving as district attorney, she was knocking on doors in Iowa for then-candidate Barack Obama. After he became president, Obama endorsed her in her 2010 race for California attorney general.

Once elected to statewide office, she pledged to uphold the death penalty despite her moral opposition to it. Harris also played a key role in a $25 billion settlement with the nation’s mortgage lenders following the foreclosure crisis.

As killings of young Black men by police received more attention, Harris implemented some changes, including tracking racial data in police stops, but didn’t pursue more aggressive measures such as requiring independent prosecutors to investigate police shootings.

Harris’ record as a prosecutor would eventually dog her when she launched a presidential bid in 2019, as some progressives and younger voters demanded swifter change. But during her time on the job, she also forged a fortuitous relationship with Beau Biden, Joe Biden’s son who was then Delaware’s attorney general. Beau Biden died of brain cancer in 2015, and his friendship with Harris figured heavily years later as his father chose Harris to be his running mate.

Harris married entertainment lawyer Douglas Emhoff in 2014, and she became stepmother to Emhoff’s two children, Ella and Cole, who referred to her as “Momala.”

Harris had a rare opportunity to advance politically when Sen. Barbara Boxer, who had served more than two decades, announced she would not run again in 2016.

In office, Harris quickly became part of the Democratic resistance to Trump and gained recognition for her pointed questioning of his nominees. In one memorable moment, she pressed now-Supreme Court Justice Brett Kavanaugh on whether he knew any laws that gave government the power to regulate a man’s body. He did not, and the line of questioning galvanized women and abortion rights activists.

A little more than two years after becoming a senator, Harris announced her campaign for the 2020 Democratic presidential nomination. But her campaign was marred by infighting and she failed to gain traction, ultimately dropping out before the Iowa caucuses.

Eight months later, Biden selected Harris as his running mate. As he introduced her to the nation, Biden reflected on what her nomination meant for “little Black and brown girls who so often feel overlooked and undervalued in their communities.”

“Today, just maybe, they’re seeing themselves for the first time in a new way, as the stuff of presidents and vice presidents,” he said.