Iraqi Kurds Seek to Diversify Economy

An Iraqi worker operates a machine at Hend steel company in Erbil, the capital of the northern Iraqi Kurdish autonomous region, on October 1, 2020. AFP / SAFIN HAMED
An Iraqi worker operates a machine at Hend steel company in Erbil, the capital of the northern Iraqi Kurdish autonomous region, on October 1, 2020. AFP / SAFIN HAMED
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Iraqi Kurds Seek to Diversify Economy

An Iraqi worker operates a machine at Hend steel company in Erbil, the capital of the northern Iraqi Kurdish autonomous region, on October 1, 2020. AFP / SAFIN HAMED
An Iraqi worker operates a machine at Hend steel company in Erbil, the capital of the northern Iraqi Kurdish autonomous region, on October 1, 2020. AFP / SAFIN HAMED

On a rugged hillside some 50 kilometers east of Erbil, the booming regional capital, vineyards are ripe for harvesting as a new source of income.

Iraq's Kurdish region has for decades lived off its oil wealth, but plummeting energy prices amid the pandemic and financial mismanagement are forcing locals to return to long abandoned farms.

Civil servants from the northern region's bloated public sector have gone without pay and many are now turning back to agriculture and other businesses to make ends meet.

Abdallah Hassan, 51, a civil servant from the nearby village of Mam Rostam, has returned to harvest the grapes, used to produce raisins and vine leaves, for the first time in almost 20 years.

"There is hardly any work left for us and there are no salaries," he said, complaining that the regional government now "only pays wages every couple of months".

"It's better for farmers to tend to their fields than wait for the payday or for charity," he added, AFP reported.

Hassan recounted how before the 2003, when Saddam Hussein's regime was toppled, the Kurdish region had survived on farming during years of painful sanctions.

Since then, in its drive to secure lucrative oil revenues, the autonomous Kurdistan Regional Government (KRG) had mostly abandoned agriculture.

Big investments from multinational energy companies have transformed the region, and Erbil has become an urban hub with skyscrapers and luxury hotels.

This year, however, the Covid-19 pandemic and tumbling oil prices have taken a heavy toll, worsened by budget disputes with the central government in Baghdad.

The Iraqi economy, one of the world's most oil-dependent according to the World Bank, saw its gross domestic product contract by about 10 percent this year.

Mohammed Shukri, chairman of the Kurdistan Board of Investment, said putting all of the regional economy's eggs into the energy basket had proven costly.

"We're rich when the oil price is high, and we're poor when the oil price is low," he told AFP.

Kurdish economist Bilal Saeed argues the region's leaders had made a strategic blunder by letting other sectors fall by the wayside.

"Instead of using that revenue to develop the agriculture, health and tourism sectors, the government of Kurdistan has focused mostly on developing its oil sector and ignored the rest," he said.

Over-reliance on energy has also had a corrosive effect on Iraq's state apparatus and fueled corruption.

A World Bank report this year pointed to Iraq's "failure to equitably share the benefits of oil wealth" and described a murky patronage system.

With its budget now bled dry and the KRG facing some $28 billion in debt, it decided in June to slash civil servants' salaries by 21 percent.

But despite this, it has been unable to pay all of their wages on time, with the outstanding pay, accumulated over years, estimated at $9 billion.



Saudi Arabia to Bring Together 45 Ministers, 200 Speakers to Boost Global Jobs

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia to Bring Together 45 Ministers, 200 Speakers to Boost Global Jobs

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia will host 45 ministers and more than 200 local and international speakers to boost cooperation and create more suitable job opportunities for youth worldwide, according to Dr. Abdullah Abuthnain, Vice Minister of Human Resources and Social Development for Labor and Chairman of the Executive Committee.

The Ministry of Human Resources and Social Development is holding the second edition of the Global Labor Market Conference (GLMC) in Riyadh on January 29-30.

The event aims to establish a key dialogue platform to discuss opportunities and challenges and provide solutions for the future of global labor markets.

Abuthnain told Asharq Al-Awsat that the ministerial roundtable will serve as an annual global platform bringing together policymakers, industry leaders, and decision-makers to discuss labor market challenges, solutions, and relevant developments worldwide.

Over 45 labor ministers from around the world will meet at the event to discuss innovative policies aimed at improving working conditions and youth employment, he added.

The conference will serve as a platform for sharing best practices and discussing challenges and successes in global labor markets, including Saudi Arabia, which is seeing major advancements in policy and a competitive work environment.

The ministerial meeting also aims to “strengthen international cooperation to create more job opportunities for youth worldwide,” Abuthnain added. The meeting is primarily a “platform for exchanging ideas and experiences.”

Building on discussions from the first meeting, the second session will continue to explore previous topics, incorporating new insights and developments over the past year, and looking ahead to future trends. This will give participating countries the chance to share their successes and challenges.

The ministerial meeting will encourage ongoing dialogue to strengthen collective efforts and make use of research and studies to support the future of global labor markets.

With around 200 local and international speakers, the conference will focus on six main themes: continuous learning, the impact of digital transformation on labor markets, wage growth, and the importance of skills-based employment.

Other topics will include productivity, the role of mobile workforces in economic growth, youth challenges, and the contribution of small and medium businesses to innovation and digital transformation.

The conference has strategic partnerships with over 45 countries, as well as organizations like the International Labour Organization, the World Bank, the UN Development Program, the Organization for Economic Cooperation and Development and the Misk Foundation.

It will feature experts from think tanks like Combining Trust International, the Korea Labor Institute, and the Indian Labor Economics Association, who will contribute ideas and solutions to common labor market challenges.

Abuthnain believes the diverse group of leaders and experts from around the world will have a significant impact on improving youth employment opportunities.

“Our goal is to find solutions that benefit not only our region but also provide a model for global cooperation,” he told Asharq Al-Awsat.

“We expect participating countries to learn from each other based on their unique needs. This conference is a global platform for sharing ideas and experiences, with a common goal of supporting today’s youth and future generations,” he added.

Saudi Arabia’s labor market is supported by Vision 2030, which has helped achieve historic successes, including reducing the unemployment rate to 3.7% and driving technological progress, Abuthnain said.