Will Sudani Adopt the Previous Iraqi Government’s Economic Policies?

A handout picture released by Iraq's prime minister's office shows the new Prime Minister Mohamed Shia al-Sudani arriving for the official handover ceremony at the Republican Palace, the government's seat, in Baghdad's green zone. (Iraq's prime minister's office/ AFP)
A handout picture released by Iraq's prime minister's office shows the new Prime Minister Mohamed Shia al-Sudani arriving for the official handover ceremony at the Republican Palace, the government's seat, in Baghdad's green zone. (Iraq's prime minister's office/ AFP)
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Will Sudani Adopt the Previous Iraqi Government’s Economic Policies?

A handout picture released by Iraq's prime minister's office shows the new Prime Minister Mohamed Shia al-Sudani arriving for the official handover ceremony at the Republican Palace, the government's seat, in Baghdad's green zone. (Iraq's prime minister's office/ AFP)
A handout picture released by Iraq's prime minister's office shows the new Prime Minister Mohamed Shia al-Sudani arriving for the official handover ceremony at the Republican Palace, the government's seat, in Baghdad's green zone. (Iraq's prime minister's office/ AFP)

These days, we are seeing increasing speculation, especially among Iraqi elites and economists, about the extent to which the country’s new prime minister, Mohamed Shia al-Sudani, can reverse some of the critical economic decisions that the Coordination Framework had criticized Mustafa al-Kadhimi’s government of taking. Topping the list are the decision to devaluate the Iraqi dinar and a couple of other economic policies.

Dr. Nabil Al-Marsoumi, an academic and economist, said the program put forward by Sudani’s government did not mention reversing the decision to devaluate the currency by over a fifth - with 1,480 rather than 1,180 dinars becoming the equivalent of one US dollar.

The failure to reverse the decision of the former government demonstrates that its critics, most of whom are part of the pro-Iran Coordination Framework, had exploited the devaluation and its ramifications for the Iraqi people’s purchasing power as a pretext to undermine Kadhimi’s government.

“There was no amendment to the exchange rate in the government’s 2023 budget,” Marsoumi stressed. This affirms that Sudani’s government - and with it, the Coordination Framework deputies who dominate parliament - has backtracked on the exchange rate.

Marsoumi added that reversing the decision taken by Khadimi’s government and bringing the US dollar exchange rate back to 2020 levels would increase the government’s budget by 24 billion dollars.

He noted that over 50 MPs recently petitioned the government to reverse the decision. Sudani’s government, however, did not show any enthusiasm for this step, meaning that the decision taken by the former government had been correct despite the sharp criticism that had been levied at it at the time. Indeed, it is a decision several figures and platforms close to the Coordination Framework continue to criticize it.

Moreover, other economists have noted that the new government’s program did not mention the economic agreements that Kadhimi’s government had concluded with Arab countries.

Many within the Coordination Framework had criticized this decision and fiercely opposed it, especially those that are particularly close to Tehran.

Among them is the accord to sell Iraqi oil to Jordan at a discount and the economic agreements concluded with Egypt and Jordan, and the electric grid agreements with the Gulf states and Türkiye - more evidence that “Iraqi political forces usually pursue their private interests.”

While Sudani had called for reducing the salaries of high-ranking Iraqi officials, which he said would save the government 500 billion dinars (about 400 million dollars) a month, this seems unlikely. Indeed, many observers have said that they doubt Sudani will be able to do that since most ministers and senior officials are affiliated with the parties and groups in power. They are not simply going to roll over and surrender their privileges.

Experts believe that instead of a reduction in salaries, we could see Sudani make cuts to the privileges and financial incentives that come with such positions. In fact, they often cost the government multiples of the officials’ salaries. These incentives often take the form of funds allocated to the minister or official’s office, as well as a budget allocated for security.



Israel Warfare Methods 'Consistent With Genocide', Says UN Committee

Israel's warfare practices in Gaza "are consistent with the characteristics of genocide", according to the United Nations Special Committee - AFP
Israel's warfare practices in Gaza "are consistent with the characteristics of genocide", according to the United Nations Special Committee - AFP
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Israel Warfare Methods 'Consistent With Genocide', Says UN Committee

Israel's warfare practices in Gaza "are consistent with the characteristics of genocide", according to the United Nations Special Committee - AFP
Israel's warfare practices in Gaza "are consistent with the characteristics of genocide", according to the United Nations Special Committee - AFP

Israel's warfare in Gaza is consistent with the characteristics of genocide, a special UN committee said Thursday, accusing the country of "using starvation as a method of war".

The United Nations Special Committee pointed to "mass civilian casualties and life-threatening conditions intentionally imposed on Palestinians", in a fresh report covering the period from Hamas's deadly October 7 attack in Israel last year through to July, AFP reported.

"Through its siege over Gaza, obstruction of humanitarian aid, alongside targeted attacks and killing of civilians and aid workers, despite repeated UN appeals, binding orders from the International Court of Justice and resolutions of the Security Council, Israel is intentionally causing death, starvation and serious injury," it said in a statement.

Israel's warfare practices in Gaza "are consistent with the characteristics of genocide", said the committee, which has for decades been investigating Israeli practices affecting rights in the occupied Palestinian territories.

Israel, it charged, was "using starvation as a method of war and inflicting collective punishment on the Palestinian population".

A UN-backed assessment at the weekend warned that famine was imminent in northern Gaza.

Thursday's report documented how Israel's extensive bombing campaign in Gaza had decimated essential services and unleashed an environmental catastrophe with lasting health impacts.

By February this year, Israeli forces had used more than 25,000 tonnes of explosives across the Gaza Strip, "equivalent to two nuclear bombs", the report pointed out.

"By destroying vital water, sanitation and food systems, and contaminating the environment, Israel has created a lethal mix of crises that will inflict severe harm on generations to come," the committee said.

The committee said it was "deeply alarmed by the unprecedented destruction of civilian infrastructure and the high death toll in Gaza", where more than 43,700 people have been killed since the war began, according to the health ministry in the Hamas-run territory.

The staggering number of deaths raised serious concerns, it said, about Israel's use of artificial intelligence-enhanced targeting systems in its military operations.

"The Israeli military’s use of AI-assisted targeting, with minimal human oversight, combined with heavy bombs, underscores Israel’s disregard of its obligation to distinguish between civilians and combatants and take adequate safeguards to prevent civilian deaths," it said.

It warned that reported new directives lowering the criteria for selecting targets and increasing the previously accepted ratio of civilian to combatant casualties appeared to have allowed the military to use AI systems to "rapidly generate tens of thousands of targets, as well as to track targets to their homes, particularly at night when families shelter together".

The committee stressed the obligations of other countries to urgently act to halt the bloodshed, saying that "other States are unwilling to hold Israel accountable and continue to provide it with military and other support".