Economic expert criticizes lack of unified strategy for managing Iraqi economy since 2003

Baghdad - Iraq: Economic expert Saleh al-Khafaji warned of what he described as the "strategic error" in managing Iraq's economic decision since 2003, noting the absence of a unified and sustainable vision among successive governments.

Al-Khafaji said in a statement today, Wednesday (July 1, 2026): "A logical reading of the nature of economic decision-making in Iraq shows that it is not based on a clear strategy, but varies from government to another," which leads to the cancellation or freezing of previous measures and disrupts economic plans.

"Each government adopts its own economic path, and as soon as a new government is formed, it cancels or freezes the decisions and measures taken by the previous government, which confuses economic plans and prevents forming a clear picture of how to deal with the economic situation."

Al-Khafaji stressed the need to put in place a "comprehensive national strategy for managing the economy, prepared by specialists and away from political influences," which would be medium- and long-term and adhered to by successive governments.

He pointed out that Iraq's reliance on oil for up to 90% of its revenues represents a "grave and strategic error," especially with fluctuations in energy markets, which negatively reflects on the state's general budget.

Calls for bold reforms away from political influences: Al-Khafaji said that changing the economic reality requires "bold reform decisions stemming from a purely economic vision," away from partisan interests, warning of the danger of maintaining a rentier economy in the current stage.

The Iraqi economy has suffered since 2003 from structural challenges due to changing economic policies with successive governments, amid continued reliance on oil revenues, while experts see that the absence of a long-term national vision has contributed to hindering reform and development plans.