Post Iraq War...Economically speaking

Given that our discussions in class have revolved around the international economic system, I thought it would be relevant to ponder what Iraq's economic outlook is beyond the war. To start, it's safe to assume that Iraq's number one producer of jobs is in the business of oil. If there was ever a surplus of something in Iraq, that surplus is oil, or the refinement of oil. It seems that any success Iraq will have beyond the days of U.S. occupation will be directly related to how they handle the production, distribution, and exportation of their greatest resource. Looking into some of the other possible resources Iraq will be left with does not produce a long list. The country is not very rich in agricultural commodities, nor does it have much involvement in the technology industry. Crude oil makes up 95% of Iraq's GDP and exports.

With so much reliance on one resource, the effectiveness of Iraq as a global trading partner will be largely determined by their involvement and willingness to abide by the international trade agreements. It's not a secret that there is a lot of money to be made in the oil industry and by developing the resources available, Iraq could generate prosperity and create a job producing industry in the process. One thing that will be critical is for the citizens of such a young democracy to see the advantages right away. Economic growth and stability is an easy indicator and as long as jobs are created, the overall approval and outlook of the citizens should remain upbeat.

Relating this to the different perspectives there are multiple ways Iraq could approach their international economic positioning.

• Realists would argue the approach of Mercantilism and suggest that the oil supply be produced and exported as much as possible.
• Liberal perspective would emphasize the inclusion and cooperation with international organizations such as the WTO among others.
• Marxists believe that neither of these approaches will be sustainable and argue that the state should be self producing.

I think the answer to what approach Iraq should take is somewhere in between Realism and Liberal approach. There is such a high demand for oil in developed states that Iraq could strongly benefit from the distribution of their biggest resource. Regardless of whether they include themselves in international organizations, the important thing is providing encouraging results, and making sure it comes sooner than later.