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Modern apartment and office buildings sprang up in Baghdad, and programs and services like education as well as health care developed with the shift from rural areas to urban population centers. Together with modernization, the influx on monetary resources allowed Iraq to do things for its cultural identity and preservation, particularly in architecture. First priority was given to the restoration and building according to historic style, and the structures targeted included the archeological sites, mosques, and government buildings.
Iraq’s economy is currently in a difficult situation. Following the 1991 Persian Gulf War, the United Nations enforced Security Council Resolution 687, which demands Iraq to disclose the full extent of its programs to develop chemical and nuclear weapons and missiles, and to eliminate its weapons of mass destruction. In 1996, the United Nations modified the sanctions and implemented the oil-for-food program, which allows Iraq to pump and sell a limited amount of oil for humanitarian services (Baram 25).
In social stratification, Arabs, Kurds as well as other ethnic groups each have their own social stratospheres, and no one ethnicity dominate another in a caste system. In terms of social class, there is huge disparity between reach and poor. Those who make up the high class in society of Iraq are essentially chosen by the government, since there is no opportunity to start a business and make a name for oneself without the endorsement of the government. The once-dominant middle class of the 1970s has deteriorated in the face of the economic crisis.
Politically, Iraq is a republic divided into eighteen provinces, which are subdivided into districts. There is a National Assembly elected every four years, and they meet twice annually and work with the Revolutionary Command Council (RCC) to make legislative decisions. The RCC holds ultimate authority over legislative decisions, and the chairman of the RCC is the president of the nation. The president exercises all executive decision-making powers, and he as well as the vice presidents are elected by a two-thirds majority vote of the RCC.
There is universal suffrage at age eighteen, and the popular vote elects 220 of the 250 seats in the National Assembly. The president chooses the remaining 30 seats, which belong to the three provinces of Kurdistan; he also appoints judges (Ismael Para 3). A significant feature of centrally planned economies, like Iraq under Saddam Hussein, is the lack of the legal, political, and economic as well as regulatory institutions that are the indispensable foundations of efficient market economies.
Thus, the focus of the Iraq reconstruction efforts ought to be the creation of institutions that not only stabilize the economy, but also can serve as an engine for sustained long-term development. Iraq will be required to learn how to build and maintain good institutions as well as how to utilize them efficiently to rebuild its economy (Dani Para 2). This report offers background on the different sectors and institutions of the Iraqi economy. It also identifies a number of questions and issues which might have considerable bearing on Iraq’s future prospects and may need to be dealt with as Iraq, the United States, and the international community seek to put the economy of Iraq on a sounder long-term foundation.
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