Historically Iraq's economy was based on agriculture benefiting from the waters of the two main rivers which pass through it. Early in this century oil was discovered in Iraq which later became a major producers. However, in spite of its success in developing significant resources, including substantial proven oil reserves, and an impressive infrastructure, Iraq's economic development was hampered by political instability and major military conflicts. The last conflict was the invasion of Kuwait with its known devastating effects on the economy and society in Iraq. The imposition of UN sanctions, which still prevail, has had serious consequences, not only by limiting Iraq's oil exports to quantities specified by the UN and allocating the revenue to the purchase of essentials such as food and medicines in accordance with the oil for food UN Resolution, but created very serious economic and environmental problems.
Rampant inflation is one of the prevailing economic difficulties.
Now it is 2,000 Dinars to the Dollar. Since the Gulf crisis in Iraq, the socialist economic policies previously implemented, became less stringent and a privatisation programme began especially in agriculture, transport and industry. This could provide trade and management opportunities for specialised companies upon the lifting of sanctions. Iraq Legal Profile 2. Legislative Procedures 3.