The Kurdistan region of Iraq
Subtitle: assessing the economic and social impact of the Syrian conflict and ISIS
Publisher: World Bank
Published: 2015
Place of publication: Washington, DC
Language: eng
Number of pages: 174
ISBN-13: 9781464805486
Subjects: Insurgency; Kurdistān (Iraq). Ḧikûmetî Herêmî Kurdistan-ʻÊraq; Economic conditions; Kurdistān (Iraq); Social conditions; War; History
Description: The Kurdistan Regional Government (KRG) is facing a multifaceted and complex crisis compounding concurrent and mutually aggravating security, political, economic, and social risks. As a result of the influx of Syrian refugees and internally displaced persons arising from the Syrian conflict and the ISIS insurgency, the region's population increased by 28 percent, placing strains on the local economy, host community, and access to public services. These events took place in the context of a fiscal crisis, and these multiple shocks hit the economy hard. Economic growth is estimated to decline by five percentage points in 2014. Disruption of public investment projects, resulting from a lack of fiscal transfers, severely affected domestic economic activities. The construction sector has been particularly affected with, small companies reporting bankruptcy. Foreign direct investment flows have declined, and operations of foreign enterprises have been adversely affected.^

The crisis resulted in sharply lower local revenues, increased borrowing from the private sector, and large quasi-fiscal deficits. A surge in violence has led to supply-side shocks. With blocked transportation routes, the region's role as a transit trade route to Southern Iraq was severely affected. Food security for the region is hampered by the crisis. Prices have increased, and so has unemployment. Increased labor supply and competition for jobs pushed wages down. The standard of living has deteriorated, and a noticeable share of the population has fallen into poverty or is vulnerable to falling into poverty. In 2014, the poverty rate in the region more than doubled. This influx has severely constrained the delivery of health, education, and social protection programs to the population. These effects are unfolding within a policy framework that has some long-standing distortions.^

For example, before the crisis, the region's economy was already seeing supply-side strains in electricity and water sectors. This book provides the government with a technical assessment of the impact and stabilization costs associated with the influx of refugees and internally displaced persons. The cost of conflict is high, and the impact on the KRG economy and budget is significant. In the short term, much of the solutions for managing the impact of these shocks will require national and international response.--
Notes: Includes bibliographical references and index.