Iraq's Agrarian Infitah

by Robert Springborg
published in MER145

Egypt’s infitah is finding an echo in Iraq. The Iraqis are grappling with many of the same problems which caused the Egyptians to adopt such a policy: the shortcomings of public sector manufacturing and of collectivized and semi-collectivized agriculture. As in Egypt, the sudden and dramatic rise in oil revenues made it possible to consider far more than minor rearrangements. The sudden surge of revenues also made it possible to allocate investment capital to an emerging private sector without taking it out of the budgets of the public enterprises. Skilled labor shortages in both countries required new approaches in agriculture and industry.

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