Oil, Sustainable Development, and the Transformation of Iraq

This contribution is based on PowerPoint presentation delivered before the Symposium “Iraq – 10 Years On” held at Tahrir Campus of the American University in Cairo (AUC) on 3rd and 4th June, 2013.
I -  Introduction
As this conference is about Iraq it is therefore expected that other contributors would address sustainable development from different aspects and disciplines using probably different methodologies, terminologies and statistical data.
This presentation focuses on energy and more precisely on petroleum. And from this perspective sustainable development is taken within the context of the depleting finite natural resources in the country.
The presentation begins by outlining briefly the conceptual and analytical framework of sustainable development, in a rich deplete-able natural resources developing country, as a process of transformation through horizontal and vertical structural diversification.
Then it uses “budget analysis approach” to draw few conclusions on whether “horizontal diversification” in the economy had occurred during the last ten years commensurate with the availability of the necessary development financing. A more detailed analysis of the efforts in the petroleum sector was provided to assess the “vertical diversification” in this important sector.
The presentation argues that the lack of and imbalances in both horizontal and vertical diversification during the last ten years had undermined the sustainable development prospect, entrenched the dependency on upstream petroleum subsector and pushes the economy further in the web of rentierism.
However, the recent launching of the first ever energy strategy might bring some sense to development planning in the country. Hence the presentation suggests and highlights the urgency for adopting different and diversified strategies to manage the production of petroleum and the associated influx of export revenues.
Moreover, it introduces and outlines the importance of full transparency of all resources and payments flows within the “Value Cycle” during the duration of the related projects. Finally, the presentation ends with few concluding remarks.
The full paper can be downloaded here.