This report provides the most comprehensive and rigorous analysis of Iraqi income and expenditure in several decades. The report makes extensive use of the Iraq Household Socio-Economic Survey, the first nationwide income and expenditure survey since 1988. IHSES data is complemented income and expenditure data from a wide range of other measures of living standards, allowing us to analyze living standards in a holistic way. The analysis presented here was performed with two main goals first, to inform the Government s Poverty Reduction Strategy; and second, to serve as a baseline for future assessments of changes in living standards and the identification of critical issues for deeper examination. Iraqi living standards have two unusual characteristics. First, they have fallen over the past generation. Second, they feature surprisingly little inequality. These characteristics are both rooted in Iraq s recent history of authoritarian government, war, military occupation, insurgency, and civil strife leading to infrastructure destruction and population displacement. There have been few opportunities for individuals to prosper from professional or entrepreneurial activities. Decades of neglected investment have resulted in deterioration of social services and economic infrastructure. Consequently, individuals have lacked capabilities to prosper and an investment climate conducive to prosperity. School enrollment and life expectancy have declined. Extremely low returns to education reflect the combination of poor educational quality and lack of employment opportunities. In terms of economic infrastructure, access to reliable electricity and water, and even access to paved roads are low, are further reflections of decades of neglect. While the upper end of the distribution has been pulled down by a lack of opportunities, the lower end has been supported by direct government provision of food. The Public Distribution System (PDS) provides 85 percent of food needs. While PDS has been useful as a safety net for the poor and the vulnerable, the system is expensive, inefficient, and fiscally risky. Indeed, PDS food rations account for a far greater share of public spending than does education or health. Going forward, Iraq faces two main challenges. First, although Iraq does not have to develop from scratch, it faces a formidable challenge in re-development. Second, a shift by the Government is required from direct provision of basic subsistence toward investment in human capacities. The Government can provide an enabling environment through investments in economic infrastructure and services to business and citizens, thus allowing the population to make productive use of education and their own labor. Both challenges are now being taken up by the Poverty Reduction Strategy, which articulates a detailed set of required actions and outlines priorities for government spending.

Inequality has drastically increased in many countries around the globe over the past three decades. The widening gap between the very rich and everyone else is often portrayed as an unexpected outcome or as the tradeoff we must accept to achieve economic growth. In this book, three International Monetary Fund economists show that this increase in inequality has in fact been a political choice—and explain what policies we should choose instead to achieve a more inclusive economy. Jonathan D. Ostry, Prakash Loungani, and Andrew Berg demonstrate that the extent of inequality depends on the policies governments choose—such as whether to let capital move unhindered across national boundaries, how much austerity to impose, and how much to deregulate markets. While these policies do often confer growth benefits, they have also been responsible for much of the increase in inequality. The book also shows that inequality leads to weaker economic performance and proposes alternative policies capable of delivering more inclusive growth. In addition to improving access to health care and quality education, they call for redistribution from the rich to the poor and present evidence showing that redistribution does not hurt growth. Accessible to scholars across disciplines as well as to students and policy makers, Confronting Inequality is a rigorous and empirically rich book that is crucial for a time when many fear a new Gilded Age.

Former Brookings Senior Fellow Susan E. Rice spearheads an investigation of the connections between poverty and fragile states and the implications for American security. Coedited by Rice and former Brookings colleagues Corinne Graff and Carlos Pascual, Confronting Poverty is a timely reminder that alleviating global poverty and shoring up weak states are not only humanitarian and economic imperatives, but key components of a more balanced and sustainable U.S. national security strategy. Rice elucidates the relationship between poverty, state weakness, and transnational security threats, and Graff and Pascual offer policy recommendations. The book's overarching conclusions highlight the need to invest in poverty alleviation and capacity building in weak states in order to break the vicious cycle of poverty, fragility, and transnational threats. Confronting Poverty grows out of a project on global poverty and U.S. national security that Rice directed at Brookings from 2002 through January 2009, before she became U.S. permanent representative to the United Nations.

The second edition of The Political Economy of Iraq is as comprehensive and accessible as the first with updated data and analysis. Frank R. Gunter discusses in detail how the convergence of the ISIS insurgency, collapse in oil prices, and massive youth unemployment produced a serious political crisis in 2020. This work ends with a discussion of key policy decisions that will determine Iraq’s future. This volume will be a valuable resource for anyone with a professional, business, or academic interest in the post-2003 political economy of Iraq.

Beginning in 2003, diverse and significant actors, both domestic and international, engaged in reconstruction activities in Iraq. The total budget committed to Iraq’s reconstruction was unprecedented among postconflict operations mobilized by the international community. Despite the vast sums of money spent, and the implementation of its many projects and programs, the donors and the Iraqi people view the reconstruction efforts in Iraq in a negative light. The Reconstruction of Iraq after 2003: Learning from Its Successes and Failures focuses on the period between 2003 and 2014—that is, after the United States†“led invasion and overthrow of the Saddam Hussein regime, and before the sudden rise of the Islamic State of Iraq and the Levant (ISIL), also known as Daesh. This book assesses several dimensions of Iraq’s reconstruction. First, it considers the response of key international actors, such as the United Nations, the World Bank, the United States, and other bilateral donors—specifically, the European Union, Japan, and the United Kingdom—as well as nongovernmental organizations. Second, it analyzes the process and results of the reconstruction of key sectors (electricity, oil, education, and health), and the interventions geared to institution building and governance reform. Pursuing effective reconstruction within the context of conflict and fragility is a formidable challenge because of the uncertain, fluid, and complex environment. Based on the experience in Iraq, how can the international community support the effectiveness and durability of reconstruction? This book identifies lessons in seven areas and offers four recommendations for international and domestic actors and citizens engaged in reconstruction activities. The Reconstruction of Iraq after 2003 is important reading for development practitioners and policy makers who are or will be engaged in reconstruction efforts in fragile and conflict-affected environments.

The people of the Mashreq have seen more than their share of deaths, economic losses, and instability over the past decade. As the decade-long conflict in the Syrian Arab Republic created new challenges and worsened the existing ones, economic activity declined, labor markets deteriorated, and poverty increased. These trends would overwhelm even the most advanced economies in the world. The Fallout of War: The Regional Consequences of the Conflict in Syria identifies the impact of the Syrian conflict on economic and social outcomes in Iraq, Jordan, and Lebanon. It combines a large number of data sources, statistical approaches, and a suite of economic models to isolate the specific impact of the Syrian conflict from that of global and regional factors, and it explicitly analyzes the mechanisms through which such an impact is manifested. The analysis suggests that a persistent short-termism in policy making has so far propagated the shock emanating from the Syrian conflict, which led to costly and ineffective service provision, lost economic opportunities, and underfunded programs. The report advocates for a fundamental shift from the short-term mitigation policies to a medium-term regional strategy to address pertinent structural problems. Moreover, as the countries in the Mashreq look toward recovery, a policy approach that takes into account the region’s interconnectedness and seeks to build on it provides better prospects for the people. Such a regional approach that addresses cross-boundary issues—including migration, trade, and infrastructure—will require local, regional, and international commitments.

With the use of wide-ranging case studies the author clearly illustrates the impact of schemes intended to re-allocate land in developing countries. Concluding that land reform can play a major part in stimulating rural economies this book explores the extent to which such policies can successfully reduce poverty and increase agricultural growth.