The Total Economical Situation Of Iraq Is Bad. The International Embar

The total economical situation of Iraq is bad. The international embargo has dramatic effects, causing hardship for the entire population. Before international interests turned their attention towards oil extraction, agriculture was totally dominating in the Iraqi economy. Now its importance in the economy is down to 16%. A reform of 1990, opened up state and collective farms, to be rented by private farmers at moderate rent. This was necessitated by food shortages. Otherwise the agriculture of Iraq puts out wheat, barley, beans and rice. The international embargo on Iraq is the single most decisive factor in the country's economy of today. Oil exports are prohibited, foreign assets frozen, later seized, and Iraq was stuck with a war debt of US$70 billion (equalling 7years of oil revenues). Iraq's industry, putting out petrochemicals, textiles, steel, sugar, and cement, has been dramatically effected by both the bombing, and the by the embargo. Oil is found in the north, north-east, and in the south. The reserves are estimated to be the second largest in the world. The oil industry of Iraq was nationalised in 1972. Iraq is member of OPEC. Iraqis are all facing very difficult conditions, as prices have peaked while wages have lagged seriously behind, and people with state jobs have often not received their pay. Smuggling exists, and a large black-market, too. Selling of valuables has been a solution for many people. Only very few profit from the situation. Information is sparse, but it seems as if the middle class are now living under conditions that were normal for the lower classes before the international embargo.