Publications / Iraq - Angry Hearts and Angry Minds / 2.2 Iraqis facing a humanitarian emergency: misguided priorities and policies are giving rise to public disillusionment
Section II: Social, Economic and Political Realities in Iraq

2.1 Overview: legitimate grievances on the rise

2.2 Iraqis facing a humanitarian emergency: misguided priorities and policies are giving rise to public disillusionment

2.3 Iraq’s debt cancellation: uneven efforts hinder economic stability and raise public concerns

2.4 Iraq’s invaluable natural resources: economic potential dissipates and political independence falters

2.5 Power dynamics from local to national levels: shaping Iraq’s political landscape



2.2 Iraqis facing a humanitarian emergency: misguided priorities and policies are giving rise to public disillusionment

Ill-advised planning and investment are fuelling poverty and unemployment
Despite Iraq’s richness in natural resources generating huge oil revenues, millions of Iraqis suffer from crippling poverty and escalating violence. The effects of five years of international and civil war have taken their toll on the Iraqi population, creating an ongoing humanitarian crisis. Since the US invasion in 2003, the Iraqi economy has suffered from a lack of long-term planning and low levels of investment. Despite an initial high level of goods consumption, by 2006 the economy had stagnated, with inflation soaring to 70 percent at its peak. A study by the World Food Programme and the Iraqi Ministry of Planning’s Central Organisation for Statistics and Information Technology found that 54 percent of Iraqis were living on less than USD 1 a day.

Strategic errors, such as de-Baathification and inadequate investment in state industries, which were previously significant employment providers, have also led to high levels of unemployment. In 2007, the UN spoke of Iraqi unemployment at between 25 percent and 40 percent, warning that the weak economic environment translates into a failure to absorb shocks. Currently, various sources report that unemployment, especially amongst Iraq’s youth, can reach up to a staggering 70 percent. With the formal economy having declined and failed to diversify, an unregulated economy has taken root in its place.

“There are no opportunities for young people. There is nothing you can do to secure your future. Unemployment is a disease the government must treat.”

Student, 21
Baghdad, May 2008


Limited funds for humanitarian projects
While Iraq is receiving development aid from various donors, humanitarian organisations report low level funding for their activities due to the assumption that, because of the country’s affluence in natural resources, Iraq remains a rich country. Accordingly, humanitarian programmes have been unable to meet the targets. For instance, a shortage in funding forced the World Food Programme to suspend food deliveries for half of 2006, falling far short of its goal to provide essential food supplies for all target beneficiaries.

Displaced families in Al Monsour District, centre of Baghdad

Striving to survive: Mass displacement, food crisis and a lack of basic services
At the beginning of 2008, 4.4 million Iraqis had been forced to flee their homes due to escalating violence, with an estimated 2.5 million internally displaced persons (IDPs) and 1.9 million Iraqis thought to be living in neighbouring countries. Many of the refugees have difficulties accessing basic services, shelter, food and employment. IDPs are considered to also put pressure on local services where they settle, and UN-HABITAT has reported an increase of makeshift and slum areas in Iraqi cities. Recently, attacks were reported on IDPs by host communities who blamed them for overcrowding, crime and prostitution, and in some areas, notably Basra and Diyala, armed militias have been restricting the movement of IDPs.

Amnesty International on Iraq’s Internally Displaced People

Lack of security has also interrupted food supply and access to an estimated four million Iraqis. In 2005, the World Food Programme reported that 15.4 percent of the population required food assistance whilst in 2006 an estimated 43 percent of children between six months and five years old were suffering from some form of malnutrition. Regrettably, levels of food insecurity and malnutrition rose between 2006 and 2008. The Public Distribution System, which provides rations to millions, is only partially functioning. If efforts to revive the Public Distribution System fail, many more could be facing hunger during the second half of 2008.

“Living standards have deteriorated. There is poverty and chaos.”

Student, 21
Baghdad, May 2008


Furthermore, basic health and medical care are under strain due to continuing violence, understaffing and low resources. In 2006, only half of all hospital equipment was functioning. Between 2003 and 2006, more than one third of doctors left Iraq (12,000 of 34,000), while over two thousand were subject to kidnappings and murder. Similar problems have affected teachers and education systems, further fuelling local grievances.

The Red Cross on Iraq’s deteriorating health system



IDPs by province

Unsafe water and unsanitary conditions are also a grave reality for Iraqi households. The consequences were evident when a severe bout of cholera broke out in September 2007. Sewage and water treatment plants are providing unreliable service due to a lack of necessary equipment and chemicals, looting and a shortage of qualified staff to conduct maintenance and repairs. Estimates suggest that just over 20 percent of homes in Basra receive piped drinking water. Forced migration is also placing a strain on capacity in certain areas.

Oxfam on Iraq’s humanitarian crisis

Addressing basic needs of Iraqis must be a priority
Conflict-torn Iraqis are increasingly disillusioned with failing promises and policies unresponsive to their pressing needs. Frustration of economic hardships, unemployment and powerlessness further weaken the Iraqi state, allowing space for radical elements to garner support and promote their irrational agendas. Addressing local grievances in Iraq and regaining the trust and confidence of the Iraqi people requires formulating a strategy which understands and responds to their real concerns and needs.

Investment and Resources
Proclamations of aid provision and improving infrastructure and services, especially in southern Iraq, must translate into immediate action. The magnitude of the challenge is considerable and improvements require sustained levels of investment: according to the World Bank, Iraq needs to invest USD20 billion over ten years simply to upgrade the country’s power sector. Given Iraq’s richness in natural resources that generate significant revenues, the challenge is primarily to unlock both those financial and human resources in order to deliver better public services. A capital surge and a job surge are vital in this development effort.

Capacity building and consolidated action
The priority for Iraqi leaders and their international partners is to build the capacity of the Iraqi government to fully exploit the country’s invaluable resources and thus enable economic growth. In particular, Iraq’s most vulnerable groups must be supported and primary medical care and shelter should be provided. Thus far, however, disjointed action by various international humanitarian agencies undermines confidence of both donors and recipients in the ability of the Iraqi government and the international community at large to prioritise needs and activities. All humanitarian action must be consolidated in a new effective manner, aiming at improving the lives of ordinary Iraqis in a substantial and sustainable manner at both the local and national levels.

“Iraq is now being used by neighbours and powerful countries as a battleground.”

Retired
Baghdad, May 2008




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