The Kurdistan Observer
www.kurdistanobserver.com
•
Kurdistan, a Regional Profile - An Economic Study about Iraqi Kurdistan
By Khasro Pirbal
To: Franso Harriri, and all other Kurdish Martyrs
Finland – 2001
“Now is the time for
rebuilding Kurdistan, its time for working and building our own
industry and culture,
by this way we can serve our people, and we can make the life more
nice in Kurdistan”. Mustafa Barzani, the Kurdish leader 1970
ABSTRACT
This study is about Iraqi Kurdistan economy and a general view of the region after the uprising of 1991, and the creation of a Kurdish government in the north of Iraq. Literature and news statistics from different languages have been used for design of this study.
The aim of this study is to provide an overview of Iraqi Kurdistan Region as a country from the general and economical point of view. The main focus, beside of providing general information about the function of Kurdistan Regional government, is in the SCR-986 resolution, and the commercial activities and in general to describe the economy of Iraqi Kurdistan and the place of oil in Iraqi Kurdistan economy.
This study work will also serve as a guidebook about Iraqi Kurdistan, for those who are interested in starting to do business with Iraqi Kurdistan, especially for the Europeans countries. The study introduces the Iraqi Kurdistan after the uprising of 1991, and shows the democratic experience in the area, and also a general overview about Iraqi Kurdistan economy and the Kurdish Business Culture.
Iraqi Kurdistan region is a new market area for Europeans countries, and at present they are many of NGO’S there, and some Turkish companies are present in Iraqi Kurdistan. This region is a rich area and the companies which like to make business with the area have good opportunities.
Key words: Iraqi Kurdistan, SCR-986, Kurdistan Regional Government, Kurdish Business Culture, and the Economy of Kurdistan.
Top
Table of Content
Chapter 1: Introduction
001.1
Introduction of the study
001.2 Purposes and Objectives of the study
001.3 Limitations of the study
001.4 Research Methods
001.5 Key Concepts of the study
001.6 Structure of the study
Chapter 2: Kurdistan and the Kurdish nation (a general background)
002.1 The origin of the Kurds
002.2 Geography (Land)
002.3 Geopolitics
002.4 Demography
002.5 Religion
002.6 Language and literature
002.7 The final division of Kurdistan
Chapter 3: The Economy of Kurdistan
003.1 Iraqi Kurdistan Regional (KRG)
003.2 Petroleum and its place in the national economy
003.3 Commercial activity of Iraqi
Kurdistan
003.4 United Nation resolution 986
003.5 Import and export in Iraqi
Kurdistan
003.6 Transit
003.7 Problems and obstacles
Chapter 4: Business Culture in Kurdistan
004.1 Business Meetings
004.2 Custom and etiquette
004.2.1 Titles
004.2.2 Losing face
004.3 Business communication in Kurdistan
Chapter 5: Observations and Propositions
ABBREVIATION
KDP: Kurdistan Democratic Party
PUK: Patriotic Union of Kurdistan
KRG: Kurdistan Regional Government
SC: Security Council
SCR-986: Security Council resolution 986
UN: United Nation
MOU: Memorandum of Understanding
NGO: None Governmental Organization
Chapter 1: Introduction
001.1 Introduction of the study
This study has been made to work as a guidebook about Kurdistan, for those who are interested in starting to do business in Kurdistan, and especially for the European countries. The Western countries who don’t know a lot of information about Kurdistan and Kurdish question, after the second Gulf War in 1991 that Kurds of Iraq have a democratic experience in the north of Iraq under the name KRG, Kurdistan Regional Government. The study begins with a short description of the country, Kurdistan like one country and one history, its people, religion and Kurdish language, and the economic situation, and I will concentrate over the Iraqi Kurdistan, and the economy of the region.
Then this study discusses the business culture in Kurdistan, including all the important customs and etiquette, one need to know when dealing with the Kurds in general. In addition, the different methods of business communication are included as well. I will describe the economic situation in Iraqi Kurdistan during the last 10 years of the freedom, and Kurdish administration in the north of Iraq, and I explain in details the SCR-986, and the general mechanism of this resolution, the Security Council resolution (Oil-for-Food) which has been adopted from 1996. And I will describe the general problems and obstacles, and to arrive in the end to explain, what are the reasons that Iraqi Kurdistan markets can’t be more accessible for Europeans Markets. And what are the observations and proposition we can advise for a new country like Iraqi Kurdistan Region. Back To Top
001.2 Purposes and objectives of the study
I have written this study in order to increase knowledge of Kurdistan and the democratic experience of Kurdish people in Iraq, and to show the Kurdish economic situation, and to present the administration in Kurdistan Regional Government, and also its business culture.
The primary objective of my study is to focus on the most important things, the Kurdish economic situation and to present a new model of auto-administration in Iraqi Kurdistan. Secondary I have focused on studying the problems and possibilities related to starting an import and export business with European countries, and also to explain the reasons why we can’t have a developed business activities with Kurdistan Regional Area. Back To Top
I made this study to describe some ideas, for those who are interested to learn more about the Iraqi Kurdistan. The region of Kurdistan mentioned in this study means only the Kurdish Region of Iraqi part (See the Iraqi Kurdistan map).
I don’t intend to write the detail of Kurdish question and its political history, I will introduce a short history of Iraqi Kurdistan after the second Gulf War, and the Kurdish uprising in 1991, and the creation of Kurdistan Regional Government in the north of Iraq.
In this study I have only included the Iraqi Kurdistan business culture and the commercial activities in the region, and the economic projection of Kurdistan Regional Government, which has been created after the second Gulf War and the Kurdish uprising in 1991. Back To Top
The theoretical part is done by a desktop research method. My best sources of information for this study have been the books and empirical study and especially I have used some news statistics from a thesis in Iraqi Kurdistan, from the University of Salahadine. And some books, Newspapers articles, those sources are in different languages, Kurdish, French, English, and Arabic.
Also from Internet I have found a multiple web pages, concerning the Kurdish issue, and Kurdish documentation. Concerning the business culture there is extremely little literary information on Kurdish business culture and some of the details are based on my personal experience in Business there, also some other articles about the subject. Back To Top
001.5 Key Concepts of the study
Four key concepts of the study are Kurdistan, Kurdistan business culture, Kurdistan Regional Government, and The Economy of Kurdistan. For the people who need to know more about Kurdistan Business Culture will find this study very useful. Back To Top
This study began with a short introduction chapter about the general structure of this introduction of Iraqi Kurdistan economy, and I explain why that we have chosen this subject, and explain our method of research.
The second chapter is an introduction of general background of Kurds and Kurdistan, the origin of Kurds, and the geography of Kurdistan, language, religion, and I have focused only on Iraqi Kurdistan.
The third chapter is an introduction of the economy of Kurdistan, and we show different aspects of Iraqi Kurdistan, explains shortly about the KRG, Kurdistan Regional Government mean, and what’s its function, and I show the importance of petroleum place in the national economy of Kurdistan. I will introduce the commercial activity of Iraqi Kurdistan, the importance which the Security Council resolution SCR-986 (Oil- For- Food) represent for the Iraqi Kurdistan people, I explain in details how is this resolution work, and I show how the Kurdish government used this money to rebuild Iraqi Kurdistan.
I will explain in more details the commercial activities of the region, the import and export activity and transit question in Iraqi Kurdistan border with Turkey, and in the end of the chapter, I will show some problems and obstacles.
Business culture in Kurdistan, in the fourth chapter is we introduce in general what are the most important facts. When you make business with Kurdistan, or with the Kurdish people, we explain about business meeting, custom and etiquette, titles, and losing face, and in the end I show the business communication, and the development of the communication technique in Iraqi Kurdistan.
In the end of this study, after a general observation about the situation of Iraqi Kurdistan, I will propose some indication and solutions and propositions for the function and the continuity of the economic development in the Iraqi Kurdistan region.
In the annex I have a quantity of the maps, statistics and other material about Iraqi Kurdistan region. Back To Top
Chapter 2: Kurdistan and Kurdish nation (general background)
The origin of the Kurdish people belongs to all these Indo-European tribes who migrated to Kurdistan, and melted the native inhabitants of this land in their crucible.
Being the native inhabitants of the land, there are no “beginning” for Kurdish history and people. Kurds and their history are the end products of thousands of years of continuous internal evolution, and assimilation of new peoples and ideas introduced sporadically into their land.
The Kurds have existed in what is on ethnic grounds defined as Kurdistan for several thousands of years. The ancestry to Kurds is often traced back to the Medes, a tribal group which moved into the Iranian plateau from central Asia at the end of the second millennium. The Medes has been a great power in 612 BC, and expanded their empire over a larger area before collapsing in 550 BC (D. Mackdonwall, p.85, 1992)
The existence of a people referred to as “Kardaka“, “Kurtie or Guti” has been indicated by Sumerian inscription dated 2000 BC, as well as by early Assyrian inscription from the 11th century BC (B.Yassin,1985 p.35).
The Kurds appear to be descendants of diverse ancient groups, including Caucasian peoples in the north and people that had originally inhabited the mountainous territories west of the Caspian Sea from the earliest times.
The central part of these territories lies on both sides of the Zagros mountain range and stretches south and west through lower Anatolia into the mountainous area of northern Iraq and Syria. Back To Top
Kurdistan, the lands of the Kurds, is a beautiful country that lies in one of the important strategic regions of the world. It is a wide geographic spot extending between the parallels 36.5, and 49 and the longitudes 30.5 and 40.5 in the Asian continent, which covers a wide range, its total area reach’s about 500.000 sq km, which is almost equal to the area of Spain.
The area is distributed among the four parts of Kurdistan as follows:
Table (1): Kurdistan Parts:
|
|
|||
|
The part |
Area in Km. |
Percentage against area of Kurdistan |
Percentage against the area of the states conquering it |
|
|
|
|
|
|
Northern Kurdistan (Turkish) |
210.000 |
24% |
26.90% |
|
|
|
|
|
|
Eastern Kurdistan (Iranian) |
195.000 |
39% |
11.83% |
|
|
|
|
|
|
Southern Kurdistan(Iraq) |
83.000 |
16% |
18.86% |
|
|
15.000 |
3% |
10% |
|
Greater Kurdistan |
503.000 |
100% |
100% |
Source: CBSR 33, Kurdistan, p. 35, 1998
The area of each part of Kurdistan, their percentage compared to the area of Kurdistan and the states attached to compulsory.
From the geopolitical point of view, Kurdistan has lain on the frontier of empires such as the Byzantine, the Ottoman, and the Persian empires.
The British and French conquest’s during the first World War severed Syria and Iraq from the Ottoman Empire, and the resulting interstate boundaries left a Kurdistan sectioned into five parts.(B.Yassin,1995,p42).
Iraqi Kurdistan comprises four northern Governorates of the state of Iraq (Arbil, Duhok, Sulaimanya and Kerkuk) and parts of Mosul, Dyala Salahadine and Kut governorates. Its total area is about 83.000 sq. km, which forms 16% of total area of the Greater Kurdistan and 18% of the total area of Iraq. Its area is almost equal to that of Austria, and larger than many of the European countries (larger than 26 out of the 44 European states). It is eight fold the area of Lebanon, 13 fold of Palestine and 49 folds of Bahrain. (Chalian, p.112, 1978). Back To Top
Since the end of World War I Kurdistan has been administered by five sovereign states with the largest portions of land being respectively in Turkey (43%), Iran (31%), Iraq (18%), Syria (6%), and former Soviet Union (2%).(B.Yassin,p.33,1999).
The Iranian Kurds have lived under that state’s jurisdiction since 1514 and (the Battle of Chardiran). The other three-quarters of the Kurds lived in the Ottoman Empire from that date until it’s break-up following World War I.
The Kurds remained the only ethnic group in the world with indigenous representative in three world geopolitical blocs; the Arab world (in Iraq and Syria) NATO (in Turkey), the south Asian-central Asian bloc (in Iran and Turkmenistan), and until recently the Soviet bloc (in the Caucasus, now Armenia, Azerbaijan and Georgia). As a matter fact, until the end of the Cold War, the Kurds along with the Germans were the only people in the world with their home territories used as a front line of fire by both NATO and the Warsaw Pact forces. Back To Top
The total population of the Kurds in the world is about 30 millions people, thereupon Kurdistan comes in the 30th grade among the 193 states of the world.
The population in Kurdistan is distributed among its four parts as follows:
Table (2): Kurdish Population:
The place Population million at 1990 Percentage against the population of the
Kurds Percentage against the population of the states
conquering Kurdistan
Northern Kurdistan 13.15 044.32% 24%
Eastern Kurdistan 9.26 31.21% 18.97%
Southern Kurdistan 4.76 16.04% 28%
Western Kurdistan 1.24 4.18% 11%
Armenia, Azerbaijan and Georgia 0.301 1.01% 0.11%
Anatolia region 0.385 1.30% 0.7%
Khurasan region and else 0.500 1.69% 1.03%
Lebanon 0.075 0.25% 2.59%
Total Population of Kurds 029.67 100%
(Kurdistan, CBSR, 1999, Arbil, p 39).
Population of each part of Kurdistan, its percentage compared to the population of the Kurds and the population of the states attached to compulsory.
Different researchers have given different figures, Mihrdad Izady summarizes has general estimation of the Kurdish population for the year 1990 in the following table:
Table (3): The Kurdish Population in 1990:
States Total population Total Kurds % Kurdish
Turkey 56.7 13.7 24%
Iran 55.6 6.6 12.4%
Iraq 18.8 4.4 23.5%
Syria 12.6 1.3 9.2 %
CIS 0.3
Total 26.3
Source: Izady, 1992. P.119
However, one must also take into consideration the relatively large number of Kurds living in Lebanon and in exile in other countries, mainly in the west (G. Chalian, 1980,p 44).
The population of Iraqi Kurdistan today is about 6 million people, forming 16% of the total population of the Kurds in the world and about 28% of the population of the state of Iraq. There are several national minorities co-existing with the Kurds in Iraqi Kurdistan, like Christian minorities (Assyrians and Chaldeans) Turkmen and Arabs. (CNRB number 33, p.36, 1999). Back To Top
Unlike the mountain peoples of Lebanon and Syria, the Druzes, Alawites and Islamic and Christian Maronites, who declared their distinct identity through religious separatism from orthodoxy, the Kurds embraced Islam following the Arab conquests of the 7th century (Mcdowall 1992, p.13).
The main religion among Kurds is Islam and the majorities are Sunni Muslims (A. Gassemlou, 1965, p.24). The Kurds adopted Islam during 7th / 9th centuries, prior to which the major portion of them had adhered to Zoroastrianism, a religion that reveres fire as the symbol of purity.
From a cultural point of view, Islam has in a sense been an unfavorable factor in the development of a Kurdish national identity, since the central government in Turkey, Iran, Iraq and Syria recognize Islam as the official state religion. Thus, it has been more difficult for the Kurds to highlight the distinct Kurdish identity. Back To Top
002.6 Language and literature:
The Kurdish language belongs to the Indo-European family and is part of Iranian group of languages. The Kurdish dialects fall into two main groups, the northern, called (Kurmanji), and the southern, called (Sorani).
However there is a multitude of different dialects that many, according to Martin Bruinessen (a Kurdologue), it can be classified into the following subgroup:
1. The northern-north-western dialects or Kurmanji
2. The southern dialects, which are, called southern Kurmanji or Sorani
3. The south-eastern dialects of Sinei,
Kermanshahi, and Leki
The Sorani dialect has developed the written Kurdish language using modified Arabic script, and most Kurdish literature is written in Sorani. The Arabic letters are used by the Kurds in Iraq and Iran, Roman letters in Turkey, and Cyrillic in the former Soviet Union. (See the Annex).
The language issue has been an important concern to the majority of Kurdish nationalist language. Kurds recognize that Kurdish has had a powerful role in their struggle for national rights and recognition as a nation. The Kurdish language is both proof and symbol of the distinct Kurdish identity. The governments of the countries, which partitioned Kurdistan, have also been aware of the significance of Kurdish for the Kurdish identity. They have therefore either forbidden or discouraged the use of Kurdish, with the exception of Iraq, whose governments have traditionally been more or less tolerant of use of Kurdish in schools and public life.
The varieties of dialects within the Kurdish tongue, and the policies aimed at assimilation of the Kurds have combined to hinder the development of a standard lingua franca (Kreyenbroek, 1992, p.68).
The division of the Kurdish language into many dialects has been affected by the imperfect communication in Kurdistan, which is a land of high mountains. Moreover, the Kurds have never enjoyed political unity, which might have made a common literature possible. The divisions of Kurdistan among a number of countries, the influences from the dominant languages of further their language, are other factors which have inhibited the development of a standard lingua franca. Several attempts to develop a single standard from of Kurdish have been made, although at no avail. (Matti Saarlainen, 1999, p.8).
The Kurdish nation prides itself of an ancient and rich culture, but numerous foreign occupants, namely Turks and Persians, who hold the disgraceful plan of assimilating the Kurds, have either confiscated or completely ruined the products of the material and spiritual culture of the Kurds.
Nevertheless, the ancient culture has been preserved, and even nowadays we come across remains of ancient cultures in every part of Kurdistan.
Kurdish literature abounds in popular legends, we can come across poems originating as early as the 17th century, which describe the resistance of Kurds against the Arab usurpers, and strangely enough, these poems written in the language of those times are still comprehensible. (A. Ghassemlou, 1965, p.29). Back To Top
002.7 The final division of Kurdistan
Kurdistan is divided among four of the Middle Eastern states, normally, Turkey, Iran, Iraq, and Syria, and the two former soviet republics of Azerbaijan and Armenia. Kurdistan has been described as an arc stretching from Mount Ararat in the North-east leading southward to the southern part of Zagros and Pishtkuh in Iran (Kendal-Ghassimlou, 1980, p41). In the line can then be drawn westward to Mosul in Iraq, continuing to the Turkish port of Iskandarun, from this point, the land extends in the north-eastern direction to Erzerum in Turkey, and from Erzerum eastward to Mount Ararat.
From the geopolitical point of view, Kurdistan has lain on the frontier of empires such as the Byzantine, the Ottoman, and the Persian Empires. The British and the French conquests during the First World War severed Syria and Iraq from the Ottoman Empire, and the resulting interstate boundaries left a Kurdistan sectioned into five parts. (Kreynbroek, 1992, p.115-134).
The existence of crude oil in Kurdistan has also attracted the interests of international petroleum companies. Major oil deposits have been exploited in (Kirkuk) and (Khanaqin) in Iraqi Kurdistan, in (Kermanshah) in Iranian Kurdistan, and in (Siirt) in Turkey’s Kurdistan. Back To Top
Chapter 3: The Economy of Kurdistan
By Iraqi Kurdistan region, we mean the southern part of Kurdistan attached to Iraq according to an agreement between Great Britain and Turkey and hence the area referred to as the northern part of Iraq. Iraqi Kurdistan comprises of six governorates of Arbil, Sulaimanya, Duhok, Kirkuk parts of Dyala and Nineva (Mosul). Consequent to Iraqis invasion of Kuwait, and the outbreak of the second Gulf war a popular uprising in the Iraqi Kurdistan flared up in March 1991, the Kurdistan Front comprising a coalition of eight political parties:
1. Kurdistan Democratic Party- KDP
2. Patriot Union of Kurdistan-PUK
3. Iraqi Communist Party-ICP
4. Kurdistan Democratic Popular party
5. Kurdistan Toilers Party
6. Kurdistan Social Party
7. Kurdish Social Party
8. Assyrian Democratic Movement
They controlled a wide area of the region and established its authority in it. Later the central government of Iraq withdrew its official administration from the region in order to create an administrative and legislative vacuum hoping to disturb the administrative situation in the region and paralyze service institutions, an act of Kurdistan front to adopt the decision of holding general elections and organize the governmental administrations and service institutions that could fill in the vacuum created by the withdrawal of Iraqi governmental administration. (CBSR, p 24,1999).
After 10 years, and its from the first time in the history of Kurdish people, I one part of Kurdistan, after a democratic and general election in all liberate area of Iraqi Kurdistan, Kurds have a national government, and they have nominate a first governmental cabinet in 1992.
At present the forth cabinet of Iraqi Kurdistan function and in general the political and economical situation are much better than in year 1992 due to the accumulation of experiences. Back To Top
003.2 Petroleum and its place in the national Economy
Oil plays an exceptionally significant role in the economy of Kurdistan, just as it does in the economy of all the main oil producers in the Middle East. Oil is reaching the height of its importance in the world economy, gradually replacing coal as fuel. And even more strikingly as a raw material for chemical industry. (Ghassmlou, 1965, p.198).
According of Kurdish historical documents, they have discovered the Oil in Iraqi Kurdistan 5000 years ago, and three places (Kerkuk- Mosul-Khanaqin). (CBSR, Iraqi Kurdistan Oil, no: 31, p.4).
Iraqi Kurdistan oil have from the beginning of the production, four European countries which are the most important client, they are France, Italy, Holland, Germany. (Sami Sheref, p.2, 1972).
Iraqi Kurdistan has tremendous resources of energy in general and petrol in particular. One of the richest oil fields of the world lies in Kurdistan and that is (Kerkuk) (Baba Gurgur) field, from which oil was extracted for the first time in 1927. It is considered as the fifth largest field in the world in capacity a 60 miles long highland with a 2.5 miles width, penetrated from him middle by the Minor Zab. It extends from Tarjil in Kerkuk up to near Debaga in Arbil (the capital of Iraqi Kurdistan Government).
In addition to two other fields, (Jambur 1954) and (Bay Hasan 1953) which are not far from it. Generally, the triple oil fields of (Kerkuk) are dogged to depths ranging from 1500 to 3000 feet. The total number of these wells is 44, and as for the average of the production of each single well is about 35.000 barrels a day. However, the production capacity of some of these wells in this field amounts to 100.000 barrels per day. Oil field of Kurdistan produce more than half of Iraq’s production, which reached to 180 million tons in 1979, and its oil revenues amounted to 26 billion dollars in the year 1980.(CBSR,1999, no 33, p 62-63).
The most important oil pipelines in Kurdistan are:
1. Kerkuk-Jaffa (Israel), this line is closed since the Arab –Israeli War of 1948.its diameter is 30 inches and 990 km long.
2. Kerkuk-Tripoli (Lebanon); on the Mediterranean; it is composed of three pipes of 850 km.
3. Kerkuk-Banyas (Syria), on the Mediterranean, its length is 888 km.
4. Kerkuk-Dortul (Turkey), on the Mediterranean, It is composed of two pipes each with a 40 inches diameter and their lengthier is 1005 km.
In addition to oil, there are many sources of natural gas, especially in Kerkuk and rich coal resources as well.(See the map in Annex) The Iraqi Kurdistan oil importation, has began only in 1934, and from this time since 19th century, in Iraqi Kurdistan the petrol doesn’t have any importance, and for Kurdish people especially the economic situation be one of the important question for the Kurds in Iraq.
The petrol’s revenue doesn’t go to the Kurdish regions and for the construction of Iraqi Kurdistan, the central government of Iraq during all the 19th century has used the money. And the revenue for buying the guns and preparing the plans for the (Arabization) of Kurdish cities, especially the Kurdish Kerkuk, Mosul, Khanaqine
This situation had continued since the uprising of 1991, and the creation of Kurdish Regional Government, the Kurdish government cabinets, during 10 years of self governing has different plan, and proposing also for the Future of the Kurdistan Region. (KRG, Kurdistan reconstruction, p.51-80, 2000).
The Kurds in Iraq, and from the first time in their history have a national Kurdish administration. And one Kurdish government which has in the planning to reconstruct the country, and build the important projects in Iraqi Kurdistan, it’s also for the first time the credits which come from Kurdish petrol come back to Kurds. Back To Top
003.3 Commercial activity of Iraqi Kurdistan
The trade practice is a great role in developing the economy, a cross the periods of time and also it has its own effect on changing the structure, and this factor considered a necessary condition on changing the economics of different countries. As result of the development in economic life and increasing the humanistic needs and also increasing the satisfaction of these needs caused to the technology, development. Therefore the role of trade becomes more complex. Its abstract and relative volume increased it grew with average above of the economic growth.
The trade has an importance in the economies of the different countries. This significance change is due to the present resources and the product probability for each country. In Kurdistan region, this importance increased after 1991 March uprising and the period after the uprising many political economic, administrative changes happened. (Aziz. Gulideran, p163, 1999).
Those changes represented in democratic life, pluralization and the economic movement moreover, the unique geographical situation of the region, which occurs between the centre governorate and the Turkey, Iran, Syria are neighbors of the region.
In addition to its contribution of the availability of the consuming goods which they could not be produced in the area because of the UN embargo.
The commercial sector regarded as the leader sector in Kurdistan economy and practice its complete in this aspect. After the SCR 986, the private sector and some foreigners companies participate in the Trade in Iraqi Kurdistan, actually there are (13) Turkish and foreigners companies offices. (Birayeti of 19-8-2001, no:3464).
During the last Congress of KDP (Kurdistan Democratic Party) in Arbil in 1999. The politic bureau of the Kurdistan Democratic Party, given importance to the free markets and private sector, also the bank sector’s in Iraqi Kurdistan. The inauguration of the first Kurdistan central bank in Arbil in 16 August 2001, Mr. Nechirvan Barzani, and the KRG Prime Minister opened the ceremony of inauguration. And like a positive singe from the government, during the last 5 years the Kurdistan government returned (55) millions Dinars to the people which they have money in their accounts before the uprising of 1991. (Birayeti news paper of 15-8-2001).
The importance of commercial activity have increased after 1991 the uprising of people in Iraqi Kurdistan, the big changing in this region introduced a significant situation in the economic life, Iraqi Kurdistan region administration have different commercial activity with the central government of Baghdad. This activity began with the dramatically situation of Iraqi people after the invasion of Kuwait by Iraqi army, and the strict international embargo imposed by the United Nation.
Iraqi Kurdistan region have a multiple commercial exchanges with Iraqi central government, and the volume of commercial exchange between Iraqi Kurdistan and the central government is very important, but for political and administration reasons we don’t have a detail statistics about those commercial exchanges between both region. (AZIZ, p118, 1999)
After the uprising of 1991 and the creation of Kurdish administration, a national Kurdish government controlled the region’s borders. And for the first time in Iraqi Kurdish people, had the total authority in the business, and the commercial exchange with region’s neighbors, and others countries and Europeans countries, the Iraqi Kurdistan has been the victim of double embargo, international embargo, and the embargo of central government of Iraq, in addition of this situation the trade section with the neighbors countries taken an importance and its also the key of a successful administration in Iraqi Kurdistan. (Khayat Kamal, Journal of the Centre of Strategic Studies no: 26,p.53,1999). Back To Top
003.4 United Nation Resolution SCR-986:
In August 1990 the Security Council adopted resolution 661, imposing comprehensive sanction on Iraq following that country’s short-lived invasion of Kuwait. Throughout 1991, with growing concern the humanitarian situation in Iraq, the United Nations and others proposed measures to enable Iraq to sell limited quantities of oil to meet its people’s needs. The government of Iraq declined these offers, contained in particular, in resolutions 706 and 712, adopted in August and September 1991.(UN. Oil-for-food, 2001.p.1. See the Annex).
Oil-for-food is a unique Programe established by the council as a temporary measure to provide for the humanitarian needs of Iraqi people which is being implemented in the context of a sanction regime with all its attendant political, psychological and commercial dimensions.
The Iraqi government has in fact sought to sabotage all efforts at humanitarian relief, 986 was in fact first proposed by the UN in 15/8/1991 as SCR 706, but it was rejected by Iraqis government, it finally accepted in 1996 after 5 further years of suffering to Iraqi people. (BANNA Siamand.p.2, 2001).
The oil-for-food program allocates 13% of regulated Iraqi oil sales to support humanitarian activities in the region. These activities fall under the sector of food, and the sectors, which contain this resolution from the beginning been Oil-For-Food, but from 1997, its oil for all other products, and the sectors are:
Food, Handling, Health, Oil spares, Electricity, Water, Agriculture. Education Telecommunication, Transport, Housing. (UN Rapport SCR 986,p.65June 1998). Iraqi Kurdistan or according of the term which the United Nations resolution mentions The Northern Governorate, and in the SCR-986 section 5, article 20,in the Memorandum of Understanding in 20 May 1996 came that: “ The purchase of humanitarian suppliers for the three northern Governorates of Arbil, Duhok, Sulaimanya, as provided for in the distribution plan, will be carried out in accordance with annex I” (UN SCR-986, p 5). See the Annex.
The distribution in the three northern governors in Iraqi Kurdistan will be undertaken by the UN, and some NGO (Non Governmental organization) are present with the UN workers in Iraqi Kurdistan. (UN SCR 986,p.2,1997).
According of the SCR-986, Kurdistan region has 13% from Iraq’s revenue for the life and rehabilitation of Kurdistan, and the process of reconstruction of Iraqi Kurdistan under the administration of regional government, Shafiq Qazzaz the minister of Humanitarian “Aid and co-operation of Iraqi Kurdistan government confirm that, the SCR-986, the Oil For Food program, has been a great program for Iraqi Kurdistan, the benefits for our area have been significant and we hope that the program will continue” (Qazzaz, Beyond box,p2,2001).
The UN has been responsible for the implementation of the program in Iraqi Kurdistan. The participation of Kurds who work for UN agencies, and most notably, those who work for the KRG (Kurdistan Regional Government), has made a significant contribution in its success.
In addition to the substantial funds made available to region through the SCR-986 program. The KRG has also used its own resources to improve life for all the people living in the area, but in general SCR-986 has played a major role in the process of rehabilitating our shattered economy and devastated villages and towns in Iraqi Kurdistan during the last 20 years.
An Oil-For-Food Programe, began at the end of 1996 after the United Nations and government of Iraq agreed on the details of implementing resolution 986 (1995), which permitted Iraq to sell up to two billion dollars worth of oil in a 180-day period. The ceiling on oil sales was eased during 1998 and finally lifted in 1999, enabling the Programe to move from a focus on food and medicine to repairing essential infrastructure, including the oil industry. (UN Rapport, p. 3 1998).
Phase I ran from 10 December 1996 to 7 June 1997. The first oil was exported on 15 December 1996 and the first contracts financed by the sale of oil approved in January 1997. And at 30 of June 2001 number of phases is ten with the value of oil exported by million of dollars been 711 $ in 27 July 2001 (basic figure UN.p.1, 2001-SCR-986). (See the Annex).
The current phase X of the Programe, which runs from 4 July to 30 November 2001, thus far, 96.3 million barrels of oil have been lifted, generating an estimated 2.15 billion or $1.96 billion in revenue. (UNOIP, UN Rapport 18-24 Aug 2001).
During the last 6 years, many Europeans visitors been in Iraqi Kurdistan and they have seen the development of the region and they observed that the UNSCR-986 Oil for-food program was having a positive impact in Iraqi Kurdistan and having a direct impact on the economic and social life there. (Lords Ahmad, Kurdistan News n: 11,2001).
Also Mrs. Carole O’Leary is a scholar in residence at the American University Centre for Global Peace in USA, think that the Oil- For-Food money that has been misused in the rest of Iraq is being put good use in Iraqi Kurdistan. (Carole O`Leary, Washington post, July 15, 2001).
Iraqi Kurdistan region is seen significant changes, while much of the money used to finance the improvements to the area comes directly from this 13 per cent share of the proceeds of the sale of Iraqi oil, under the SCR-986.
The KRG also has funds that it uses to pay the salaries of regional government employees and other projects. They have also encouraged a free market system in the belief that it will benefit the area. From the beginning of the 985 resolution 1996 till now, the part of Iraqi Kurdistan have been 4,442,000,000 dollars, divided between Arbil and Duhok areas (KRG, Kurdistan reconstruction, activity in 2000,and p.51).
The private sector is now actively involved in the projects funded by SCR-986 both as suppliers and contractors, which has a positive impact on the local economy. (KRG, Kurdistan News n.13,2001, Kurdistan).
The importance of Private sector have been discussed even during the last KDP (Kurdistan Democratic Party) Conference in 6-14 of October 2001.At present in Iraqi Kurdistan we have (437) private companies, and from foreigners countries (19) Turkish companies has the official permission from Iraqi Kurdistan Government. The SCR 986 are essential factor for developing the activities in general and specially the activity of private sector, the Kurdish government accord (1503) import permission in 2001.(Birayeti of 15-8-2001,no:3461,Kurdistan).
Table (4): The Importing Permission to the Commercial sector from 1997 – 2000:
|
|
|
|
Years |
Importing Permission number |
|
1997 |
1975 |
|
1998 |
1373 |
|
1999 |
1062 |
|
2000 |
1503 |
Source: Financial Ministry, 2001, Kurdistan
Birayeti Newspaper 3461, of 15-8-2001, Kurdistan.
The function of this program in Iraqi Kurdistan is an important process, the KRG and many United Nations agencies and Humanitarian Organizations work in a full co-operation, and actually there are about 40 humanitarian agencies and organizations working in the area including inter alia:
1.FAO
2.UNESCO
3.UNCHR
4.UNHCR
5.UNICEF
6.WFP
7.WHO
8.ECHO
9.QANDIL
10.SCF-UK
11.KRO
12.MAG
13.ACORN
14. 4RS
(Kurdistan, CBSR no.33,p.79,1998)
Nine Ministries of Kurdistan Regional Government (KRG) work closely with nine UN Agencies; both are responsible for managing the program in Iraqi Kurdistan. The KRG provides tens of thousands of government employees to the program, and also warehousing, telecommunication, and security services to UN Agencies. (Barware, p.5,2001). Back To Top
003.5 Import and export activities in Iraqi Kurdistan:
The study of international trade and money, has always played an important and discussion raising role in the economics. Most of the basic theories of modern economic analysis have arisen already in eighteenth-and nineteenth century, debates over international trade and monetary policy. However, never has the study of international trade been as important as it is today. The economies of different countries are continuously getting more closely related with one another because of international trade of goods and service and international flows of money.
After 1991 and the Iraqi invasion of Kuwait, the UN section over Iraqi government, and the economic embargo, Kurdistan become the only possibility, and the window for Iraq. The creation of Iraqi Kurdistan government, and the application of SCR-986, an economic and political stability presently and in the future. The new horizons for economical developments, and Iraqi Kurdistan can become a free zone for the whole region, and already many Turkish firms are engaged in trade not only in exports but establishing business and light industries in Iraqi Kurdistan. Iranian and business communities of the Gulf States express equal interest; in addition the export and import sectors are very significant in Iraqi Kurdistan.
After the invasion of Kuwait by Iraqi troops, and the coalition intervention, Iraq was under a very hard embargo and the import and export movement of central government have been totally grounded. Iraq imported before 1990, 70% of its demand.. (Aziz Gulderan, p111, 1999, Kurdistan).
The KRG, especially after the UN resolution 986 (Oil for food), have a permanent commercial activity with central government of Iraq, and the import and export activity from and to the Kurdish region had taken a important acceleration.
Iraqi Kurdistan and its borders, with Iran, Syria, and Turkey, are from 1996, and especially with the SCR 986 is the only way for the central government.
Iraqi Kurdistan import and export, the targets, and different products from and to Iraq, through Iraqi Kurdistan border city Ibrahim Khalil (the small town on the Iraqi Kurdistan border. (See the Map of Iraqi Kurdistan).
The region has imported 1640 million Iraqi Dinar (Iraqi Money) produces from different sources in 1998. (Aziz.Gulderan,p.126,kurdistan,1999).
The people’s economical situation are better after the SCR 986, also because the peace situation between the different political parties, especially between the KDP and UPK (Kurdistan Democratic Party and Union Patriotic of Kurdistan) in Iraqi Kurdistan from 1996, and the creation of new ministerial cabinet.
The export and import statistics:
Table
(5): Iraqi Kurdistan Export to Turkey 1997-1998
Products 1997 1998
Alimentation Food -------- 65380
Vegetable 164 319
Date 6000 954
Metals 26 6038
Cotton 121 63
Wheat 839 29390
Leather 76717 284079
Chemical Products ----- 1149
Total 83867 387372
Source: Iraqi Kurdistan Financial Ministry, 1998
Iraqi Kurdistan Export to Turkey list (1997- 1998). Like we observe, after 1996, and especially after the SCR- 986, an important acceleration of development has taken place in Iraqi Kurdistan Import (See the Table(6): The Iraqi Kurdistan Government had a volume of import (248 million Iraqi Dinars) for building material in 1998.
Table (6): Iraqi Kurdistan Import List 1993- 1998
Products 1993 1998
Alimentation Food 78.5 222
Vegetable 2 49
Wheat - 3
Alcohol 73 74
Alimentation others 30 75
Home Products 3 12
Woods - 6
Cloths-shoos 4 181
Electronic 3 150
Glass 18 89
Cars Material 7 19
Tobacco 73 442
Chemical Products 3 1
Meat - 280
Construction Material - 0
Milk 1 0
Carpets Total -295.5 42269
Iraqi Kurdistan Import List (1993 – 1998)
Source: Iraqi Kurdistan Government, Finance Ministry. (G. Aziz, The Commercial activities of Iraqi Kurdistan, 1999, Kurdistan).
This development and acceleration due to the UN resolution, also is due to a good management of the Kurdistan region government, especially the third and forth ministerial cabinet after 1996.
Iraqi Kurdistan export their products to pay their imports, and the economical and social situation impose that, the government and the private sector import more, and the economic development in the region need more for building and construction. The region has exported (387,878) tones of total produces in 1998, and Kurdistan exporting are more agriculture products.(see the Table 5).
The export and import activity is a vital sector in Iraqi Kurdistan economy, and it should take an important place in government planning and orientation. In general the products exported and imported to the neighbors countries, like Islamic republic of Iran Turkey, and Syria, and through those countries, Iraqi Kurdistan products taken another destination to some Eastern and western European countries.
At present they are 19 Turkish companies in Iraqi Kurdistan, and in general the Kurdish government helps any others Europeans companies, which are interesting and they would like to make business with Kurdistan. (Brayeti News paper, n: 3461, Kurdistan). Back To Top
Kurdistan geographically and economically is an important area for all the neighboring countries, like Turkey, Syria, Iraq and Iran, also for many European countries, the price for transit is very cheep, if we compare with other countries in the area (A. Ghafur, p437, Kurdistan, 2000):
The Kurdish public income came from transit, has born after the uprising of 1991, and the total income from transit sector of Ibrahim Khalil in 1998 been 84.88% from total government revenue, and it represent 190,8000,000 Iraqi Dinars. (Aziz G, p141, Kurdistan). (See the Table 7).
Transit is the third section in Iraqi Kurdistan Foreign trade, and because of the situation before 1991 the region transformed. For Iraqi central government, and also for the Kurdish regions a vital area especially for the alimentation produces because of international embargo.(UN rapport SCR 986,p.33,1998).
Table (7): The Participation of Transit duties in KRG economy (1993-1998):
|
Years |
Total Income |
Transit income |
% |
|
|
|
|
|
|
1993 |
1031812000 |
600000000 |
59.18% |
|
1994 |
125000000 |
115000000 |
92% |
|
1995 |
----- |
---- |
---- |
|
1996 |
675000000 |
600000000 |
88.88% |
|
|
|
|
|
|
1997 |
1631150950 |
1492000000 |
91.46% |
|
|
|
|
|
|
1998 |
2247715000 |
1908000000 |
84.88% |
|
|
|
|
|
Iraqi Kurdistan Government, Financial ministry Source: G. Aziz, 1999
The greatest portion of the regional revenue comes from the custom duties and transit trade. In 1998, the Iraqi Kurdistan’s government has 247 million Iraqi Dinars from transit activity, from different targets (Aziz, p136, 1999).
The Regional Government use this duties for the ambitious program of Iraqi Kurdistan government, And especially after 1996, a big part of this capital are used for the reconstruction process in Iraqi Kurdistan. Back To Top
Iraqi Kurdistan Region had an important process of socio-economic transformation, and economic development. After the uprising of 1991, the Kurdish coalition political parties arranged a democratic election, in addition to this experience. Kurds began to practice the Kurdish administration, and to have the first governmental cabinet, and all this process had been registered with presence of some Europeans delegation and friends that has been the first time in the history of Kurdish people, Kurds has a national government, parliament and other public administration.
In addition to all of this changing and reconstruction process we can see some obstacles which are standing in front of those planning which are going on in Iraqi Kurdistan.
By reading the politic history of the Iraqi region, and during several years, the central government of Iraq, they followed a destruction policy, and they have destroyed more than 4500 villages in the Iraqi Kurdistan, this situation has been continual since the uprising of 1991.(CBRS, p23, 1999).
Since 1991, and especially after the creation of third ministerial cabinet, Kurdish government adopted a positive and ambitious program, but like other countries, Iraqi Kurdistan government suffers from some of problems and obstacles.
They are two kinds of problems: Political and economical problems, which affect in the future of the Iraqi Kurdistan Region, and its programs for reconstruction and the economic development of the region:
- The Political Problem:
The uncertain political situation and the instability in the region in general, and for Kurds in Iraqi Kurdistan are an important factor, which define the future organization of the socio-economic life for the citizen in Kurdistan.
At present, the Kurds are seeking a political solution of their problems in Iraq, and in general the Kurdish region must have a guaranty promise from the international community, because the people of Iraqi Kurdistan want to be protected after the changing the actual policy against the central government of Iraq.
We can’t speak about Kurds, or Kurdistan without talking about political question of Kurdistan, the political risk and the uncertain policy of international community and the great power are the main problems for the Kurds in Iraqi Kurdistan.
The people of the region wish that, if the international sanctions are lifted over Iraqi government, some guarantees and arrangements have to be put in place so that people’s fledgling democratic experiment would remain viable and enduring. (Qazzaz, beyong the box,2001,p.3, USA).
With a political stability and lifting of the international sanction in Iraq, Iraqi Kurdistan region will see a new horizon for Socio- economical development, and this region will become a free zone for whole Iraq and the region. And the democratic experience of KRG, Kurdistan Regional Government could serve like a model and example for future Iraq. Concerning the political protection, which Kurdish people need and ask from international community, it will not be used against the Iraqi government, but it’s only to protect Iraqi Kurdistan experience in the Socio-economical development.
- The Economical Problem:
The economical obstacles also represent a serious threat in Iraqi Kurdistan region. The SCR 986 has been very useful and positive for Kurdistan, the benefits for the area have been significant and with only 13% of share of the proceeds of the sale of Iraqi oil, Kurds have succeeded to rebuild the country and the Kurdish regional government has seen rapid development in the field of agriculture, industry, reconstruction of public building, school, hospitals and roads.
The Kurdish government must rebuild the infrastructure of Iraqi Kurdistan, and maintain relations with the world to develop the multiple relations, and to have more co-operation in infrastructure planning, but we can’t be dependent upon other countries or even on SCR 986.(Masrour Barzani, Kurdistan News,2001,no:12, Kurdistan).
It’s clear that the SCR 986 (Oil-for-food program) is not an eternal resolution for Iraqi Kurdistan, the most important point is that the Kurdish government must have a national economic planning for after the SCR 986, and the Kurdish government must think from now about post UNSCR-986.
Kurdistan is a rich country in agriculture, and the people are young and dynamic, they have the ability to govern themselves, and a general planning of Kurdistan economy will be the only guarantees for Kurdish people in Iraqi Kurdistan region.
Iraqi Kurdistan government has succeeded to rebuild the most important infrastructure of the Kurdistan, and for the post SCR986, the government must have a good strategy for planning for the new period in Iraqi Kurdistan region. Back To Top
Chapter 4 Business Culture in Kurdistan
The race, language, habits, traditions and history of the Kurds differ from those of Arabs, for they descends from (indo- European) origins and their cultural habits, and in business culture all those differences and particularity reflect during the process of business with Kurds Iraqi Kurdistan.
Kurds have a typical and especial way to act in general and in the business also it reflects during the negotiations and meetings. Kurds are Orientals.
The western businessmen have to learn to be patient, Kurds are spontaneous and they are Polychromic people, generally, the business meetings in Kurdistan are informal and very polite. Business rituals are much the same as anywhere else, so the basic combination of politeness and common sense should guide you through the negotiation process without any serious etiquette difficulties.
The good communication is obviously of paramount importance at meetings. After the uprising of 1991 and the democratization of all the Kurdish society in Iraqi Kurdistan, a big number of businessmen can speak foreign language. Many people can communicate in English.
Usually Kurds don’t use the interpreter when dealing with a particular company. And in general the Kurds speak, Arabic, Turkish, Persian and English.
There is extremely little literary information on the Kurdish business culture, my description based generally on my personal experience.
The most important element is to show respect and courtesy and not necessarily to get all the rules right.
In Iraqi Kurdistan, business meetings are the most essential part of doing business, the Kurdish tradition and because of the actual economic and political situation of Iraqi Kurdistan. And the international embargo imposed by the international community over Iraq and the double embargo over Iraqi Kurdistan (also by the Iraqi central government).
The business in Kurdistan can be without a meeting face-to-face, due to a specific situation in the region, actually Kurds in Iraqi Kurdistan have an important number of business agreements with the neighboring countries and some Arabic country such Bahrain, Emirate Arabic Union, and Turkey, and some East European country, and all those agreement happened without meetings face to face.
The business in Iraqi Kurdistan is rolling in legal situation, and the government control all those agreement, for checking and to have idea about them, the Iraqi regional government use perfectly the agreement which are allowed by SCR-986, and the official administration help the companies (public and private), the economic system of Kurdistan is a mix system, but for protecting the people’s interest, the government have a partial control in the economical life.
There are several officials and some unofficial holidays in Kurdistan, which you have to taken into account when arranging business meeting, some of those days may close all business activities for many days at a time. In addition, some habits related to these celebrations and remembering days are useful to know to prevent unnecessary mistakes, delays in business and misunderstandings. By knowing local habits you will also create respect and gain advantages for your future business.
I have listed below the main remembering and national and religious day, which are important to know:
Newroz:
Newroz, is one of the most important days for Kurdish people, which means New-day, its Kurdish national day, from all the parts of Kurdistan, and also where Kurds lives, they celebrate this day. Newroz is the most important annual event for the Kurds, the New Year festival held during the spring equinox (Iran follows the Islamic way of reckoning time, it start from the year 622 A.D). (Matti Saarelainen, p.15, 1999).
Friday: The Kurds working five days a week and the holiday of them is Friday, but for the business it’s not a problem that they have business meetings, and to have contact, normally they are present in their office.
Remembrance days: Kurds have some important remembering days; they are concerning their histories, like Halabja, and the Anfal (the deportation of thousand of Kurds by Iraqi regime, and the distraction of many villages and area by central government of Iraq). Also Iraqi Kurds celebrate the uprising of 1991. Back To Top
Kurdish society don’t give importance to the titles and some others western organization in the business, they act very spontaneously, and the contact for making business will happen directly by the boss of the company or business firm. Back To Top
It is especially important never to cause a Kurdish person to lose face in front of others. Understanding their way of thinking, especially concerning this matter, is vital when doing business in Kurdistan or with a Kurdish businessman. For example, when you find a simple error in some issue, don’t point it out directly. Try indirectly to hint at the mistake and offer so called-face saving solution. In this way a person is able to adjust the mistake that has occurred. Offering indirect advice or solutions is far more effective than direct criticism.
In general Kurds deal honestly in business and commercial affair and they have general deep friendships also in business world, and the human relation is important in business. Back To Top
004.3 Business communication in Kurdistan
The Kurdish business operation, use like other Iraqi Kurdistan sectors the last and best material and technical possibility, and one of the great opportunities after the Kurdish uprising and the creation of KRG, Kurdistan Regional Government are the Kurdish communication revolution. Back To Top
At present, in all Iraqi Kurdistan we have a normal post service, which is connected with the daily transport with Turkey, and for the foreigner correspondent and Kurdish businessmen, you can receive all kind of letters by the follow address through Turkey. Back To Top
From any European countries or America, you can respond any Kurdish company by sending to this address:
Iraqi Kurdistan (KRG)-Habour
P.O. Box 4-33
Sirnak-Silopi
Turkey
And then you write the exact address of the Kurdish destination. In Iraqi Kurdistan, one of the innovations of Kurdish government, is the publication of Kurdish own stamps and they are in used actually in all Kurdistan. (See the Annex). Back To Top
At present you can find a private and public companies in Iraqi Kurdistan, and the connection are very good with high technology.
The telephone and fax service is very cheep and easy. Actually the most important contact between the Kurdish businessmen and the foreign companies are marked by telex.
Since 1991, contacting Iraqi Kurdistan is not by using the international indication number of Iraq, but you can find a multiple of international indication (British, Swedish), and economically they are much more cheep than Iraqi communication costs. Back To Top
Utilization of the Internet is growing quite rapidly in Iraqi Kurdistan, and the English language is not a big obstacle in using the Internet, Kurds speak English language. And there is a big numbers of Internet center, and all the business companies have an internet connection and especial e- mail.
In Iraqi Kurdistan region, there is Internet connectivity. This is despite that fact that the state of telecommunication in infrastructure is very poor in the region although it is being rehabilitated slowly. In a region that is surrounded by unfriendly countries, and where the only possible and very costly internet link is through space via earth-orbiting satellites, there are probably around 5,000 Internet users in Kurdistan.(Karim Zebari, Kurdistan News, n13,p.3, 2000).
In Iraqi Kurdistan the private enterprise in the computer business is growing rapidly. Computer stores are thriving and Internet access is provided by communications Centers for the general public. (Siham Mamand, Kurdistan News no 11, Kurdistan, 2000).
Iraqi Kurdistan region is considered much better than many other countries. In light of the importance of this sector, the Kurdistan Regional Government has funded projects in the area, and Internet access has been introduced into most university colleges and administration offices. Back To Top
Chapter: 5.1 Observations Propositions
1- The SCR 986 is an important Programe for Iraqi Kurdistan economy, and its vital question that the international communities continue, the political stability and security that Iraqi Kurdistan people need. It will also have to be matched by economic guarantees, and most important these guarantees are in the continuation and improved implantation of SCR 986, the Iraqi Kurdistan must have the 13% of the oil revenue even after the lifting of the international sanction against Iraqi government. It is vital that this resolution continues this program gives both political stability and security that Iraqi Kurdistan people needs.
2- At the present time, especially in business world, and the international system a good management is a key for success in economic situation in any country, also in Iraqi Kurdistan. We must develop the management sector, and when the responsible group decides the general policy of the region, they must take in to consideration the importance of the management element in the process of the socio-economic development.
3- In Iraqi Kurdistan, the creation of a Ministry of planning and statistics is very essential and important. We can’t plan for economic situation if we don’t have statistics and updated information.
4- Since 1991, Iraqi Kurdistan region began a new period of economic relations, and commercial exchanges, permanently the Kurdish authority have some financial problems, and the first exchanges money is the American dollars, it’s a good reason that In Iraqi Kurdistan the creation of a Kurdistan Financial Market (Bousra) is very necessary. And developing the bank systems and a modern method of management. And also the creation of private banking is ambitious and positive factor for the economics development, and for the business operation and commercial activity in general. The purpose of these proposals is to assist with needs of citizens and companies and their transactions with international companies.
5- The SCR-986 is an important resolution, especially for Kurdish agriculture products. And we can develop the exporting sector, this international protection and agreement can be very useful for the long term, if we can use it in a good way, to discover the new market areas, and new countries, especially Europeans countries.
6- At present there are more than nine specialized UN Agencies who identify and finance projects in Iraqi Kurdistan, which they are in co-operation with Kurdish administration for the application of the humanitarian program of SCR-986. It will be a positive to take advantage and learn from their knowledge and experience for post SCR-986, and used in future in Kurdistan Region.
7- Concerning the private sector in Iraqi Kurdistan, Kurdish economic authority should be careful to increase the domination of private sector in the economical life, we see that at present the public sector must be the most present than any other sector.
After the uprising of 1991, and the creation of Kurdish government, Kurdistan most important exchanges are with the neighbor’s countries, it’s the responsibility of the new cabinet in Iraqi Kurdistan region, that they discover the new markets, and the new partnerships in Europe. The new areas permit a better quantity of Kurdish products to be exported to other countries, and to have more exchanges with European and Scandinavian countries.
With uprising of 1991, a new horizon has been opened for the Kurdish people in Iraq, and immediately all the political parties, they have arranged a democratic and legal general election, and they have formed the first Kurdish national government, and planned that they rebuild Iraqi Kurdistan, and a significant changes produced in general, since 1991, the socio-economic development continue in the region.
The Kurdish Regional Government since 1996, KDP, Kurdistan democratic party and other political parties, make a coalition, and they formed the third ministerial cabinet by Mr. Nechirvan Barzani, and with the adaptation of SCR 986 by the international community, the region has seen rapid developments in the field of agriculture, industry, reconstruction of public buildings, education and school, hospitals and roads.
The importance of this question is that it’s the first time, the Kurdish people in Iraq, and also in any part of Kurdistan Kurds form a national government and they build their country, and they educate their children and develop the peace culture. And they rebuild those, which the long years of war and conflict destroyed.
This study aims to provide basic information about Iraqi Kurdistan and Kurdistan Regional Government, and the economical function of the region.
The Kurds in general, and especially Iraqi Kurdistan are very open to meet foreign business people, and for them it’s easy to make business with them, Kurdish business is very strongly based on personal relationship.
Kurdistan's products are mainly exported to the neighboring’ countries like Turkey, Iran, and Syria, and the trade agreement between Kurdish companies and some other countries will create excellent opportunities for Kurdish market.
The aim of this study as whole was to provide information, guideline for the
European companies that are
interested to start importing from Iraqi Kurdistan, and to discovering
this new area. There would be of course more easy countries to make business
with, but Iraqi Kurdistan offers interesting opportunities for those companies
that are willing to invest time and effort.
Back To Top
References
Printed Sources in English language:
Siamand BANNA, 2001,the save havens, UK.
Gerard CHALIAND 1978, People without a country, ZED, London.UK
Edmund GHAREEB, 1981 The Kurdish question in Iraq, Syracus Press, New York. USA
Abdurrahman GHASSELMOU 1965, Kurdistan and the Kurds, COLLETS, London.UK
Mehrdad R.IZADY 1992, The Kurds aconis handbook, Taylor, Washington. USA
PHILIP G KREYENBROEK 1992: The Kurds, a contemporary Overview. Rutledge. London.
UK
David MCDONWALL.1992 The Kurds, a nation denied, MRG, London.UK
Shafiq QAZZAZ, 2001,Prospects for a post Saddam Iraq, Conference Paper
Washington, USA
Carole O,LEARY, 2001, A no-fly, yes democracy zone, Washington Post of July
15,Washinton, USA
Matti SAARELAINEN 1999. Kurdistan, Finnish foreigner Ministry. UVI. Helsinki,
Finland
Borhanadin A. YASSIN 1995,Vision or reality, LUND University Press, Lund.
Sweden.
C.B.S.R (Central Bureau for studies and Research) KDP, 1999,an economic,
Geographic and
historical brief explanation, Arbil, Iraqi Kurdistan.
Conference paper17-18 April 2000,The Kurds, search for Identity, New York
Kurdistan News, monthly newspaper, Kurdistan
Kurdistan Today, KRG, Stockholm Sweden
Back To Top
References in Kurdish language
Brayeti Center Book3, Geography of Iraqi Kurdistan Region 1999, Arbil Kurdistan
Abdullah Ghafur 2000,Geography of Kurdistan, Mukrian, Arbil, Kurdistan
KRG 2001, Kurdistan Reconstruction, Kurdistan regional Government activity in
2000 and plans for the Future, Aras, Kurdistan Jaza Toffik Talib, 1999, the
Geopolitical importance of Iraqi Kurdistan region, Sulaimanya. Kurdistan CBSR, 1997,1998,Iraqi Kurdistan Oil, Arbil. Kurdistan Journal of the Centre of Strategic Studies no 24,26,33,1999,Sulaimany, Kurdistan References in Arabic Language:
Gulderan. A. AZIZ, 1999,The commercial activities in Iraqi Kurdistan region
(1993-1998), Graduation Project, University of Salahadine, Arbil, Kurdistan. Back
To Top
Internet Sources:
http://www.kdp.pp.se
http://www.kurdistan-parliament.org
http://members.aol.com/krgsite
•