By Dr. Saman Shali

After the election for Kurdistan Parliament on October 18, 2024, the two main political parties, Kurdistan Democratic and Patriotic Union of Kurdistan, are discussing the new steps and strategy to form the 10th Cabinet for months. Today, they are close to forming the tenth government after they agreed on how to run the new government based on a true partnership.

Following the region's economic, political, and tourism recovery between 2003 and 2013, it declined gradually after oil extraction, leading to a cut in the region's budget in 2014. The emergence of ISIS, the displacement of more than two million refugees, and the falling international price of oil put extraordinary pressure on the KRG.

The region began to confront serious financial challenges. It was forced to rely on loans from foreign corporations, local businesses, banks, and other countries to fund the region's and the Federal government's needs, including massive employee pay. Successive Federal governments and Parliaments, led by the Federal Court, began to exert pressure on the region's successes and halt economic growth. For example (Gas and oil law, Parliament, and Provincial Councils) have been revoked, and the government has become a caretaker government until the formation of the new government. The tripartite budget, which added unfair conditions against the region, did not impose them on other Iraqi governorates that extract or not extract oil or gas. These conditions increased the burdens on the government and the region's citizens.

Under these circumstances and with increasing popular discontent, the new government must take radical measures to change its strategies, declare an economic revolution, and take bold steps to eliminate this impasse imposed on the region. However, the government remained silent and complied with the Federal Court's decisions that were unfair to the people of Kurdistan. Therefore, the new KRG must adopt these new strategies to limit the humiliation of the people and put all its capabilities into implementing these steps in Parliament and the new government to serve the people:

1. Diversification of the non-oil economy

Economic diversity refers to various industry sectors and economic activities within a region. It is a measure of the breadth and depth of economic opportunities and activities that exist within an area. Economic consideration is a positive aspect of an economy. It can lead to more stability, resilience, and overall economic health. Economic diversification leads to self-sufficiency, job creation, and the preservation of financial wealth within the region.

2. Creating a more attractive and bold investment environment

Creating a more attractive and bold investment environment involves implementing policies and strategies encouraging domestic and foreign investors to invest in a region or country. A robust investment environment can lead to economic growth, job creation, and prosperity. Including an investment law for small and medium-sized local companies in the investment law will encourage the private sector to invest more widely in the region.

3. Developing the public sector

Developing the public sector involves improving the efficiency, effectiveness, and responsiveness of government institutions and services. A well-functioning public sector is essential for promoting economic growth, ensuring social welfare, and fostering good governance. Reducing red tape, increasing transparency, and fighting corruption will lead to increased services for citizens.

4. Combating corruption

Combating corruption is crucial for governments, organizations, and societies worldwide. Corruption undermines economic development, erodes trust in institutions, and hampers social progress. Implementing the anti-corruption law must be one of the government's highest priorities; consolidating the principles of social justice and fighting corruption begins from the top of the pyramid. The independent role of the Financial Supervision Bureau must be activated, and judges specialized in trying the corrupt must be appointed, away from other judicial courts. The names of the corrupt must be announced after corruption has been legally proven against them, regardless of their party affiliations, to build trust between the government and the people to combat the corrupt wherever they are.

5. Developing the banking sector

Developing the banking sector is crucial for the overall economic development of a country. A robust and well-regulated banking sector provides financial stability, fosters economic growth, and facilitates investment. The loss of trust between citizens and banks hinders banks from participating in investment and building infrastructure. Therefore, the government must work with the banks to restore this confidence, which restores the banks' position to serve citizens and work together to create a robust regional investment environment.

6. Independent judiciary

The independent judiciary is the fundamental pillar of a free judiciary system, a system of government in which the judicial branch is separate from and not controlled by the executive or legislative branches. This separation of powers is a fundamental principle in democratic societies. Judges should not be appointed based on their partisan loyalty. Judges should not be appointed based on their partisan loyalty; instead, they should be appointed based on competence and international standards, and free from political parties' influence.

7. Reducing government expenses

Reducing government spending is critical for successful governance and long-term economic development in the Kurdistan Region of Iraq, as in any other region or country. The specific solution may differ depending on the region's unique conditions, but this is a critical step in making the government more functional and moving the economy ahead.

8. Big Companies Contribution

During a country's economic crisis, big companies can play a significant role in helping the government address the challenges and contribute to economic recovery by investing more in infrastructure to create more jobs and reduce the unemployment rate.

9. Selling state property and ownership of agricultural lands

Governments sell state property and Agricultural lands for various reasons, and the process can vary from one country to another. The sale of state property and agricultural lands is typically governed by laws, regulations, and policies established by the government. The primary purpose is to generate extra cash to run the government and reduce debts.

10. Unifying the forces of the Peshmerga and the security forces

Integrating the Peshmerga and security forces in the Iraqi Kurdistan Region is complex and sensitive because it combines military structures with different histories, relationships, and leadership systems. Careful preparation, political will, and the participation of several Kurdish groups and factions are required to achieve this unity. It also encourages investment because investors work in a stable and safe operating environment.

11. Technocrats and the New Government

The participation of technocrats outside of political parties is an important step in the history of the new government, allowing experienced intellectuals to serve the region as well.

12. Citizen Participation

Enhancing citizen participation in policymaking through public consultations, open meetings, and feedback mechanisms on government websites. This participation increases trust between the government and the people based on transparency.

13. Freedom of Expression

Freedom of expression is a right of all citizens, which is guaranteed in the Iraqi Constitution. The new government must support and preserve these rights by the law.

In addition to the strategies above, there are questions the government and participating parties must answer in their new government program:

1. Does the government want to implement the Iraqi constitution?

2. Does the government want independence?

3. What are the Kurdistan Regional Government and political parties doing to address national unity?

4. What will the Kurdistan Regional Government do to unite members of the Iraqi Parliament to defend our rights enshrined in the constitution?

5. How does the Kurdistan Regional Government work to build trust between the government and the people?

6. How does the Kurdistan Regional Government work to find practical solutions to build trust between the Federal Government and the KRG to solve all outstanding issues based on the constitution?

In conclusion, the financial, economic, and political blockade imposed by the Federal government, Parliament, and the Federal Court must take necessary measures to get out of this impasse and rely on its economy to finance the needs of the region, as well as self-sufficiency in local production in the agricultural, industrial, tourism, health, scientific, and water resources sectors, and energy in cooperation with the federal authorities according to constitution to benefit the financial and economic situation of Iraq and the people of Kurdistan. On the other hand, with the above steps, the region will take a different direction, contrary to the policy that wants to bring the people of Kurdistan and the region to its knees economically, financially, and politically. This can only happen with the support and confidence of the people.

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Saman Shali has a Ph.D. in Science (1981) from the University of Sussex. Dr. Shali worked as an Assistant Researcher and Assistant Professor at the University of Sussex, King Saud University, and Pennsylvania State University. He is also a senior fellow at the Mediterranean Institute for Regional Studies.