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PREFACE
On October 10, 1950, the Government of Iraq officially requested the International Bank for Reconstruction and Development to send a mission to Iraq to undertake a general review of the country’s economic potentialities and make recommendations for a development program. After an exchange of views it was agreed that a mission would be sent with the following terms of reference:
“The Mission will be expected to undertake a general review of Iraq’s economic potentialities and to submit recommendations designed to assist the Government of Iraq to formulate a long-term program for the further development of the country’s productive resources. Specifically, the report of the Mission is to include recommendations concerning:
(1) - investment priorities as among different sectors of the Iraqi economy and as among types of undertakings within each important sector;
(2) - the approximate rate of investment which can appropriately be undertaken without inflationary or other disruptive effects;
(3) - measures apart from capital investment which appear necessary or desirable for improving and increasing production;
(4) - economic and fiscal policies which may be important to accelerate the pace of Iraq’s development, and
(5) - governmental organization and practices having an important effect on development.”
A number of United Nations agencies cooperated in the selection of the personnel of the Mission. The agricultural economist, the agronomist and the expert on animal husbandry were nominated by the Food and Agriculture Organization of the United Nations, which also undertook to pay a portion of their salaries and expenses. The World Health Organization and the United Nations Educational Scientific and Cultural Organization nominated the specialists in health and education, respectively.
The Mission arrived in Iraq on February 25, 1951, and the last members left the country on May 27, 1951. During this period members of the Mission travelled widely about the country in order to study conditions and problems at first hand. The Mission worked generally under the auspices of the Development Board, whose members and staff provided valuable assistance. The Principal Liaison Officer to the Mission, Mr. Naim Bashoo, greatly facilitated the Mission’s work. In the course of its work, the Mission also drew on the resources of many other government departments and agencies whose cooperation was generously given. The Mission takes this opportunity to express its gratitude to the many people both in public and in private life who gave freely of their time and effort to help the Mission.
In the following report the Mission submits a series of recommendations over a broad field. In making these recommendations the Mission has taken into account the Development Board’s five-year program without, however, attempting to arrive at a judgment on every one of the projects included in this program. The many conclusions and recommendations of the Mission may well be subject to modification in the light of additional information or of future developments. While the Mission enjoyed generous cooperation in obtaining data essential to its work, it was inevitably handicapped to some extent by the same lack of adequate, reliable information which is generally encountered in varying degrees in all underdeveloped countries. For example, the absence of dependable data on agricultural and livestock yields and on the location, extent and quality of cultivable but idle land made it difficult to assess the impact of various measures in the field of irrigation, drainage and agriculture. Similarly, lack of statistical data has made it difficult to determine, except in general terms, the repercussions which increased public expenditures might have on production, incomes, consumption and imports. The Mission does not believe, however, that these factors significantly affect the validity of its recommendations.
The Mission’s report consists of two parts. The first part con tains the major findings and recommendations of the Mission to which are attached appendices: one, listing the Mission s recommendations, one, sumarizing the Mission’s suggestions for technical assistance; and a third on statistical organization. The second part consists of a series of monographs dealing with particular subjects. The first monograph is concerned with the basic factors and conditions in the economy of Iraq which the Mission has considered in framing its recommendations. The others set forth in greater detail the Mission’s views on flood control, irrigation and drainage, agriculture and animal husbandry; industry; transport, and communications; public health; education; and community planning and housing.
I. - Introduction
Iraq possesses impressive potentialities for economic development. With a total population of about 5,000,000 and an area of 168,400 square miles, Iraq is sparsely populated in relation to its resources. Although all but a relatively narrow belt in the north and northeast has insufficient rainfall to sustain agriculture, the country’s twin river systems—the Tigris and Euphrates—can provide large amounts of water for irrigation. Much of its soil is inherently fertile and with ample water, manpower and implements, the area under cultivation might be almost tripled. In oil, Iraq possesses not only a source of foreign exchange but also a cheap source of power and raw materials essential to the development of industry, agriculture and transportation; and it may have other mineral resources susceptible of commercial exploitation. There is little doubt that the country can ultimately maintain a much larger population on a considerably higher standard of living.
As yet, however, this economic potential is in sharp contrast to the poverty prevailing in Iraq. The standard of living of the people is extremely low. Income per capita is probably at most ID 30.1 Almost 90 percent of the population are illiterate and many are subject to debilitating diseases such as malaria, hookworm and bilharzia. Housing and sanitation are for the most part primitive. The fundamental reasons for these conditions are low output and low productivity. Most of the manpower on the land is underemployed for a large part of the year, and considerable unemployment exists in the major cities. Vast tracts of land await reclamation and irrigation before they can be used. Much of the available water is wasted owing to lack of storage and regulation of flow. In the spring disastrous floods often inundate large areas; and in the fall water is acutely short. Agricultural output is hampered not only by the inadequate and irregular supply of water, but also by the progressive salination of the soil in the irrigated areas. Agricultural techniques are primitive, the number and " quality of draft animals are inadequate and there is insufficient equipment. Industry is little developed. Although perhaps as many
1 - One Iraqi dinar equals £1 or $2.80.
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