Fighting Corruption in Iraq

Abstract

The GoI has become increasingly aware of the risks posed by corruption to its country’s development and investment programme. “Corruption” as a term covers a multitude of sins, but is frequently defined as the “abuse of public or private office for private gain”. It distorts economic decision-making and saps economic activity, diminishing the quantity and quality of domestic and foreign investments and aid projects, while businesses that disregard good governance are unduly rewarded with dominance. This, in turn, curbs growth and undermines the credibility of governmental institutions in public opinion. Corruption is particularly critical in countries rich in resources and torn by major military conflicts since the 1990s. They are prone to instability and weak rule of law,1 and opportunities to divert revenue from resources on a grand scale are plentiful, while punitive measures are almost non-existent.2 As many Iraqis observe, corruption also exacerbates sectarian conflict, hampers the re-establishment of functioning public institutions operating under the rule of law, and deters the development of a business-friendly climate. Multiple rounds of information exchange between the GoI, Iraqi business actors, and MENA-OECD have confirmed the existence of widespread corruption in Iraq and its inherent link to the country’s slow economic recovery. Strikingly, the Transparency International Corruption Perceptions Index published in 2008 ranks Iraq 178 out of 180 countries.