Abstract

This chapter addresses the overinflated public sector in the Kurdistan Region of Iraq (KRI), which has placed increased pressure on an already struggling regional economy. As an oil-rich developing region, the KRI has characteristically fallen into the resource curse affecting many oil-rich nations. One such symptom of this curse is an overinflated and inefficient public sector, which now employs over half of all adult workers in the region, growing over time for both political purposes and out of fiscal mismanagement. The public sector of the KRI now stands as a fiscal burden on the Kurdistan Regional Government’s (KRG) central budget, undermining the region’s ability to build a sustainable employment market for the future.

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