The Role of Nationalised Oil Industry to the Economic Developments in Iraq: What is learnt from history?

Abstract

Oil and gas as the essential primary sources of energy have been critical factors in the lives of states in the past and modern times. Some oil-producing states had left part of their oil companies privatised, while some others nationalised them. Iraq as one of the global crude oil producers had nationalised its oil industry in the early 1970s. The research issue stems from the historical consideration of whether oil industry could support Iraq's economy if it was not nationalized. The research addresses the question why the oil industry was nationalised in Iraq, and what were the advantages and disadvantages of this nationalization to the coutry in general. The research objectives are to examine whether it depended on political or economic reasons, and what is learnt from the nationalisation outcome. The research outline starts with the literature on the historical perspective of why was the oil industry nationalised in Iraq. This will be followed by examining the concept of nationalization and the reasons behind them. The research then addresses the benefits and drawbacks of state ownership, which will be the subject of two separate sections. The research comes to conclusions that the nationalisation of oil industry in Iraq in early 1970s brought advantages to the country and its population, but was not problem free.