Labor Market Impediments to Stability in Iraq
Abstract
In a charged environment of political uncertainty, rampant crime and random violence, Iraq's economic problems have often been viewed as secondary. In part this misconception stems from the fact that Iraq's economic situation might appear to have improved substantially since the overthrow of Saddam Hussein, and in many ways it has. Karada, Baghdad's main shopping street, boasts a thriving market in expensive consumer items, some of which had been unavailable for years. Rising salaries and incomes have enabled many Iraqis to repurchase household items sold during the sanctions-era of the 1990s.[1] No doubt much of this new found consumer good boom can be attributed to the policies to the Coalition Provisional Authority (CPA). Its September 2003 decision to increase substantially public sector wages benefited at least one million employees. Anti-inflationary policies made possible by the independence granted Iraq?s Central Bank by the CPA have helped stabilize inflation in the 20 to 30 percent range. The new Iraqi currency has been surprisingly stable, in large part due to the CPA?s efforts at converting and unifying the currency.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2005
- Accession Number
- ADA521626
Entities
People
- Robert E. Looney
Organizations
- Naval Postgraduate School