Search Results for global-oil-prices
Abstract
The Iraqi economy relies entirely on oil revenues to meet its needs and plans, highlighting the precariousness of the situation should global oil prices decline for political and economic reasons. Given that oil is a finite resource, it is imperative to pursue economic diversification and leverage all economic sectors as the cornerstone and driving force for building a robust economy and achieving comprehensive development. This necessitates good governance in implementing economic reform programs and exploring strategic alternatives to achieve economic growth. The Iraqi economy possesses alternatives and opportunities for economic diversification and various sources of income. However, it has not fully utilized its diverse natural and agricultural resources, which are crucial for supporting economic growth. Development is not merely about frameworks, institutions, and aspirations; it requires political, economic, social, and cultural prerequisites that must be organized and updated in a gradual and practical manner. It also necessitates addressing internal and external challenges that interact with evolving societal changes. This requires awareness and determination to achieve the desired goals through investment spending, increased productivity, and ultimately, a higher gross national product.
Abstract
Given the growing public debt burden and the volatility of global oil prices — the primary source of budget revenues — this study examines the economic impact of public debt on sustainable development in Iraq from 1990 to 2022. Using modern econometric models and quarterly time series data, the research analyzes the relationship between domestic and external public debt, economic growth, and sustainable development.
The study aims to identify the short- and long-term effects of public debt on growth and sustainability and clarify how oil price volatility affects this relationship. The results indicate that domestic debt has a less negative impact than external debt. While external debt supports expenditures in the short term, it increases long-term risks due to repayment obligations. The results also indicate weak links between high debt and sustainable development outcomes, reflecting the inefficient use of borrowed resources. Heavy reliance on oil revenues exacerbates the economy's vulnerability to external shocks. The study concluded with a set of recommendations: adopt wise debt management strategies; direct borrowing toward productive and developmental sectors; enhance transparency and institutional efficiency; diversify the economy to reduce dependence on oil; and cooperate with international financial institutions to design debt sustainability policies consistent with the Sustainable Development Goals.
Abstract
Sovereign wealth funds are among the most important financial instruments used by rentier economies to manage financial surpluses generated from the exploitation of natural resources, particularly oil, with the aim of achieving macroeconomic stability and enhancing long-term financial sustainability. The importance of these funds is particularly pronounced in economies characterized by a high degree of dependence on oil revenues, given the cyclical fluctuations these revenues are subject to due to changes in global oil prices. This research aims to conduct a comparative analysis of sovereign wealth fund models in a number of rentier economies. This research also aims to analyze the current state of oil surplus management in Iraq and assess the challenges facing the effective utilization of these surpluses within an institutional and investment framework. The research employs a descriptive, analytical, and comparative approach, analyzing leading international experiences in sovereign wealth fund management and evaluating their potential application in developing a suitable model for the Iraqi economy. Furthermore, the research analyzes the relationship between oil surplus management and economic stability, considering potential future scenarios for global oil markets.