Iraq

The Middle East is undergoing a historic transformation with unprecedented opportunities to build new relationships, de-escalate tensions, and foster conditions for stronger integration. At the same time, the region remains on edge because of ongoing tensions in Yemen, Syria, Iraq, and other conflict zones, a civil war that broke out recently in Sudan, along with the overarching challenges presented by fraught relations between Iran, Israel, and several Arab Gulf countries — with the longer-term implications of the still-fragile Iranian-Saudi rapprochement yet to be fully assessed.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

What happens when a petrostate loses its oil rents? While the oil market continues to go through boom-and-bust cycles, cases such as Iraq provide evidence of how the rapid loss of oil revenues—traumatic decarbonization—may affect the politics and stability of these petrostates. In Iraq, multiple shocks to oil revenues from 2014 through 2020 fundamentally altered the organization and concentration of political power in Iraq with destabilizing and democratic consequences.

Both historical and modern-day conflicts in the Middle East have all been centered around classical territorial considerations of the loss or recovery of land. Escaping that cycle required a shift away from one of the main root causes of conflict: geography. The current changes in the region, characterized by a significant drive toward de-escalation and a growing willingness to periodically part ways with traditional allies, may be telling symptoms of a profound tectonic shift toward “quantum politics.”

In recent years, Iraq has become one of the leading destinations for Chinese investments in the Middle East and a crucial link in Beijing’s Belt and Road Initiative. To capitalize on its geostrategic location and central position within the Chinese BRI, Iraq is seeking to develop a sprawling new 54-square-kilometer port project, known as al-Faw Grand Port, which will reduce the country’s reliance on Arab Gulf ports and overland transit from Iran and Turkey. The project also underscores Iraq’s growing economic rivalry with neighboring Iran, as both countries seek to carve out a similar niche in handling regional transit traffic.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

The painful reality is that Washington’s hastily cobbled together ethno-sectarian political system for post-2003 Iraq ended up doing the opposite of what it intended. The regional domino effect was also the opposite of what the U.S. had hoped for, as Iraq became a cautionary tale that regimes could use to undermine the democratic desires of their own populations.

As part of a continued collaboration with the Middle East Peace and Security Forum held in Iraqi Kurdistan at the American University of Kurdistan, the Middle East Institute and the Iraq Policy Group held a workshop on Nov.15, 2022 focusing on challenges of economic diversification, energy transition, and impacts on labor markets in Iraq and the Gulf region. This report provides the insights and analyses of a select group of participants from the workshop.

Despite Iraq’s systemic and ongoing domestic instability, division, and foreign interference, there are fragile but hopeful signs of de-confliction and de-escalation. These include important efforts that a number of international actors as well as the government in Bagdad itself have been making to turn Iraq into a platform for regional engagement.

Patriotic Union of Kurdistan leader Bafel Talabani is a frequent visitor to Baghdad, traveling to Iraq’s capital an estimated 35 times since the beginning of 2022 or more than once every two weeks on average. It is indicative of a deliberate strategy by the PUK to increase its activity within Iraq’s federal system, making it a priority, rather than merely an afterthought, to political affairs in the Kurdistan Region.

The next few decades will be crucial for Iraq and the KRG as global changes reshape the energy sector. The push for sustainable development, the Paris Agreement climate goals, and associated efforts in areas like renewable energy, climate change, and environmental protection will bring about a transition across the sector, affecting everything from employment and working patterns to governance.

The difficulty of quickly providing mechanized and armored equipment to Ukraine, training Ukraine to employ this equipment in combined arms operations, and ensuring Ukraine can maintain and sustain combat power should not be underestimated. As the examples of Turkey’s 2016 military operation in Syria and the U.S. operation in Fallujah in 2004 illustrate, dislodging Russia from its prepared defensive positions will be a daunting task for the Ukrainian Armed Forces.

Despite massive hydrocarbon reserves, Iraq struggles with chronic electricity shortages. There is a clear need to explore cleaner alternatives, such as renewable energy systems, yet the deployment and integration of these systems would be hindered by the same structural woes that have crippled the electricity sector, and which go far beyond generation issues.