In recent past Iraq has to go through a lot of hardships and recovering from such a situation is quite though, though not completely impossible. This country has taken up a lot of initiatives and worked very hard to improve its economy. The discussion here will be upon the ways through which Iraq can improve and reconstruct its economy, like where it should invest, where it has already invested, why alteration in the currency should be made and how alteration of the Iraqi dinar will change the course of economy in this country.
As Iraq is blessed with a huge amount of oil and gas, the country has relied upon this natural resource to deal with the broken down economy. Measuring 85% of the total economy, needless to mention that oil has provided the boost required for the recovery of the economic condition of the country. Iraq is among the top 5 oil producing countries in the world because of the huge reserve and production power, but it is not always true.
Just a few years back due to the war, the economy of the country was completely devastated and the country was looking for a way out. That was the time when the production of oil reduced significantly and the income of the country went down too. With some help from the United Nations, the country is back on the track and things are turning positive for it since then. Now, the country has reached the highest point in oil production in the last 30 years. Additional production will help the economy of Iraq to get improved quite a lot.
It is true that natural resource like oil is not to be counted upon forever. There may be a lot of supplies but the demand can get reduced. With the new technologies and the source of alternative fuels, the country is in need to find another strong and stable way to support and improve the economy in the future. A lot of the oil producing countries in the Middle East has used and invested their money in other sectors as well which can support them in the future. For instance, some of the countries are investing in their tourism industry. By converting their countries into important and attractive tourist attractions they are trying to reduce the dependency on an uncertain natural resource like oil or gas. Iraq should also be looking forward for something like this. It should invest money in sectors like agriculture which will provide sustenance in future.
A few steps has been taken up by the country to stabilize the economy of the country. The government has decided to make adjustments in the currency. Since 2007, the government has been discussing about removing 3 zeros from its currency. It means that 1000 dinars of this time, will become 1 dinar in near future after the change is implemented. This is one of the most controversial issues, but till now the change is scheduled to happen in the year 2013. This change in the dinar will ensure that the country will have a stable currency and a stable economy.
Till now Iraq has worked very hard to contain order and stability within its borders, but there is still a long way to go. The path it has taken is right, but still there is a need for searching an alternative route as well. A country that relies upon the natural resources too much has an uncertain future.