Thursday, February 26, 2009
The Iraqi government faces falling revenues as a result of the collapse of oil prices. This has hurt all countries that rely heavily on oil, but for Iraq it is especially critical. At this early stage of development of a civil society, one of the ways the central government maintains control is by providing money to various political actors to ensure their (for the most part) loyalty. Oil prices are likely to rise significantly in the future, but will it be soon enough?