O. Box 2447 Alwiyah, Baghdad); telephone [964] (1) 719-6138 or 719-6139,
718-1840, 719-3791
Flag:
three equal horizontal bands of red (top), white, and black with three green
five-pointed stars in a horizontal line centered in the white band; the
phrase Allahu Akbar (God is Great) in green Arabic script - Allahu to the
right of the middle star and Akbar to the left of the middle star - was
added in January 1991 during the Persian Gulf crisis; similar to the flag of
Syria that has two stars but no script and the flag of Yemen that has a
plain white band; also similar to the flag of Egypt that has a symbolic
eagle centered in the white band

:Iraq Economy

Overview:
The Ba`thist regime engages in extensive central planning and management of
industrial production and foreign trade while leaving some small-scale
industry and services and most agriculture to private enterprise. The
economy has been dominated by the oil sector, which has provided about 95%
of foreign exchange earnings. In the 1980s financial problems, caused by
massive expenditures in the eight-year war with Iran and damage to oil
export facilities by Iran, led the government to implement austerity
measures and to borrow heavily and later reschedule foreign debt payments.
After the end of hostilities in 1988, oil exports gradually increased with
the construction of new pipelines and restoration of damaged facilities.
Agricultural development remained hampered by labor shortages, salinization,
and dislocations caused by previous land reform and collectivization
programs. The industrial sector, although accorded high priority by the
government, also was under financial constraints. Iraq's seizure of Kuwait
in August 1990, subsequent international economic embargoes, and military
actions by an international coalition beginning in January 1991 drastically
changed the economic picture. Oil exports were cut to near zero, and
industrial and transportation facilities were severely damaged. Throughout
1991, the UN's economic embargo worked to reduce exports and imports and to
increase prices for most goods. The government's policy to allocate goods to
key supporters of the regime exacerbated shortages.
GNP:
$35 billion, per capita $1,940; real growth rate 10% (1989 est.)
Inflation rate (consumer prices):
45% (1989)
Unemployment rate: