tal 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, which has two
stars but no script, Yemen, which has a plain white band, and that
of Egypt which has a gold Eagle of Saladin centered in the white
band; design is based upon the Arab Liberation colors

Economy Iraq

Economy - overview:
Iraq's economy is dominated by the oil sector, which has
traditionally provided about 95% of foreign exchange earnings.
Iraq's seizure of Kuwait in August 1990, subsequent international
economic sanctions, and damage from military action by an
international coalition beginning in January 1991 drastically
reduced economic activity. Although government policies supporting
large military and internal security forces and allocating resources
to key supporters of the regime hurt the economy, implementation of
the UN's oil-for-food program, which began in December 1996, helped
improve conditions for the average Iraqi citizen. Iraq was allowed
to export limited amounts of oil in exchange for food, medicine, and
some infrastructure spare parts. In December 1999, the UN Security
Council authorized Iraq to export under the program as much oil as
required to meet humanitarian needs. The military victory of the
US-led coalition in March-April 2003 resulted in the shutdown of
much of the central economic administrative structure. Although a
comparatively small amount of capital plant was damaged during the
hostilities, looting, insurgent attacks, and sabotage have
undermined efforts to rebuild the economy. Attacks on key economic
facilities - especially oil pipelines and infrastructure - have
prevented Iraq from reaching projected export volumes, but total
government revenues have been higher than anticipated due to high
oil prices. Despite political uncertainty, Iraq is making some
progress in building the institutions needed to implement economic
policy and has concluded a debt reduction agreement with the Paris
Club and a Standby Arrangement with the IMF. Iraq's economic
prospects will depend on the government's ability to control
inflation, to implement structural reforms such as bank
restructuring, and to develop the private sector.

GDP (purchasing powe