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2.2. Development strategy of Iraq
Until 2007, the main Iraqi strategy relevant for international community support was the National
Development Strategy 2005-2007 (NDS), presented in 2005. Even though the NDS has never been
officially endorsed it has been used as a reference document for project budget approval.
Between 2007 and 2009 The International Compact with Iraq (led by the UN and the World Bank
with financial support from the EU) was the main framework for reform under three main pillars –
economic, political and security. The ICI benchmarks were used to review the reform process in Iraq.
On the 7
th
November 2009 the Government of Iraq and representatives from the international
community held a high level meeting on the development of a new partnership between Iraq and the
international community. In the final statement they considered that “the success of the ICI and the
changing Iraqi context characterised by consolidated sovereignty, stability and relations with the
international community called for a new framework of cooperation between Iraq and its partners”.
The new overarching document is the Five-Year National Development Plan (NDP) 2010-2014
(Council of Ministers’ approval in April 2010, required budget: US$ 200 billion). The Government of
Iraq has prepared a series of 14 sectoral analytical papers to provide the basis for the NDP and
accelerate achievement of the MDGs. It is to be pointed out that this document together with the new
partnership replacing the ICI, might become the main reference for Iraqi cooperation with the
international community.
19
See in Annex 2 “Country Environmental Profil
[You must be registered and logged in to see this link.]
The World Bank-supported National Strategy for Poverty Reduction in Iraq 2010-2014 (PRS) was
approved by the Government of Iraq in November 2009. The paper was prepared by the High
Committee for Poverty Reduction which comprised different ministries from the federal and regional
(Kurdistan) governments, advisors and the World Bank. The main goal is the alleviation of poverty
from its current rate of 23% to 16% in 2014 by achieving six basic outcomes:
- A higher income for the poor
- Improvement of health standards for the poor
- Dissemination and improvement of the poor’s education
- A better housing environment for the poor
- Effective social protection for the poor
- Less inequality between poor men and women.
The next step is the “translation” of the PRS goals into each ministry's own strategic planning.
The current status on MDGs achievement presents a mixed picture. Overall, progress towards MDGs
is slow and uneven, and the achievement of most goals by 2015 remains a challenge. Of particular
concern are the education, health and gender goals, as well as environmental protection.
The Paris Declaration on Aid Effectiveness, which Iraq endorsed in May 2008, is particularly relevant
in the Iraqi context. There remain efforts to be made from both the donors and the Government of Iraq
in all five partnership principles. Translated into the Iraqi context these can be summarised as follows:
Principles Donor Obligations
Government of Iraq
obligations
Ownership Respect Government of Iraq
policies and strengthen the Iraqi
capacity to exercise it
Take a lead in coordinating aid
and translating strategies into
operational programmes
Alignment Structure support around
national development strategies,
institutions and procedures
Undertake necessary reforms to
improve government systems
(public financial management,
procurement)
Harmonisation Improve donor-donor
coordination to reduce
transaction costs and other
inefficiencies
Enhance complementarities
between donors and government
to establish a more efficient
division of labour
Managing for results Jointly improve management of resources and decision-making
through results oriented reporting and assessment frameworks
Mutual Accountability Provide timely transparent and
comprehensive information on
aid flows
Assess progress in meeting aid
effectiveness commitments
2.3 Analysis of the viability of current policies and the medium term challenges
[b]
2.2. Development strategy of Iraq
Until 2007, the main Iraqi strategy relevant for international community support was the National
Development Strategy 2005-2007 (NDS), presented in 2005. Even though the NDS has never been
officially endorsed it has been used as a reference document for project budget approval.
Between 2007 and 2009 The International Compact with Iraq (led by the UN and the World Bank
with financial support from the EU) was the main framework for reform under three main pillars –
economic, political and security. The ICI benchmarks were used to review the reform process in Iraq.
On the 7
th
November 2009 the Government of Iraq and representatives from the international
community held a high level meeting on the development of a new partnership between Iraq and the
international community. In the final statement they considered that “the success of the ICI and the
changing Iraqi context characterised by consolidated sovereignty, stability and relations with the
international community called for a new framework of cooperation between Iraq and its partners”.
The new overarching document is the Five-Year National Development Plan (NDP) 2010-2014
(Council of Ministers’ approval in April 2010, required budget: US$ 200 billion). The Government of
Iraq has prepared a series of 14 sectoral analytical papers to provide the basis for the NDP and
accelerate achievement of the MDGs. It is to be pointed out that this document together with the new
partnership replacing the ICI, might become the main reference for Iraqi cooperation with the
international community.
19
See in Annex 2 “Country Environmental Profil
[You must be registered and logged in to see this link.]
The World Bank-supported National Strategy for Poverty Reduction in Iraq 2010-2014 (PRS) was
approved by the Government of Iraq in November 2009. The paper was prepared by the High
Committee for Poverty Reduction which comprised different ministries from the federal and regional
(Kurdistan) governments, advisors and the World Bank. The main goal is the alleviation of poverty
from its current rate of 23% to 16% in 2014 by achieving six basic outcomes:
- A higher income for the poor
- Improvement of health standards for the poor
- Dissemination and improvement of the poor’s education
- A better housing environment for the poor
- Effective social protection for the poor
- Less inequality between poor men and women.
The next step is the “translation” of the PRS goals into each ministry's own strategic planning.
The current status on MDGs achievement presents a mixed picture. Overall, progress towards MDGs
is slow and uneven, and the achievement of most goals by 2015 remains a challenge. Of particular
concern are the education, health and gender goals, as well as environmental protection.
The Paris Declaration on Aid Effectiveness, which Iraq endorsed in May 2008, is particularly relevant
in the Iraqi context. There remain efforts to be made from both the donors and the Government of Iraq
in all five partnership principles. Translated into the Iraqi context these can be summarised as follows:
Principles Donor Obligations
Government of Iraq
obligations
Ownership Respect Government of Iraq
policies and strengthen the Iraqi
capacity to exercise it
Take a lead in coordinating aid
and translating strategies into
operational programmes
Alignment Structure support around
national development strategies,
institutions and procedures
Undertake necessary reforms to
improve government systems
(public financial management,
procurement)
Harmonisation Improve donor-donor
coordination to reduce
transaction costs and other
inefficiencies
Enhance complementarities
between donors and government
to establish a more efficient
division of labour
Managing for results Jointly improve management of resources and decision-making
through results oriented reporting and assessment frameworks
Mutual Accountability Provide timely transparent and
comprehensive information on
aid flows
Assess progress in meeting aid
effectiveness commitments
2.3 Analysis of the viability of current policies and the medium term challenges
[b]
