Transition 14 (4-6)

Contents: Iraq is a transition economy of the Middle East. The task is to transform the economy-dominated by central planning, price controls, and extensive state ownership-into a genuine market economy. The process will take years and billions of dollars. After security has been achieved and remnants of the former regime have been eradicated, a postwar economic strategy needs to be developed and implemented. Iraq can be seen as the newest addition to the group of transition economies. Baathist Iraq modeled its economy on Eastern European communism, including central planning, price controls, and extensive state ownership. In the 1960s Iraq collectivized its agriculture. Just like the transition economies of the 1990s, Iraq faces immense economic challenges.