With global oil prices halving in recent months, Iraq’s finances are eroding rapidly. Above, a worker walks at an Iraq oil field last year. Photo: Reuters
Wall Street Journal: How Falling Oil Prices Are Hindering Iraq’s Ability to Fight Islamic State
Fiscal woes couldn’t come at a worse time, as country tries to fend off extremists
BAGHDAD—Clobbered by falling oil prices, Iraq is headed over a fiscal cliff, unable to make critical investments needed to keep its oil flowing and still pay the skyrocketing costs of fighting Islamic State extremists, according to government officials.
Without a recovery in oil revenues, some fear the country is again sliding toward a breakup.
“We’re battling on two fronts, both ISIS and oil,” said Mudher Salih, a former senior central bank official who advises Prime Minister Haider al-Abadi on financial policy.
WNU Editor: I do know that money is necessary for an army to function .... but Iraq's problems are far deeper than that. Case in point .... when a group of approximately 1,000 Islamic State fighters were able to drive out an Iraqi division from Mosul within two days .... while seizing weapons worth billions in the process .... all of Iraq's faults and weaknesses were shown to the world. So yes .... money is needed to buy weapons and goods .... but if your soldiers are not willing to fight .... Iraqi Soldiers Are Not Showing Up To Be Trained By U.S. Soldiers .... all the money in the world is not going to help you defeat the enemy.
