Kurdistan, a Regional Profile - An Economic Study about Iraqi Kurdistan

  • KurdishMedia.com - By Khasro Pirbal
  • 11/10/2001 00:00:00

To: Franso Harriri, and all other Kurdish Martyrs

Finland – 2001

“Now is the time for rebuilding Kurdistan, its time for working and building our own industry and culture, by this way we can serve our people, and we can make the life more nice in Kurdistan”.

Mustafa Barzani, the Kurdish leader 1970


This study is about Iraqi Kurdistan economy and a general view of the region after the uprising of 1991, and the creation of a Kurdish government in the north of Iraq. Literature and news statistics from different languages have been used for design of this study.

The aim of this study is to provide an overview of Iraqi Kurdistan Region as a country from the general and economical point of view. The main focus, beside of providing general information about the function of Kurdistan Regional government, is in the SCR-986 resolution, and the commercial activities and in general to describe the economy of Iraqi Kurdistan and the place of oil in Iraqi Kurdistan economy.

This study work will also serve as a guidebook about Iraqi Kurdistan, for those who are interested in starting to do business with Iraqi Kurdistan, especially for the Europeans countries. The study introduces the Iraqi Kurdistan after the uprising of 1991, and shows the democratic experience in the area, and also a general overview about Iraqi Kurdistan economy and the Kurdish Business Culture.

Iraqi Kurdistan region is a new market area for Europeans countries, and at present they are many of NGO’S there, and some Turkish companies are present in Iraqi Kurdistan. This region is a rich area and the companies which like to make business with the area have good opportunities.

Key words: Iraqi Kurdistan, SCR-986, Kurdistan Regional Government, Kurdish Business Culture, and the Economy of Kurdistan.

Table of Content

Chapter 1.Introduction

1.1 Introduction of the study

1.2 Purposes and Objectives of the study

1.3 Limitations of the study

1.4 Research Methods

1.5 Key Concepts of the study

1.6 Structure of the study

Chapter 2.Kurdistan and the Kurdish nation (a general background)

2.1 The origin of the Kurds

2.2 Geography (Land)

2.3 Geopolitics

2.4 Demography

2.5 Religion

2.6 Language and literature

2.7 The final division of Kurdistan

Chapter 3 The Economy Of Kurdistan

3.1 Iraqi Kurdistan Regional (KRG)

3.2 Petroleum and its place in the national economy

3.3 Commercial activity of Iraqi Kurdistan

3.4 United Nation resolution 986

3.5 Import and export in Iraqi Kurdistan

3.6 Transit

3.7 Problems and obstacles

Chapter 4 Business Culture in Kurdistan

4.1 Business Meetings

4.2 Custom and etiquette

4.2.1 Titles

4.2.2 Losing face

4.3 Business Communication in Kurdistan,Letters, Phone Call and Fax


Chapter 5 Observations and Propositions:

Summery and Conclusion





KDP: Kurdistan Democratic Party

PUK: Patriotic Union of Kurdistan

KRG: Kurdistan Regional Government

SC: Security Council

SCR-986: Security Council resolution 986

UN: United Nation

MOU: Memorandum of Understanding

NGO: None Governmental Organisation

1 Introduction

1.1 Introduction of the study

This study has been made to work as a guidebook about Kurdistan, for those who are interested in starting to do business in Kurdistan, and especially for the European countries. The Western countries who don’t know a lot of information about Kurdistan and Kurdish question, after the second Gulf War in 1991 that Kurds of Iraq have a democratic experience in the north of Iraq under the name KRG, Kurdistan Regional Government.

The study begins with a short description of the country, Kurdistan like one country and one history, its people, religion and Kurdish language, and the economic situation, and I will concentrate over the Iraqi Kurdistan, and the economy of the region.

Then this study discusses the business culture in Kurdistan, including all the important customs and etiquette, one needs to know when dealing with the Kurds in general. In addition, the different methods of business communication are included as well.

I will describe the economic situation in Iraqi Kurdistan during the last 10 years of the freedom, and Kurdish administration in the north of Iraq, and I explain in details the SCR-986, and the general mechanism of this resolution, the Security Council resolution (Oil-for-Food) which has been adopted from 1996. And I will describe the general problems and obstacles, and to arrive in the end to explain, what are the reasons that Iraqi Kurdistan markets can’t be more accessible for Europeans Markets. And what are the observations and proposition we can advise for a new country like Iraqi Kurdistan Region.

1.2 Purposes and objectives of the study

I have written this study in order to increase knowledge of Kurdistan and the democratic experience of Kurdish people in Iraq, and to show the Kurdish economic situation, and to present the administration in Kurdistan Regional Government, and also its business culture.

The primary objective of my study is to focus on the most important things, the Kurdish economic situation and to present a new model of auto-administration in Iraqi Kurdistan. Secondary I have focused on studying the problems and possibilities related to starting an import and export business with European countries, and also to explain the reasons why we can’t have a developed business activities with Kurdistan Regional Area.

1.3 Limitation of the study:

I made this study to describe some ideas, for those who are interested to learn more about the Iraqi Kurdistan. The region of Kurdistan mentioned in this study means only the Kurdish Region of Iraqi part (See the Iraqi Kurdistan map).

I don’t intend to write the detail of Kurdish question and its political history, I will introduce a short history of Iraqi Kurdistan after the second Gulf War, and the Kurdish uprising in 1991, and the creation of Kurdistan Regional Government in the north of Iraq.

In this study I have only included the Iraqi Kurdistan business culture and the commercial activities in the region, and the economic projection of Kurdistan Regional Government, which has been created after the second Gulf War and the Kurdish uprising in 1991.

1.4 Research Methods

The theoretical part is done by a desktop research method. My best sources of information for this study have been the books and empirical study and especially I have used some news statistics from a thesis in Iraqi Kurdistan, from the University of Salahadine. And some books, Newspapers articles, those sources are in different languages, Kurdish, French, English, and Arabic.

Also from Internet I have found a multiple web pages, concerning the Kurdish issue, and Kurdish documentation. Concerning the business culture there is extremely little literary information on Kurdish business culture and some of the details are based on my personal experience in Business there, also some other articles about the subject.

1.5 Key Concepts of the study

Four key concepts of the study are Kurdistan, Kurdistan business culture, Kurdistan Regional Government, and The Economy of Kurdistan.

For the people who need to know more about Kurdistan Business Culture will find this study very useful.

1.6 Structure of the study

This study began with a short introduction chapter about the general structure of this introduction of Iraqi Kurdistan economy, and I explain why that we have chosen this subject, and explain our method of research.

The second chapter is an introduction of general background of Kurds and Kurdistan, the origin of Kurds, and the geography of Kurdistan, language, religion, and I have focused only on Iraqi Kurdistan.

The third chapter is an introduction of the economy of Kurdistan, and we show different aspects of Iraqi Kurdistan, explains shortly about the KRG, Kurdistan Regional Government mean, and what’s its function, and I show the importance of petroleum place in the national economy of Kurdistan. I will introduce the commercial activity of Iraqi Kurdistan, the importance which the Security Council resolution SCR-986 (Oil- For- Food) represent for the Iraqi Kurdistan people, I explain in details how is this resolution work, and I show how the Kurdish government used this money to rebuild Iraqi Kurdistan.

I will explain in more details the commercial activities of the region, the import and export activity and transit question in Iraqi Kurdistan border with Turkey, and in the end of the chapter, I will show some problems and obstacles.

Business culture in Kurdistan, in the fourth chapter is we introduce in general what are the most important facts. When you make business with Kurdistan, or with the Kurdish people, we explain about business meeting, custom and etiquette, titles, and losing face, and in the end I show the business communication, and the development of the communication technique in Iraqi Kurdistan.

In the end of this study, after an general observations about the situation of Iraqi Kurdistan, I will propose some indication and solutions and propositions for the function and the continuity of the economic development in the Iraqi Kurdistan region.

In the annexe I have a quantity of the maps, statistics and other material about Iraqi Kurdistan region.

Chapter 2:

Kurdistan and Kurdish nation (general background)

2.1 The Origin of Kurds:

The origin of the Kurdish people belongs to all these Indo-European tribes who migrated to Kurdistan, and melted the native inhabitants of this land in their crucible.

Being the native inhabitants of the land. There are no ”beginning” for Kurdish history and people. Kurds and their history are the end products of thousands of years of continuous internal evolution, and assimilation of new peoples and ideas introduced sporadically into their land.

The Kurds have existed in what is on ethnic grounds defined as Kurdistan for several thousands of years. The ancestry to Kurds is often traced back to the Medes, a tribal group which moved into the Iranian plateau from central Asia at the end of the second millennium. The Medes has been a great power in 612 BC, and expanded their empire over a larger area before collapsing in 550 BC (D. Mackdonwall, p.85, 1992)

The existence of a people referred to as “Kardaka“, “Kurtie or Guti” has been indicated by Sumerian inscription dated 2000 BC, as well as by early Assyrian inscription from the 11th century BC (B.Yassin,1985 p.35).

The Kurds appear to be descendants of diverse ancient groups, including Caucasian peoples in the north and people that had originally inhabited the mountainous territories west of the Caspian Sea from the earliest times.

The central part of these territories lies on both sides of the Zagros mountain range and stretches south and west through lower Anatolia into the mountainous area of northern Iraq and Syria.

2.2 Geography (Land):

Kurdistan, the lands of the Kurds, is a beautiful country that lies in one of the important strategic regions of the world. It is a wide geographic spot extending between the parallels 36.5, and 49 and the longitudes 30.5 and 40.5 in the Asian continent, which covers a wide range, its total area reach’s about 500.000 sq km, that is almost equal to the area of Spain.

The area is distributed among the four parts of Kurdistan as follows:

Table (1): Kurdistan Parts:

The partArea in Km.Percentage against area of KurdistanPercentage against the area of the states conquering it
Northern Kurdistan (Turkish)210.000 24% 26.90%
Eastern Kurdistan (Iranian)195.000 39% 11.83%
Southern Kurdistan(Iraq)83.000 16% 18.86%

Western Kurdistan(Syria)

15.000 3% 10%
Greater Kurdistan503.000100%100%

Source: CBSR 33, Kurdistan, p. 35,1998

The area of each part of Kurdistan, their percentage compared to the area of Kurdistan and the states attached to compulsory

From the geopolitical point of view, Kurdistan has lain on the frontier of empires such as the Byzantine, the Ottoman, and the Persian empires.

The British and French conquest’s during the first World War severed Syria and Iraq from the Ottoman Empire, and the resulting interstate boundaries left a Kurdistan sectioned into five parts.(B.Yassin,1995,p42)

Iraqi Kurdistan comprises four northern Governorates of the state of Iraq (Arbil, Duhok, Sulaimanya and Kerkuk) and parts of Mosul, Dyala Salahadine and Kut governorates. Its total area is about 83.000 sq.km, which forms 16% of total area of the Greater Kurdistan and 18% of the total area of Iraq. Its area is almost equal to that of Austria, and larger than many of the European countries (larger than 26 out of the 44 European states). It is eight fold the area of Lebanon, 13 fold of Palestine and 49 folds of Bahrain. (Chalian, p.112, 1978)

2.3 Geopolitics:

Since the end of World War I Kurdistan has been administered by five sovereign states with the largest portions of land being respectively in Turkey (43%), Iran (31%), Iraq (18%), Syria (6%), and former Soviet Union (2%).(B.Yassin,p.33,1999)

The Iranian Kurds have lived under that state’s jurisdiction since 1514 and (the Battle of Chardiran). The other three-quarters of the Kurds lived in the Ottoman Empire from that date until it’s break-up following World War I.

The Kurds remained the only ethnic group in the world with indigenous representative in three world geopolitical blocs; the Arab world (in Iraq and Syria) NATO (in Turkey), the south Asian-central Asian bloc (in Iran and Turkmenistan), and until recently the Soviet bloc (in the Caucasus, now Armenia, Azerbaijan and Georgia). As a matter fact, until the end of the Cold War, the Kurds along with the Germans were the only people in the world with their home territories used as a front line of fire by both NATO and the Warsaw Pact forces

2.4 Population:

The total population of the Kurds in the world is about 30 millions people, thereupon Kurdistan comes in the 30th grade among the 193 states of the world.

The population in Kurdistan is distributed among its four part as follows:

Table (2): Kurdish Population:

The place Population million at 1990 Percentage against the population of the Kurds Percentage against the population of the states conquering Kurdistan

Northern Kurdistan 13.15 044.32% 24%

Eastern Kurdistan 9.26 31.21% 18.97%

Southern Kurdistan 4.76 16.04% 28%

Western Kurdistan 1.24 4.18% 11%

Armenia, Azerbaijan and Georgia 0.301 1.01% 0.11%

Anatolia region 0.385 1.30% 0.7%

Khurasan region and else 0.500 1.69% 1.03%

Lebanon 0.075 0.25% 2.59%

Total Population of Kurds 029.67 100%

(Kurdistan, CBSR, 1999, Arbil, p 39).

Population of each part of Kurdistan, its percentage compared to the population of the Kurds and the population of the states attached to compulsory

Different researchers have given different figures, Mihrdad Izady summarises has general estimation of the Kurdish population for the year 1990 in the following table:

span class=redb>Table (3):. The Kurdish Population in 1990:

States Total population Total Kurds % Kurdish

Turkey 56.7 13.7 24%

Iran 55.6 6.6 12.4%

Iraq 18.8 4.4 23.5%

Syria 12.6 1.3 9.2 %

CIS 0.3

Total 26.3

Source: Izady, 1992. P.119

However, one must also take into consideration the relatively large number of Kurds living in Lebanon and in exile in other countries, mainly in the west (G.Chalian, 1980,p 44)

The population of Iraqi Kurdistan today is about 6 million people, forming 16% of the total population of the Kurds in the world and about 28% of the population of the state of Iraq. There are several national minorities co-existing with the Kurds in Iraqi Kurdistan, like Christian minorities (Assyrians and chaldeans) Turkmen and Arabs.(CNRB number 33, p.36, 1999)

2.5 The Religion:

Unlike the mountain peoples of Lebanon and Syria, the Druzes, Alawites and Ismailis and Christian Maronites, who declared their distinct identity through religious separatism from orthodoxy, the Kurds embraced Islam following the Arab conquests of the 7th century (Mcdowall 1992, p.13).

The main religion among Kurds is Islam and the majorities are Sunni Muslims (A.Gassemlou, 1965, p.24). The Kurds adopted Islam during 7th / 9th centuries, prior to which the major portion of them had adhered to Zaroastrianism, a religion that reveres fire as the symbol of purity.

From a cultural point of view, Islam has in a sense been an unfavourable factor in the development of a Kurdish national identity, since the central government in Turkey, Iran, Iraq and Syria recognise Islam as the official state religion. Thus, it has been more difficult for the Kurds to highlight the distinct Kurdish identity.

2.6 Language and literature:

The Kurdish language belongs to the Indo-European family and is part of Iranian group of languages. The Kurdish dialects fall into two main groups, the northern, called (Kurmanji), and the southern, called (Sorani).

However there is a multitude of different dialects that many, according to Martin Bruinessen (a Kurdologue), it can be classified into the following subgroup:

1.The northern-north-western dialects, or Kurmanji

2.The southern dialects, which are, called southern Kurmanji or Sorani

3. The south-eastern dialects of Sinei, Kermanshahi, and Leki

The Sorani dialect has developed the written Kurdish language using modified Arabic script, and most Kurdish literature is written in Sorani. The Arabic letters are used by the Kurds in Iraq and Iran, Roman letters in Turkey, and Cyrillic in the former Soviet Union. (See the Annexe).

The language issue has been an important concern to the majority of Kurdish nationalist language. Kurds recognise that Kurdish has had a powerful role in their struggle for national rights and recognition as a nation. The Kurdish language is both proof and symbol of the distinct Kurdish identity. The governments of the countries, which partitioned Kurdistan, have also been aware of the significance of Kurdish for the Kurdish identity. They have therefore either forbidden or discouraged the use of Kurdish, with the exception of Iraq, whose governments have traditionally been more or less tolerant of use of Kurdish in schools and public life.

The variety of dialects within the Kurdish tongue, and the policies aimed at assimilation of the Kurds have combined to hinder the development of a standard lingua franca (Kreyenbroek, 1992, p.68).

The division of the Kurdish language into many dialects has been affected by the imperfect communication in Kurdistan, which is a land of high mountains. Moreover, the Kurds have never enjoyed political unity, which might have made a common literature possible. The division of Kurdistan among a number of countries, the influences from the dominant languages of further their language, are other factors which have inhibited the development of a standard lingua franca. Several attempts to develop a single standard from of Kurdish have been made, although at no avail.(Matti Saarlainen, 1999,p.8).

The Kurdish nation prides itself of an ancient and rich culture, but numerous foreign occupants, namely Turks and Persians, who hold the disgraceful plan of assimilating the Kurds, have either confiscated or completely ruined the products of the material and spiritual culture of the Kurds.

Nevertheless, the ancient culture has been preserved, and even nowadays we come across remains of ancient cultures in every part of Kurdistan.

Kurdish literature abounds in popular legends, we can come across poems originating as early as the 17th century, which describe the resistance of Kurds against the Arab usurpers, and strangely enough, these poems written in the language of those times are still comprehensible.(A. Ghassemlou, 1965,p.29).

2.7 The final division of Kurdistan

Kurdistan is divided among four of the Middle Eastern states, normally, Turkey, Iran, Iraq, and Syria, and the two former soviet republics of Azerbaijan and Armenia. Kurdistan has been described as an arc stretching from Mount Ararat in the North-east leading southward to the southern part of Zagros and Pishtkuh in Iran (Kendal-Ghassimlou, 1980, p41). In the line can then be drawn westward to Mosul in Iraq, continuing to the Turkish port of Iskandarun, from this point, the land extends in the north-eastern direction to Erzerum in Turkey, and from Erzerum eastward to Mount Ararat.

From the geopolitical point of view, Kurdistan has lain on the frontier of empires such as the Byzantine, the Ottoman, and the Persian Empires. The British and the French conquests during the first World War severed Syria and Iraq from the Ottoman Empire, and the resulting interstate boundaries left a Kurdistan sectioned into five parts. (Kreynbroek, 1992, p.115-134)

The existence of crude oil in Kurdistan has also attracted the interests of international petroleum companies. Major oil deposits have been exploited in (Kirkuk) and (Khanaqin) in Iraqi Kurdistan, in (Kermanshah) in Iranian Kurdistan, and in (Siirt) in Turkey’s Kurdistan.

Chapter 3:

The Economy of Kurdistan

3.1 Iraqi Kurdistan Region

By Iraqi Kurdistan region, we mean the southern part of Kurdistan attached to Iraq according to an agreement between Great Britain and Turkey and hence the area referred to as the northern part of Iraq.

Iraqi Kurdistan comprises of six governorates of Arbil, Sulaimanya, Duhok, Kirkuk parts of Dyala and Nineva (Mosul). Consequent to Iraqis invasion of Kuwait, and the outbreak of the second Gulf war a popular uprising in the Iraqi Kurdistan flared up in March 1991, the Kurdistan Front comprising a coalition of eight political parties:

1.Kurdistan Democratic Party- KDP

2.Patriot Union of Kurdistan-PUK

3.Iraqi Communist Party-ICP

4.Kurdistan Democratic Popular party

5.Kurdistan Toilers Party

6.Kurdistan Social Party

7.Kurdish Social Party

8.Assyrian Democratic Movement

They controlled a wide area of the region and established its authority in it. Later the central government of Iraq withdrew its official administration from the region in order to create an administrative and legislative vacuum hoping to disturb the administrative situation in the region and paralyse service institutions, an act of Kurdistan front to adopt the decision of holding general elections and organise the governmental administrations and service institutions that could fill in the vacuum

created by the withdrawal of Iraqi governmental administration.(CBSR, p 24,1999).

After 10 years, and its from the first time in the history of Kurdish people, I one part of Kurdistan, after a democratic and general election in all liberate area of Iraqi Kurdistan, Kurds have a national government, and they have nominate a first governmental cabinet in 1992.

At present the forth cabinet of Iraqi Kurdistan function and in general the political and economical situation are much better than in year 1992 due to the accumulation of experiences.

3.2 Petroleum and its place in the national Economy

Oil plays an exceptionally significant role in the economy of Kurdistan, just as it does in the economy of all the main oil producers in the Middle East. Oil is reaching the height of its importance in the world economy, gradually replacing coal as fuel. And even more strikingly as a raw material for chemical industry.(Ghassmlou,1965,p.198).

According of Kurdish historical documents, they have discovered the Oil in Iraqi Kurdistan 5000 years ago, and three places (Kerkuk- Mosul-Khanaqin). (CBSR, Iraqi Kurdistan Oil, no: 31, p.4).

Iraqi Kurdistan oil have from the beginning of the production, four European countries which are the most important client, they are France, Italy, Holland, Germany.(Sami Sheref,p.2, 1972).

Iraqi Kurdistan has tremendous resources of energy in general and petrol in particular. One of the richest oil fields of the world lies in Kurdistan and that is (Kerkuk)

(Baba Gurgur) field, from which oil was extracted for the first time in 1927.

It is considered as the fifth largest field in the world in capacity a 60 miles long highland with a 2.5 miles width, penetrated from him middle by the Minor Zab. It extends from Tarjil in Kerkuk up to near Debaga in Arbil (the capital of Iraqi Kurdistan Government).

In addition to two other fields, (Jambur 1954) and (Bay Hasan 1953) which are not far from it. Generally, the triple oil fields of (Kerkuk) are digged to depths ranging from 1500 to 3000 feet. The total number of these wells are 44, and as for the average of the production of each single well is about 35.000 barrels a day. However, the production capacity of some of these wells in this field amounts to 100.000 barrels per day. Oil field of Kurdistan produce more than half of Iraq’s production, which reached to 180 million tons in 1979, and its oil revenues amounted to 26 billion dollars in the year 1980.(CBSR,1999, no 33, p 62-63)

The most important oil pipelines in Kurdistan are:

1.Kerkuk-Jaffa (Israel), this line is closed since the Arab –Israeli War of 1948.its diameter is 30 inches and 990 km long.

2.Kerkuk-Tripoli (Lebanon); on the Mediterranean; it is composed of three pipes of 850 km.

3.Kerkuk-Banyas (Syria), on the Mediterranean, its length is 888 km.

4.Kerkuk-Dortul (Turkey), on the Mediterranean, Its is composed of two pipes each with a 40 inches diameter and their lengthier is 1005 km.

In addition to oil, there are many sources of natural gas, especially in Kerkuk and rich coal resources as well.(See the map in Annexe)

The Iraqi Kurdistan oil importation, has began only in 1934, and from this time since 19th century, in Iraqi Kurdistan the petrol doesn’t have any importance, and for Kurdish people especially the economic situation be one of the important question for the Kurds in Iraq.

The petrol’s revenue doesn’t go to the Kurdish regions and for the construction of Iraqi Kurdistan, the central government of Iraq during all the 19th century has used the money. And the revenue for buying the guns and preparing the plans for the (Arabization) of Kurdish cities, especially the Kurdish Kerkuk, Mosul, Khanaqine

This situation had continued since the uprising of 1991, and the creation of Kurdish Regional Government, the Kurdish government cabinets, during 10 years of self governing has different plan, and proposing also for the Future of the Kurdistan Region.(KRG, Kurdistan reconstruction, p.51-80, 2000).

The Kurds in Iraq, and from the first time in their history have a national Kurdish administration. And one Kurdish government which has in the planing to reconstruct the country, and build the important projects in Iraqi Kurdistan, its also for the first time the credits which come from Kurdish petrol come back to Kurds.

3.3 Commercial activity of Iraqi Kurdistan

The trade practice is a great role in developing the economy, a cross the periods of time and also it has its own effect on changing the structure, and this factor considered a necessary condition on changing the economics of different countries. As result of the development in economic life and increasing the humanistic needs and also increasing the satisfaction of these needs caused to the technology, development. Therefore the role of trade become more complex. Its abstract and relative volume increased it grew with average above of the economic growth.

The trade has an importance in the economies of the different countries. This significance change is due to the present resources and the product probability for each country. In Kurdistan region, this importance increased after 1991 March uprising and the period after the uprising many political economic, administrative changes happened. (Aziz.Gulideran, p163, 1999).

Those changes represented in democratic life, pluralization and the economic movement moreover, the unique geographical situation of the region, which occurs between the centre governorate and the Turkey, Iran, Syria are neighbours of the region.

In addition to its contribution of the availability of the consuming goods which they could not be produced in the area because of the UN embargo.

The commercial sector regarded as the leader sector in kurdistan economy and practice its complete in this aspect. After the SCR 986, the private sector and some foreigners companies participate in the Trade in iraqi kurdistan, actually there are (13) Turkish and foreigners companies offices.(Birayeti of 19-8-2001, no:3464)

During the last Congress of KDP (Kurdistan Democratic Party) in Arbil in 1999. The politic bureau of the Kurdistan Democratic Party, given importance to the free markets and private sector, also the bank sector’s in Iraqi Kurdistan. The inauguration of the first Kurdistan central bank in Arbil in 16 August 2001, Mr Nechirvan Barzani, the KRG Prime Minister opened the ceremony of inauguration. And like a positive singe from the government, during the last 5 years the Kurdistan government returned (55) millions Dinars to the people which they have money in their accounts before the uprising of 1991.(Birayeti news paper of 15-8-2001).

The importance of commercial activity have increased after 1991 the uprising of people in Iraqi Kurdistan, the big changing in this region introduced a significant situation in the economic life, Iraqi Kurdistan region administration have different commercial activity with the central government of Baghdad. This activity began with the dramatically situation of Iraqi people after the invasion of Kuwait by Iraqi army, and the strict international embargo imposed by the United Nation.

Iraqi Kurdistan region have a multiple commercial exchanges with Iraqi central government, and the volume of commercial exchange between Iraqi Kurdistan and the central government is very important, but for political and administration reasons we don’t have a detail statistics about those commercial exchanges between both region. (AZIZ, p118, 1999).

After the uprising of 1991 and the creation of Kurdish administration, a national Kurdish government controlled the region’s borders. And for the first time in Iraqi Kurdish people, had the total authority in the business, and the commercial exchange with region’s neighbours, and others countries and Europeans countries, the Iraqi Kurdistan has been the victim of double embargo, international embargo, and the embargo of central government of Iraq, in addition of this situation the trade section with the neighbours countries taken an importance and its also the key of a successful administration in Iraqi Kurdistan.(Khayat Kamal, Journal of the Centre of Strategic Studies no: 26,p.53,1999).

3.4 United Nation Resolution SCR-986:

In August 1990 the Security Council adopted resolution 661, imposing comprehensive sanction on Iraq following that country’s short-lived invasion of Kuwait. Throughout 1991, with growing concern the humanitarian situation in Iraq, the United Nations and others proposed measures to enable Iraq to sell limited quantities of oil to meet its people’s needs. The government of Iraq declined these offers, contained in particular, in resolutions 706 and 712, adopted in August an

  • KurdishMedia.com - By Khasro Pirbal
  • 11/10/2001 00:00:00