Will the campaign against corruption open the door to economic reform and Iraqi recovery?

Will the campaign against corruption open the door to economic reform and Iraqi recovery?

2026-07-03

Shafaq News – Special Translation
The Iraqi economy faces major challenges despite possessing one of the world’s largest oil reserves. Therefore, the arrest campaign carried out by Ali al-Zaidi’s government represents an “important step” in the fight against corruption, and a message that the state is moving towards strengthening the rule of law and holding accountable those proven to be involved in wasting public funds.

However, this should be the beginning of a long reform process that addresses the deep-rooted causes of corruption, and is not limited to prosecuting individuals only, according to a reading by the “Center for Links” Institute for Research and Strategic Studies, which is based in Jordan.

The center stated in a report translated by Shafaq News Agency that Iraq still relies mainly on oil revenues, while state institutions suffer from administrative corruption, weak economic diversification, and a decline in citizens’ confidence in the banking sector, in addition to the effects of political and regional conflicts.

The report noted that since 2003, Iraq has faced accumulated challenges that have affected the efficiency of state institutions and delayed the implementation of many development and reconstruction projects. It added that, under the current new governmental directions, there is an opportunity to launch a reform phase that may rebuild confidence in the economy and open the door to investment and sustainable development.

He pointed out that corruption in recent years has been linked to the structure of state institutions, as some government institutions have transformed from public service providers into centers of political and financial influence, which has weakened the efficiency of management and affected the state’s ability to implement its development projects and attract investments.

He went on to say that financial reform stands out as one of the most important tools for change, adding that the transition to a more transparent financial system, based on digital transfers and modern oversight, contributes to documenting the movement of funds, reducing money laundering, and minimizing opportunities for bribery and financial evasion.

He added that in the modern economy, the efficiency of the financial system has become one of the most important indicators that investors rely on when making their decisions.

According to the report, the relationship between the economy and security has become more intertwined than ever before, explaining that the stability of financial and administrative institutions not only reflects on economic performance, but also enhances political stability and strengthens the confidence of the local community and international partners in the state’s ability to manage its resources efficiently.

Therefore, the report stated that developing the banking system, enhancing financial compliance, and raising transparency levels are all essential factors for creating a more stable investment environment, as the greater the confidence of local and foreign investors, the greater the opportunities for implementing new projects, creating jobs, and diversifying national income sources away from near-total dependence on oil.

However, the report also pointed out that the current stage also requires launching a national program for institutional reform based on developing state institutions, modernizing oversight systems, enhancing the independence of oversight and judicial bodies, and simplifying administrative procedures, in order to reduce bureaucracy and increase the efficiency of government performance.

The report indicated that investment in infrastructure is one of the most important keys to economic growth, as the rehabilitation of electricity, water, roads, ports and public services networks will provide a more attractive environment for investment, support the private sector and also contribute to improving the quality of life for citizens.

The report warned that if reforms remain limited or merely cosmetic, the same challenges may persist, including weak investor confidence, capital outflows, continued reliance on cash, and declining efficiency of financial institutions, thus limiting the economy’s ability to achieve sustainable growth.

Therefore, the report considered the government’s anti-corruption campaign to be an important opportunity that could establish a different phase in the history of modern Iraq, but its real success will not be measured by the number of detainees, but by the state’s ability to transform these steps into a comprehensive institutional and financial reform project that enhances transparency, enshrines the rule of law, and strengthens state institutions.

The report went on to say that more than two decades have passed since 2003, and today Iraq has an opportunity to rebuild its economy on more sustainable foundations by attracting investments, developing infrastructure, diversifying sources of income, and establishing an economic environment based on efficiency, transparency, and accountability.

He concluded by saying that if the government succeeds in combining the fight against corruption with economic and administrative reform, this could mark the beginning of a new phase that opens up broader horizons for growth and stability, restores Iraq’s economic standing, and gives citizens hope for a more prosperous future.

shafaq.com