All values, unless otherwise stated, are in US dollars.
The economy of Iraq is dominated by the oil sector, which provided 89% of foreign exchange earnings in 2024.[19] During its modern history, the oil sector has provided about 99.7% of foreign exchange earnings.[4]Iraq's hitherto agrarian economy underwent rapid development following the 14 July Revolution (1958) which overthrew the HashemiteIraqi monarchy. It had become the third-largest economy in the Middle East by 1980. This occurred in part because of the Iraqi government's successful industrialization and infrastructure development initiatives in the 1970s, which included irrigation projects, railway and highway construction, and rural electrification.[20]
In the 1980s, financial problems caused by massive expenditures in the Iran-Iraq War and damage to oil export facilities by Iran's military led the Ba'athist government to implement austerity measures, to borrow heavily, and to later reschedule foreign debt payments. Iraq suffered economic losses of at least $80 billion from the war.[21] In 1988, the hostilities ended. Oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities, but again underwent a sharp decline after the Persian Gulf War. GDP dropped to one-fourth of the country's 1980 gross domestic product and continued to decline under postwar international sanctions, until receiving aid from the U.N. Oil-for-Food Programme in 1997.[22][20]
The Coalition Provisional Authority made efforts to modernize Iraq's economy after the 2003 U.S.-led invasion, through privatization and reducing the country's foreign debt. As a result Iraq's economy expanded rapidly during this time, though growth was stunted by the insurgency, economic mismanagement, and oil shortages caused by outdated technology.[20] Since mid-2009, oil export earnings have returned to levels seen before Operation New Dawn. Government revenues have rebounded, along with global oil prices. In 2011, Baghdad would increase oil exports above their then-current level of 1,900,000bbl (300,000m3) per day as a result of new contracts with international oil companies. The export was thought likely to fall short of the 2,400,000 barrels (380,000m3) per day forecasting in the budget. Iraq's recent contracts with major oil companies have the potential to greatly expand oil revenues, but Iraq will need to upgrade its oil processing, pipeline, and export infrastructure to enable these deals to reach their potential.
An improved security environment and an initial wave of foreign investment are helping to spur economic activity, particularly in the energy, construction, and retail sectors. Broader economic improvement, long-term fiscal health, and sustained increases in the standard of living still depend on the government passing major policy reforms and on the continued development of Iraq's massive oil reserves. Although foreign investors viewed Iraq with increasing interest in 2010, most are still hampered by difficulties acquiring land for projects and other regulatory impediments.
Economic growth
Historical GDP per capita development
Nominal GDP grew by 213% in the 1960s, 1325% in the 1970s, 2% in the 1980s, −47% in the 1990s, and 317% in 2000s.[23]
Real GDP per capita (measured in $1990 ) increased significantly during the 1950s, 60s and 70s, which can be explained by both higher oil production levels as well as oil prices, which famously peaked in the 1970s due to the OPEC's oil embargo, causing the 1973 oil crisis. In the following two decades, however, GDP per capita in Iraq dropped substantially because of multiple wars, namely the 1980-88 war with Iran, the 1990-1991 Gulf War.[24]
Iran-Iraq War
Before the outbreak of the war with Iran in September 1980, the economic outlook was positive. In 1979, oil production reached a level of 560,000 m³ (3.5 million barrels) per day, and oil revenues were 21 billion dollars in 1979 and $27 billion in 1980 due to record oil prices. Iraq had amassed an estimated $35 billion in foreign exchange reserves. It was believed to have one of the best education and health care systems in the Middle East, and thousands of migrant workers from Egypt, Somalia, and the Indian subcontinent were employed in construction projects.[25] The Iran–Iraq War and the 1980s oil glut depleted Iraq's foreign exchange reserves, devastated its economy and left the country with a foreign debt of more than $40 billion. Oil exports gradually increased as new pipelines were constructed and damaged facilities were restored.
Sanctions
Iraq's seizure of Kuwait in August 1990, subsequent international economic sanctions on Iraq, and damage from military action by an international coalition beginning in January 1991, drastically reduced economic activity. The regime exacerbated shortages by supporting large military and internal security forces and by allocating resources to key supporters of the Ba'ath Party. The implementation of the UN's Oil for Food program in December 1996 helped improve economic conditions. For the first six six-month phases of the program, Iraq was allowed to export increasing amounts of oil in exchange for food, medicine, and other humanitarian goods. In December 1999, the UN Security Council authorized Iraq to export as much oil as required to meet humanitarian needs. Per capita, food imports increased substantially, while medical supplies and health care services steadily improved, though per capita economic production and living standards were still well below their prewar level.
Iraq changed its oil reserve currency from the U.S. dollar to the euro in 2000. However, 28% of Iraq's export revenues under the program were deducted to meet UN Compensation Fund and UN administrative expenses. The drop in GDP in 2001 was largely the result of the global economic slowdown and lower oil prices.
The removal of sanctions on 24 May 2003 and rising oil prices in the mid-to-late 2000s led to a doubling in oil production from a low of 1.3 mbpd during the turbulence of 2003 to a high of 2.6 mbpd in 2011.[26] Furthermore, reduced inflation[27] and violence[28] since 2007 have translated to real increases in living standards for Iraqis.
One of the key economic challenges was Iraq's immense foreign debt, estimated at $130 billion.[29] Although some of this debt was derived from normal export contracts that Iraq had failed to pay for, some was a result of military and financial support during Iraq's war with Iran.[30]
The Jubilee Iraq campaign[31] argued that much of these debts were odious (illegitimate). However, as the concept of odious debt is not accepted,[32] trying to deal with the debt on those terms would have embroiled Iraq in legal disputes for years. Iraq decided to deal with its debt more pragmatically and approached the Paris Club of official creditors.
In a December 2006 Newsweek International article, a study by Global Insight in London was reported to show "that Civil war or not, Iraq has an economy, and—mother of all surprises—it's doing remarkably well. Real estate is booming. Construction, retail and wholesale trade sectors are healthy, too, according to [the report]. The U.S. Chamber of Commerce reports 34,000 registered companies in Iraq,[when?] up from 8,000 three years ago. Sales of secondhand cars, televisions and mobile phones have all risen sharply. Estimates vary, but one from Global Insight puts GDP growth at 17 per cent last year and projects 13 per cent for 2006. The World Bank has it lower: at 4 per cent this year. But, given all the attention paid to deteriorating security, the startling fact is that Iraq is growing at all."[33]
Since 1974, after the Iraqi Government took direct control of Iraq’s largest private oil production operations, Mosul Oil and Basra Oil, most of Iraq's manufacturing activity has been closely connected to the oil industry.[citation needed] The major industries in that category have been petroleum refining and the manufacture of chemicals and fertilizers. Before 2003, diversification was hindered by limitations on privatization and the effects of the international sanctions of the 1990s. Since 2003, security problems have blocked efforts to establish new enterprises. The construction industry is an exception; in 2000 cement was the only major industrial product not based on hydrocarbons. The construction industry has profited from the need to rebuild after Iraq's several wars. In the 1990s, the industry benefited from government funding of extensive infrastructure and housing projects and elaborate palace complexes.
Primary sectors
Agriculture
Agriculture contributes just 3.3% to the gross national product but employs a fifth of the labor force.[34]
Historically, 50 to 60 per cent of Iraq's arable land was under cultivation.[35][self-published source?] Under the UN Oil for Food program, Iraq imported large quantities of grains, meat, poultry, and dairy products. In 1981, the government abolished its collective farming program. During the Gulf War, Iraqi agriculture was disrupted physically and suffered from economic sanctions imposed by the United Nations. Imports were curtailed, petroleum exports were cut off and agricultural production with potential military application was halted. The Iraqi government responded by monopolizing grain and oilseed marketing, imposing production quotas, and instituting a Public Distribution System for basic foodstuffs. By mid-1991, the government supplied a "basket" of foodstuffs that provided about one-third of the caloric daily requirement and cost consumers about five percent of its market value. With subsidies for agricultural inputs diminished, the government's prices failed to cover their costs. Tax on agricultural production reached 20 to 35 percent by the mid-1990s. In October 1991 the Baghdad regime withdrew personnel from the northern region controlled by two Kurdish parties. Kurdistan Region was described as "... a market economy essentially left alone by a fragile governing structure, but heavily influenced by substantial international humanitarian aid flows."[36]
In December 1996, under an "Oil for Food Program" negotiated with the United Nations, Iraq started exporting petroleum and used the proceeds to import foodstuffs. Grain imports averaged $828 million from 1997 to 2001, an increase of over 180 percent from the previous five-year period. Due to foreign competition, Iraqi production declined (29 percent for wheat, 31 percent for barley, and 52 percent for maize). Because the government had neglected the production of forage crops, fruits, vegetables, and livestock other than poultry, those sectors were less buffeted by international affairs. Nevertheless, they were affected by severe drought, an outbreak of screwworm, and an epizootic of foot-and-mouth disease[37] As the Oil for Food Program expanded to cover more agricultural inputs and machinery, the productivity of Iraqi agriculture stabilized around 2002.
After the U.S. invasion in March 2003, many Iraqis became dependent on government-subsidized food. The US-funded agricultural reconstruction program thus focused on increased productivity under the aegis of Agricultural Reconstruction and Development Iraq (ARDI).[38] Another program was run by Development Alternatives, Inc. (DAI) of Bethesda, Maryland. The restoration of Iraq's irrigation systems was largely funded by Bechtel International.
ARDI conducted trials to improve farming practices and crop varieties of winter cereals (wheat and barley), summer cereals (rice, maize, and sorghum), potatoes, and tomatoes. Feed supplements and veterinary treatments were introduced to increase ovulation, conception, and birth weights of livestock. Surveys were conducted of poultry growers and apple farmers. Nurseries were established for date palms and grapes. ARDI had projects promoting trade associations and producers' co-ops and supported extension as an appropriate governmental function. The contract eventually cost over $100 million and lasted through December 2006. Under its Community Action Program, USAID also funded an analysis of markets for sheep and wool. It awarded a contract to the University of Hawaii to revitalize higher education in agriculture. It awarded a contract for $120 million to the Louis Berger Group to promote Iraq's private sector, including agriculture.[39]
Starting in 2006, Provincial Reconstruction Teams were sent in to promote goodwill and sap the insurgency. "PRTs" allowed military commanders to identify local needs and, with few bureaucratic hurdles, to dispense up to $500,000. Civilians from many agencies within the U.S. Department of Agriculture, as well as USAID, served tours on PRTs. Some participants criticized the absence of a national agricultural strategy, or clear direction on the design of projects. Others complained that projects emphasized "American-style, 21st-century agricultural technologies and methodologies..." that were inappropriate for Iraq.[40]
Agricultural production did not rebound from the reconstruction program. According to the Food and Agriculture Organization (FAO), between 2002 and 2013, the production of wheat increased 11 percent and milled rice 8 percent, but barley had decreased 13 percent and maize 40 percent. Scaled in "international dollars" (2004-2006 base equaling 100) Iraq's per capita food production was 135 in 2002, 96 in 2007, and 94 in 2012. The agricultural sector shed workers. In those same years, production per worker was 117, 106, and 130, respectively.[41]
The international Oil-for-Food program (1997–2003) further reduced farm production by supplying artificially priced foreign foodstuffs. Because of favorable weather conditions, grain production was 22 percent higher than in 2002. Although growth continued in 2004, experts predicted that Iraq would be an importer of agricultural products for the foreseeable future. Long-term plans call for investment in agricultural machinery and materials and more prolific crop varieties—improvements that did not reach Iraq's farmers under the Hussein regime. In 2004, the main crops were wheat, barley, corn, rice, vegetables, dates, and cotton, and the main livestock outputs were cattle and sheep.
The Agricultural Cooperative Bank, capitalized at nearly 1 G$ - by 1984, targets its low-interest, low-collateral loans to private farmers for mechanization, poultry projects, and orchard development. Large modern cattle, dairy, and poultry farms are under construction. Obstacles to agricultural development include labor shortages, inadequate management and maintenance, salinization, urban migration, and dislocations resulting from previous land reform and collectivization programs.
In 2011, an agricultural adviser to the Iraqi government, Layth Mahdi, summarized the forced United States agricultural reconstruction:
Before 2003, Iraq had imported about 30 per cent of its food needs annually. The decline in agricultural production after this period, created the need for importing 90 per cent of the food at a cost estimated at more than $12 billion annually. Due to the sudden shift in the agricultural policy from subsidized assistance to an immediate shift to a free market policy, the outcomes led to a decline in production. The observed outcome resulted in many farmers abandoning the land and agriculture. The impact on natural resources results in an exploited and degraded environment leaving the land destitute and the people impoverished, unemployed [and] experiencing a sense of losing their human dignity.[42]
Importation of foreign workers and increased entry of women into traditionally male labour roles have helped compensate for agricultural and industrial labour shortages exacerbated by the war. A disastrous attempt to drain the southern marshes and introduce irrigated farming to this region merely destroyed a natural food producing area, while concentration of salts and minerals in the soil due to the draining left the land unsuitable for agriculture.[43]
In recent years, farmers have been confronted with reduced rainfall and high temperatures. Particularly affected are small scale farmers who, unable to withstand lower water levels, are forced to leave their lands in search of different ways to fulfill their livelihoods.[45]
Forestry, fishing, and mining
Throughout the twentieth century, human exploration, shifting agriculture, forest fires, and uncontrolled grazing denuded large areas of Iraq's natural forests, which in 2005 were almost exclusively confined to the northeastern highlands. Most of the trees found in that region are not suitable for lumbering. In 2002, a total of 112,000 cubic meters of wood were harvested, nearly half of which was used as fuel.[citation needed]
Despite its notable large rivers, Iraq's fishing industry has remained relatively small and based largely on marine species in the Persian Gulf. In 2001, the approximate yield was 8,000 tons (compared to 18,000/t during the period between 1981-1997) according to official government estimates.[46]
Aside from hydrocarbons, Iraq's mining industry has been confined to extraction of relatively small amounts of phosphates (at Akashat), salt, and sulfur (near Mosul). Since a productive period in the 1970s, the mining industry has been hampered by the Iran–Iraq War (1980–88), the sanctions of the 1990s, and the economic collapse of 2003.[47]
A map of world oil reserves according to U.S. EIA, 2017
Iraq is one of the most oil-rich countries in the world. The country holding the fifth largest proven crude oil reserves,[48]:5 totaling 147.22 billion barrels at the end of 2017.[49] Most of this oil—4 million barrels per day out of 4.3 million barrels produced daily—is exported, making Iraq the third-largest exporter of oil.[48]:5 Despite its ongoing civil war, Iraq was able to increase oil production during 2015 and 2016, with production dipping by 3.5 per cent in 2017 due to conflict with the Kurdistan Regional Government and OPEC production limits.[48]:5 By world standards, production costs for Iraqi oil are relatively low.[50] However, four wars[51]—the 1980–1988 Iraq-Iran War, 1991 Gulf War, the 2003–2011 War in Iraq, and the civil war—and the 1991–2003 UN sanctions have left the industry's infrastructure in poor condition, and the de facto independence of oil-rich Kurdistan Region have limited production.[48]:5–6
In the 1970s, Iraq produced over 3.5 million barrels of oil per day. Production began to fall during the Iran-Iraq War, before plummeting 85 per cent after the 1991 invasion of Kuwait. UN sanctions prevented the export of oil until 1996, and then allowed exports only in exchange for humanitarian aid in the Oil-for-Food Programme.[51] The 2003 lifting of sanctions enabled production—and exports—to restart.[51] Production has since recovered to pre-Gulf War levels, and most of Iraq's oil infrastructure has been repaired, despite persistent sabotage by the Islamic State (ISIL) and others.[52] In 2004, Iraq had eight oil refineries, the largest of which were at Baiji, Basra, and Daura.[53]
Despite its oil wealth, sabotage and technical problems at refineries have forced Iraq to import petroleum, other refined oil products, and electricity from neighbouring countries, especially Iran.[54] In 2004, for example, Iraq spent $60 million per month for imported gasoline. Sabotage In late 2004 and early 2005, regular sabotage of plants and pipelines reduced export and domestic distribution of oil, particularly to Baghdad. Nationwide fuel shortages and power outages resulted.[53] Persistent ISIL sabotage of pipelines, power plants and power lines, and theft of oil and electricity have also contributed to the July 2018 protests in southern Iraq.[54]
In 2004, plans called for increased domestic utilization of natural gas to replace oil and for use in the petrochemical industry. However, because most of Iraq's gas output is associated with oil, output growth depends on developments in the oil industry.
Half of Iraq's power plants were destroyed in the Persian Gulf War of 1991, and full recovery never occurred.[55] In mid-2004, Iraq had an estimated 5,000 megawatts of power-generating capacity, compared with 7,500 megawatts of demand.[56] At that time, the transmission system included 17,700 kilometers of line. In 2004, plans called for construction of two new power plants and restoration of existing plants and transmission lines to ease the blackouts and economic hardship caused by this shortfall, but sabotage and looting kept capacity below 6,000 megawatts. The ongoing civil war, sabotage of transmission lines, and government corruption caused the electricity shortage to worsen: by 2010 demand outstripped supply by 6000 megawatts.[56]
Oil continues to dominate Iraq's economy. As of 2018[update], oil is responsible for over 65 per cent of GDP and 90 per cent of total government revenue.[48]Petroleum constitutes 94% of Iraq's exports with a value of $59.73 billion in 2017.[57] The central government hopes to diversify the economy away from oil, and has had some success: non-oil GDP growth, which was below the regional average from 2014 to 2016, pushed above the average in 2017.[48]:4 Despite this, the percentage of government spending going to non-oil investment has continued to decline since 2013 and now[when?] stands at only 34 per cent.[48]:4
2009 oil services contracts
This section needs to be updated. Please help update this article to reflect recent events or newly available information.(August 2018)
Between June 2009 and February 2010 the Ministry of Oil tendered for the award of Service Contracts to develop Iraq's existing oil fields. The results of the tender, which were broadcast live on Iraqi television, are as follows for all major fields awarded but excluding the Kurdistan Region where Production Sharing Contracts have been awarded that are currently being disputed by the Baghdad government. All contracts are awaiting final ratification of the awards by the Iraqi government. Company shares are subject to change as a result of commercial negotiations between parties.
Field shares are as a% of the total. The Iraqi state retains a 25% share in all fields for which service contracts have been awarded.
Production increase share is the millions of bbls per day that will attract the service fee for the company.
Gross revenue at plateau is the total payment each company will receive upon reaching their declared target plateau production rate (in between 5 and 8 years, depending on the field), before deduction of any operating costs, in addition to recovery of all development costs as billions of US dollars per annum. The total gross revenue for all companies, after recovery of capital costs, is at plateau production of an additional 9.4 mb/d, 4.34 bn US per annum, at a $70 bbl oil price. The 2010 Iraq govt budget is $60 billion. $300 billion is approximately $10,000 per annum for each Iraqi citizen.
In summary the shares by region in the increased production are:
Region
Production Share mb/d
% of total
Iraq
1.462
25%
Asia
1.9
20%
UK
1.81
19%
US
1.462
16%
Russia
1.402
14%
Europe (excl UK)
0.528
6%
Services
Finance
Iraq's financial services have been the subject of post-Hussein reforms. The 17 private banks established during the 1990s were limited to domestic transactions and attracted few private depositors. Those banks and two main state banks were badly damaged by the international embargo of the 1990s. To further privatize and expand the system, in 2003 the Coalition Provisional Authority removed restrictions on international bank transactions and freed the Central Bank of Iraq (CBI) from government control. In its first year of independent operation, the CBI received credit for limiting Iraq's inflation.[citation needed] In 2004, three foreign banks (HSBC, Standard Chartered, National Bank of Kuwait) were the first to receive licenses to do business in Iraq.[59]
Because of the danger posed by Iraq's ongoing insurgency, the security industry has been a uniquely prosperous part of the services sector. Often run by former US military personnel, in 2005 at least 26 companies offered personal and institutional protection, surveillance, and other forms of security.[60]
Retail
In the early post-Hussein period, a freewheeling retail trade in all types of commodities straddled the line between legitimate and illegitimate commerce, taking advantage of the lack of income tax and import controls.[61]
Tourism
The Iraq tourism industry, which in peaceful times has profited from Iraq's many places of cultural interest (earning US$14 million in 2001), has been dormant since 2003. Despite conditions, in 2005 the Iraqi Tourism Board maintained a staff of 2,500 and 14 regional offices.[61] Between 2009 and 2010, 165 tourists from 16 countries entered Iraq to visit historic sites; as of January 2011, a U.S. State Department grant provided $2 million to help preserve Babylon, supporting the re-opening of one of the site's two museums.[62]
Telecommunications
From 2003 to 2008, mobile phone subscriptions had expanded over hundred-fold to ten million nationwide, according to the Brookings Institution.[63]
Labor force
In 2002, Iraq's labour force was estimated at 6.8 million people.
In 1996, some 66.4 per cent of the labour force worked in services, 17.5 per cent in industry, and 16.1 per cent in agriculture. 2004 estimates of Iraq's unemployment ranged from 30 per cent to 60 per cent.
Nationwide unemployment rate since May, 2003[64][65]
Month
Unemployment rate
2003-2005 May
N/A
2003-2006 June
50-60%
2003-2007 July
N/A
2003-2008 August
50-60%
2003-2009 September
N/A
2003-2010 October
40-50%
2003-2011 November
N/A
2003-2012 December
45-55%
January to May 2004
30-45%
June to November 2004–06
30-40%
2004-12 December
28-40%
January to October 2005
27-40%
November to December 2005
25-40%
2006
25-40%
2007
25-40%
2008
25-40%
2009
23-38%
2010
15.2%
2011
15.2%
2012
15.3%
2013
15.1%
2014
15%
2015
15.5%
2016
16%
The CPA has referred to a 25% unemployment rate, the Iraqi Ministry of Planning mentioned a 30% unemployment rate, whereas the Iraqi Ministry of Social Affairs claims it to be 48%.[64] Other sources are claiming a 20% unemployment rate and a probably 60% under-employment rate.[66] The actual figure is problematic because of high participation in black-market activities and poor security conditions in many populous areas. In central Iraq, security concerns discouraged the hiring of new workers and the resumption of regular work schedules. At the same time, the return of Iraqis from other countries increased the number of job seekers. In late 2004, most legitimate jobs were in the government, the army, the oil industry, and security-related enterprises.[67] Under Saddam Hussein's reign, many of the highest-paid workers were employed by the greatly overstaffed government, whose overthrow disrupted the input of these people to the economy. In 2004, the U.S. Agency for International Development committed US$1 billion for a worker-training program. In early 2004, the minimum wage was US$72 per month.[citation needed]
External trade
Iraqi exports in 2006
Iraq is a founding member of OPEC.[68]Petroleum constitutes 99,7% of Iraq's exports with a value of $43,8 billion in 2016.[4]
From the 1990s until 2003, the international trade embargo restricted Iraq's export activity almost exclusively to oil. In 2003, oil accounted for about US$7.4 billion of Iraq's total US$7.6 billion of export value, and statistics for earlier years showed similar proportions. After the end of the trade embargo in 2003 expanded the range of exports, oil continued to occupy the dominant position: in 2004 Iraq's export income doubled (to US$16.5 billion), but oil accounted for all but US$340 million (2 per cent) of the total. In late 2004, sabotage significantly reduced oil output, and experts forecast that output, hence exports, would be below capacity in 2005 as well. In 2004, the chief export markets were the United States (which accounted for nearly half), Italy, France, Jordan, Canada, and the Netherlands. In 2004, the value of Iraq's imports was US$21.7 billion, incurring a trade deficit of about US$5.2 billion. In 2003, the main sources of Iraq's imports were Turkey, Jordan, Vietnam, the United States, Germany, and Britain. Because of Iraq's inactive manufacturing sector, the range of imports was quite large, including food, fuels, medicines, and manufactured goods. By 2010, exports rose to US$50.8 billion and imports rose to US$45.2 billion. Chief 2009 export partners were: U.S., India, Italy, South Korea, Taiwan, China, Netherlands, and Japan. Chief 2009 import partners were: Turkey, Syria, U.S., China, Jordan, Italy, and Germany.[69]
In March 2022, Iran-Iraq trade reached a volume of 10 billion USD, as joint ventures increased significantly but were still limited due to sanctions against Iran. Especially goods originating from Iran were subject to a trade embargo imposed by the United States and the European Union. Iran and Iraq signed a memorandum of understanding (MOU) on economic cooperation in January 2021.[70]
Notes
↑ From 2005 to 2022, Shell had its headquarters in The Hague and its registered office in London. In January 2022, the company moved its headquarters to London.
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The price of oil, or the oil price, generally refers to the spot price of a barrel of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Isthmus, and Western Canadian Select (WCS). Oil prices are determined by global supply and demand, rather than any country's domestic production level.
For further details see the "Energy crisis" series by Facts on File.
Prior to 1979, Iran's economic development was rapid. Traditionally an agrarian society, by the 1970s the country had undergone significant industrialization and economic modernization. This pace of growth had slowed dramatically by 1978 as capital flight reached $30 to $40 billion 1980 US dollars just before the revolution.
Venezuela, officially the Bolivarian Republic of Venezuela, is a country located on the northern coast of South America. It is known for its large proven oil reserves. Before oil was discovered, Venezuelan production was primarily agriculture, such as coffee and cocoa. After the first commercial drilling for oil in 1917, oil production increased drastically due to the oil boom of the 1920s and was later furthered by World War II, as Venezuela supplied oil to the United States. From 1958 to 1989, democratic leaders attempted to use the large oil revenues to invest in other industry through various policies such as import substitution and other programs designed to diversify the Venezuelan economy away from a highly specialised export range. These attempts, for the most part, were unsuccessful as Venezuelan government revenues continued to be highly volatile due to the fluctuating price of oil, which was reflected especially throughout the 1980s due to the oil price crash. After struggling with fiscal debts due to a variety of trade protection measures and other policies, the President of 1989, President Andrés Pérez, worked with the International Monetary Fund in an attempt to rectify some of the issues plaguing the Venezuelan government. Perez was eventually unsuccessful due to political instability due to proposed austerity measures, and Hugo Chávez was later elected in 1998, after a defeat of both major political parties. The Chávez government begun enacting various socialist programs, such as free education and healthcare. These programs would continue up until Chávez's death in 2013. President Nicolás Maduro, Chávez's successor, was elected on 14 April 2013 and pledged to continue Chávez's work. However, due to hyperinflation, shortages of food and medicine and political instability, about 3 million Venezuelans have fled the country since 2015.
↑ Mitu Gulati, Duke University School of Law; Ugo Panizza, The Graduate Institute Geneva and CEPR. The Hausmann-Gorky Effect. Working Paper No. HEIDWP02-2018. Graduate Institute of International and Development Studies, International Economics Department.
↑ Randy Schnepf, Iraq Agriculture and Food Supply: Background and Issues, (Washington DC: Congressional Research Service, Library of Congress, 7 June 2004) p 37.
↑ WSJ News Graphics (15 April 2016). "Barrel Breakdown". The Wall Street Journal. Archived from the original on 31 December 2017. Retrieved 30 August 2018.
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46,504,560 (2024) [3] 
13.0% (2017) [13] 
0% of GDP (2024)
