Jobs Will End Violence in Iraq and Strengthen the Dinar

By Dan Carlson

Every day it seems like we hear about another suicide bombing or car explosion that kills innocent Iraqi citizens and our own soldiers. It is heartbreaking for their families and is wreaking havoc in Iraq. As our troops drawdown to non combat levels to just under 50,000, a wave of insurgent activities have swept across Iraq. The power vacuum in Iraq doesn't help either. The Iraqi government needs to come to terms in order to take control and restore stability and peace in Iraq. These are the conditions necessary for a prospering country and a strong dinar. What is one way the Iraqi government can step up to help reduce and possibility end the violence in Iraq? Create jobs.

Some may say that the violence in Iraq stems from anti-American perspectives and religious extremists - I do agree that these sentiments exist, but I think the core issue is that Iraqi citizens are struggling economically and are in need of jobs. Iraq was under oppressive rule during the Saddam era and after his fall, Iraq has been at war for the past seven years. During the war, oil production essentially halted and their greatest source of revenue was cut off, as well as the jobs the oil industry provided and the money that trickled down to fund and sustain small businesses. Many Iraqis were left without sources of income and to exacerbate their economic instability, their homeland became a battle ground littered with bombs, gun fire and land mines. Add on top of that, poor infrastructure left many Iraqis with only a couple hours of electricity per day. No job, no safety and no electricity. How does one survive these conditions? What options do Iraqi citizens have to put food on the table? One option is to accept money from terrorist and insurgent groups to commit violent acts.


These violent groups recruit members and suicide bombers with the promise of protection and money. Furthermore, some use religion to make an emotional appeal to legitimize their atrocious acts. Road side bombs, car bombs and suicide bombers bring even more instability to Iraq. Do you think the Iraqi people want to live in such a dangerous environment? So how are Iraqi citizens convinced to further inhibit Iraq's development as a country? The reason is, they don't have much to lose. If Iraqi citizens had jobs, were productive, supporting their families and contributing to rebuild Iraq, insurgency levels would fall dramatically. The Iraqi people would have much more to lose. Bombs interrupt businesses, schools and daily life. Iraqi citizens need an incentive to protect these things and right now there is none.

This has been a pretty depressing portrayal of Iraq. However, things are looking better. Iraq is currently pumping 2.5 million barrels of oil per day and shipping 2 million barrels overseas. This is more or less at pre-war levels and Iraq is looking to further increase their production. The oil contracts with foreign oil companies like Shell, Exxon, BP and the China National Petroleum Corp are providing a boost to Iraq's oil industry. In addition, the International Monetary Fund (IMF) projects that Iraq's Gross Domestic Product will increase by 7% this year and reported that inflation slipped to 2.7% in June, the lowest level in three decades.

These are very promising numbers; however, unemployment is at 20%. So what can be done? First, Iraq must form a government. The Iraqi government then must adopt pro small business policies such as providing loans to citizens who wish to start retail businesses, tax breaks, investment in infrastructure and overall make it easier to start a business - easy to incorporate, low set up fees, easy to understand regulations, etc. Small businesses are at the foundation of every economy and are the greatest job creation mechanisms. New businesses need new employees and right now, Iraqi citizens need new jobs. New businesses and jobs will encourage Iraqis to protect their own livelihoods, promote stability, reduce violence and move the country forward. And of course, for us, a strong and stable Iraq means a strong and stable dinar.



Dan Carlson is a dinar specialist at Dinar Profits, the most trusted source to buy and sell Iraqi dinar since 2004.


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