The coming twilight of a petro-state? Traumatic decarbonization as a driver of political transformation in Iraq

Abstract

Iraq is a compelling example of a state highly dependent on a singular source of rent, namely oil revenue. Since 2003, Iraq has also been characterized by a fractured, rivalrous elite without central control over organized violence. This formula represents a “rentier political marketplace” in which state funds for salaries and contracts are the essential lubricant of the political system. During 2014–2021, successive shocks to national oil revenues represented a partial and temporary, but traumatic, decarbonization of Iraq’s government and political finance. In turn, this triggered a series of governance and political reconfigurations including a nominal decentralization process and fracturing of sectarian power, followed by a nationwide civic movement demanding transformational change. This paper traces these changes and the abrupt return to business as usual when oil prices rebounded. In doing so, the paper further investigates the nexus between oil and democracy in Iraq and addresses the unanswered question of how Iraq can decarbonize and democratize in the future.

Keywords

Iraq adaptation governance extractives natural resources violence youth

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