Iraq’s Last Window: Diffusing the Risks of a Petro-State

This paper, examines the possibility of adopting Oil- to- Cash scheme in Iraq. Here, a new opportunity is identified which aims for direct distribution of Iraqi oil rents in the planned production expansion over the next five years. This could yield a meaningful per capita dividend even while leaving current spending levels untouched. The payment could grow large enough by 2015 to push every Iraqi over the poverty line. Through insightful analysis of its potential benefits and drawbacks, West concludes that a cash transfer scheme could have positive and powerful political economy impacts too, including cementing allegiance to an Iraqi nation, fostering transparency and careful resource management, and providing the incentives and means to diversify the economy. While political implementation might prove difficult, analysis suggests that this proposal for Iraq merits serious revisiting. [Working paper No. 226]. URL:[http://www.cgdev.org/content/publications/detail/1425433].