Iraq: Considerations for Management of Oil Revenues

One of the most pressing issues for a post-conflict Iraq will be the management of the country's oil revenues. While the country has more than 112 billion barrels of proven oil reserves, the second largest in the world, its oil infrastructure is underdeveloped or deteriorating and will require considerable investment to realize its full potential as the economic engine of a post-war economy and a democratic government that respects human rights. There is a need to ensure that the country's reliance on oil revenues does not lead to poor governance and widespread human rights violations that have plagued many oil revenue dependent states. Equally important is to ensure that there is enough revenue available for a postwar Iraqi government to provide for humanitarian needs and reconstruction.