Understanding Underdevelopment in Iraq

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Understanding Underdevelopment in Iraq Shannon D. Zimmerman Dr. Emmanuel Obi Sociology 300 August 25, 2012 Understanding Underdevelopment in Iraq Iraq; officially the Republic of Iraq, is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert. Iraq is an underdeveloped country (UDC) in the third world. Third world countries are underdeveloped in all major aspects of modernization, such as economic, social, and political. The economic underdevelopment refers to the economic factors which results in poverty in third world countries. Some of these factors as seen on the national level include low per-capita income, as expressed by low GDP per capita, highly unequal distribution of income, poor infrastructure, lack of availability of modern technologies, and low consumption of efficient energy sources. GDP per capita indicates the annual dollar value of goods and services produced per person. Iraq’s GDP per capita in 2011 was $3,900.00. The GDP by sector is agriculture 9.7%, Industry 60.5%, and services 29.8%. Iraq’s economy is dominated by the oil (industry) sector which has traditionally provided about 95% of foreign exchange earnings. In the 1980s, financial problems caused by massive expenditures in the eight-year war with Iran and damage to oil export facilities by Iran led the government to implement austerity measures, borrow heavily, and later reschedule foreign debt payments; Iraq suffered economic losses of at least $80 billion from the war. After the end of hostilities, in 1988, oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities. Since mid-2009, oil export earnings have returned to levels seen before Operation Iraqi Freedom and government

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