Iraq Dynamics

Political Environment

Many political groups and ideas will surface and struggle over time within the county. Ultimately, a western friendly administration will prevail in Iraq. Like many Middle Eastern states, no one should expect Iraq to be fully democratic or stable within a short period of time. However, this should not prevent Iraq's economy to grow at a rapid pace. The economy should improve in a fast pace through the reconstruction campaign and political openness. The modernization of Iraq has already started. The US is spearheading the humanitarian and reconstruction process. Billions of dollars worth of contracts have been awarded to reconstruct Iraq.

Population and Demography

Iraq is a country of over 25 million. Baghdad is the commercial and political capital of Iraq with over 5 million in population. Basra and Mosul are the second and third largest in population. Most of Iraq's population lives along the Tigris and Euphrates rivers and few Iraqis live in Iraq's West Desert region. Iraq is prosperous from its oil and other mineral wealth such as sulfur, phosphates, fertilizers, natural gas, and fertile land. Iraq has the second largest proven oil reserves in the world. For the time being, Iraq will solely depend on oil to breed export revenues. Other potential exports consist of urea, fertilizers, sulfur, phosphates and dates.