Zeydi’s call for economic shift fuels debate in Baghdad

BAGHDAD, Iraq — Iraq’s Prime Minister Ali Zeydi has called for the country to move beyond a socialist economic model, setting off debate in Baghdad over the future direction of the economy. The comments came as Iraq faces renewed calls to reduce the state’s role in the market and give the private sector a larger share in investment and development. Iraq’s heavy dependence on oil revenue, a swollen public sector and pressure on the budget have made reform more urgent, according to the article. It said recent regional developments, particularly the risks linked to a possible closure of the Strait of Hormuz, exposed the vulnerability of an economy built on a single source of income. The shift faces major obstacles, including corruption, bureaucracy, a weak banking system and public expectations of government jobs. The search for a new economic direction is being viewed as both an opportunity and a serious test for the government.