International economic governance and its impact on achieving sustainable development in Iraq

Abstract

This study aims to examine the impact of international economic governance on achieving sustainable development in Iraq. It analyzes the relationship between governance indicators, represented by control of corruption, government effectiveness, and rule of law, and sustainable development indicators, represented by GDP, unemployment, and the Human Development Index. The study adopts a descriptive analytical approach supported by an applied quantitative method, using Iraq’s data for the period 2010–2024. The findings show a positive relationship between improved governance indicators and some development indicators, particularly GDP and the Human Development Index. However, the effect on unemployment remains limited due to the rentier structure of the Iraqi economy and the weakness of the private sector. The study also finds that weak anti-corruption performance remains a major obstacle to transforming economic resources into sustainable development outcomes. The study concludes that international economic governance is an essential condition for strengthening sustainable development in Iraq, but it requires institutional reform, economic diversification, and effective implementation policies. In this context, Iraq faces profound structural challenges that hinder its path to achieving sustainable development. These include a heavy reliance on a rentier economy based on oil, weak economic diversification, high unemployment rates, and institutional deficiencies related to weak governance, widespread administrative and financial corruption, and inconsistent economic policies. Furthermore, limited alignment with international economic governance standards has contributed to weakening overall economic performance. This underscores the importance of international economic governance as a reform approach that can contribute to restructuring the Iraqi economy, enhancing institutional efficiency, and achieving optimal resource utilization, thereby positively impacting sustainable development indicators. Accordingly, this research aims to analyze the nature of the relationship between international economic governance and sustainable development in Iraq, and to assess its impact on improving economic performance and achieving sustainability.