Volume 13 , January 2026 , Pages 614- 632
Hussein Ahmed Dakhil Al-Sarhan
In less developed economies, which rely on natural resource rents to finance their public
expenditures, development programs, and economic policies, public spending policies are
characterized by a lack of discipline or laxity due to financial abundance. In the absence of
economic efficiency, planning, accounting, and accountability, loopholes for corruption emerge, hindering targeted development policies and discouraging economic reform plans
and policies, as well as political reform. Consequently, the period of economic imbalances
and distortions is prolonged.
This paper addresses the problem of oil rents in relation to economic corruption and their
impact on the effectiveness of economic reforms, in light of the growing global role in
combating corruption and promoting good governance. In the Iraqi case, where there is a
structural imbalance in the economy, data still indicates a lack of diversification in the
contribution to GDP, despite the economic plans and massive financial allocations earmarked
for reform programs in the post-2003 period. Given this reality, how can corruption be linked
to oil rents in the Iraqi context? And what are the implications of this for economic reform
policies? The link between economic reforms and oil revenues has generated some indicators
of economic corruption and exacerbated the phenomenon of lack of transparency in various
sectors, both domestically and internationally. This has negatively impacted economic reform
policies and efforts to correct imbalances in the economy.
However, this hypothesis cannot be generalized to all oil-rentier countries. Therefore, it
cannot be asserted that oil revenues support corruption and a lack of transparency in all oilrentier states. Furthermore, corruption and a lack of transparency in these countries are not
uniform in scale, nor do they stem from the same frameworks or have the same causes. This
paper aims to clarify this issue.
Keywords: Iraq, economy, structural imbalances, oil revenues, economic reform, corruption.