Administrative and financial corruption in Iraq ….. Economic and social dimensions and ways of treatment

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- March 22, 2017

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Dr. Mohamed Refaat Taqa *

First: Introduction

It is unlimited scientific risk to engage in the study of the administrative and financial corruption in Iraq , the fact that the corruption reached to unreasonable and uninhibited point at all. On the other hand, the fact that Information and accurate Statistics have not been available about the corruption in Iraq as well as the difficulty in obtaining them, because the corrupt themselves are the dominant power in Iraq and they are the decision-makers, so that they are able and in every way to hide what they have done from the corruption and spoiling during the thirteen years in an extremely complex conditions. The famous popular proverb applies on it “Its protector is its thief “.

Here lies the difficulty of obtaining information that shows the extent of corruption and the expense of social and economic effects accurately.

In this study I hardly got some statistics , numbers and information about this dangerous phenomenon. And relied upon it as indicators to show the extent of corruption, knowing that the reality assures to us that the extent of corruption is equivalent more to what is available of information for us.

Therefore, the study deals with the origin and nature of financial and administrative corruption and tried to strive to give meaning and definition of corruption as others have worked hard to do so.

The study addressed the real causes for it, then tackled on the financial and administrative corruption in Iraq and its economic and social effects and gave general numerical indicators of corruption in Iraq and it has also tried to give solutions to this phenomenon. Although the hypothesis study considered that the administrative and financial corruption is the inevitable result of the global administrative and financial corruption… And it cannot be eliminated only by changing the international system through the birth of a new international system that seeks to achieve social justice in the world.

Second: the conceptual origin for the administrative and financial corruption

Any economic phenomenon or social or others must go to the origin of its concept, so that we can identify the concept and content of this phenomenon.

The origin of the concept of corruption is from the Latin word (corruptus) and its meaning in Arabic (برطل- يبرطل) or (رشا- يرشو – bribe), and here means all forms of bribery.

The phenomenon of financial and administrative corruption is an ancient phenomenon and present in all societies, but to varying degrees, according to the nature of economic and social systems, and according to the degree of development and progress of each country… In developed countries, the proportion of corruption are few and controlled, unlike the underdeveloped countries where this phenomenon is too much and for known civilized reasons.

After democratization in many countries around the world , it was started to shed light on the size of the financial and administrative corruption in all countries of the world…

we seek in this study to highlight and recognize the concept of the phenomenon of corruption and to identify the economic and social effects, the fact that corruption is a major obstacle to the future of society and the state and the economy and that corruption is an obstacle to the future development of nations and its development and achieve well-being.

Note that this phenomenon started to spread dramatically in Iraq and it has become like a cancer eating at his body and the degree to which it has become a threatening the entity and the future of its economy.

As many researchers worked hard to find a definition of financial and administrative corruption, it is legally known as ((that the employee in charge of the state exceeds the limits of his duties and then violating the prevailing laws and regulations in order to achieve the illegal benefit for him and other)) (1)

The definition of corruption in administrative terms, it is the case that the employee is rushed to do something as a result of tangible or intangible and illegal incentives in favor of the one who offers incentives and thus harm the public interest. (2) As defined in social terms “the corruption is the misuse of public power for private profit” (3)

The definition of corruption according to the International Transparency organization is the “misuse of public power for private gain” (4)

The definition of the International Monetary Fund (IMF) to corruption it is ((the relationship of long hands that aims to obtain the benefits of this behavior for a single person or group of a relationship between of individuals)) (5).

Based on these multiple definitions we can conclude that corruption occurs when an individual or group or influential political parties or influential elements in the power of the exploitation of this influence in order to achieve a special win and be at the expense of public interest … and therefore we can say that corruption is an act contravenes the law and public morality.. so we can define the corruption as (( an irregular action done by individual or group, taking advantage of their influence in power in order to achieve a special gain on the account of social and economic benefit of the country).

If the corruption prevailed in any society , it would necessarily lead to the dismantling and destruction of the value system of the society, corruption is spreading in the absence of laws and regulations and moral values and the weakness of authority in general or completely absent to control society, this happens when a shift in power that leads to leaving administrative, legal and constitutional vacuum and that was exploited by the weak people who are taking advantage of their influence in order to achieve the highest gains at the expense of public money.

Third: the causes of administrative and financial corruption

Views and opinions have been increased about the reasons that lead to the spread of this dangerous phenomenon… and point of views of a lot of writers and researchers have varied about it… Some of them attribute this to the urban or political, structural or values or economic and administrative reasons… All these reasons individually or collectively are correct and lead to the spread of this dangerous phenomenon, especially in Iraq, the fact that Iraq inherited administrative corruption in various aspects of life as a result of the wrong policies followed for many years, and the corruption existed since the founding of the Iraqi state and passing through all eras and the rates of corruption are varying from time to time. .

But after the occupation in 2003 and the occupiers have conducted to dismantle the Iraqi state and solving the Iraqi army and other security forces and create chaos in the country and dismantle the moral and social fabric of the country and spreading sectarian, ethnic factors and destruction of social infrastructure and technical infrastructure, the absence of control fully… the reasons mentioned altogether occurred in Iraq, making the country lives in chaos unparalleled not only in ancient history and in the modern history , this chaos made it easier for the beneficiaries and thieves and traitors and warmongers and those who are in power to exploit this situation and exploit their influence in order to steal the whole of Iraq, i.e the theft of everything that exists above ground and underground. . So that Iraq has become one of the first countries in the world where the rate of corruption… The continuation of this will lead to economic and political security and social disasters… And to address this problem will be impossible in the short and medium term.

What was brought by the occupation of mass destruction of all that built by Iraqi since the founding of the state of Iraq in 1921 and until 2003… This is a main reason for the spread of this phenomenon and spread on a larger scale in Iraq… Yes, there was corruption in Iraq for decades but it did not exceed its limits and exceeded all limits since 2003 to the present day.

Corruption exists in all countries of the world, but to varying degrees, and was not as serious as it is the case in Iraq… This direct internal causes that led to the emergence of this corruption.

There is a general golden rule says, “If you find a flaw in the base of the administrative pyramid look for it in the top of the pyramid.”

The main reason of this phenomenon of corruption rampant in all countries of the world is the size of the corruption that exists in the international system… Corruption exists in the top of the pyramid.. What World War II legacy of a bilateral international system polarity and the formation of the United Nations and its institutions of security Council and the WTO and the IMF and the world Bank for the international construction and Development and the laws that govern the world today that they are the same , old ones, which the capitalist system adheres to it because it achieves its own interests, taking advantage of its influence to achieve higher rates of profit at the expense of the interests and welfare of the peoples of the world .. After the Unilateralism of United States and the system of capitalism in the world and the absence of the Soviet Union the force creates a state of balance… the world is in a state of imbalance and the global capitalism was in a state of Unilateralism in the world and no change has been made in the international institutions.

Thus, the Corruption has begun to be rampant everywhere that nations of North steals and robs countries of the South and the capitalists are increasing their profits by exploiting scientific and technological superiority to plunder the wealth of the South and illegally taking advantage of its influence, and globalization has come as an intellectual adoption for more dominance, making the class differences are deepening, the rich grew richer and the poor grew poorer.. And incomes are varied, and two billion of the world’s population are living below the poverty line… increased the suffering of people and then it has been increased the hunger, disease and deprivation, murder and displacement, ablation and marginalization… all this created by the capitalist system, through its ugly behavior to win and achieve higher rates of profit on the account of the peoples of the world who are thirsty for freedom and to live the welfare … all of this from our perspective the key and fundamental causes of the spread of the phenomenon of corruption .

The existing international regime based on the dictatorship of capital and the globalization of the economy… and one pole dominates the international economy… deepen this phenomenon, and will increase corruption and disintegrate the international community and ending societal values .. And be replaced by the law of the jungle and the world will be at stake.

Top of the pyramid, which is leading the international system, therefore, is the real reason why the world and Iraq in particular, experienced an outbreak of corruption in it.

Fourth, financial and administrative corruption in Iraq and its economic and social dimensions

The corruption crisis has been worsened and spread in Iraq and it is very serious and that after 2003, the year of the invasion of Iraq by the United States, and after having been dismantled National Iraqi state disbanding of the army and security organs, a dangerous situation prevailed Iraq represents a lack of security, stability and the control of militias and armed gangs backed by Iran and America.. So that the economic situation deteriorated in the country and rampant phenomenon of administrative and financial corruption, which ranked first of corrupted states in the world… in spite of all attempts to rescue the country from this corruption… or to control it but all attempts failed .. But increased the severity and prevalence of corruption on a larger scale… in the form and way to start to pose a grave threat to the economic and social infrastructure and then completely collapsed.

The occupation is the main reason for the spread of this phenomenon. As well as the senior officials escape punishment because the laws make it easier for them to escape out of the country or take cover parliamentary immunity. Because of the conditions of occupation and its secretions, to the point where the employee in the state to exceed the limits of his job and his violation of the laws and regulations has become familiar matter of the. And the matter to bypass the values and ethics prevailing in the community in order to obtain illegal material gain has become normal.

Based on the above, the Integrity Commission reliable to reduce this phenomenon has become ineffective and negative for the time being, due to the collapsing of the security situation in the country, and the spread of violence and the threat of those who follow the issues of corruption… They threatened to kill… This leads to paralyze the work of all the special committees to follow-up corruption and punish the perpetrators, though the lack of seriousness of (the Iraqi government) to support the inspection committees and commissions of integrity led to the weakest of these committees and encouraged at the same time muggers and allowed corruption to spread in a clear and large way without fear of follow-up and account. Proof of this is that among the (169) complaint, eight (8) of which only were referred to the court, and only one person was guilty.

The report submitted by International Transparency organization also points out that it looked at the (12) issue of the total (453) corruption case, there are crimes of adding the fictitious names of employees… their number was only reached from the Ministry of Interior, where it was discovered (50)thousands of unreal employee or the so-called (alvdhaiaan). Cost the government (5) five billion dollars a year… and if we take it on the level of Iraq as a whole, the number would be catastrophic… It is possible that more than half a million unreal employees. Their salaries and are taken and stolen by influential people in the political process. The report quoted financial matters in the Iraqi Interior Ministry to say ((that the contracts at the ministry is questionable and there are cases of bribery by police officers, and there are (636) investigation case in the ministry that it is difficult to arrest the accused in which they are the employees of the ministry)).

Losses of Iraq has reached in the past (2003 – 2008) as a result of financial and administrative corruption (250) billion Dollar… The Ministry of Defense is the most dangerous ones in terms of corruption among the ministries and the following table shows how much money has been wasted because of financial corruption in Iraqi ministries:

The Integrity Commission estimated the amount of money wasted as a result of administrative and financial corruption in Iraqi ministries in the years (2004 – 2005) up to $ 705 billion, as follows:

Table (1)

T	Ministry	The amount of waste	Level of corruption
1	Ministry of Defense	$ 4 billion	53.33%
2	The Ministry of Electricity	$ 1 billion	13.33%
3	Oil Ministry	510 000 000 nations R.	7.16%
4	Ministry of Transportation	210 000 000 nations R.	2.95%
5	Ministry of Interior	$ 200 million	2.81%
6	Ministry of Commerce	$ 150 million	2.11%
7	The Ministry of Finance and Central Bank	$ 150 million	2.11%
8	The Ministry of Construction and Housing	$ 120 million	1.69%
9	The ministry of communications	$ 70 million	7.7%
10	Baghdad Municipality	$ 55 million	7%
11	The Ministry of Sports and Youth	$ 50 million	7%
12	Ministry of Higher Education	$ 50 million	7%
13	Ministry of Health	$ 50 million	7%
14	Ministry of Justice	$ 40 million	5.6%
15	Ministry Of Agriculture	$ 30 million	402%
16	Ministry of Water Resources	$ 30 million	4.2%
17	Ministry of Industry and Minerals	$ 20 million	2.8%
18	Supreme Commission for Elections	$ 10 million	1.4%
19	Ministry of Tourism	$ 10 million	1.4%
20	Ministry of Education	$ 50 million	7%
21	The Ministry of Labor and Social Affairs	$ 50 million	7%

Source: administrative and financial corruption in the reconstruction of Iraq _ the causes and treatment strategy

Prof. Redha Sahib Abu Ahmed, MM Jassim al-Khafaji Jabouri

The former Deputy Chairman of the Integrity Commission, Judge Moussa Faraj also stressed to Al-Hayat newspaper, that Iraq was also lost during the years 2003-2008 (45) billion dollars of crude oil smuggling by armed militias, and (45) billion dollars of other oil derivatives, in addition to burning (600) million cubic meters of gas annually without the advantage of it , and exploit (441) oil wells out of the (1041) productive wells and export capacity is estimated at 4.2 million barrel that it did not take advantage of them even less than half.

The remainder of the 250 billion dollars squandered by the corruption in the ministries and other institutions… as well as the involvement of senior officials in the Iraqi government, with American officials at the US embassy in the waste of amounts allocated to fund Iraq’s development and reconstruction in Iraq, and where that the volume of waste amounted to (16) billion dollars, and it happened in the era of Bremer, as well as manipulation of the items of ration card, as well as waste in the training of security forces for decades as the billions of dollars. If we add to this the crime of looting the technical and social infrastructure and loot what could be carried and transported where it was amounted to $ 250 billion.

In addition, many of the ministries and state institutions refuses to hand over its files to the Integrity Commission despite the existence of orders to see it… and a lot of ministries rely on the burning of a private-storey to save such cases and under the pretext of an electrical fault but the goal is to hide these files and burn them to evade their crimes.

Before 2003 the Iraq’s production of electricity was 4 thousand megawatts and the estimated need for additional 2800 MW… and for that the government after 2003 has spent the amount of $ 17 billion on the sector during the five years (2003-2008) and we are on the threshold of 2015 and the electricity production did not raise one watt.

It is worth noting that many of the Iraqi reports, including the Integrity Commission reports indicate that the rate of corruption in Iraq has doubled four times to what it was of corruption in 2008-2009, particularly at the upper administrative grades in the state… There is a lost amount (ie missing) worth 40 billion dollars withdrawn from the development Fund for Iraq and no one knows anything about.

This Fund of development was formed in 2004 by a decision of the United Nations and the fund balance reached $ 165 billion in 2009 disappeared, including $ 17 billion in 2004 and $ 40 billion in 2010 and that have already been mentioned previously.

According to reports from the Finance Committee of Parliament, that the majority of projects approved by the Government during the period (2004-2012) are mostly fake projects went to relatives of officials and their friends, as the volume of financial waste during this period, 109 billion dollars.

As for corruption, money laundering amounted to the loss of Iraq up to 360 billion dollars. Because of corruption and money laundering operations that occurred during the nine years, ie for the years (2006-2014) the most corrupt period in ancient and modern history of Iraq that has made Iraq one of the most corrupt countries in the world. Note that Iraq’s revenues during the nine-year, $ 550 billion, and that 60% of this amount was sold in the currency auction in Baghdad that is supervised by the Iraqi Central Bank, ie up to 360 billion dollars .. And these sums were turned out of Iraq by civil companies and banking offices. And probably the money went to Iran and Syria. . Although if Iraq’s oil revenues were used in a rational manner, it would make Iraq developed country nowhere else in the region… but financial corruption prevents this from happening. Corruption in Iraq, such as cancer destroys the entire body of Iraq and eat it.

For more information, the average money laundering globally 10% of the value of world trade, while money laundering size ranges where between (2-5%) of the gross domestic product in national economies, and in Iraq amounted to 25% that the neo-rich class of the country and the circles surrounding ruling political elites managed to smuggle money out of the country, and increased cash smuggling operations out of the country several times of the number during the years after the occupation.

Solid sources also reported that the volume of balances of Iraqi officials, officers of the previous government of Prime Minister Nuri al-Maliki deposited in international banks reached so far $ 220 billion. This amount is sufficient to budget for Iraq for a period of three years without exporting one barrels of oil.

Parliamentary Finance Committee, which is headed by MP Ahmad Chalabi, recording about 228 billion dinars as the major losses in the fictitious projects that it was supposed to be completed during the past year also revealed, indicating that there is a political deals and huge financial corruption behind those numbers with the growing presence of phantom companies in the country.

The MP Magda Tamimi (a member of the Finance Committee in the House of Representatives) said that the Iraqi treasury saw a loss of 228 billion Iraqi dinars (186.2 million dollars) in fake projects over the past year and added that most of these projects were awarded to the relatives of officials, according to the word of the Finance Committee that there are more than (4600) and fake project that has not been implemented till this moment.

Fourth: A – General indicators of financial corruption in Iraq

Information held by the Integrity Commission reports, including the following: –

1 – The presence of 150,000 thousand forged certificate that their owners have received different posts in government departments and ministries and in the parliament.

2 – The Inspector General of the Ministry of Higher Education and Scientific Research stressed of the presence of more than 905 case of fraud in the school documents, and those studying at Iraqi universities.

3 – That the sale price of a bachelor’s degree 70 – $ 100.

The sale price of a master’s degree 350 – $ 500.

That the sale price of doctoral certificate $ 700 or above.

4 – The fame of Maridi market exceeded the fame of the majority of fraud markets in Iraq, they have all the seals for government departments, and provide you of whatever you want from the identity card and a certificate of Iraqi nationality and passports and university degrees and other documents and archives.

5 – Social and health corruption… arrived to dangerous state in Iraq, where statistics of the Iraqi Health Ministry confirms that more than 24,000 thousand Iraqis taking drugs in 2006, and that more rice farms in the mid-Euphrates region turned to opium cultivation. And they were overseen by influential personalities in the government and in coordination with Iran. One of the main drug available in the reach of Iraqi Youth hallucinogenic drugs and burning plastic bottles and hypnotics such as Valium and gasoline and drinking cologne, morphine, heroin and cocaine, opium, hashish and others. Everyone knows how dangerous that on the Iraqi society and its social, psychological and economic structure and its effects.

6 – The number of NGOs (civil society organizations) in Iraq in 2007 about (7000) Organization and do not know something about them and most specialized for the embezzlement and fraud and the theft of the people’s money, as well as the presence of more than 300 party in Iraq, most do the same job we mentioned in fraudulent and steal people’s money.

7 – As a result of the administrative and the government corruption… it became work in more than one job as a normal matter… where the employee works in more than one place and receive two salaries or more, and because of the falsification of certificates and archives to pass without the accountability. phenomenon of thousands of people to change locations, that the illiterate became an officer in the army, police and who does not know how to read and write as general manager or a deputy of the Ministry or a general in the army .. Begging has become a trade.

8 – According to the US report, the inspector general for Iraq reconstruction, Stuart Bowen, half of the governmental staff do not attend to their work and many of them do not work for more than two or three hours a day. The Washington Post tells us in this direction that the evaluation of the US embassy found that a third of the civil ministries suffer from the problem of the Ghost employees… They are the people who are paid to them salaries, but they do not come to work at all. US newspaper confirmed that the poor security paying a lot of scientists, academics and professionals to leave Iraq to Syria and Jordan, estimated that more than 60% of the Iraqi specialists have left the country since 2003.

9 – Iraqi investors escape because of the circumstances through which Iraq is experiencing and the security situation, where the majority of the Iraqi capital migrated to neighboring countries where it was released a statistical report from the monitoring office of Jordanian companies for being Iraqi investors on the forefront of the list of investments in Jordanian companies registered in the control office of Jordanian companies since the beginning of in 2006, reaching 8.37 billion JD after it was 7.907 billion JD in 2005 .. Note that more money is the money stolen and smuggled from Iraq that was laundered.

10 – The corruption that exists in the oil stations and gas is an extreme example of corruption in our country and complex problem and rife… the octopus network, which oversees on these thing has become very rich and has their organizations and their sub networks and because of its branches, the government became unable to follow them and eliminate them.

That 30% of imported gasoline are stolen and resold abroad by smuggling gangs, and that 40% of the gasoline that is consumed annually in Iraq is to buy it on the black market. Where prices rose even reached the level of $ 2.5 to gallon, while its price subsidized by the government 65 cents.. It is $ 1 billion is spent in the black market, $ 800 million goes as dividends for these muggers criminals who manage these illegal networks.

11 – Iraq’s foreign debt amounted to $ 120 billion in 2003, this amount rose to $ 125 billion a year from 2004 to 2005, an increase of 5 billion.

12 . Unemployment reached in Iraq to the maximum, accounting for 60% of the Iraqi workforce.

There are 2.4 million internally displaced people and 2 million displaced outside Iraq and are now on the rise.

14. 4 million Iraqis living below the subsistence level in the richest countries of the world and that one-third of all Iraqi children have access to safe drinking water and a quarter of Iraqi children suffer from malnutrition.

Iraq needs to solve the suffocating housing crisis to build 15 million housing units, but could not bring only 5% of it.

The burned gas from Basra and Kirkuk is equivalent to 30 billion dollars a year, while Iraq imports gas from Iran by more than $ 5 billion.

Education and health services is one of the ten worst countries in the world.

18. A 124 000 9000 protection element 9000 of four –wheel drive which it costs $ 5 billion a year.

The costs of Iraqi minister monthly of $ 150,000.

Table (2)

1	33 520 billion dinars	Allocations of rations	It means 100 million a day – rations
2	12,300 billion dinars	Hospitality allocations
3	550 million dinars	Travel allowances	Note there is a chapter named allocations of Dispatch
4	3350 billion dinars	Allocations of dispatching	Overlap with the preceding
5	28380 billion dinars	Allocation of grants and subsidies and expenses
6	28380 billion dinars	Other allocations of expenses	Overlapping with the preceding by paragraph (5)
7	25 630 billion dinars	Allocation of grants and other transfers
8	22 275 billion dinars	Exceptional allocations
9	6850 billion dinars	Communications allocations
10	1450 billion dinars	Clothing allowances
11	600 million dinars	Allocations for newspapers and magazines
12	1200 billion dinars	Allocations for cleaning the halls and offices
13	6400 billion dinars	Commodity allocations
14	12120 billion dinars	Allocations for devices and machines and equipment
		There are other unreasonable allocations

The table above shows the amounts allocated to cover the expenses of the House of Representatives in 2013…

The budget allocated to cover the expenses of the Iraqi Council of Representatives for 2013:

Amounted to 387 billion dinars… it shows that this amount is not sufficient to meet the expenses of the Council.

Budget for 2014 rose to 528 billion dinars, an increase of $ 161 billion and 38% from the previous year

Budget included 166 fields for spending mostly overlapping fields.

Parliament rapporteur said that these very small amounts compared to the amounts allocated for the prime minister and the presidency of the republic. And if it was added by the Supreme Judicial budget and the three presidencies, Iraq will be completely bankrupt and will resort to borrowing.

The table follows is a general indicators determine the degree of corruption among the nations of the world and these indicators give us an idea of the extent of transparency and the degree of corruption in some selected countries and that for the year 2009 … It is clear from the table that Iraq came sixth rank out of 177 countries in corruption, according to the indicators mentioned. Somalia came primarily.

In front of all these indicators is clear to us and clearly the extent of corruption in Iraq, especially since 2003, and until today, this means that Iraq is experiencing a humanitarian and environmental, economic, social, political and security catastrophe unparalleled of it in ancient and modern history.

It actually live pre-Industrial Revolution period in which the man was suffering from illiteracy and underdevelopment and poverty, deprivation and hunger and disease.

This is the case of Iraq, one of the richest countries in the world and its people live below the poverty line.

Table (3)

General indicators published by Transparency organization about corruption in 2009

Country	Ranking	the total Scores for indicators	Demographic pressures	Refugees and displaced people	Mistreatment of minorities	Escape from the violence of the inside	Weak of economic varied development	the economic decline	the lack of legislation	Weak public services	aggression on Human Rights	Weak security service	Conflict of elites	External interference
Somalia	1	114.7	9.8	9.9	9.7	8.5	7.7	9.5	10	9.9	9.9	10	10	10
Iraq	6	108.6	8.7	8.9	8.7	9.1	8.6	7.6	9	8.4	9.3	9.7	9.6	10
Yemen	19	98.1	8.8	7.9	7.7	7.4	8.9	8.2	8.3	8.5	7.7	8.4	9	7.3
Norway	177	18.3	1.9	1.6	1.3	1.1	2.2	2.3	1	1.3	1.5	1.1	1.1	1.9

The following table shows pensions for some officials and shows the size of financial corruption of the ruling class of the country and which exceeded the reasonable limits.

Table (4)

T	The name	Amount (million dinars)	Month (thousand dollars)	Day (thousand dollars)
1	Mahmoud al-Mashhadani	57	47,500	1583
2	Ghazi al-Yawar	57	47,500	1583
3	Nouri al-Maliki	62	51.650	1721
4	Jalal Talabani	82	68.300	2276
5	Osama Najafi	62	51.650	1721
6	Khudair Alkhozaia	62	51.650	1721
7	Hussain al-Shahristani	58	48.300	1611
8	Saleh al-Mutlaq	58	48.300	1611
9	Rose Shawis	58	48.300	1611
10	Iyad al-Samarrai	57	47,500	1583
11	Naseer al-Ani	58	48.300	1611

Source: Member of the Parliamentary Integrity: MP Jawad Alshahyla

A televised interview in the ninth studio program – satellite channel Baghdad 25/08/2013

The following table shows the salaries of top positions recieved by Iraqi government officials and s as follows:

Table (5)

T	Postion	monthly (Million dinars)	monthly (one thousand dollars)	Salary per day (US $)	Compensation per hour (US $)	Compensation per minute (US $)
1	President of the Republic	82	75	2500	104	1736
2	Prime Minister	62	57	1900	79	1319
3	the parliament president	57	53	1766	73	1226
4	Salary of the minister	12	10	333	13.888	.231
5	Member of Parliament	12	10	333	13.888	.231
6	Note that incidental allowances to the minister and member of parliament	20 million dinars

This table gives us a clear picture of the size of financial corruption practiced by the top of the pyramid in Iraq and how it will be the case in the base of the pyramid… This shows that the financial corruption in Iraq, corruption is not existed at all, and in all the world.

So Iraq has become he most corrupted countries in the world and following form shows that Iraq and Myanmar are the most two corrupt countries from a total of 180 countries in the world, in addition of Somalia.

Iraq was in 2004 ranked 129 in the world with corruption of a total of 145 nations
Then came the ranked 137 in the world in the year 2005
Then came the ranked 160 in the world, compared with 163 countries around the world in 2006
Then came the third most corrupt place in the world in the year 2007
Then came ranked 179 alongside Myanmar after Iraq got on the score 3 out of ten according to the standards of integrity to come in second place among the most corrupt countries in the world that Somalia was just before it.

Fourth: (b) the economic and social effects of corruption

It is very clear that corruption will affect, directly or indirectly, and effectively of blocking the economic development and then on the cultural development of society the fact that corruption leads to the aste of national wealth, and then increases the inefficiency of the economy and low productivity.

Because of corruption, the economic growth rates will decrease … and will lead to the weakness of investment and capital flight out of the country, and the consequent lack of job opportunities and increasing unemployment and low income per capita and increasing poverty and destitution and deprivation… and that the waste occurred because of financial corruption means the loss of state funds and that it was worthwhile to use or invest in projects that serve the citizens … and economic effects of corruption is the increase in costs, which in any case convey the burden on consumers and the economy as a whole and the weighing of the shoulders of the citizens because raising prices and increasing inflation. As the waste of money and steal it necessarily will lead to a deficit in the overall supply and national production leading to a trend towards importing goods and services from abroad, and this leads to increased demand for foreign currency .. And reduce value of the national currency. Thus, the national economy will bear the burden of this corruption. On this basis, we find that there is an inverse relationship between corruption and economic efficiency noting that the spread of corruption leads to reduce efficiency and vice versa … the corruption that places restrictions on the state and to perform economic and social functions and will affect in one way or another on fiscal policy and monetary country being reduces public revenue and increases the size of public spending for many reasons, including increasing the chances of tax evasion or get tax breaks illegally.

The corruption has negative impact on foreign investment noting that the Increase of corruption index by one unit in a marginal tax rate equal to (4.7), it happens a drop in foreign direct investment of it by (0.9%). Corruption hinders investment being lower the revenues on investment.

Because of the phenomenon of corruption we will find unequal and unfair competition that will reduce economic efficiency, and it seems to us that a strong relationship between corruption and the degree of inequality in society. All of this will make unfair distribution among the population and will increase the poor poorer and the rich richer and will be reflected on the level of human development … and will affect the well-being of society in general, and that the prevalence of corruption will lead naturally to reduce the overall budget revenues of the state and deprive them of financial resources needed by the state to spend on the various fields of spending, corruption affects the distributive justice of income and wealth in favor of the most class force in society and who monopolize power and influence and lead to the creation of differences of class in income and wealth and therefore the negative effects on social fabric of the country.

Confirming of what we went of serious economic effects of corruption, the incomes earned from the export of crude oil were lost during the 2003-2015 years since the occupation and until this year, and as shown in the following table:

Table (6)

the year	Daily production of crude oil (thousand barrels)	Global Price per barrel, per dollar	Price of a barrel as OPEC dollar	Annual production (thousand barrels)	Income as the world price (dollars per year) dollar	Income by OPEC price (dollars per year) dollar
2003	1344	39.99	28.1	483.840	19,353,600,000	13,595,904,000
2004	2030	55.63	36.05	730.800	40,654,404,000	26,674,200,000
2005	1833	70.90	50.59	659.880	46,785,492,000	33,383,329,200
2006	1999	78.11	61.00	719.640	56,211,080,400	43,898,040,000
2007	2143	99.4	69.04	771.480	76,685,112,000	53,262,979,200
2008	2428	147.16	94.1	874.080	128,629,612,800	82,250,928,000
2009	2452	81.93	60.86	882.720	72,321,249,600	53,722,339,200
2010	2490	92.01	77.38	896.400	82,558,440,000	69,363,432,000
2011	2801	114.78	107.46	1008360	115,739,560,800	108,358,365,600
2012	3116	110.55	109.45	1121760	124,010,568,000	122,776,632,000
2013	3141	112.22	105.87	1130760	126,893,887,200	119,713,561,200
2014	2300	47.00	96.1	828.000	38,916,000,000	79,570,800,000
2015	2300	50.00	52.05	828.000	41,400,000,000	43,470,000,000
Total	–	–	–	–	971 billion dollars	$ 861 billion

It is clear from the table above the fluctuation happening on the amount of daily production, as well as the price per barrel, according to world prices and OPEC prices.

The total amount of revenue reached during the past 12 years the amount of (971) billion dollars, nearly trillion dollars according to world prices and (861) billion dollars by OPEC prices.

That if we know that the contribution of the oil sector in the state budget, ranging from (88.5% – 95%) and the (5) percent derived from taxes and fees note that the amount of tax during these years is very little which indicates the failure of the tax device The high rate of tax evasion and corruption in which as shown in table No. (6).

As for the rest of the sectors Contributions (industry, agriculture and services) are almost non-existent. This means that these huge and fantastic amounts, No one knows how it was spent. And what would happen if these amounts sent to the country’s development and other sectors.

If we assume that half of this amount went to the operating expenses of wages and salaries and allowances of retirement… Where the remaining half trillion did go… Logically it have been wasted by the corruption and this amount giant was dispelled…If this amount had spent on the development of the country, the reality of Iraq would have been at best anyway.

Hence it is clear that Iraq has been totally looted by gangs and militias and influential in the government, it has been converting these amounts out of Iraq and to some powerful countries which have influence on Iraq such as Iran.

Table represents the sum of the actual oil revenues and the total actual total income to the budget for the years 2006-2012 (billion dinars)

Table (7)

the year	Total actual oil revenues	Total actual total revenue	Total other revenues (1-2)	Other revenue proportion to the total overall revenue (2: 3%)	Rate (2: 1)
2006	46,534	49,055	2521	5.1%	94.9
2007	51,701	54,964	3263	5.9%	94.1
2008	75,358	79,831	4473	5.6%	94.4
2009	48,872	55,224	6352	11.5%	88.5
2010	71,340	77,025	5685	7.3%	92.7
2011
2012

the source

the figures were taken from the financial Ministry – Economic Department , a study on assessing the status of the general budget for the years 2006 – 2012

Fifth: ways to tackle corruption and curtail it

The phenomenon of corruption existed since ancient times and in all ages and in all the regimes and societies, rich and poor, great powers and big and small states. And will be retained as being related to the a self and desire of human beings to get what they can get from a material and non-material gains illegally by exploiting official and informal locations , and its relationship with official or partisan bodies who work in government institutions .. And this phenomenon lies in the larger extent in communities of the third world countries, a standing dramatically against the development of these countries and is considered one of the strongest dangerous obstacles in the face of well-being and economic development and economic recovery… As it contributes to dispel public money and manipulate it … which result in serious effects and is the diversion of resources from the public interest to the benefit of certain persons… And on the basis that are sabotaging the community economically and socially, and to dismantle and destroy his future.

That corruption was a serious ranges in the world, so that the elimination of it would be impossible… but it is possible to reduce it and the degree to which makes it acceptable and is not harmful… and so to make it happen … We must radically change the existing international system, which represents the top of the global corruption.

The existing international system is still a system that comes as the legacy of Second World War… and the development that has occurred on the forces of production and development that has occurred particularly at the level of science and technology … productive relationships no longer to accommodate this development. And that the prevailing system after the collapse of the Soviet Union, and the Unilateralism America being alone with the world and there was law of the jungle system… the globalization came as an intellectual adoption for further domination, and on this basis the poor grew poorer and the rich grew richer and the injustice arrived its maximum and poverty to its maximum range , the dictatorship of capital has prevailed and disease, ignorance and illiteracy were increased , and the disparity of income was risen and class struggle taking its range, all portends for serious transformations that the world will pass through it.. so that the creation of a new international system based on pluralism, democracy and human rights and the freedom of nations to live freely and full economic, political independence, without interfering in the affairs of states, .. And achieve social justice and creating sustainable development is the fundamental way to eliminate or reduce the phenomenon of serious corruption that at the whole level.

But at the partial level and as an act to curb corruption, it is necessary to work on a comprehensive and radical change of the abnormal situation based in Iraq, and the adoption of a comprehensive Iraqi national program adopted by the national government that is not linked to the foreign country .. Working for Iraq and the stability and development of it based on the scientific foundations and through the development of a comprehensive economic policy by civil society organizations interested in economic affairs and the fight against corruption is a key condition for the safety of the effectiveness of economic activities and the requirement for fair competition… And creating a climate of investment and a good environment to attract foreign investment… All of this requires a strong state is working to provide services effectively, efficiently and enhance the role of fanancial censorship and public resources are used optimally and works to protect human rights and work to increase economic growth and localization of technology…and working to reduce the trade and financial deficit and the use of effective fiscal and monetary policy and control of inflation, and work to encourage other economic sectors such as industry, agriculture and the sector of services and the creation of sustainable development for the increase the national income and then the income per capita .. And the well-being of society… The realization of such a socio-economic policies will result necessarily to curb corruption slowly down to defeat it.

The sources relied on by the study

Dr. Saad al-Anzi, “and the analytical point of view in corruption.”

Journalof the Higher Institute of Financial Studies and Accounting sixth edition second year in 2002

National Strategy to Combat Corruption
Prof. Redha Sahib and teacher assistant Hakim Jabouri al- Khafaji Financial and administrative corruption in the reconstruction of Iraq , Reasons and strategies of treatment

The motives of the deviant behavior of the unfair character.

Nahar newspaper Issue 34 – February 2012

Nidal Olayan: financial and administrative corruption in Iraq and economic effects. Nahar newspaper Baghdadi number 34. February 2012

BP statistical review of world energy Link, Preisbildung am roholmarkt (Dezember 2004) Heraus Geber Mineral wirtschafts – verbande.v. PDF datei 414 KB