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Country and Regional Experiences Poverty Reduction Strategy in Iraq Dr. Mehdi Al‐Alak Deputy Minister of Planning Deputy Minister of Planning Head of Central Organization for St ti ti i I Statistics in Iraq COSIT COSIT Poverty Reduction Strategy in Iraq • It is government commitment. • Integrated with the 5-yr National Development Plan 2010-2014 and the Annual Budget. g • Viewing poverty as a multi-sectoral phenomenon; policies. • Requires integration of policies • Rectify and enhance the efficiency of safety nets e.g. e g tthe e pub public cd distribution st but o syste system. • Achieve balance between the immediate aid and the p poverty y alleviation on the long g term. Poverty Reduction Strategy in Iraq.. Iraq continued • Diversify economic growth growth. • Involve the parliament in all stages of the strategy preparation. • Coordinate with various institutions of the state. • Emphasis the need for international support in funding and expertise areas. • Highlight the need for capacity building • Implement periodic monitoring and evaluation system. y Strategy's Principles 1. Creating income-generating opportunities: creating employment and jobs for the poor, which requires combined efforts by government, the private sector and civil society. society 2. Empowerment: Empowering the poor to exercise their economic social and political rights economic, rights. 3. Capacity Building: building the capacities of the poor to work and increase their productivity to enable them to satisfy their needs. 4. Social safety: To establish an effective social safety net i which in hi h th the private i t sector t and d civil i il society i t ttake k part. t Linking with 5-year National D Development l t Pl Plan (2010 (2010-2014) 2014) The 5 5-yr yr planning methodology as an alternative mechanism to the annual work within the state's general budget. Achieve growth of GDP between10-11% through: g in a wide spectrum p of sectors estimated investing between 200-250 billion US dollars> Government contribution around 50-60%. Linking with 5-year National Development Plan (2010-2014) Increasing productivity in various economic sectors. Doubling g oil p production Reduce unemployment rates by one third of their present levels ((18%). p ) Increase the participation of women. p y in the p public sector. Decrease underemployment Addressing impacts of economic reform Transition towards market economy. Stabilizing Iraqi currency (Iraqi Dinar). Eliminating prices distortions in Iraqi local market. Restructuring public expenditure in favor of capital investment. Enhance the role of private sector in Iraq’s economy. Major Indicators of Poverty in I Iraq 2007 Indicator Value Poverty line US$ per capita per month th National Food N f d Non-food Total Urban Rural Total Urban Rural Total Urban Rural Poverty rate (%) Number of poor (million population) Poverty gap (%) $65 $29 $36 22.9 16.1 39.3 6.9 35 3.5 3.4 4.5 2.7 9.0 le i m an i Ka ya rk ou k Sa Er la h b il ud d Al in A l -Na -Q jaf ad isi Th y a i -Q M ar iss a Ba n sr a Du h h Ba o uk gh d N i ad ne v Al eh -A nb ar Di a Ke la rb al a Al B -M a b il ut ha nn a W as it To ta l Su Poverty gap by governorates 20 18 16 14 12 10 8 6 4 2 0 Strategy Outcomes gy • • • • Higher income for poor people from work. Improved health status of poor people. people Improved education system for poor people. Impro ed housing Improved ho sing environment en ironment for poor people. • Effective social safety net for poor people people. • Reduced gender gaps. The Strategy's Linkages and M it i F Monitoring Frameworkk Options for the Public Di t ib ti S Distribution System t (PDS) • 1st Option : Direct Cash Transfers : • 2nd Option : Di t ib ti the Distributing th Ration R ti C d to Card t those th who h live li under the poverty line only. 3rd Option : Electronic food cards with 3 alternatives of food baskets. Current Status 63 programs outt off the th 87 activities ti iti off the th Strategy St t are underway. Extra budget of $0.5 $0 5 billion has been allocated mainly for the following : Small loans, loans Reconstruction of 450 mud schools mainly in rural areas. areas Improvement of the rural roads network. Expected increase in the annual allocation in the coming years. Poverty y Reduction Strategy in Iraq www.cosit.gov.iq g q Th k Thank you