Following the overthrow of the despotic regime that ruled the ancient Land of Iraq and the entailing destruction of urban and rural infra-structure as well as facilities which called for complete reconstruction of the country, very few countries did not show interest in the Iraq's reconstruction efforts. The advance countries, namely France and Germany went as far as taking U.S. and the coalition forces to take by initiating an urging Diplomatic controversy.
Aside from serving the immediate economic interest of their national firms, who are incidentally better off than most firms in the region and even in Europe, the participation of Iranian and British firms in Iraq reconstruction program would bring about an unparalleled history of economic and potential relations of the three countries;
Considering the favorable position of Iran in the region, it is very likely that such cooperation would result in a kind of security and calm that is fundamental for the development of the Irano-British economic cooperation in the region. The relative advantages that make Iran suitable as regional partner for any group, in particular, the British firms are as follows:

-         Sharing more than 1458 km of common Boarder with Iraq.

-         Ability to supply materials and facilities need for reconstruction activities.

-         Having had the experience of rebuilding five Iranian provinces destroyed during the 8-year old Iran and Iraqi war.

-         Having skilled and relatively inexpensive manpower that are also at home with Iraqi entrance and traditions.

-         Iraqi’s eagerness to work and deal with Iranian people.

-         Being potentially able to ensure Security in the region.

In response to several proposals made by our members concerning their eagerness to join interested British firms for reconstruction projects in Iraq, IBCCIM management – considering Iran’s relative position of economic strength in the region and the experience of rebuilding several provinces with 90% destruction in the Iran-Iraqi war – has drawn up plans to create a forum where by the large and willing British firms would be able to meet their Iranian counterparts to engage in reconstruction of Iraq. The first step in their endeavor is to identify the interested British firms and the next would be to try to bring them face to face with Iranian firms eager to get involved in Iraq’s reconstruction. To facilitate there, a glossary of Iraq’s situation seems to be in order.

Iraq, which up to the advent of WWI had been a past of the Ottoman Empire, was occupied by the British as mandate of the league of Nations Attained independence in 1939, establishing a monarchy

In 1958, however, a military coup turned the country into a republic and in March 2003, following the invasion made by U.S. and British force was put under the coalitions administration.

Geographical and Political Characteristics:

Of Iraq’s 437,072Sq.km,total Area, 4,910 Sq. km consists of water and the remaining 432,162 Sq. km in land. Iraq has common boarder with Iran (1458 km), Jordan (181 km), Kuwait (240 km), Saudi Arabia (814 km), Syria (605 km), and Turkey (352 km). Iraq in strategically located at the head of Persian gulf and has access To Arvand Rood River, through its shores of Persian gulf in any 58 km long.

Iraq is very rich in natural resources, only seemed to Saudi Arabia in its proven oil resources. Aside from oil and abundant natural gas, Iraq has phosphate and sulfur.

Iraq’s main cities are:

Baghdad, the capital, Basrah, Kirkuk, Mossul, Karbala, Najaf Ashraf, Samereh and Samerah.

Population and manpower:

Population of Iraq in 2003 estimate was 24,683,000 -with a growth rate of 2.8% Arabs and Kurds are the country’s main ethnic groups comprising of 75-80% Arabs out 15-20% Kurds, the remaining percentage are Turkmen and Assyrians 97% of the population is Muslim (shi’a 65%, Sunni 35%) and the rest are Christians and others.

 Current languages in Iraq are Arabic and Kurdish (official in Kurdish region), Assyrian and Armenian. 58% of the total population is considered to be literate (able to read and write). Literacy distribution is 70.7% among men, 45% among women.

Iraq’s Economy

Macro Economic Index

The Iraq’s macro – economic index are shown below.

                                                                   Amount in Billion Dollars

Gross Domestic products:

 In 2002, Iraq’s GDP was estimated to be 58 Billion U.S dollar, representing 3% reduction compared to previous year. In the same year per capita GDP was recorded as 2400 U.S. dollar.

Total non-oil GDP is compared of   81%  services, 13% Industry and 6% agriculture .

Iraqi’s economy heavily depends on oil production and exports so that in 2002 country, total earning was 13 billion dollars.

Oil:

Iraq’s proven oil reserves are estimated to be 113.8 Bbl ranking only second to Saudi Arabia. It is estimated that possible oil reserve of the country may reach 220 B bbls.

Up to the war, Iraq’s crude oil export was mainly recurred from the 2 fields of Ramileh  and Karkuk. The average rate of production before the coalition Attack on oil wells in 1990 was 3.5 mbbl/d. after the Gulf war it was reduced to 300000 bbl/d.

Iraq,s domestic oil consumption is estimated to be500,000,bbl/d which is rather high compared to Iran.

Iraq’s oil pipe lines reach al Bakr’s port for Asian counties, passes through Turkey for the European market and also one from Karkuk to Syria, inaugurated in 2001. The latter carries 150000 bbl/d of crude to Syria. The Karkuk – Jaihan pipe line with a capacity of 71 mbld of oil in one of the most important pipe – lines.

Russia, Italy, Malaysia, France, and China are among the most significant purchaser of Iraq’s oil. Iraq’s natural gas reserves are estimated to be 3.149 trillion cum. In 2001, production and consumption of natural gas reached 2.79 b. euro.

The Iraqi’s monitory unit is Iraqi Dinar which, given the recent development, keeps fluctuating.

Agricultural and Animal Husbandry:

About 20% Iraq’s lands are suitable for Agriculture. Among the most important products are: dates, wheat, cotton, rice, vegetables, cattles and sheeps. Half of all arable land lies in the northen half of the country which receives enough rainfall and is thus useful for agriculture. The areas surrounding Tigris and Erphrates are quite suitable for agriculture but because of ever-using the land and poor management the yield in les than adequate and various environmental problem have been created.

Industry and Mining:

Iraq’s important mineral reserves include: oil natural gas, phosphates and sulfur. The most important industries are textile, construction materials and food processing.

Electricity :

In 2003, a total of 4.5 million W of electricity was produced in thermal generators built on Moussel and Sadam Dams. Electricity consumption in Iraq is about 6.6 million w. the shortage of 2 million w causes continuous black outs.

Water and Sewage Facilities: 

During the American attacks on Iraq, the water and sewage infrastructure facilities were severely damaged. Lack of sufficient number of skilled personnel and facilities have aggravated the situation more than 90% of the population has access to running water, but per capita use in insufficient. The corresponding ratio for the rural area is 50%.

In general leakage of contamination water to the water network has caused contagious disease epidemics. The Baghdad sewage systems have been outrun by population growth and 500,000 tons of contaminated materials are carried daily to the river, which is again a cause for spreading disease.

Transport and Communication:

Iraq has 4500 km of high ways with a considerable percentage of them - 80% - are in acceptable condition of the total highway network, 38399 km is paved and 7151 km is unpaved. The country’s rail network is 1963 km long. Beside, there is 1015 km of waterways in Iraq.

Airports:

Before the war of March 23, Iraq had 150 airports, including 77 with paved runways and 73 unpaved runways. It is not known however that how many of these airports have been knocked out by the coalition forces.

Ports:

The two ports of Basrah and Uum Qasr and the main ports in Iraq, which are both quite, damaged in the passed was and need to be rebuilt. 

Telephone and other Communication Facilitation:

In 1977, about 675000 telephone lines operated in Iraq. There are no figures available as to the number of lines that have been damaged during the march war.   This is also true of other communication facilities such as radio, T.V, mobile cellular, and satellite facilities.