Iraq's transition to market to be tough, warn UN, WB
AFP, Baghdad
Iraq will have a difficult transition to a market economy after a decade of economic sanctions and must make social reforms to protect the most vulnerable members of society, the World Bank and United Nations warned Saturday. "The main challenge is the security situation," said Joseph Saba, the World Bank director for the Middle East. Iraq faces a "very difficult economic transition... that must not be underestimated," Saba told AFP on the sidelines of a conference in Baghdad of UN, World Bank and Iraqi officials. "The real challenge is creating jobs. Fifty per cent of the population is under 16 years. So how do you translate the growth into productive efficient employment? How do you create proper jobs for these young people? "We have to be careful about our expectations because you don't recover from 20 years of beating in one day," Saba cautioned. Gross Domestic Product (GDP) per capita is estimated to have plummeted to 1,200 dollars before the US-led war from over 3,300 dollars in 1980, according to World Bank figures. "People have to feel secure and enjoy social welfare. These are challenges," Saba said, adding that the "emphasis has to be on education and health." The World Bank, however, had not worked in a transitional country with as much wealth or as many qualified people as Iraq, Saba added, noting the state's vast water and oil resources. But he warned that the "existence of resources alone in a transitional period will not provide successful job creation."
| 
