Professional Documents
Culture Documents
Dr. Akeel
ENG 203
November 14, 2016
Economic Crisis in Kurdistan
In this research paper, the concept of economic crisis will be applied
to the topic of the economic crisis in Kurdistan. An Economic crisis is a
situation in which the economy of a country experiences a rapid decline
brought on by a financial crisis. An economy facing an economic crisis will
most likely experience a falling GDP, a drying up of liquidity and
rising/falling prices due to inflation/deflation. The economy of Kurdistan
region heavily depends on the oil, tourisms, and farming products. There
is more established economy compared to other parts of Iraq because of
stronger security and open world-wide trading markets. This research is
about the current economic crisis in Kurdistan, and the debate about it
inside a Kurdish society. Therefore economic crisis as a cultural definition
is seen as a huge and affective problem in the country because teachers,
employees, workers, and every citizen who work for the government will
be affected by the decline of economy rates. I personally think that this
structure of the economy in Kurdistan in the political science and
economic science is known as a rentier state which originates all or a
large portion of its national incomes from the rent of natural resources to
external customers. Hence, a decline in the countrys economy will have a
huge negative effect on business and marketing.
emerged in the third century, also known as the Military Anarchy in which
the Roman Empire nearly misshapen under the pressure of the civil war,
invasion, and economic depression. The empire challenged a
hyperinflation caused by years of currency deflation.
Paragraph Two: This paragraph will be mainly about the common effects
of economic crisis. There are several types of crisis and the most common
ones are banking crisis, currency crisis, international financial crisis, and
influence on population. Therefore, when a bank suffers a sudden urgency
of withdrawals by depositors, it creates a banking crisis that happened in
most of the banks in Kurdistan and put most of government employees in
a hard time because of the lack of their salary. A currency crisis happens
when the percentage depreciations in the exchange rate and monthly
percentage declines. An international financial crisis is a worldwide era of
economic struggle experienced by markets and consumers. A global
financial crisis is a difficult business situation to succeed in since potential
consumers lean towards to decrease their purchases of goods and
services until the economic situation recovers. Finally, the standard of
living will be deteriorated and an obvious share of the population will be
vulnerable to falling into poverty.
activity and have rapidly increased the economic and current account
debits.
Paragraph Five: a rentier state is equal to a weak state ss the state only
depends on the natural resources, and the economic structure did not
advanced because of the absence of diverse economy and a good
taxation system. As a consequence of this when there is the global decline
of the price of the natural resource that the country depends on it heavily
will have an economic crisis. An example of this can be seen in the Spain
during the American colonies in the 16th century.
heavily relies on oil industry as the main source for funding the
government and infrastructure development. The oil sector become the
main segment of economy, so as KRG depends on the outside rental of its
oil and gas resources one of the most significant characteristic of rentier
state apply on its economy.
of the war situation, also the declining of oil price internationally, finally
Kurdistan Parliaments focus on the political issues instead of the
economic crisis.
Paragraph 10: Finally, who pays for all of these crisis and unusual
conditions? As it is seen, the citizens, employees, worker, farmers, and
even the future generations will have to pay for it if it will not be fixed.
Business, marketing, and import/export trade markets will get into an
unstable route that will need a hard work to get them back to the
standard method.