Netherlands contributes $270K in Kurdistan Economic Reform Roadmap

ERBIL, Kurdistan Region (Kurdistan24) – The Netherlands supported the reforms in the Kurdistan Region and contributed €250,000 (about USD $270,000) to help the Region develop its economic system following a financial crisis, the UN reported on Friday.

The World Bank developed the roadmap in cooperation with the Kurdistan Regional Government’s (KRG) Ministry of Planning.

The Dutch contribution is part of the Funding Facility for Economic Reform (FFER) started by the KRG Ministry of Planning and the United Nations Development Programme (UNDP) in September 2016.

The UNDP will support the enacting of the Economic Reform Roadmap through FFER which aims to resolve the major economic problems in the Kurdistan Region as well as stimulate the reforming plan.

The improvement aims to diversify Kurdistan’s economy and promote the role of the private sector in the Region.

“There is a simple premise underlying this Economic Reform Roadmap that the [Kurdistan Region] can and will have a better future if we work together to enable it,” Ali Sindi, the KRG’s Planning Minister, stated.

“The process of adapting our economy to prepare for a better future is outlined in this Economic Reform Roadmap,” Sindi continued.

“We will implement important reforms that will allow for fiscal adjustment to move away from oil dependency, while also protecting the poor from the impacts of fewer subsidies,” he continued.

Sindi noted the KRG needed to advance the role of the private sector to attract foreign investment if the Region was seeking a larger and more productive workforce.  

“We must make it easier to start, run, and close a business,” the minister added.

Jane Alberda, the Consul General of the Netherlands in Erbil, explained Kurdistan was encountering difficulties but backed the KRG’s reform move in the public sector to flourish.

“The Netherlands government provides many types of support to the Kurdistan Region – military, humanitarian, and stabilization activities – which contributes to the increase of our good relations,” Alberda said.  

“I look forward to good and open discussions with all relevant stakeholders on this Economic Reform Roadmap, and hope this roadmap will also provide a larger platform for discussions with the public on the necessary steps to take,” she added.

Moreover, the UNDP Deputy Country Director for Iraq Sultan Hajiyev highlighted the Netherlands’ financial contribution, claiming it would assist the KRG to address the crisis in the Region.

“The implementation of the KRG’s reform plan will be supported to remain on track,” he noted. “We are very glad to partner closely with our World Bank colleagues on this important initiative.”

Since 2014, the Kurdistan Region has experienced a critical financial crisis.

According to the KRG Prime Minister Nechirvan Barzani, it was related to the rapid drop in oil prices internationally, Baghdad’s blockade of Kurdistan’s federal budget, the Islamic State war, and a flow of refugees and displaced to the Kurdistan Region.

Editing by Karzan Sulaivany