: [964] (1) 719-6138, 719-6139,
718-1840, 719-3791; FAX: [964] (1) 718-9297

Flag description: three equal horizontal bands of red (top), white,
and black with three green five-pointed stars in a horizontal line
centered in the white band; the phrase ALLAHU AKBAR (God is Great) in
green Arabic script-Allahu to the right of the middle star and Akbar
to the left of the middle star-was added in January 1991 during the
Persian Gulf crisis; similar to the flag of Syria that has two stars
but no script and the flag of Yemen that has a plain white band; also
similar to the flag of Egypt that has a symbolic eagle centered in the
white band

@Iraq:Economy

Economy-overview: The Ba'thist regime engages in extensive central
planning and management of industrial production and foreign trade
while leaving some small-scale industry and services and most
agriculture to private enterprise. The economy has been dominated by
the oil sector, which has traditionally provided about 95% of foreign
exchange earnings. In the 1980s, financial problems caused by massive
expenditures in the eight-year war with Iran and damage to oil export
facilities by Iran led the government to implement austerity measures
and to borrow heavily and later reschedule foreign debt payments; Iraq
suffered economic losses of at least $100 billion from the war. After
the end of hostilities in 1988, oil exports gradually increased with
the construction of new pipelines and restoration of damaged
facilities. Agricultural development remained hampered by labor
shortages, salinization, and dislocations caused by previous land
reform and collectivization programs. The industrial sector, although
accorded high priority by the government, also was under financial
constraints. Iraq's seizure of Kuwait in August 1990, subsequent
international economic embargoes, and military action by an
international coalition beginning in January 1991 drastically changed
the economic picture. The UN-sponsored economic embargo has reduced
exports and imports and has contributed to the sharp rise in prices.
The Iraqi Government has been unwilling to abide by UN resolutions so
that the economic embargo could be removed. The government's policies
of supporting large military and internal security forces and of
allocating resources to key supporters of the regime have exacerbated
shortages. Industrial and transportation facilities, which suffered
severe damage, have been partially restored.