| Abstract: | Iraq now faces a growing economic crisis, which is impoverishing the country and threatening its basic social fabric. The crisis is partly the result of decades of mismanagement on the part of the Iraqi government. It is also the result of massive overspending and foreign borrowing during the Iran–Iraq War and the Gulf War. This article investigates Iraq’s debt crisis and attempts to devise a pragmatic debt‐management strategy, which could pos‐sibly lead to solving this acute problem. The four‐pillar strategy introduced here, if well implemented, would not only obliterate the debt, but could more importantly set the scene for Iraq’s return to its place in the international community with a renewed political and economic stability. © 2000 John Wiley & Sons, Inc. |
