The emerging crisis of the Corona epidemic coincided with the economic crisis of dumping oil markets on production due to the lack of agreement between the primary producers, which led to a significant deterioration in world oil prices and then lower returns to oil-exporting countries including Iraq. The world economy is facing an unprecedented shock in the oil supply. Although the data are still insufficient to assess the overall impact of the quarantine measures due to the Corona epidemic on the productive capacity of producing companies, the warnings received from major international institutions warn of the seriousness of the current situation.

Iraq, which entered into a contract with China based on the principle of oil for construction, now it will be difficult to implement its provisions directly, especially as Chinese factories and production institutions are currently suspended, and after the share of Chinese added value in the final global demand for manufactured goods has increased significantly, with the adoption of various production sectors Global on Chinese companies. The potential for supply shock to be accompanied by a severe weakening of oil demand, i.e., a decrease in consumption or purchasing power, with the virus continuing to spread and turning into a pandemic.

So we are in Iraq, and in the Kurdistan Region in front of a complex economic crisis created by unfavorable conditions, we are still facing the risks of the rapid spread of the virus, which necessitates taking the necessary precautions to confront it. It needs excellent economic and financial resources, as well as with a crisis represented by the drop in oil prices to the limits that constitute a high risk on its economy, Iraq is a state with almost the only product.

Experts and people concerned with this matter in Iraq warn that Iraq’s oil revenues may decrease by less than half in the budget for the year 2020, noting that the leading solution that must be adopted in the future is to follow a policy of diversification of production. Iraq, including the Kurdistan Region, is not an industrialized country. Still, since its inception, the first civilizations in it is an agricultural country whose people depend on agricultural work, both plant and animal. Until the 1940s, agricultural production was ahead of all other products, including oil.

Now, can agriculture be replaced in the first place again in its economy? The answer is yes because, despite the great neglect faced by the Iraqi agricultural sector over the past decades, the agricultural lands are still ready to invest in large agrarian projects if the focus is on the maintenance of irrigation and dams projects, provision of water rations, and restarting reclamation projects. Perhaps the Region of Kurdistan is the least affected, as it is located in the areas secured and semi-secured by rain. Therefore it needs only the implementation and maintenance of dams through which it can provide irrigation water to all areas of agriculture. In addition to the other benefits provided by dams and water reservoirs that store rainwater, which requires continuous investment.

The Kurdistan Region, in particular, can implement large agricultural projects to provide the requirements, expertise, and workforce with various scientific specialties. Also, the farmers in the region are still mostly practicing organic agriculture that does not need chemical fertilizers. Cereal production currently covers local demand, and if it is managed well, it will provide significant revenues to the region.

All of this can be achieved with proper planning and awareness of the importance of restructuring the economy in a manner that guarantees reducing dependence on oil as the only source of revenue. And if the other financial resources are available, it is better to invest part of it in the field of agricultural industrialization, which also provides commercial revenues either through exports abroad or by ending the import phenomenon of farm products that we currently see in our markets and which in any case does not match the quality of the local products. It is also a phenomenon that leads to exhaustion of the economy and leakage of hard currency.