EconomiesThe broad institutional framework within

which economic interaction takes place in a country is called an economy.

Types of economies on the bases of stage of development

Developing economy Developed economy

DEVELOPED COUNTRY

•A developed country or economy is defined as a country which has a high real per capita income.

UNDERDEVELOPED COUNTRY

•An underdeveloped country or economy on the other hand is defined as a country in which the real per capita income is low and which has the potential of development.

Generalized characteristics of developed countries:

Generalized characteristics of developing countries:

High level of per capita income Low per capita income

High level of industrial development In the process of industrialization

High level of affluent citizens Low level of affluent citizens

Low levels of unemployment Higher levels of unemployment

Higher education rates Lower education rates

Technological advantages Limited technological capacity

Stable governments Unstable governments

Easy to access advanced medical services Poor access to medical services

Low birth rates High level of birth rates

Low death rates High level of death rates

Safe water supplies Dirty, unreliable water supplies

Good housing conditions Poor housing conditions

Abundant food supplies Poor nutrition

Good health care Diets that are short in calories and/or protein

Increased life expectancy Endemic disease in some countries

High Human Development Index (HDI) Low to medium standard of living

Equality in distribution of income Unequal distribution of income

Human and natural resources are fully utilize. Factors of production are not fully utilized

Comparison Of Types Of Economies

DEVELOPEDING COUNTRY

IRAQWorld ranking

131st

DEVELOPED COUNTRY

NORWAYWorld ranking

1st

PARAMETERS OF DEVELOPMENT

Development of a country is measured keeping several aspects in mind . The 3

most important parameters of development are

1. PER CAPITA INCOME INDEX- per capita income

2. PHYSICAL QUALITY OF LIFE INDEX- Life Expectancy, Infant Mortality, Basic Literacy

3. HUMAN DEVELOPMENT INDEX- Life expectancy, educational attainment, adjusted GDP per capita

COMPARISON BETWEEN IRAQ AND NORWAY BASED ON PARAMETERS OF

DEVELOPMENT

Economic indicators

IRAQGDP LAST HIGHEST LOWEST

GDP (USD Billions) 222.88 222.88 1.70

GDP Annual growth rate %

4.21 54.16 -56.40

Gross National Product(IQD Million)

191417039.50 191417039.50 20594975.00

GDP per capita 2505.39 3452.99 228.18

GDP Constant Prices (IQD Million)

10452400.00 15956200.00 1105299.00

NORWAYGDP LAST HIGHEST LOWEST

GDP (USD Billion) 512.58 512.58 5.20

GDP Annual Growth Rate %

3.90 9.80 -4.40

Gross National Product(NOK Million)

777395.00 800432.00 54049.00

GDP per capita (USD)

65188.52 67804.55 17331.90

GDP Constant Prices(NOK Million)

717729.00 717729.00 285627.00

IRAQ   

GNI per capita 2012, US$ 5870

GDP per capita average annual growth rate (%), 1990-2012

-1.7

Average annual rate of inflation (%) 1990-2012

18.2

Population below international poverty line of US$1.25 per day (%) 2007-2011*

2.8

Public spending as a % of GDP (2007-2011*) allocated to: health

6.7

Public spending as a % of GDP (2008-2010*) allocated to: education

–

Public spending as a % of GDP (2008-2010*) allocated to: military

5.1

ODA inflow in millions US$ 2010 1904.1

ODA inflow as a % of recipient GNI 2010 1.1

Debt service as a % of exports of goods and services 2010

–

Share of household income (%, 2007-2011*), poorest 40%

22

Share of household income (%, 2007-2011*), richest 20%

40

NORWAY   

GNI per capita 2012, US$ 98860

GDP per capita average annual growth rate (%), 1990-2012

1.8

Average annual rate of inflation (%) 1990-2012

4.2

Population below international poverty line of US$1.25 per day (%) 2007-2011*

–

Public spending as a % of GDP (2007-2011*) allocated to: health

8.2

Public spending as a % of GDP (2008-2010*) allocated to: education

7.3

Public spending as a % of GDP (2008-2010*) allocated to: military

1.7

ODA inflow in millions US$ 2010 –

ODA inflow as a % of recipient GNI 2010 –

Debt service as a % of exports of goods and services 2010

–

Share of household income (%, 2007-2011*), poorest 40%

24

Share of household income (%, 2007-2011*), richest 20%

37

IRAQ NORWAY

Iraq Food Inflation at 4.50 Percent Norway Food Inflation at 2.60 Percent

Iraq Core Inflation Rate at 1.40 Percent Norway Core Inflation Rate at 2.41 Percent

Iraq Core Consumer Prices at 145.50 Index Points

Norway Core Consumer Prices at 127.50 Index Points

Iraq Consumer Price Index (CPI) at 144.10 Index Points

Norway Consumer Price Index (CPI) at 136.40 Index Points

Iraq Inflation Rate at 2.30 Percent NorwayInflation Rate at 1.90 Percent

Iraq GDP per capita at 2505.39 USD GDP per capita at 65188.52 US

Iraq Exports at 94171.60 USD Million Norway Exports at 70296.77 NOK Million

Health care and Demographic

features

IRAQto the top  

Use of improved drinking water sources (%) 2011, total

84.9

Use of improved sanitation facilities (%) 2011, total

83.9

Immunization coverage (%) 2012, BCG 90

Immunization coverage (%) 2012, DPT1

87

Immunization coverage (%) 2012, polio3

70

Immunization coverage (%) 2012, Hib3 46

Immunization coverage (%) 2012, Newborns protected against tetanus

85

Diarrhea (%) 2008-2012*, Treatment with oral rehydration salts (ORS)

22.8

Under-5 mortality rank 70

Under-5 mortality rate (U5MR), 2012 34

NORWAYto the top  

Use of improved drinking water sources (%) 2011, total

100

Use of improved sanitation facilities (%) 2011, total

100

Immunization coverage (%) 2012, BCG –

Immunization coverage (%) 2012, DPT1

99

Immunization coverage (%) 2012, polio3

95

Immunization coverage (%) 2012, Hib3 95

Immunization coverage (%) 2012, Newborns protected against tetanus

–

Diarrhea (%) 2008-2012*, Treatment with oral rehydration salts (ORS)

–

Under -5 mortality rank 154

Under -5 mortality rate(U5MR),2012 3

IRAQ

Low birthweight (%) 2008-2012* 13.4

Early initiation of breastfeeding (%), 2008-2012*

42.8

Exclusive breastfeeding <6 months (%), 2008-2012*

19.6

Introduction of solid, semi-solid or soft foods 6-8 months (%), 2008-2012*

35.5

Breastfeeding at age 2 (%), 2008-2012* 22.7

Underweight (%) 2008-2012*, moderate & severe

8.5

Underweight (%) 2008-2012*, severe 3.7

Stunting (%) 2008-2012*, moderate & severe

22.6

Overweight (%) 2008-2012*, moderate & severe

11.8

Vitamin A supplementation full coverage (%) 2012

–

Iodized salt consumption (%) 2008-2012* 2

NORWAY   

Low birthweight (%) 2008-2012* 5

Early initiation of breastfeeding (%), 2008-2012*

–

Exclusive breastfeeding <6 months (%), 2008-2012*

–

Introduction of solid, semi-solid or soft foods 6-8 months (%), 2008-2012*

–

Breastfeeding at age 2 (%), 2008-2012* –

Underweight (%) 2008-2012*, moderate & severe

–

Underweight (%) 2008-2012*, severe –

Stunting (%) 2008-2012*, moderate & severe

–

Overweight (%) 2008-2012*, moderate & severe

–

Vitamin A supplementation full coverage (%) 2012

90

Iodized salt consumption (%) 2008-2012* 95

IRAQ  

Population (thousands) 2012, total 32778

Population (thousands) 2012, under 18

15421.3

Population (thousands) 2012, under 5

4823.9

Population annual growth rate (%), 2012-2030

2.5

Crude death rate, 2012 5.3

Crude birth rate, 2012 31.5

Life expectancy, 2012 69.2

Total fertility rate, 2012 4.1

Urbanized population (%), 2012 66.4

Average annual growth rate of urban population (%), 2012-2030

2.6

NORWAY

Population (thousands) 2012, total 4993.9

Population (thousands) 2012, under 18

1130.8

Population (thousands) 2012, under 5

319.2

Population annual growth rate (%), 2012-2030

0.9

Crude death rate, 2012 8.4

Crude birth rate, 2012 12.5

Life expectancy, 2012 81.4

Total fertility rate, 2012 1.9

Urbanized population (%), 2012 79.7

Average annual growth rate of urban population (%), 2012-2030

1.1

IRAQto the top  

Youth (15-24 years) literacy rate (%) 2008-2012*, male

84.1

Youth (15-24 years) literacy rate (%) 2008-2012*, female

80.5

Number per 100 population 2012, mobile phones

79.4

Number per 100 population 2012, Internet users

7.1

Pre-primary school participation, Gross enrolment ratio (%) 2008 -2012*, male

–

Pre-primary school participation, Gross enrolment ratio (%) 2008 -2012*, female

–

Primary school participation, Net enrolment ratio (%) 2008-2012*, male

–

Primary school participation, Net enrolment ratio (%) 2008-2012*, female

–

Secondary school participation, Net enrolment ratio (%) 2008-2012*, male

–

Secondary school participation, Net enrolment ratio (%) 2008-2012*, female

–

NORWAY to the top  

Youth (15-24 years) literacy rate (%) 2008-2012*, male

–

Youth (15-24 years) literacy rate (%) 2008-2012*, female

–

Number per 100 population 2012, mobile phones

115.5

Number per 100 population 2012, Internet users

95

Pre-primary school participation, Gross enrolment ratio (%) 2008 -2012*, male

100

Pre-primary school participation, Gross enrolment ratio (%) 2008 -2012*, female

98.3

Primary school participation, Net enrolment ratio (%) 2008-2012*, male

99.1

Primary school participation, Net enrolment ratio (%) 2008-2012*, female

99.2

Secondary school participation, Net enrolment ratio (%) 2008-2012*, male

93.9

Secondary school participation, Net enrolment ratio (%) 2008-2012*, female

94

Women and children care

IRAQLife expectancy: females as a % of males 2012V

111.1

Adult literacy rate: females as a % of males 2008-2012*

82.8

Enrolment ratios: females as a % of males 2008-2012*, Primary GER

–

Enrolment ratios: females as a % of males 2008-2012*, Secondary GER

–

Survival rate to the last grade of primary: females as a % of males 2008-2012*

–

Delivery care (%) 2008-2012*, Skilled attendant at birth

90.9

Delivery care (%) 2008-2012*, Institutional delivery

76.6

Maternal mortality ratio , 2010, Adjusted 63

Maternal mortality ratio , 2010, Lifetime risk of maternal death (1 in:)

310

NORWAYLife expectancy: females as a % of males 2012

105.4

Adult literacy rate: females as a % of males 2008-2012*

–

Enrolment ratios: females as a % of males 2008-2012*, Primary GER

100.2

Enrolment ratios: females as a % of males 2008-2012*, Secondary GER

98.2

Survival rate to the last grade of primary: females as a % of males 2008-2012*

99.5

Delivery care (%) 2008-2012*, Skilled attendant at birth

–

Delivery care (%) 2008-2012*, Institutional delivery

–

Maternal mortality ratio , 2010, Adjusted

7

Maternal mortality ratio , 2010, Lifetime risk of maternal death (1 in:)

7900

IRAQto the top  

Child labour (%) + 2002-2012*, , total 4.7

Child labour (%) + 2002-2012*, , male

5.4

Child labour (%) + 2002-2012*, , female

4

Child marriage (%) 2002-2012*, married by 15

4.6

Child marriage (%) 2002-2012*, married by 18

24.3

Birth registration (%) 2005-2012*, total

99.2

Justification of wife-beating (%) 2002-2012*, male

–

Justification of wife-beating (%) 2002-2012*, female

51.2

Violent discipline (%) + 2005-2012*, total

79

NORWAY  

Child labour (%) + 2002-2012*, , total –

Child labour (%) + 2002-2012*, , male –

Child labour (%) + 2002-2012*, , female

–

Child marriage (%) 2002-2012*, married by 15

–

Child marriage (%) 2002-2012*, married by 18

–

Birth registration (%) 2005-2012*, total

100

Justification of wife-beating (%) 2002-2012*, male

–

Justification of wife-beating (%) 2002-2012*, female

–

Violent discipline (%) + 2005-2012*, total

–

CAUSES OF DOWNFALL OF IRAQ

1st Gulf war 1 st gulf war-After the success of the 1979 Iranian Revolution arming Shiite and Kurdish rebels against Saddam's regime and sponsoring assassination attempts on senior Iraqi officials. Following months of cross-border raids between the two countries, Saddam declared war on Iran in September`1980, initiating the Iran–Iraq War The war ended in stalemate in 1988. In 1981, Israeli aircraft bombed an Iraqi nuclear materials testing reactor at Osirak In the final stages of Iran–Iraq War, the Ba'athist Iraqi regime led the Al-Anfal Campaign, a genocidal campaign that targeted Iraqi Kurds, and led to the killing of 50,000 – 100,000 civilians .

2nd Gulf war

2nd gulf war-In August 1990, Iraq invaded and annexed Kuwait. This subsequently led to military intervention by United States-led forces in the First Gulf War. Iraq's armed forces were devastated during the war and shortly after it ended in 1991 It is estimated that as many as 100,000 people, including many civilians were killed

Present crisisHistory -Intense inter-ethnic violence between Sunnis and

Shias. The Mahdi Army, a Shia militia was created] began to fight Coalition forces in 2004 and various Sunni militias were also

created in 2003. Abu Musab al-Zarqawi's Jama'at al-Tawhid wal-Jihad Islamist terrorist group became Al-Qaeda in Iraq in October

2004 and began targeting Coalition forces as well as civilians (mainly Shia Muslims) further exacerbating ethnic tensions.

During 2013 Sunni militant groups stepped up attacks targeting the Iraq's Shia population in an attempt to undermine confidence in the Nouri al-Maliki-led government. In 2014 Sunni insurgents

belonging to the Islamic State of Iraq and the Levant (ISIL) terrorist group seized control of several major Iraqi cities, including Tikrit, Fallujah and Mosul creating hundreds of

thousands of internally displaced persons amid reports of atrocities by ISIL fighters. The circumstances are still very critical.

Consequences • A total of around 2 million people died in both wars • Loss of more than $800 billion.• Oil production was affected as each country targeted

the other’s oil terminals. Both nations also attacked oil tankers and merchant ships

• Education effected-2751 schools were damaged severely. 2400 schools experienced looting. Education personnel were targeted, kidnapped, attacked, and or killed.

• The present crisis pose a threat on oil exports and rise in price of oil and relations with countries whose citizens have been captured by the terrorist groups

Foreign relations Iraq had good relations with countries like the USA ,Soviet union etc . But was not n friendly terms with some neighbors the Invasion of Kuwait that triggered the Gulf War brutally

changed Iraq's relations with the Arab World and the West. Egypt, Saudi Arabia, Syria and othersThe Iraqi Government's failure to disarm and

agree to a ceasefire resulted in sanctions attacks on U.S. aircraft patrolling the no-fly zones led

to U.S. bombing of Iraq in December 1998. Following the 9/11 terrorist attacks .

Capital shortage and Government policies

There are certain reasons to this shortage of the capital that is a major cause for the region’s under developing state.•First of all, inefficiency of investment has been constantly falling throughout the past decade in the region leading to a vacuum of destabilization and shortage of capital. •Second, savers and investors (with good reason) fear and distrust national governments. Specifically, they fear that their savings will be expropriated either directly by state decree, or by stealth via rampant inflation and overvalued exchange rates•Another important reason is the government policies that mar the outside investment in the region

Lack of development in the oil sector

The lack of development in other sectors has resulted in 18%–30% unemployed and a

depressed per capita GDP of $4,000.Public sector employment accounted for nearly 60% of

full-time employment in 2011. The oil export industry, which dominates the Iraqi economy,

generates very little employment. Currently only a modest percentage of women (the highest estimate for 2011 was 22%) participate in the

labour force.

Population growthThere is no family planning system followed due to religious reasons family sizes are very large leading to a number of problems like•The disorganization of the provision of education to the fast growing number of the youth•Increasing unemployment •This in turn affects the semi-educated, young people, who contribute toward political unrest due to the growing angerraised the demand of food in the region•Migrating population also created a problem for managing the food supply in the region

•Government is unable to provide good quality of life to such a large number of people

CAUSES OF PROSPERITY OF NORWAY

•Norway remained neutral during World War I, and maintained neutrality in WWII. Norway has not had a war after world war 2 .•Stable government- Norway experiences a very stable form of government Norway is a unitary constitutional monarchy with a parliamentary system of government, wherein the King of Norway is the head of state and the Prime Minister is the head of government•In general, the legal and institutional framework in Norway is characterized by a high degree of transparency, accountability and integrity, and the perception and the occurrence of corruption are very low.

• Low population density- Norway has an average population density is 15.5 persons /sq km

• Amiable foreign relations-Norway maintains embassies in 86 countries. 60 countries maintain an embassy in Norway, all of them in the capital, Oslo.

• Norway is a founding member of the United Nations (UN), the North Atlantic Treaty Organization (NATO), the Council of Europe and the European Free Trade Association (EFTA).

• Proper utilization of resources -Export revenues from oil and gas have risen to almost 50% of total exports and constitute more than 20% of the GDP. Norway is the fifth-largest oil exporter and third-largest gas exporter in the world, In March 2011, the Government Pension Fund controlled assets were valued at approximately US$570 billion (equal to US$114,000 per capita) which is about 140% of Norway's current GDP

• Well connectivity -Norway has approximately 92,946 kilometers (57,754 mi) of road network, of which 72,033 kilometers (44,759 mi) are paved and 664 kilometers (413 mi) are motorway. Of the 97 airports in Norway, 52 are public

Creditssukhan rangimrs.kuldeep sekhon