Ending Political Instability, Iraq Officially Appoints Prime Minister Al-Kadhimi

Prime Minister Former NIS Director Emerges After 5 Months of Political Instability
Numerous Challenges to Address
Need to Resolve Sectarian and Ethnic Conflicts
Sharp Decline in Fiscal Revenue Due to Low Oil Prices
Rising Risk of Conflict Between the US and Iran

[Asia Economy Reporter Naju-seok] Ending five months of turmoil over the prime minister appointment, Mustafa Al-Kadhimi, head of the Iraqi National Intelligence Service, was officially appointed as the new prime minister on the 6th (local time). After three nominations of the prime minister candidate entrusted with the authority to form the cabinet amid extreme political instability, the official cabinet was finally able to launch.

[Image source=EPA Yonhap News]

On the 7th (local time), the Iraqi parliament officially approved Prime Minister Al-Kadhimi's inauguration. Previously, Iraq had been unable to form a government since Prime Minister Adil Abdul-Mahdi resigned following anti-government protests last year. During that time, Iraqi President Barham Salih nominated former Communications Minister Muhammad Alawi and lawmaker Adnan Al-Zurfi as prime minister candidates, but they failed to gain parliamentary approval.

Prime Minister Al-Kadhimi is known to be from the Shiite sect, to which the Iraqi majority belongs, and is regarded as pragmatic. During former President Saddam Hussein’s regime, he avoided political persecution by staying in Europe and other places, working as a journalist. After Hussein’s downfall, he returned to Iraq and participated in launching state media outlets. Since 2016, he has served as the head of the National Intelligence Service. He is evaluated as having good relations with the US and Iran and exhibiting a pragmatic approach.

The new prime minister faces numerous challenges. He must address the ongoing anti-government protests that have continued since October last year, which have resulted in over 500 deaths. Regarding the protests, Al-Kadhimi has stated that instead of suppressing them, he plans to meet with protesters and engage in direct communication, seeking a new approach.

A bigger issue is Iraq’s worsening financial situation following the oil price collapse. Iraq has traditionally secured fiscal revenue through oil and natural gas. Initially, Iraq had budgeted based on an expected oil price of around $56 per barrel this year. However, West Texas Intermediate (WTI), the international benchmark crude oil, remains around $20 per barrel, causing a sharp decline in fiscal revenue.

As a result, Iraq faces the need to reduce the number of public servants or significantly cut their salaries.

The regional situation around Iraq is also tense. There has been a possibility of armed clashes between US troops stationed in Iraq and Iran-backed militias. This raises concerns that Iraq could become a proxy battleground between the US and Iran. On the same day, US President Donald Trump vetoed a resolution requiring congressional approval for military action against Iran. With the removal of this military conflict safeguard, the likelihood of military clashes between the US and Iran has increased.

The novel coronavirus disease (COVID-19) is also a challenge. Movement restrictions have been imposed to curb the spread of COVID-19, and the new prime minister must decide when and how to resume economic activities. According to data from Johns Hopkins University in the US, Iraq has reported 2,480 confirmed COVID-19 cases and 102 deaths so far.

This content was produced with the assistance of AI translation services.