The government of Iraq has been able to successfully achieve macroeconomic stabilisation. Public efforts have focused on providing a social safety-net to the most vulnerable groups in the Iraqi population, increasing public sector employment and continuing the quasi-universal provision of a food basket. However, the capacity of the Iraqi private sector to provide sustainable employment and alleviate poverty continues to encounter difficulties. Early efforts to promote the Iraqi private sector by the government have been limited to foreign investment promotion and have not covered the whole spectrum of legislative and policy instruments required. The impact of these efforts has also been heavily constrained by the lack of security, political stability and other governance issues. Moreover, the potential for short to medium term employment generation and the sustainable growth of domestic investors, which are primarily small and medium sized enterprises, have received insufficient attention thus far.
The objective of this project is to create and enable an effective, coherent and comprehensive framework for private sector development in Iraq, at both national level and in target governorates.
This Programme brings together six UN agencies in support of private sector development in Iraq. Through the support of the ILO the following results will be achieved:
- National capacities for private sector development policies are strengthened
- Enhanced access to business loans and improved efficiency of the Public Micro Lending Programme
- The operational, regulatory and legislative environment for SMEs development is strengthened
- Local economic strategies and plans developed in line with national and provincial frameworks in three governorates
- Economic and social regeneration pilot projects implemented in three selected governorates.