The Kurdistan Region: Nation-building and State-Building
- Masrour Barzani, Prime Minister, Kurdistan Regional Government
- Dlawer Ala’Aldeen, President of MERI (Moderator)
In a candid and thought-provoking policy debate, Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani and Middle East Research Institute (MERI) President Dlawer Ala’Aldeen delved into a wide range of critical issues. Their discussion provided invaluable insights into the region’s evolving political landscape, tackling key topics such as governance, democracy, economic development, relations with Baghdad, and broader regional engagement. The exchange shed light on both the pressing challenges and the promising opportunities shaping Kurdistan’s future.”
The Recent Elections
The recent elections in the Kurdistan Region of Iraq (KRI) saw an impressive voter turnout of over 70%, despite prolonged delays. Ala’Aldeen highlighted that such high participation surpassed expectations, but emphasized that the real challenge for the ruling parties lies in fostering political cohesion and translating the results into a strong, stable government.
Prime Minister (PM) Masrour Barzani acknowledged concerns over the electoral process, particularly the influence of political entities on electoral laws and oversight mechanisms. He pointed to key factors behind the delays, including demands for changes to the electoral law, the elimination of quota seats, and calls for external supervision from Baghdad. Despite these challenges, Barzani underscored that the international observers deemed the elections clean and transparent, reinforcing the need for all parties to respect and uphold the will of the electorate.
Post-Election Governance and National Unity
The discussion then shifted to governance after the elections. Ala’Aldeen emphasized that a high voter turnout reflects public trust but does not eliminate grievances or expectations. He urged the need for unity, stability, and internal regional connectivity to prevent vulnerabilities from internal or external shocks. Forming a cohesive, forward-looking government with a clear four-year plan is important.
PM Barzani recognized that the success of the electoral process was a collective effort, crediting all participating parties and their supporters. He emphasized that while some had anticipated different outcomes, the election results proved them wrong and reflected the true will of the people of the KRI. He dismissed attempts to discredit the process and affirmed that voters had clearly expressed their preference for the future. Barzani pledged to uphold the party’s promises and work alongside others to build a stable, progressive, and prosperous Kurdistan.
Divisions within political parties and lack of institutionalization of the decision-making process, have historically led to administrative paralysis, preventing effective policy implementation. Ala’Aldeen aired a strong appeal for political actors to set aside past grievances and work toward a collective vision for strengthening institutional foundations, improving economic stability, and enhancing the investment environments. Key to this vision is infrastructure development, including roads, railways, and public spaces, which he described as essential for national-building and economic growth. Citing the recent Government announcement of a project connecting Koya with Erbil, he expressed hope for further regional connectivity and the removal of barriers like the Degala Checkpoint.
PM Barzani emphasized that the ninth cabinet, led by the KDP and its partners, has worked diligently to advance nation-building efforts, particularly in infrastructure, digital transformation, and economic diversification. He highlighted significant progress in public services, including healthcare and governance, despite challenges and obstacles to implementing government programs. A major achievement has been the establishment of an advanced data center to enhance decision-making based on accurate information.
Economic Development and Investment Climate
One of the most critical topics addressed was economic development and investment. The necessity of building a strong internal investment environment while simultaneously attracting foreign investors was highlighted. Economic infrastructure projects were described as vital for linking all of Kurdistan and strengthening governance institutions. Several achievements in digital transformation, economic diversification, and improvements in banking infrastructure were presented, including an economic recovery rate increase from 1.8% to 8%. However, concerns were raised regarding corruption and monopolization, which are seen as major obstacles to investment.
PM Barzani agreed that the lack of a fully developed banking sector is a key barrier to economic growth. A heavy reliance on cash transactions has limited financial transparency and discourages foreign direct investment. Efforts to establish a modern banking infrastructure, including digital banking and financial regulatory reforms are essential steps toward economic expansion. Additionally, economic regulations must be reformed and streamlined to provide a stable environment for private sector growth in the KRI, ensuring that entrepreneurs and small businesses receive support rather than being hindered by bureaucratic and political interferences and inefficiencies. The existing reliance on cash transactions in Kurdistan’s banking system is a major hurdle, as global financial systems are shifting towards digital transactions and banking credit. To address this, the Hajmari Min (My Account) Project was presented as a tool to enabling every citizen to have a personal bank account, ensuring financial independence and reducing reliance on political patronage. This project has been a point of contention not only between Baghdad and Erbil, but also within the KRI as well.
The Prime Minister also noted that the government is taking steps to address critical issues such as electricity and water shortages through practical measures. However, the actual realization and tangible impact of these efforts remain to be seen. Beyond the urgent need to combat corruption in these sectors, it is equally crucial to engage the growing youth population and create equal employment opportunities to meet rising demands. Undoubtedly, these processes require, above all, strong political will and sustained dedication to strengthening infrastructure and laying the foundation for future progress. In this light, the PM presented the Growth Program, an initiative designed to support young entrepreneurs by providing government grants to help them start and expand businesses, as an example to promote private sector growth and as an important driver of economic progress.
Monopoly and Economic Fairness
A debate ensued over the extent of monopolies within the Kurdistan Region. Dlawer Al’Aldeen argued that monopolization remains a significant challenge compared to historical monopolistic practices in early industrial economies. He suggested that proper legislation is necessary to prevent monopolization and ensure economic fairness. Linking this to investment, Ala’Aldeen noted that while Kurdistan is in a better position than the rest of Iraq for investment, foreign businesses, particularly European and Turkish firms, remain hesitant to invest directly due to security concerns, bureaucratic obstacles, and, most critically, corruption. Naturally, investors seek long-term guarantees before committing their resources. The KRI advances strong legal investment frameworks, but they are yet to be effectively implemented.
However, counterarguments were made by the PM that the free market in the KRI allows for competition and that some entities naturally succeed due to experience and capabilities. Despite differences in perspective, there was consensus on the need for greater economic fairness and regulatory oversight to prevent monopolization.
Unification of the Peshmerga Forces
The unification of the Peshmerga forces came under scrutiny as well during the panel. Dlawer Ala’Aldeen noted that while significant progress has been made in unifying some Peshmerga units—facilitated by efforts from the international coalition—the 70th and 80th units still largely operate independently, outside the command and control of the Ministry of Peshmerga. The call for unification was a key message during the elections, however, translation of this commitment into concrete action is questionable. There is a need for clarity on the government’s strategy to fully merge these forces and ensure the Peshmerga functions as a single, cohesive national military institution.
Prime Minister Barzani was of the view that the Peshmerga is a source of pride for all of Kurdistan, recognizing the contributions of every soldier regardless of political affiliation. He emphasized that while the 70th and 80th units may have political ties, their members have made significant sacrifices in defending Kurdistan. He argued that political inclinations should not define whether a force is considered national, as long as its purpose remains the protection of the country. Two key initiatives were outlined in the discussion: first, the establishment of a joint accounting system, ensuring that all Peshmerga salaries are managed centrally by the ministry; and second, restructuring the organizational framework so that all units operate under a unified command. Barzani stressed that military decisions must be institutional rather than party-driven, warning against the creation of separate armed groups for political or personal interests. Ultimately, he asserted that only the government should hold authority over the Peshmerga’s structure and organization, ensuring that power is regulated by law and not manipulated for partisan advantage.
Despite significant progress in unifying the Peshmerga forces, the next phase involves restructuring the remaining forces into brigades and divisions under the Ministry of Peshmerga, according to PM Barzani. While the process is ongoing, he expressed his strong desire to see it completed as soon as possible, ideally much sooner than the projected four-year timeline. He reaffirmed his commitment to ensuring that the unification is fully realized without delay.
Challenges in unifying the Peshmerga stem from entrenched political divisions. Political parties have historically maintained independent armed units, raising questions about whether full integration can be achieved without external pressures. It was noted that financial autonomy and salary distribution must be centralized within the Ministry of Peshmerga to prevent undue political influence over the forces. Strengthening the chain of command and ensuring a standardized training program for all units were also discussed as necessary steps toward professionalizing the military structure.
Relations with Baghdad
The discussion emphasized the need to institutionalize relations with Baghdad and establish a true partnership between the KRG and the federal government. Over the past 20 years, efforts to integrate the KRG into Iraq’s governance structure have been met with challenges, as Baghdad has neither fully embraced the Kurds nor recognized them as equal partners. While Kurds hold senior political positions, they have not been able to codify and institutionalize the relations and as such key issues such as Article 140, salary disputes, and resource allocation remain unresolved.
The perception in Baghdad that the KRG takes more than it deserves continues to strain relations, while Baghdad has not empowered Kurdistan to function as a fully institutionalized entity within Iraq. Despite these tensions, it was suggested that the KRG take a proactive approach by breaking down the relationship into specific issues that can be resolved independently rather than addressing all concerns at once. The question was raised about how, over the next four years, major gaps could be bridged to establish a stable and institutionalized relationship between the two governments, moving beyond Baghdad’s unequal treatment of different communities.
Prime Minister Barzani expressed optimism about the current state of relations between Baghdad and Erbil, noting that many past misconceptions have been resolved. He emphasized the need for a relationship rooted in the Iraqi constitution, ensuring equal treatment and non-discrimination in its implementation. While acknowledging that some still adhere to a centralization mindset, he stressed the importance of continued efforts to promote genuine federalism and democratic governance in Iraq.
One of the major current challenges is the issue of salaries, which the KRG has consistently worked to address through negotiations with Baghdad. He highlighted that KRG delegations have made compromises beyond their constitutional rights to demonstrate good faith and promote national unity. However, he urged Baghdad to ensure equal treatment of all Iraqi citizens, arguing that fair economic policies would encourage Kurdish citizens to feel more integrated within Iraq.
Despite historical differences, PM Barzani emphasized efforts to reduce divisions and build common ground with Baghdad. He expressed confidence in the current federal government’s willingness to address longstanding issues and hoped that by fostering collaboration, both sides could develop strategies for national progress and stability.
Kurdistan’s Role in Regional Stability
Finally, the discussion touched on the Kurdistan Region’s role in the broader Middle Eastern geopolitical landscape. The understanding was that no problem can be solved through war and that regional conflicts should not entangle the KRI. Instead, Iraq was encouraged to play a diplomatic role in fostering peace and dialogue. This could be done through avoidance of Iraq becoming an arena for external conflicts while focus should remain on development, education, and economic prosperity.
You can watch the full text and video in Kurdish here.
MERI Forum 2024
The Kurdistan Region: Nation-building and State-Building