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Protecting migrant workers in the Gulf

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An Organisation for Economic Co-operation and Development (OECD) article advises the world about Protecting migrant workers in the Gulf: don’t build back better over a poor foundation

By Vani Saraswathi, Editor-at-Large and Director of Projects, Migrant-Rights.Org

The Gulf Co-operation Council (GCC) states need to completely revamp past policies, and not merely attempt to bridge gaps or provide a salve to deep wounds.

As of February 2020, millions of migrants –– primarily from South and Southeast Asia and increasingly from East African countries –– were holding up Gulf economies, working in sectors and for wages unappealing to the more affluent citizens. In countries with per capita GDP of US$62,000 or more, minimum wages ranged as low as US$200 per month.

Men were packed into portacabins and decrepit buildings, six to a room if lucky, hidden behind screens of dust and grime, away from the smart buildings they built and shiny glasses they cleaned. The women were trapped 24/7 in homes that are their workplaces, every movement monitored. It is accepted and normalised without question that these men and women will leave behind their families in the hopes of building a better future for themselves. That they may live all their productive life in a strange country, excluded from social security benefits and denied all rights of belonging, is seen as a small price to pay for the supposed fiscal benefits. The fact that the price is too steep is rarely discussed.

“Why did able-bodied, productive individuals struggle for food and shelter in some of the richest countries in the world?” #DevMattersTweet

Then came March, and a worldwide upheaval as the COVID-19 pandemic struck nations indiscriminately. The official response across the board ranged from well-meaning but knee-jerk, to discriminatory and short-sighted. Some of the strictest lockdowns were implemented in the most congested areas of Gulf cities, where migrants live. However, their labour was considered essential, as the process of nation-building could not be paused. Attempts to decongest were hopeful at best, but the majority continued to live in cramped quarters, were bussed into construction sites, and remained vulnerable to this new infection, as they had been to other infections and health perils.

The women, hundreds of thousands employed as domestic workers, have been invisible at the best of times because their ability to leave home and enjoy an off day or free time has always been at the discretion of their employers. The pandemic guidelines prevented even this thin leeway, with some countries explicitly prohibiting domestic workers from socialising, even when their employers were allowed to. Domestic workers, like a lot of other poorly-paid and badly-treated workers, were considered essential workers. With entire families working and studying from home, their workload increased exponentially. They were also exposed to strong chemical cleaning agents without proper protective gear. While their services were essential, even critical, the individual was considered dispensable and replaceable.

Force majeure rules allowed companies to reduce pay, terminate workers, or put them on leave without pay. Measures were introduced to ensure business continuity even if these measures infringed on workers’ rights. The lack of civil society and trade unions and inability to negotiate collectively –– all disempowering conditions that preceded the pandemic –– meant workers’ voices and representation were limited and muted. No mechanisms were established to challenge the unfair implementation of the measures. Access to justice was riddled with even more problems than before, as wage theft and other labour abuses from the pre-COVID era were yet to be resolved. This post is not even attempting to explore the vulnerabilities and exclusion of undocumented workers –– many of whom are forced into irregularity by the sponsorship or Kafala system.

“When a population has been dehumanised and othered for so long –– as being temporary, their labour merely transactional –– a pandemic will not magically correct decades of poor policies.” #DevMattersTweet

In the plethora of webinars that consumed the early months of the pandemic, human rights advocates and activists repeatedly spoke of the lessons being learnt, the new normal that awaited us at the end of the dark tunnel, with ‘building back better’ punctuating every discourse. What they failed to recognise is that when a population has been dehumanised and othered for so long –– as being temporary, their labour merely transactional –– a pandemic will not magically correct decades of poor policies.

In fact, we saw the opposite, with migrant workers being blamed for spreading infections, because of their living conditions over which they had no control over. Ten months into the pandemic, it is almost back to business as usual, with malls, offices, schools and even tourism, opening up in stages. Vaccination drives have begun, with a promise to include migrants in all of the Gulf Co-operation Council countries. But the most marginalised are still housed in deplorable conditions, their temporariness being reinforced. And the first sector that re-opened for recruitment was domestic work bringing in more women from impoverished countries reeling from the impact of the pandemic.  

If there is one takeaway for human rights advocates it is that a socio-economic environment devastated by the pandemic is not fertile ground for righteous policies. If anything, origin and destination countries may go lax on due diligence over corporations in the name of business continuity and impose tighter controls over migrants under the pretext of protection.

“The last year has seen an increase in wage theft, and there is an urgent need for transnational mechanisms to deal with this.”#DevMattersTweet

There are key questions we need to ask ourselves and the governments:

  • Why did able-bodied, productive individuals struggle for food and shelter in some of the richest countries in the world? What combination of policies and prejudices leads to this situation?
  • With so little public investment made in social welfare, the dependence on live-in domestic workers is only likely to increase. How do we ensure recognition of domestic work as work, and domestic workers as workers, formalising their status in the labour market?
  • How do we then break the monopoly of live-in domestic work that is inherently exploitative?
  • The ghettoisation of migrant labour is both the root cause and the result of discrimination. In many Gulf Co-operation Council states, migrants constitute the majority of the population and their needs are deliberately neglected in urban planning.
  • The last year has seen an increase in wage theft, and there is an urgent need for transnational mechanisms to deal with this.  

In the coming years, climate change, population imbalances and economic distress will increase migrants’ vulnerabilities, and solutions cannot be rooted in the current environment of inequity and discrimination.

Read more OECD’s articles :

Iraqis slowly rebuild Mosul

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This is a story of a city that as per Iraqi novelist Inaam Kachachi’s description – Mosul the austere, Mosul the convivial, Mosul the contradictory, Mosul the wounded, bleeding to death. So here is Iraqis slowly rebuild Mosul, with little aid from government per Samya Kullab.

Mounds of rubble, remnants of the battle to retake the city three years ago from the Islamic State group, remain in the Old City of Mosul, Iraq Sunday, Nov. 29, 2020. Local officials say Baghdad’s cash-strapped government, struggling with a dire economic crisis fueled by low oil prices and the coronavirus, doesn’t have the funds to launch serious reconstruction efforts. (AP photo/Samya Kullab)
A damaged house remains un-repaired three years after Iraqi forces defeated the Islamic State group, in the Old City of Mosul, Iraq Nov. 29, 2020. Mosul remains for many the symbol of the Islamic State group’s reign of terror, the place from where it proclaimed its caliphate in 2014. It’s also where IS made its last stand before the city was freed three years later, after a costly battle that killed thousands and left Mosul, Iraq’s second-largest city, in ruins. (AP Photo/Samya Kullab)
A commercial center re-opened recently with some government assistance to restore. electricity and water services, enabling merchants to return, three years after Iraqi forces defeated Islamic State militants, in the Old City of Mosul, Iraq Nov. 29, 2020. Mosul remains for many the symbol of the Islamic State group’s reign of terror, the place from where it proclaimed its caliphate in 2014. (AP Photo/Samya Kullab)
Musicians play love songs as a small crowd sings along and claps, inside what was an old hostel for traders centuries ago and is now a refurbished commercial center, in Mosul, Iraq, Sunday, Nov. 29, 2020. Mosul remains for many the symbol of the Islamic State group’s reign of terror, the place from where it proclaimed its caliphate in 2014. Under the IS scenes like these were forbidden. (AP Photo/Samya Kullab)
Anan Yasoun, one of the few residents to return to the heavily damaged Old City, stands outside her rebuilt home, in Mosul, Iraq, Sunday, Nov. 29, 2020. From afar, Yasoun’s yellow-slab home is an island surrounded by rubble in the historic old part of the Iraqi city of Mosul, for many still a symbol of the Islamic State group’s reign of terror and the place from where it proclaimed its caliphate in 2014. It’s also where IS made its last stand before the city was freed three years later, after a costly battle that killed thousands and left Mosul, Iraq’s second-largest city, in ruins. (AP photo/Samya Kullab)
Damaged buildings are surrounded by mounds of rubble three years after Iraqi forces defeated the Islamic State group there, Nov. 29, 2020. Mosul remains for many the symbol of the Islamic State group’s reign of terror, the place from where it proclaimed its caliphate in 2014. It’s also where IS made its last stand before the city was freed three years later, after a costly battle that killed thousands and left Mosul, Iraq’s second-largest city, in ruins. (AP Photo/Samya Kullab)
Mounds of rubble still line the streets and buildings are pock-marked with bullet holes three years after Iraqi forces defeated the Islamic State group, in the Old City of Mosul, Iraq Nov. 29, 2020. Mosul remains for many the symbol of the IS group’s reign of terror, the place from where it proclaimed its caliphate in 2014. It’s also where IS made its last stand before the city was freed three years later, after a costly battle that killed thousands and left Mosul, Iraq’s second-largest city, in ruins. (AP Photo/Samya Kullab)
Ammar Mouwfaq, 70, stands inside his soap shop in the Old City of Mosul, Iraq, Sunday, Nov. 29, 2020. Mouwfaq inherited the business in 1955 and for decades his family have imported olive soap from Aleppo, Syria, a trade that has dated back hundreds of years. That came to a stop when the Islamic State took control of the area in 2014. (AP photo/Samya Kullab)

MOSUL, Iraq (AP) — Anan Yasoun rebuilt her home with yellow cement slabs amid the rubble of Mosul, a brightly colored manifestation of resilience in a city that for many remains synonymous with the Islamic State group’s reign of terror.

In the three years since Iraqi forces, backed by a U.S.-led coalition, liberated Mosul from the militants, Yasoun painstakingly saved money that her husband earned from carting vegetables in the city. They had just enough to restore the walls of their destroyed home; money for the floors was a gift from her dying father, the roof a loan that is still outstanding.

Yasoun didn’t even mind the bright yellow exterior — paint donated by a relative. “I just wanted a house,” said the 40-year-old mother of two.

The mounds of debris around her bear witness to the violence Iraq’s second-largest city has endured. From Mosul, IS had proclaimed its caliphate in 2014. Three years later, Iraqi forces backed by a U.S.-led coalition liberated the city in a grueling battle that killed thousands and left Mosul in ruins.

Such resilience is apparent elsewhere in the city, at a time when Baghdad’s cash-strapped government fails to fund reconstruction efforts and IS is becoming more active across the disputed territories of northern Iraq.

Life is slowly coming back to Mosul these days: merchants are busy in their shops, local musicians again serenade small, enthralled crowds. At night, the city lights gleam as restaurant patrons spill out onto the streets.

The U.N. has estimated that over 8,000 Mosul homes were destroyed in intense airstrikes to root out IS. The nine-month operation left at least 9,000 dead, according to an AP investigation.

Memories of the group’s brutality still haunt locals, who remember a time when the city squares were used for the public beheading of those who dared violate the militants’ rules.

The Old City on the west bank of the Tigris River, once the jewel of Mosul, remains in ruins even as newer parts of the city have seen a cautious recovery. The revival, the residents say, is mostly their own doing.

“I didn’t see a single dollar from the government,” said Ahmed Sarhan, who runs a family coffee business.

Antique coffee pots, called dallahs, line the entrance to his shop, which has been trading coffee for 120 years. An aging mortar and pestle, used by Sarhan’s forefathers to grind beans, sits in his office as evidence of his family’s storied past.

“After the liberation, it was complete chaos. No one had any money. The economy was zero,” he said. His business raked in a measly 50,000 Iraqi dinars a day, or around $40. Now, he makes closer to about $2,500.

But even as Sarhan and other merchants are starting to see profits — despite the impact of the coronavirus pandemic — ordinary laborers are struggling. Sarhan employs 28 workers, each getting about $8 a day.

“It is nothing … they will never be able to rebuild their homes,” he says.

Since the ouster of IS in 2017, the task of rebuilding Mosul has been painfully slow. Delays have been caused by lack of coherent governance at the provincial level; the governor of Nineveh province, which includes Mosul, has been replaced three times since liberation.

With no central authority to coordinate, a tangled web of entities overseeing reconstruction work — from the local, provincial and federal government to international organizations and aid groups — has added to the chaos.

The government has made progress on larger infrastructure projects and restored basic services to the city, but much remains unfinished.

Funds earmarked for reconstruction by the World Bank were diverted to help the federal government fight the coronavirus as state coffers dwindled with plunging oil prices. Meanwhile, at least 16,000 Mosul residents appealed for government cash assistance to rebuild their homes.

Only 2,000 received financial assistance, said Zuhair al-Araji, the mayor of Mosul district.

“There’s no money,” he said. “They have to rebuild on their own.”

Mosul residents eye government policies with suspicion and suspect local officials are too corrupt to help them.

“Whatever funds are provided, they will steal it,” said Ammar Mouwfaq, who spent all his savings to re-open his soap shop in the city last year.

A photo of his father hangs inside the shop, which he took over in the 1970s. Neat stacks of the region’s famous olive oil soap, imported from the Syrian city of Aleppo, tower above him.

“What you see now, I did alone,” he added.

On one thoroughfare the ruins of cinemas bombed by IS — the militant group’s strict interpretation of Islam banned such forms of entertainment — are a stark contrast to the shops and restaurants abuzz with customers.

The Old City, with its labyrinth of narrow streets dating back to the Middle Ages, now serves as an eerie museum of IS horrors. Misshapen iron rods jut out of what’s left of houses they were designed to fortify. Smashed pieces of alabaster stone and masonry, once extolled by historians for architectural significance, lie among the debris. Signs of a former life — a pair of women’s shoes, a notebook covered in hearts, shells from exploded ammunition — are untouched.

“Demolition is forbidden” reads a graffiti written on a slab of wall surrounded by rubble, a testament to Mosul’s unwavering dark humor.

The Mosul Museum, where IS militants filmed themselves smashing priceless antiquities to dust, partially re-opened in January. But apart from occasional contemporary art exhibits such as that of Iraqi sculptor Omer Qais last month, there is nothing to see.

On the other side of town, Sarhan, the coffee trader, invites anyone who cares to see his collection of antique swords, plates and bowls he painstakingly hunted down. In the 12th century, Mosul was an important hub for trade; a century later, its intricate metalwork rose to prominence.

“This is our history,” said Sarhan, holding up a rusting bronze plate, engraved with 1202, the year it was made.

“If I don’t protect it, who will?”

Qatar firms’ failure to pay

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Qatar firms’ failure to pay leaves migrant workers destitute – report that details how ‘Despite government measures, thousands left struggling during Covid outbreak as companies withhold salaries and benefits, research shows’

by Pete Pattisson

Supported by

26 Nov 2020

Companies in Qatar have failed to pay “hundreds of millions of dollars in salaries and other benefits to low-wage workers since the coronavirus outbreak, according to new research by the human rights group Equidem.

Construction workers at Al Janoub stadium during a media tour in Doha, Qatar. The stadium is the second among eight stadiums being built for the Fifa World Cup 2022 in Qatar. Photograph: Ali Haider/EPA

In its report, Equidem describes how thousands of workers have been dismissed without notice, put on reduced wages or unpaid leave, denied outstanding salary and end of service payments, or forced to pay for their own flights home.

The report’s findings appear to amount to “wage theft” on an unprecedented scale, leaving “worker after worker” destitute, short of food and unable to send money home during the pandemic, in one of the richest countries in the world.Advertisement

“I came here to work for my family, not to be a beggar living on my own,” said a cleaner from Bangladesh, who said he had not received his salary for four months.

In separate research, the Business and Human Rights Resource Centre found that unpaid or delayed wages were cited by workers in 87% of cases of alleged labour abuse affecting almost 12,000 workers since 2016.

Around 2 million migrant workers – mostly from south Asia – work in Qatar, many on construction projects related to the 2022 World Cup.

Equidem praises some measures put in place by the Qatar government during the coronavirus pandemic. In March, the government made it mandatory for companies to continue to pay workers in quarantine or government-imposed isolation, and set up a £625m loan scheme to help companies do so, but the report warns of “widespread failure to comply” with this and other regulations.

The government later permitted companies that had stopped operating due to Covid restrictions to put workers on unpaid leave or terminate their contracts as long as they complied with requirements of the labour law, including giving a notice period and paying outstanding benefits.

The report highlights a number of companies that exploited or ignored this directive. Up to 2,000 workers employed by one construction company were laid off on the spot, workers claim. Most did not receive their outstanding salary or end of service settlement, a payment equivalent to three weeks’ salary for each full year of work.

“Many migrant workers are in an extremely vulnerable position with no real ability to assert their rights or seek remedy for violations,” says the report.

Mustafa Qadri, the director of Equidem, said the lack of a lawful right to organise or join a trade union has been particularly damaging. “It has prevented workers from having a seat at the table with government and employers to negotiate an equitable share of funds,” he said.

The report describes similar findings in the United Arab Emirates and Saudi Arabia, as well as policies in response to the pandemic which amount to racial discrimination. In both countries, the authorities required private companies to continue to provide wages and benefits to nationals, but allowed them to reduce wages or stop paying non-nationals.

In a statement, the Qatar government said its response to the pandemic, “has been driven by the highest international standards of public health policy and the protection of human rights”.

The government has provided free testing and treatment and said, “employers failing to pay their staff on time or withholding end of service payments have faced disciplinary action, including heavy fines and bans that prevent them from operating”.

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Globalisation may be decreasing . . .

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The first large-scale study of the risks that countries face from dependence on water, energy and land resources has found that globalisation may be decreasing, rather than increasing, the security of global supply chains. Here is the latest on the effects of the pandemic, in perhaps its most important aspect:

Globalized economy making water, energy and land insecurity worse: study

By the University of Cambridge.

Credit: Pixabay/CC0 Public Domain

Countries meet their needs for goods and services through domestic production and international trade. As a result, countries place pressures on natural resources both within and beyond their borders.

Researchers from the University of Cambridge used macroeconomic data to quantify these pressures. They found that the vast majority of countries and industrial sectors are highly exposed both directly, via domestic production, and indirectly, via imports, to over-exploited and insecure water, energy and land resources. However, the researchers found that the greatest resource risk is due to international trade, mainly from remote countries.

The researchers are calling for an urgent enquiry into the scale and source of consumed goods and services, both in individual countries and globally, as economies seek to rebuild in the wake of COVID-19. Their study, published in the journal Global Environmental Change, also invites critical reflection on whether globalisation is compatible with achieving sustainable and resilient supply chains.

Over the past several decades, the worldwide economy has become highly interconnected through globalisation: it is now not uncommon for each component of a particular product to originate from a different country. Globalisation allows companies to make their products almost anywhere in the world in order to keep costs down.

Many mainstream economists argue this offers countries a source of competitive advantage and growth potential. However, many nations impose demands on already stressed resources in other countries in order to satisfy their own high levels of consumption.

This interconnectedness also increases the amount of risk at each step of a global supply chain. For example, the UK imports 50% of its food. A drought, flood or any severe weather event in another country puts these food imports at risk.

Now, the researchers have quantified the global water, land and energy use of189 countries and shown that countries which are highly dependent on trade are potentially more at risk from resource insecurity, especially as climate change continues to accelerate and severe weather events such as droughts and floods become more common.

“There has been plenty of research comparing countries in terms of their water, energy and land footprints, but what hasn’t been studied is the scale and source of their risks,” said Dr. Oliver Taherzadeh from Cambridge’s Department of Geography. “We found that the role of trade has been massively underplayed as a source of resource insecurity—it’s actually a bigger source of risk than domestic production.”

To date, resource use studies have been limited to certain regions or sectors, which prevents a systematic overview of resource pressures and their source. This study offers a flexible approach to examining pressures across the system at various geographical and sectoral scales.

“This type of analysis hasn’t been carried out for a large number of countries before,” said Taherzadeh. “By quantifying the pressures that our consumption places on water, energy and land resources in far-off corners of the world, we can also determine how much risk is built into our interconnected world.”

The authors of the study linked indices designed to capture insecure water, energy, and land resource use, to a global trade model in order to examine the scale and sources of national resource insecurity from domestic production and imports.

Countries with large economies, such as the US, China and Japan, are highly exposed to water shortages outside their borders due to their volume of international trade. However, many countries in sub-Saharan Africa, such as Kenya, actually face far less risk as they are not as heavily networked in the global economy and are relatively self-sufficient in food production.

In addition to country-level data, the researchers also examined the risks associated with specific sectors. Surprisingly, one of the sectors identified in Taherzadeh’s wider research that had the most high-risk water and land use—among the top 1% of nearly 15,000 sectors analysed—was dog and cat food manufacturing in the U.S., due to its high demand for animal products.

“COVID-19 has shown just how poorly-prepared governments and businesses are for a global crisis,” said Taherzadeh. “But however bad the direct and indirect consequences of COVID-19 have been, climate breakdown, biodiversity collapse and resource insecurity are far less predictable problems to manage—and the potential consequences are far more severe. If the ‘green economic recovery’ is to respond to these challenges, we need radically rethink the scale and source of consumption.”


Explore further Researchers examine food supply chain resiliency in the Pacific during COVID-19 pandemic

More information: Global Environmental ChangeDOI: 10.1016/j.gloenvcha.2020.102158

Provided by University of Cambridge 

Bloated public salaries at heart of Iraq’s economic woes

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Until recently, labour markets in the MENA’s oil-exporting countries were characterized by a large public sector, a small, weak private sector, and depending on the country, a sizable agricultural industry, and a sizable informal sector. But in the case of Iraq like elsewhere in the region, the volatility of oil prices and the pandemic impacted the economy, resulting in a critical situation where bloated public salaries at the heart of Iraq’s economic woes result in increasingly unstoppable youth unemployment.
The currently general upheaval in the region, rural to urban and cross-border migration has not helped, leading to an even greater informal market.

Bloated public salaries at heart of Iraq’s economic woes by Samya Kullab is a vivid picture or a series of pictures on life in Iraq as perceived by a locally based journalist.

People shop for clothing at the used-clothes market in Baghdad, Iraq, Tuesday, Oct. 20, 2020. Iraq is in the throes of an unprecedented liquidity crisis, as the cash-strapped state wrestles to pay public sector salaries and import essential goods while oil prices remain dangerously low. (AP Photo/Khalid Mohammed)

BAGHDAD (AP) — Long-time Iraqi civil servant Qusay Abdul-Amma panicked when his monthly salary was delayed. Days of waiting turned to weeks. He defaulted on rent and other bills.

A graphic designer for the Health Ministry, he uses about half his salary to pay his rent of nearly 450,000 Iraqi dinars a month, roughly $400. If he fails to pay twice in a row his landlord will evict him and his family, he fears.

“These delays affect my ability to survive,” Abdul-Amma said.

Iraq’s government is struggling to pay the salaries of the ever-swelling ranks of public sector employees amid an unprecedented liquidity crisis caused by low oil prices. September’s salaries were delayed for weeks, and October’s still haven’t been paid as the government tries to borrow once again from Iraq’s currency reserves. The crisis has fueled fears of instability ahead of mass demonstrations this week.

The government has outlined a vision for a drastic overhaul of Iraq’s economy in a “white paper” presented last week to lawmakers and political factions. But with early elections on the horizon, the prime minister’s advisers fear there is little political will to execute it fully.

“We are asking the same people we are protesting against and criticizing to reform the system,” said Sajad Jiyad, an Iraq researcher.

The white paper’s calls for cutting public sector payrolls and reforming state finances would undermine the patronage systems that the political elite have used to entrench their power.

A major part of that patronage is handing out state jobs in return for support. The result has been a threefold increase in public workers since 2004. The government pays 400% more in salaries than it did 15 years ago. Around three-quarters of the state’s expenditures in 2020 go to paying for the public sector — a massive drain on dwindling finances.

“Now the situation is very dangerous,” said Mohammed al-Daraji, a lawmaker on parliament’s Finance Committee.

One government official said political factions are in denial that change is needed, believing oil prices will rise and “we will be fine.”

“We won’t be fine. The system is unsustainable and sooner or later it will implode,” the official said, speaking on condition of anonymity to discuss internal politics.

Iraq’s activists have called for a march on Oct. 25, expected to draw large crowds, a year since massive anti-government protests first brought tens of thousands to the streets demanded reforms and an end to the corrupt political class.

“As far as meeting our demands, there have been no changes,” said Kamal Jabar, member of the Tishreen Democratic Movement, founded during the protests last year. “To us, the white paper is a joke.”

Abu Ali, a merchant in Baghdad’s commercial district of Shorjah, fears what the following months have in store. The state is the primary source of employment for Iraqis, and civil servants are the lifeblood of his business.

“The delays in salary payments have affected the market directly,” he said. “If these delays continue our business and the economy will collapse.”

Abdul-Amma’s September pay was 45 days late, and he still hasn’t received the October pay that was supposed to come on the first of the month. He worries about the coming months as well.

“I have a history of chronic heart disease, and one of my daughters is also sick,” said the father of four. He pays $100 in medical fees per month.

But to the architects of the reform paper, he is part of the problem: Public sector bloat is first in line for reform.

“We hope the civil service and bureaucracy will recognize a need for change,” Finance Minister Ali Allawi told The Associated Press in a recent interview.

Iraq relies on oil exports to fund 90% of state revenues. Those revenues have plunged to an average $3.5 billion a month since oil prices crashed earlier this year.

That’s half the $7 billion a month needed to pay urgent expenses. Of that, $5 billion is for public sector salaries and pensions, according to Finance Ministry figures. Iraq also imports nearly all of its food and medicine; with foreign currency reserves at $53 billion, the World Bank estimates the country can sustain these imports for another nine months. Foreign debts account for another $316 million.

Poor productivity of public workers is the heart of the issue, Allawi said.

“We’ve ended up with a low productivity, high-cost public sector that doesn’t really earn its keep,” he said. “In one way or another this issue has to be tackled by either reducing numbers, which is politically difficult, reducing salaries … or increasing productivity.”

The white paper calls for public sector payments to be reduced from 25% of GDP to 12% but doesn’t detail how. Officials said one step may be to restore taxes on civil servants’ benefits that previous administrations had lifted.

To meet month-to-month commitments now, the government has had to borrow internally from its foreign currency reserves. A request of a second loan of $35 billion was sent to parliament, drawing criticism from lawmakers.

Haitham al-Jibouri, head of parliament’s Finance Committee, said in televised remarks that if borrowing was the government’s only plan he would fetch a shopkeeper from Bab al-Sharqi, a commercial area in the capital, to do the finance minister’s job.

Parliament’s endorsement of the loan and the reform paper is crucial for the government to avoid a full-scale economic crisis.

But this will prove difficult with elections slated for next June, since factions want to hand out jobs to maintain their constituencies.

“Whoever decides to push ahead and support reforms first will lose out, they will also need to convince other political players who will also lose out,” said Jiyad. “That is a tough sell.”

Al-Kadhimi’s advisers privately acknowledge the challenges of having the system that produced such mismanagement and corruption be its own savior.

One official recalled a remark made by the finance minister at a meeting of a high-level committee tasked with managing the crisis.

He looked at the room of officials charged with halting the country’s fast spiral toward insolvency and said, “I can’t believe this was done for 10 years and none of you did anything to stop it.” There was silence.