| To:
Franso Harriri, and all other Kurdish Martyrs
Finland
– 2001
“Now
is the time for rebuilding Kurdistan, its time for working and building
our own
industry
and culture, by this way we can serve our people, and we can make
the life more
nice
in Kurdistan”.
Mustafa Barzani, the Kurdish leader 1970
ABSTRACT
This
study is about Iraqi Kurdistan economy and a general view of the region
after the
uprising
of 1991, and the creation of a Kurdish government in the north of
Iraq. Literature
and
news statistics from different languages have been used for design
of this study.
The
aim of this study is to provide an overview of Iraqi Kurdistan Region as
a country from
the
general and economical point of view. The main focus, beside of providing
general
information
about the function of Kurdistan Regional government, is in the SCR-986
resolution,
and the commercial activities and in general to describe the economy of
Iraqi
Kurdistan
and the place of oil in Iraqi Kurdistan economy.
This
study work will also serve as a guidebook about Iraqi Kurdistan, for those
who are
interested
in starting to do business with Iraqi Kurdistan, especially for the
Europeans
countries.
The study introduces the Iraqi Kurdistan after the uprising of 1991, and
shows the
democratic
experience in the area, and also a general overview about Iraqi Kurdistan
economy
and the Kurdish Business Culture.
Iraqi
Kurdistan region is a new market area for Europeans countries, and at present
they are
many
of NGO’S there, and some Turkish companies are present in Iraqi Kurdistan.
This
region
is a rich area and the companies which like to make business with
the area have good
opportunities.
Key
words: Iraqi Kurdistan, SCR-986, Kurdistan Regional Government, Kurdish
Business
Culture,
and the Economy of Kurdistan.
Table
of Content
Chapter
1.Introduction
1.1
Introduction of the study
1.2
Purposes and Objectives of the study
1.3
Limitations of the study
1.4
Research Methods
1.5
Key Concepts of the study
1.6
Structure of the study
Chapter
2.Kurdistan and the Kurdish nation (a general background)
2.1
The origin of the Kurds
2.2
Geography (Land)
2.3
Geopolitics
2.4
Demography
2.5
Religion
2.6
Language and literature
2.7
The final division of Kurdistan
Chapter
3 The Economy Of Kurdistan
3.1
Iraqi Kurdistan Regional (KRG)
3.2
Petroleum and its place in the national economy
3.3
Commercial activity of Iraqi Kurdistan
3.4
United Nation resolution 986
3.5
Import and export in Iraqi Kurdistan
3.6
Transit
3.7
Problems and obstacles
Chapter
4 Business Culture in Kurdistan
4.1
Business Meetings
4.2
Custom and etiquette
4.2.1
Titles
4.2.2
Losing face
4.3
Business Communication in Kurdistan,Letters, Phone Call and Fax
Internet.
Chapter
5 Observations and Propositions:
Summery
and Conclusion
References
Bibliography
Annexe
ABBREVIATION
KDP:
Kurdistan Democratic Party
PUK:
Patriotic Union of Kurdistan
KRG:
Kurdistan Regional Government
SC:
Security Council
SCR-986:
Security Council resolution 986
UN:
United Nation
MOU:
Memorandum of Understanding
NGO:
None Governmental Organisation
1
Introduction
1.1
Introduction of the study
This
study has been made to work as a guidebook about Kurdistan, for those who
are
interested
in starting to do business in Kurdistan, and especially for the European
countries.
The
Western countries who don’t know a lot of information about Kurdistan and
Kurdish
question,
after the second Gulf War in 1991 that Kurds of Iraq have a democratic
experience
in
the north of Iraq under the name KRG, Kurdistan Regional Government. The
study
begins
with a short description of the country, Kurdistan like one country and
one history, its
people,
religion and Kurdish language, and the economic situation, and I will concentrate
over
the Iraqi Kurdistan, and the economy of the region.
Then
this study discusses the business culture in Kurdistan, including all the
important
customs
and etiquette, one needs to know when dealing with the Kurds in general.
In
addition,
the different methods of business communication are included as well. I
will
describe
the economic situation in Iraqi Kurdistan during the last 10 years of the
freedom,
and
Kurdish administration in the north of Iraq, and I explain in details the
SCR-986, and
the
general mechanism of this resolution, the Security Council resolution (Oil-for-Food)
which
has been adopted from 1996. And I will describe the general problems and
obstacles,
and
to arrive in the end to explain, what are the reasons that Iraqi Kurdistan
markets can’t be
more
accessible for Europeans Markets. And what are the observations and proposition
we
can
advise for a new country like Iraqi Kurdistan Region.
1.2
Purposes and objectives of the study
I
have written this study in order to increase knowledge of Kurdistan and
the democratic
experience
of Kurdish people in Iraq, and to show the Kurdish economic situation,
and to
present
the administration in Kurdistan Regional Government, and also its business
culture.
The
primary objective of my study is to focus on the most important things,
the Kurdish
economic
situation and to present a new model of auto-administration in Iraqi Kurdistan.
Secondary
I have focused on studying the problems and possibilities related to starting
an
import
and export business with European countries, and also to explain the reasons
why we
can’t
have a developed business activities with Kurdistan Regional Area.
1.3
Limitation of the study:
I
made this study to describe some ideas, for those who are interested to
learn more about the
Iraqi
Kurdistan. The region of Kurdistan mentioned in this study means only the
Kurdish
Region
of Iraqi part (See the Iraqi Kurdistan map).
I
don’t intend to write the detail of Kurdish question and its political
history, I will introduce
a
short history of Iraqi Kurdistan after the second Gulf War, and the Kurdish
uprising in
1991,
and the creation of Kurdistan Regional Government in the north of Iraq.
In
this study I have only included the Iraqi Kurdistan business culture and
the commercial
activities
in the region, and the economic projection of Kurdistan Regional Government,
which
has been created after the second Gulf War and the Kurdish uprising in
1991.
1.4
Research Methods
The
theoretical part is done by a desktop research method. My best sources
of information
for
this study have been the books and empirical study and especially I have
used some news
statistics
from a thesis in Iraqi Kurdistan, from the University of Salahadine. And
some
books,
Newspapers articles, those sources are in different languages, Kurdish,
French,
English,
and Arabic.
Also
from Internet I have found a multiple web pages, concerning the Kurdish
issue, and
Kurdish
documentation. Concerning the business culture there is extremely little
literary
information
on Kurdish business culture and some of the details are based on my personal
experience
in Business there, also some other articles about the subject.
1.5
Key Concepts of the study
Four
key concepts of the study are Kurdistan, Kurdistan business culture, Kurdistan
Regional
Government, and The Economy of Kurdistan.
For
the people who need to know more about Kurdistan Business Culture will
find this study
very
useful.
1.6
Structure of the study
This
study began with a short introduction chapter about the general structure
of this
introduction
of Iraqi Kurdistan economy, and I explain why that we have chosen this
subject,
and
explain our method of research.
The
second chapter is an introduction of general background of Kurds and Kurdistan,
the
origin
of Kurds, and the geography of Kurdistan, language, religion, and I have
focused only
on
Iraqi Kurdistan.
The
third chapter is an introduction of the economy of Kurdistan, and we show
different
aspects
of Iraqi Kurdistan, explains shortly about the KRG, Kurdistan Regional
Government
mean,
and what’s its function, and I show the importance of petroleum place in
the national
economy
of Kurdistan. I will introduce the commercial activity of Iraqi Kurdistan,
the
importance
which the Security Council resolution SCR-986 (Oil- For- Food)
represent
for the Iraqi Kurdistan people, I explain in details how is this resolution
work, and
I
show how the Kurdish government used this money to rebuild Iraqi Kurdistan.
I
will explain in more details the commercial activities of the region, the
import and export
activity
and transit question in Iraqi Kurdistan border with Turkey, and in the
end of the
chapter,
I will show some problems and obstacles.
Business
culture in Kurdistan, in the fourth chapter is we introduce in general
what are the
most
important facts. When you make business with Kurdistan, or with the Kurdish
people,
we
explain about business meeting, custom and etiquette, titles, and losing
face, and in the
end
I show the business communication, and the development of the communication
technique
in Iraqi Kurdistan.
In
the end of this study, after an general observations about the situation
of Iraqi Kurdistan, I
will
propose some indication and solutions and propositions for the function
and the
continuity
of the economic development in the Iraqi Kurdistan region.
In
the annexe I have a quantity of the maps, statistics and other material
about Iraqi
Kurdistan
region.
Chapter
2:Kurdistan and Kurdish nation (general background)
2.1
The Origin of Kurds:
The
origin of the Kurdish people belongs to all these Indo-European tribes
who migrated to
Kurdistan,
and melted the native inhabitants of this land in their crucible.
Being
the native inhabitants of the land. There are no ”beginning” for Kurdish
history and
people.
Kurds and their history are the end products of thousands of years of continuous
internal
evolution, and assimilation of new peoples and ideas introduced sporadically
into
their
land.
The
Kurds have existed in what is on ethnic grounds defined as Kurdistan for
several
thousands
of years. The ancestry to Kurds is often traced back to the Medes, a tribal
group
which
moved into the Iranian plateau from central Asia at the end of the second
millennium.
The
Medes has been a great power in 612 BC, and expanded their empire over
a larger area
before
collapsing in 550 BC (D. Mackdonwall, p.85, 1992)
The
existence of a people referred to as “Kardaka“, “Kurtie or Guti” has been
indicated by
Sumerian
inscription dated 2000 BC, as well as by early Assyrian inscription from
the 11th
century
BC (B.Yassin,1985 p.35).
The
Kurds appear to be descendants of diverse ancient groups, including Caucasian
peoples
in
the north and people that had originally inhabited the mountainous territories
west of the
Caspian
Sea from the earliest times.
The
central part of these territories lies on both sides of the Zagros mountain
range and
stretches
south and west through lower Anatolia into the mountainous area of northern
Iraq
and
Syria.
2.2
Geography (Land):
Kurdistan,
the lands of the Kurds, is a beautiful country that lies in one of the
important
strategic
regions of the world. It is a wide geographic spot extending between the
parallels
36.5,
and 49 and the longitudes 30.5 and 40.5 in the Asian continent, which covers
a wide
range,
its total area reach’s about 500.000 sq km, that is almost equal to the
area of Spain.
The
area is distributed among the four parts of Kurdistan as follows:
Table
(1): Kurdistan Parts:
| The
part |
Area
in Km. |
Percentage
against area of Kurdistan |
Percentage
against the area of the states conquering it |
|
| Northern
Kurdistan (Turkish) |
210.000 |
24% |
26.90% |
|
| Eastern
Kurdistan (Iranian) |
195.000 |
39% |
11.83% |
|
| Southern
Kurdistan(Iraq) |
83.000 |
16% |
18.86% |
Western
Kurdistan(Syria) |
15.000 |
3% |
10% |
| Greater
Kurdistan |
503.000 |
100% |
100% |
Source:
CBSR 33, Kurdistan, p. 35,1998
The
area of each part of Kurdistan, their percentage compared to the area of
Kurdistan and
the
states attached to compulsory
From
the geopolitical point of view, Kurdistan has lain on the frontier of empires
such as the
Byzantine,
the Ottoman, and the Persian empires.
The
British and French conquest’s during the first World War severed Syria
and Iraq from
the
Ottoman Empire, and the resulting interstate boundaries left a Kurdistan
sectioned into
five
parts.(B.Yassin,1995,p42)
Iraqi
Kurdistan comprises four northern Governorates of the state of Iraq (Arbil,
Duhok,
Sulaimanya
and Kerkuk) and parts of Mosul, Dyala Salahadine and Kut governorates.
Its
total
area is about 83.000 sq.km, which forms 16% of total area of the Greater
Kurdistan
and
18% of the total area of Iraq. Its area is almost equal to that of Austria,
and larger than
many
of the European countries (larger than 26 out of the 44 European states).
It is eight
fold
the area of Lebanon, 13 fold of Palestine and 49 folds of Bahrain. (Chalian,
p.112,
1978)
2.3
Geopolitics:
Since
the end of World War I Kurdistan has been administered by five sovereign
states with
the
largest portions of land being respectively in Turkey (43%), Iran (31%),
Iraq (18%),
Syria
(6%), and former Soviet Union (2%).(B.Yassin,p.33,1999)
The
Iranian Kurds have lived under that state’s jurisdiction since 1514 and
(the Battle of
Chardiran).
The other three-quarters of the Kurds lived in the Ottoman Empire from
that
date
until it’s break-up following World War I.
The
Kurds remained the only ethnic group in the world with indigenous representative
in
three
world geopolitical blocs; the Arab world (in Iraq and Syria) NATO (in Turkey),
the
south
Asian-central Asian bloc (in Iran and Turkmenistan), and until recently
the Soviet bloc
(in
the Caucasus, now Armenia, Azerbaijan and Georgia). As a matter fact, until
the end of
the
Cold War, the Kurds along with the Germans were the only people in the
world with
their
home territories used as a front line of fire by both NATO and the Warsaw
Pact forces
2.4
Population:
The
total population of the Kurds in the world is about 30 millions people,
thereupon
Kurdistan
comes in the 30th grade among the 193 states of the world.
The
population in Kurdistan is distributed among its four part as follows:
Table
(2): Kurdish Population:
The
place Population million at 1990 Percentage against the population of the
Kurds Percentage against the population of the states conquering Kurdistan
Northern
Kurdistan 13.15 044.32% 24%
Eastern
Kurdistan 9.26 31.21% 18.97%
Southern
Kurdistan 4.76 16.04% 28%
Western
Kurdistan 1.24 4.18% 11%
Armenia,
Azerbaijan and Georgia 0.301 1.01% 0.11%
Anatolia
region 0.385 1.30% 0.7%
Khurasan
region and else 0.500 1.69% 1.03%
Lebanon
0.075 0.25% 2.59%
Total
Population of Kurds 029.67 100%
(Kurdistan,
CBSR, 1999, Arbil, p 39).
Population
of each part of Kurdistan, its percentage compared to the population of
the
Kurds
and the population of the states attached to compulsory
Different
researchers have given different figures, Mihrdad Izady summarises has
general
estimation
of the Kurdish population for the year 1990 in the following table:
Table
(3):. The Kurdish Population in 1990:
States
Total population Total Kurds % Kurdish
Turkey
56.7 13.7 24%
Iran
55.6 6.6 12.4%
Iraq
18.8 4.4 23.5%
Syria
12.6 1.3 9.2 %
CIS
0.3
Total
26.3
Source:
Izady, 1992. P.119
However,
one must also take into consideration the relatively large number of Kurds
living
in
Lebanon and in exile in other countries, mainly in the west (G.Chalian,
1980,p 44)
The
population of Iraqi Kurdistan today is about 6 million people, forming
16% of the total
population
of the Kurds in the world and about 28% of the population of the state
of Iraq.
There
are several national minorities co-existing with the Kurds in Iraqi Kurdistan,
like
Christian
minorities (Assyrians and chaldeans) Turkmen and Arabs.(CNRB number 33,
p.36,
1999)
2.5
The Religion:
Unlike
the mountain peoples of Lebanon and Syria, the Druzes, Alawites and Ismailis
and
Christian
Maronites, who declared their distinct identity through religious separatism
from
orthodoxy,
the Kurds embraced Islam following the Arab conquests of the 7th century
(Mcdowall
1992, p.13).
The
main religion among Kurds is Islam and the majorities are Sunni Muslims
(A.Gassemlou,
1965, p.24). The Kurds adopted Islam during 7th / 9th centuries, prior
to
which
the major portion of them had adhered to Zaroastrianism, a religion that
reveres fire as
the
symbol of purity.
From
a cultural point of view, Islam has in a sense been an unfavourable factor
in the
development
of a Kurdish national identity, since the central government in Turkey,
Iran,
Iraq
and Syria recognise Islam as the official state religion. Thus, it has
been more difficult
for
the Kurds to highlight the distinct Kurdish identity.
2.6
Language and literature:
The
Kurdish language belongs to the Indo-European family and is part of Iranian
group of
languages.
The Kurdish dialects fall into two main groups, the northern, called (Kurmanji),
and
the southern, called (Sorani).
However
there is a multitude of different dialects that many, according to Martin
Bruinessen
(a Kurdologue), it can be classified into the following subgroup:
1.The
northern-north-western dialects, or Kurmanji
2.The
southern dialects, which are, called southern Kurmanji or Sorani
3.
The south-eastern dialects of Sinei, Kermanshahi, and Leki
The
Sorani dialect has developed the written Kurdish language using modified
Arabic
script,
and most Kurdish literature is written in Sorani. The Arabic letters are
used by the
Kurds
in Iraq and Iran, Roman letters in Turkey, and Cyrillic in the former Soviet
Union.
(See
the Annexe).
The
language issue has been an important concern to the majority of Kurdish
nationalist
language.
Kurds recognise that Kurdish has had a powerful role in their struggle
for national
rights
and recognition as a nation. The Kurdish language is both proof and symbol
of the
distinct
Kurdish identity. The governments of the countries, which partitioned Kurdistan,
have
also been aware of the significance of Kurdish for the Kurdish identity.
They have
therefore
either forbidden or discouraged the use of Kurdish, with the exception
of Iraq,
whose
governments have traditionally been more or less tolerant of use of Kurdish
in schools
and
public life.
The
variety of dialects within the Kurdish tongue, and the policies aimed at
assimilation of
the
Kurds have combined to hinder the development of a standard lingua franca
(Kreyenbroek,
1992, p.68).
The
division of the Kurdish language into many dialects has been affected by
the imperfect
communication
in Kurdistan, which is a land of high mountains. Moreover, the Kurds have
never
enjoyed political unity, which might have made a common literature possible.
The
division
of Kurdistan among a number of countries, the influences from the dominant
languages
of further their language, are other factors which have inhibited the development
of
a standard lingua franca. Several attempts to develop a single standard
from of Kurdish
have
been made, although at no avail.(Matti Saarlainen, 1999,p.8).
The
Kurdish nation prides itself of an ancient and rich culture, but numerous
foreign
occupants,
namely Turks and Persians, who hold the disgraceful plan of assimilating
the
Kurds,
have either confiscated or completely ruined the products of the material
and spiritual
culture
of the Kurds.
Nevertheless,
the ancient culture has been preserved, and even nowadays we come across
remains
of ancient cultures in every part of Kurdistan.
Kurdish
literature abounds in popular legends, we can come across poems originating
as
early
as the 17th century, which describe the resistance of Kurds against the
Arab usurpers,
and
strangely enough, these poems written in the language of those times are
still
comprehensible.(A.
Ghassemlou, 1965,p.29).
2.7
The final division of Kurdistan
Kurdistan
is divided among four of the Middle Eastern states, normally, Turkey, Iran,
Iraq,
and
Syria, and the two former soviet republics of Azerbaijan and Armenia. Kurdistan
has
been
described as an arc stretching from Mount Ararat in the North-east leading
southward
to
the southern part of Zagros and Pishtkuh in Iran (Kendal-Ghassimlou, 1980,
p41). In the
line
can then be drawn westward to Mosul in Iraq, continuing to the Turkish
port of
Iskandarun,
from this point, the land extends in the north-eastern direction to Erzerum
in
Turkey,
and from Erzerum eastward to Mount Ararat.
From
the geopolitical point of view, Kurdistan has lain on the frontier of empires
such as the
Byzantine,
the Ottoman, and the Persian Empires. The British and the French conquests
during
the first World War severed Syria and Iraq from the Ottoman Empire, and
the
resulting
interstate boundaries left a Kurdistan sectioned into five parts. (Kreynbroek,
1992,
p.115-134)
The
existence of crude oil in Kurdistan has also attracted the interests of
international
petroleum
companies. Major oil deposits have been exploited in (Kirkuk) and (Khanaqin)
in
Iraqi
Kurdistan, in (Kermanshah) in Iranian Kurdistan, and in (Siirt) in Turkey’s
Kurdistan.
Chapter
3: The Economy of Kurdistan
3.1
Iraqi Kurdistan Region
By
Iraqi Kurdistan region, we mean the southern part of Kurdistan attached
to Iraq according to an agreement between Great Britain and Turkey and
hence the area referred to as the northern part of Iraq.
Iraqi
Kurdistan comprises of six governorates of Arbil, Sulaimanya, Duhok, Kirkuk
parts of Dyala and Nineva (Mosul). Consequent to Iraqis invasion of Kuwait,
and the outbreak of the second Gulf war a popular uprising in the Iraqi
Kurdistan flared up in March 1991, the Kurdistan Front comprising a coalition
of eight political parties:
1.Kurdistan
Democratic Party- KDP
2.Patriot
Union of Kurdistan-PUK
3.Iraqi
Communist Party-ICP
4.Kurdistan
Democratic Popular party
5.Kurdistan
Toilers Party
6.Kurdistan
Social Party
7.Kurdish
Social Party
8.Assyrian
Democratic Movement
They
controlled a wide area of the region and established its authority in it.
Later the central
government
of Iraq withdrew its official administration from the region in order to
create an
administrative
and legislative vacuum hoping to disturb the administrative situation in
the
region
and paralyse service institutions, an act of Kurdistan front to adopt the
decision of
holding
general elections and organise the governmental administrations and service
institutions
that
could fill in the vacuum
created
by the withdrawal of Iraqi governmental administration.(CBSR, p 24,1999).
After
10 years, and its from the first time in the history of Kurdish people,
I one part of Kurdistan,
after
a democratic and general election in all liberate area of Iraqi Kurdistan,
Kurds have
a
national government, and they have nominate a first governmental cabinet
in 1992.
At
present the forth cabinet of Iraqi Kurdistan function and in general the
political and
economical
situation are much better than in year 1992 due to the accumulation of
experiences.
3.2
Petroleum and its place in the national Economy
Oil
plays an exceptionally significant role in the economy of Kurdistan, just
as it does in the
economy
of all the main oil producers in the Middle East. Oil is reaching the height
of its
importance
in the world economy, gradually replacing coal as fuel. And even more strikingly
as
a raw material for chemical industry.(Ghassmlou,1965,p.198).
According
of Kurdish historical documents, they have discovered the Oil in Iraqi
Kurdistan
5000
years ago, and three places (Kerkuk- Mosul-Khanaqin). (CBSR, Iraqi Kurdistan
Oil, no: 31, p.4).
Iraqi
Kurdistan oil have from the beginning of the production, four European
countries which
are
the most important client, they are France, Italy, Holland, Germany.(Sami
Sheref,p.2, 1972).
Iraqi
Kurdistan has tremendous resources of energy in general and petrol in particular.
One of
the
richest oil fields of the world lies in Kurdistan and that is (Kerkuk)
(Baba Gurgur) field, from
which
oil was extracted for the first time in 1927. It is considered as the fifth
largest field in
the
world in capacity a 60 miles long highland with a 2.5 miles width, penetrated
from him
middle
by the Minor Zab. It extends from Tarjil in Kerkuk up to near Debaga in
Arbil (the capital
of
Iraqi Kurdistan Government).
In
addition to two other fields, (Jambur 1954) and (Bay Hasan 1953) which
are not far from it.
Generally,
the triple oil fields of (Kerkuk) are digged to depths ranging from 1500
to 3000 feet.
The
total number of these wells are 44, and as for the average of the production
of each single
well
is about 35.000 barrels a day. However, the production capacity of some
of these wells in this
field
amounts to 100.000 barrels per day. Oil field of Kurdistan produce more
than half of Iraq’s
production,
which reached to 180 million tons in 1979, and its oil revenues amounted
to 26 billion
dollars
in the year 1980.(CBSR,1999, no 33, p 62-63)
The
most important oil pipelines in Kurdistan are:
1.Kerkuk-Jaffa
(Israel), this line is closed since the Arab –Israeli War of 1948.its diameter
is 30
inches
and 990 km long.
2.Kerkuk-Tripoli
(Lebanon); on the Mediterranean; it is composed of three pipes of 850 km.
3.Kerkuk-Banyas
(Syria), on the Mediterranean, its length is 888 km.
4.Kerkuk-Dortul
(Turkey), on the Mediterranean, Its is composed of two pipes each with
a 40
inches
diameter and their lengthier is 1005 km.
In
addition to oil, there are many sources of natural gas, especially in Kerkuk
and rich coal
resources
as well.(See the map in Annexe) The Iraqi Kurdistan oil importation, has
began only
in
1934, and from this time since 19th century, in Iraqi Kurdistan the petrol
doesn’t have any
importance,
and for Kurdish people especially the economic situation be one of the
important
question
for the Kurds in Iraq.
The
petrol’s revenue doesn’t go to the Kurdish regions and for the construction
of Iraqi
Kurdistan,
the central government of Iraq during all the 19th century has used the
money.
And
the revenue for buying the guns and preparing the plans for the (Arabization)
of Kurdish
cities,
especially the Kurdish Kerkuk, Mosul, Khanaqine
This
situation had continued since the uprising of 1991, and the creation of
Kurdish Regional
Government,
the Kurdish government cabinets, during 10 years of self governing has
different
plan,
and proposing also for the Future of the Kurdistan Region.(KRG, Kurdistan
reconstruction,
p.51-80,
2000).
The
Kurds in Iraq, and from the first time in their history have a national
Kurdish administration.
And
one Kurdish government which has in the planing to reconstruct the country,
and build the
important
projects in Iraqi Kurdistan, its also for the first time the credits which
come from
Kurdish
petrol come back to Kurds.
3.3
Commercial activity of Iraqi Kurdistan
The
trade practice is a great role in developing the economy, a cross the periods
of time and
also
it has its own effect on changing the structure, and this factor considered
a necessary
condition
on changing the economics of different countries. As result of the development
in
economic
life and increasing the humanistic needs and also increasing the satisfaction
of these
needs
caused to the technology, development. Therefore the role of trade become
more complex.
Its
abstract and relative volume increased it grew with average above of the
economic growth.
The
trade has an importance in the economies of the different countries. This
significance change
is
due to the present resources and the product probability for each country.
In Kurdistan region,
this
importance increased after 1991 March uprising and the period after the
uprising many political
economic,
administrative changes happened. (Aziz.Gulideran, p163, 1999).
Those
changes represented in democratic life, pluralization and the economic
movement moreover,
the
unique geographical situation of the region, which occurs between the centre
governorate and
the
Turkey, Iran, Syria are neighbours of the region.
In
addition to its contribution of the availability of the consuming goods
which they could not be
produced
in the area because of the UN embargo.
The
commercial sector regarded as the leader sector in kurdistan economy and
practice its
complete
in this aspect. After the SCR 986, the private sector and some foreigners
companies
participate
in the Trade in iraqi kurdistan, actually there are (13) Turkish and foreigners
companies offices.(Birayeti of 19-8-2001, no:3464)
During
the last Congress of KDP (Kurdistan Democratic Party) in Arbil in 1999.
The politic bureau
of
the Kurdistan Democratic Party, given importance to the free markets and
private sector,
also
the bank sector’s in Iraqi Kurdistan. The inauguration of the first Kurdistan
central bank in
Arbil
in 16 August 2001, Mr Nechirvan Barzani, the KRG Prime Minister opened
the ceremony of
inauguration.
And like a positive singe from the government, during the last 5 years
the Kurdistan
government
returned (55) millions Dinars to the people which they have money in their
accounts
before
the uprising of 1991.(Birayeti news paper of 15-8-2001).
The
importance of commercial activity have increased after 1991 the uprising
of people in Iraqi
Kurdistan,
the big changing in this region introduced a significant situation in the
economic life,
Iraqi
Kurdistan region administration have different commercial activity with
the central
government
of Baghdad. This activity began with the dramatically situation of Iraqi
people after
the
invasion of Kuwait by Iraqi army, and the strict international embargo
imposed by the United
Nation.
Iraqi
Kurdistan region have a multiple commercial exchanges with Iraqi central
government, and
the
volume of commercial exchange between Iraqi Kurdistan and the central government
is very
important,
but for political and administration reasons we don’t have a detail statistics
about
those
commercial exchanges between both region. (AZIZ, p118, 1999).
After
the uprising of 1991 and the creation of Kurdish administration, a national
Kurdish
government
controlled the region’s borders. And for the first time in Iraqi Kurdish
people, had
the
total authority in the business, and the commercial exchange with region’s
neighbours, and
others
countries and Europeans countries, the Iraqi Kurdistan has been the victim
of double
embargo,
international embargo, and the embargo of central government of Iraq, in
addition of this
situation
the trade section with the neighbours countries taken an importance and
its also the key
of
a successful administration in Iraqi Kurdistan.(Khayat Kamal, Journal of
the Centre of Strategic
Studies
no: 26,p.53,1999).
3.4
United Nation Resolution SCR-986:
In
August 1990 the Security Council adopted resolution 661, imposing comprehensive
sanction on
Iraq
following that country’s short-lived invasion of Kuwait. Throughout 1991,
with growing concern
the
humanitarian situation in Iraq, the United Nations and others proposed
measures to enable Iraq
to
sell limited quantities of oil to meet its people’s needs. The government
of Iraq declined these
offers,
contained in particular, in resolutions 706 and 712, adopted in August
and September 1991.(UN. Oil-for-food, 2001.p.1, see the Annexe).
Oil-for-food
is a unique programme established by the council as a temporary measure
to provide
for
the humanitarian needs of Iraqi people which is being implemented in the
context of a sanction
regime
with all its attendant political, psychological and commercial dimensions.
The
Iraqi government has in fact sought to sabotage all efforts at humanitarian
relief, 986 was in
fact
first proposed by the UN in 15/8/1991 as SCR 706, but it was rejected by
Iraqis government,
it
finally accepted in 1996 after 5 further years of suffering to Iraqi people.
(BANNA Siamand.p.2, 2001).
The
oil-for-food program allocates 13% of regulated Iraqi oil sales to support
humanitarian activities
in
the region. These activities fall under the sector of food, and the sectors,
which contain this
resolution
from the beginning been Oil-For-Food, but from 1997, its oil for all other
products, and
the
sectors are:
Food,
Handling, Health, Oilspares, Electricity, Water, Agriculture. Education
Telecommunication,
Transport, Housing..(UN Rapport SCR 986,p.65June 1998).
Iraqi
Kurdistan or according of the term which the United Nations resolution
mentions The
Northern
Governorat,
and in the SCR-986 section 5, article 20,in the Memorandum of Understanding
in
20
May
1996 came that:
“
The purchase of humanitarian suppliers for the three northern Governorates
of Arbil, Duhok,
Sulaimanyeh,
as provided for in the distribution plan, will be carried out in accordance
with annexe I “
(UN
SCR-986, p 5). See the Annexe.
The
distribution in the three northern governors in Iraqi Kurdistan will be
undertaken by the UN,
and
some NGO (Non Governmental organisation) are present with the UN workers
in Iraqi Kurdistan.
(UN
SCR 986,p.2,1997).
According
of the SCR-986, Kurdistan region has 13% from Iraq’s revenue for the life
and
rehabilitation
of Kurdistan, and the process of reconstruction of Iraqi Kurdistan under
the
administration
of regional government, Shafiq Qazzaz the minister of Humanitarian “Aid
and
co-operation
of Iraqi Kurdistan government confirm that, the SCR-986, the Oil For Food
program,
has
been a great program for Iraqi Kurdistan, the benefits for our area have
been significant and
we
hope that the program will continue” (Qazzaz, Beyond box,p2,2001).
The
UN has been responsible for the implementation of the program in Iraqi
Kurdistan. The
participation
of Kurds who work for UN agencies, and most notably, those who work for
the
KRG
(Kurdistan Regional Government), has made a significant contribution in
its success.
In
addition to the substantial funds made available to region through the
SCR-986 program.
The
KRG has also used its own resources to improve life for all the people
living in the area,
but
in general SCR-986 has played a major role in the process of rehabilitating
our shattered
economy
and devastated villages and towns in Iraqi Kurdistan during the last 20
years.
An
Oil-For-Food programme, began at the end of 1996 after the United Nations
and government
of
Iraq agreed on the details of implementing resolution 986 (1995), which
permitted Iraq to sell
up
to two billion dollars worth of oil in a 180-day period. The ceiling on
oil sales was eased during
1998
and finally lifted in 1999, enabling the programme to move from a focus
on food and medicine
to
repairing essential infrastructure, including the oil industry.(UN Rapport,
p. 3 1998).
Phase
I ran from 10 December 1996 to 7 June 1997. The first oil was exported
on 15 December
1996
and the first contracts financed by the sale of oil approved in January
1997. And at 30 of
June
2001 number of phases is ten with the value of oil exported by million
of dollars been 711
$
in 27 July 2001 (basic figure UN.p.1, 2001-SCR-986). (See the Annexe).
The
current phase X of the programme, which runs from 4 July to 30 November
2001, thus far,
96.3
million barrels of oil have been lifted, generating an estimated 2.15 billion
or $1.96 billion in revenue.(UNOIP,UN Rapport 18-24 Aug 2001).
During
the last 6 years, many Europeans visitors been in Iraqi Kurdistan and they
have seen the
development
of the region and they observed that the UNSCR-986 Oil for-food program
was
having
a positive impact in Iraqi Kurdistan and having a direct impact on the
economic and social
life
there. (Lords Ahmad, Kurdistan News n: 11,2001).
Also
Mrs Carole O’Leary is a scholar in residence at the American University
Centre for Global
Peace
in USA, think that the Oil- For-Food money that has been misused in the
rest of Iraq is
being
put good use in Iraqi Kurdistan.(CaroleO`Leary, Washington post, July 15,
2001).
Iraqi
Kurdistan region is seen significant changes, while much of the money used
to finance the
improvements
to the area comes directly from this 13 per cent share of the proceeds
of the sale
of
Iraqi oil, under the SCR-986.
The
KRG also has funds that it uses to pay the salaries of regional government
employees and
other
projects. They have also encouraged a free market system in the belief
that it will benefit
the
area. From the beginning of the 985 resolution 1996 till now, the part
of Iraqi Kurdistan have
been
4,442,000,000 dollars, divided between Arbil and Duhok areas (KRG, Kurdistan
reconstruction,
activity
in 2000,p.51)
The
private sectors is now actively involved in the projects funded by SCR-986
both as
suppliers
and contractors, which has a positive impact on the local economy.(KRG,
Kurdistan News
n.13,2001,
Kurdistan).
The
importance of Private sector have been discussed even during the last KDP
(Kurdistan
Democratic Party) Conference in 6-14 of October 2001.At present in Iraqi
Kurdistan
we
have (437) private companies, and from foreigners countries (19) Turkish
companies has
the
official permission from Iraqi Kurdistan Government. The SCR 986 are essential
factor for
developing
the activities in general and specially the activity of private sector,
the Kurdish
government
accord (1503) import permission in 2001.(Birayeti of 15-8-2001,no:3461,Kurdistan).
Table
(4): The Importing Permission to the Commercial sector from 1997 – 2000:
| Years |
Importing
Permission number |
| 1997 |
1975 |
| 1998 |
1373 |
| 1999 |
1062 |
| 2000 |
1503 |
Source:
Financial Ministry, 2001, Kurdistan
Birayeti
Newspaper 3461, of 15-8-2001, Kurdistan.
The
function of this program in Iraqi Kurdistan is a important process, the
KRG and many
United
Nations agencies and Humanitarian Organisations work in a full co-operation,
and
actually
there are about 40 humanitarian agencies and organisations working in the
area
including
inter alia:
1.FAO
2.UNESCO
3.UNCHR
4.UNHCR
5.UNICEF
6.WFP
7.WHO
8.ECHO
9.QANDIL
10.SCF-UK
11.KRO
12.MAG
13.ACORN
14.
4RS
(Kurdistan,
CBSR no.33,p.79,1998)
Nine
Ministries of Kurdistan Regional Government (KRG) work closely with nine
UN Agencies,
both
are responsible for managing the program in Iraqi Kurdistan. The KRG provides
tens of
thousands
of government employees to the program, and also warehousing, telecommunication,
and
security services to UN Agencies.(Barwari, p.5,2001).
3.5
Import and export activities in Iraqi Kurdistan:
The
study of international trade and money, has always played an important
and discussion
raising
role in the economics. Most of the basic theories of modern economic analysis
have
arisen
already in eighteenth-and nineteenth century, debates over international
trade and
monetary
policy. However, never has the study of international trade been as important
as
it
is today. The economies of different countries are continuously getting
more closely related
with
one another because of international trade of goods and service and international
flows
of
money.
After
1991 and the Iraqi invasion of Kuwait, the UN section over Iraqi government,
and the
economic
embargo, Kurdistan become the only possibility, and the window for Iraq.
The
creation
of Iraqi Kurdistan government, and the application of SCR-986, an economic
and
political
stability presently and in the future. The new horizons for economical
developments,
and
Iraqi Kurdistan can become a free zone for the whole region, and already
many Turkish firms
are
engaged in trade not only in exports but establishing business and light
industries in Iraqi
Kurdistan.
Iranian and business communities of the Gulf states express equal interest,
in
addition
the export and import sectors are very significant in Iraqi Kurdistan.
After
the invasion of Kuwait by Iraqi troops, and the coalition intervention,
Iraq was under
a
very hard embargo and the import and export movement of central government
have been
totally
grounded. Iraq imported before 1990, 70% of its demand..(Aziz Gulderan,
p111, 1999,
Kurdistan).
The
KRG, especially after the UN resolution 986 (Oil for food), have a permanent
commercial
activity
with central government of Iraq, and the import and export activity from
and to the
Kurdish
region had taken a important acceleration.
Iraqi
Kurdistan and its borders, with Iran, Syria, and Turkey, are from 1996,
and especially with
the
SCR 986 are the only way for the central government.
Iraqi
Kurdistan import and export, the targets, and different products from and
to Iraq, through
Iraqi
Kurdistan border city Ibrahim Khalil (the small town on the Iraqi Kurdistan
border.
(See
the Map of Iraqi Kurdistan).
The
region has imported 1640 million Iraqi Dinar (Iraqi Money) producesfromdifferentsourcesin1998.(Aziz.Gulderan,p.126,kurdistan,1999).
The
people’s economical situation are better after the SCR 986, also because
the peace
situation
between the different political parties, especially between the KDP and
UPK(Kurdistan
Democratic
Party and Union Patriotic of Kurdistan) in Iraqi Kurdistan from 1996, and
the creation
of
new ministerial cabinet.
The
export and import statistics:
Table
(5): Iraqi Kurdistan Export to Turkey 1997-1998
Products
1997 1998
Alimentation
Food -------- 65380
Vegetable
164 319
Date
6000 954
Metals
26 6038
Cotton
121 63
Wheat
839 29390
Leather
76717 284079
Chemical
Products ----- 1149
Total
83867 387372
Source:
Iraqi Kurdistan Financial Ministry, 1998
Iraqi
Kurdistan Export to Turkey list (1997- 1998).
Like
we observe, after 1996, and especially after the SCR- 986, an important
acceleration of
development
has taken place in Iraqi Kurdistan Import (See the Table(6):
The
Iraqi Kurdistan Government had a volume of import (248 million Iraqi Dinars)
for building
material
in 1998.
Table
(6): Iraqi Kurdistan Import List 1993- 1998
Products
1993 1998
Alimentation
Food 78.5 222
Vegetable
2 49
Wheat
- 3
Alcohol
73 74
Alimentation
others 30 75
Home
Products 3 12
Woods
- 6
Cloths-shoos
4 181
Electronic
3 150
Glass
18 89
Cars
Material 7 19
Tobacco
73 442
Chemical
Products 3 1
Meat
- 280
Construction
Material - 0
Milk
1 0
Carpets
Total -295.5 42269
Iraqi
Kurdistan Import List (1993 – 1998)
Source:
Iraqi Kurdistan Government, Finance Ministry.
(G.Aziz,
The Commercial activities of Iraqi Kurdistan, 1999,Kurdistan)
This
development and acceleration due to the UN resolution, also is due to a
good management
of
the Kurdistan region government, especially the third and forth ministerial
cabinet after 1996.
Iraqi
Kurdistan export their products to pay their imports, and the economical
and social situation
impose
that, the government and the private sector import more, and the economic
development
in
the region need more for building and construction.
The
region has exported (387,878) tones of total produces in 1998, and Kurdistan
exporting are
more
agriculture products.(see the Table 5).
The
export and import activity is a vital sector in Iraqi Kurdistan economy,
and it should take an
important
place in government planning and orientation. In general the products exported
and
imported
to the neighbours countries, like Islamic republic of Iran Turkey, and
Syria, and through
those
countries, Iraqi Kurdistan products taken another destination to some Eastern
and western
European
countries.
At
present they are 19 Turkish companies in Iraqi Kurdistan, and in general
the Kurdish government
help
any other s Europeans companies, which are interesting and they would like
to make business
with
Kurdistan. (Brayeti News paper, n: 3461, Kurdistan)
3.6
Transit:
Kurdistan
geographically and economically is an important area for all the neighbouring
countries,
like
Turkey, Syria, Iraq and Iran, also for many European countries, the price
for transit is very
cheep,
if we compare with other countries in the area (A.Ghafur, p437, Kurdistan,
2000):
The
Kurdish public income came from transit, has born after the uprising of
1991, and the total
income
from transit sector of Ibrahim Khalil in 1998 been 84.88% from total government
revenue,
and
it represent 190,8000,000 Iraqi Dinars. (Aziz G, p141, Kurdistan). (See
the Table 7).
Transit
is the third section in Iraqi Kurdistan Foreign trade, and because of the
situation before 1991
the
region transformed. For Iraqi central government, and also for the Kurdish
region’s a vital area
especially
for the alimentation produces because of international embargo.(UN rapport
SCR 986,p.33,1998).
Table
(7): The Participation of Transit duties in KRG economy (1993-1998)
| Years |
Total
Income |
Transit
income |
% |
|
| 1993 |
1031812000 |
600000000 |
59.18% |
| 1994 |
125000000 |
115000000 |
92% |
| 1995 |
----- |
---- |
---- |
| 1996 |
675000000 |
600000000 |
88.88% |
|
| 1997 |
1631150950 |
1492000000 |
91.46% |
|
| 1998 |
2247715000 |
1908000000 |
84.88% |
|
Iraqi
Kurdistan Government, Financial ministry Source: G.Aziz, 1999
The
greatest portion of the regional revenue comes from the custom duties and
transit trade.
In
1998, the Iraqi Kurdistan’s government has 247 million Iraqi Dinars from
transit activity, from
different
targets (Aziz, p136, 1999).
The
Regional Government use this duties for the ambitious program of Iraqi
Kurdistan government,
And
especially after 1996, a big part of this capital are used for the reconstruction
process in Iraqi
Kurdistan.
3.7
Problems and Obstacles:
Iraqi
Kurdistan Region had an important process of socio-economic transformation,
and economic
development.
After the uprising of 1991, the Kurdish coalition political parties arranged
a democratic
election,
in addition to this experience. Kurds began to practice the Kurdish administration,
and to
have
the first governmental cabinet, and all this process had been registered
with presence of some
Europeans
delegation and friends, that has been the first time in the history of
Kurdish people, Kurds
has
a national government, parliament and other public administration.
In
addition to all of this changing and reconstruction process we can see
some obstacles which are
standing
in front of those planning which are going on in Iraqi Kurdistan.
By
reading the politic history of the Iraqi region, and during several years,
the central government
of
Iraq, they followed a destruction policy, and they have destroyed more
than 4500 villages in the
Iraqi
Kurdistan, this situation has been continual since the uprising of 1991.(CBRS,
p23, 1999).
Since
1991, and especially after the creation of third ministerial cabinet, Kurdish
government
adopted
a positive and ambitious program, but like other countries, Iraqi Kurdistan
government
suffers
from some of problems and obstacles.
They
are two kinds of problems: Political and economical problems, which affects
in the future of
the
Iraqi Kurdistan Region, and its programs for reconstruction and the economic
development of
the
region:
-
The Political problem:
The
uncertain political situation and the instability in the region in general,
and for Kurds in Iraqi
Kurdistan
are a important factor, which define the future organisation of the socio-economic
life
for
the citizen in Kurdistan.
At
present, the Kurds are seeking a political solution of their problems in
Iraq, and in general the
Kurdish
region must have a guaranty promise from the international community, because
the
people
of Iraqi Kurdistan want to be protected after the changing the actual policy
against
the
central government of Iraq.
We
can’t speak about Kurds, or Kurdistan without talking about political question
of Kurdistan,
the
political risk and the uncertain policy of international community and
the great power are the
main
problems for the Kurds in Iraqi Kurdistan.
The
people of the region wish that, if the international sanctions are lifted
over Iraqi government,
some
guarantees and arrangements have to be put in place so that people’s fledgling
democratic
experiment
would remain viable and enduring.(Qazzaz, beyong the box,2001,p.3, USA).
With
a political stability and lifting of the international sanction in Iraq,
Iraqi Kurdistan region will
see
a new horizon for Socio- economical development, and this region will become
a free zone
for
whole Iraq and the region. And the democratic experience of KRG, Kurdistan
Regional Government
could
serve like a model and example for future Iraq.
Concerning
the political protection, which Kurdish people need and ask from international
community,
it
will not be used against the Iraqi government, but it’s only to protect
Iraqi Kurdistan experience
in
the Socio-economical development.
-
The Economical Problem:
The
economical obstacles also represent a serious threat in Iraqi Kurdistan
region. The SCR 986 has
been
very useful and positive for Kurdistan, the benefits for the area have
been significant and with
only
13% of share of the proceeds of the sale of Iraqi oil, Kurds have succeeded
to rebuild the country
and
the Kurdish regional government has seen rapid development in the field
of agriculture, industry, reconstruction of public building, school, hospitals
and roads.
The
Kurdish government must rebuild the infrastructure of Iraqi Kurdistan,
and maintain relations with
the
world to develop the multiple relations, and to have more co-operation
in infrastructure planning,
but
we can’t be dependent upon other countries or even on SCR 986.(Masrour
Barzani, Kurdistan News,2001,no:12, Kurdistan).
Its
clear that the SCR 986 (Oil-for-food program) is not an eternal resolution
for Iraqi Kurdistan,
the
most important point is that the Kurdish government must have a national
economic planning
for
after the SCR 986, and the Kurdish government must think from now about
post UNSCR-986.
Kurdistan
is a rich country in agriculture, and the people are young and dynamic,
they have the
ability
to govern themselves, and a general planning of Kurdistan economy will
be the only guarantees
for
Kurdish people in Iraqi Kurdistan region.
Iraqi
Kurdistan government has succeeded to rebuilt the most important infrastructure
of the
Kurdistan,
and for the post SCR986, the government must have a good strategy for planning
for
the
new period in Iraqi Kurdistan region.
Chapter
4 Business Culture in Kurdistan
The
race, language, habits, traditions and history of the Kurds differ from
those of Arabs, for they
descends
from (indo- European) origins and their cultural habits, and in business
culture all those
differences
and particularity reflect during the process of business with Kurds Iraqi
Kurdistan.
Kurds
have a typical and especial way to act in general and in the business also
it reflects during the negotiations and meetings. Kurds are Orientals.
The
western businessmen has to learn to be patient, Kurds are spontaneous and
they are
Polychronic
people, generally, the business meetings in Kurdistan are informal and
very polite.
Business
rituals are much the same as anywhere else, so the basic combination of
politeness
and
common sense should guide you through the negotiation process without any
serious
etiquette
difficulties.
The
good communication is obviously of paramount importance at meetings. After
the uprising of
1991
and the democratisation of all the Kurdish society in Iraqi Kurdistan,
a big number of
businessmen
can speak foreign language. Many people can communicate in English.
Usually
Kurds don’t use the interpreter when dealing with a particular company.
And in general
the
Kurds speak, Arabic, Turkish, Persian and English.
There
is extremely little literary information on the Kurdish business culture,
my description based
generally
on my personal experience.
4.1
Business Meetings
The
most important element is to show respect and courtesy and not necessarily
to get all the
rules
right.
In
Iraqi Kurdistan, business meetings are the most essential part of doing
business, the Kurdish
tradition
and because of the actual economic and political situation of Iraqi Kurdistan.
And the
international
embargo imposed by the international community over Iraq and the double
embargo
over
Iraqi Kurdistan (also by the Iraqi central government).
The
business in Kurdistan can be without a meeting face-to-face, due to a specific
situation in
the
region, actually Kurds in Iraqi Kurdistan have an important number of business
agreements
with
the neighbouring countries and some Arabic country such Bahrain, Emirate
Arabic Union,
and
Turkey, and some East European country, and all those agreement happened
without
meetings
face to face.
The
business in Iraqi Kurdistan is rolling in legal situation, and the government
control all those
agreement,
for checking and to have idea about them, the Iraqi regional government
use
perfectly
the agreement which are allowed by SCR-986, and the official administration
help
the
companies (public and private), the economic system of Kurdistan is a mix
system, but
for
protecting the people’s interest, the government have a partial control
in the economical life.
There
are several officials and some unofficial holidays in Kurdistan, which
you have to taken
into
account when arranging business meeting, some of those days may close all
business
activities
for many days at a time. In addition, some habits related to these celebrations
and
remembering
days are useful to know to prevent unnecessary mistakes, delays in business
and misunderstandings. By knowing local habits you will also create respect
and gain advantages
for
your future business.
I
have listed below the main remembering and national and religious day,
which are important
to
know:
Newroz:
Newroz,
is one of the most important day for Kurdish people, which means New-day,
it’s
Kurdish
national day, from all the parts of Kurdistan, and also where Kurds lives,
they celebrate
this
day. Newroz is the most important annual event for the Kurds, the New Year
festival
held
during
the
spring equinox (Iran follows the Islamic way of reckoning time, it start
from the year
622
A.D). (Matti Saarelainen, p.15, 1999)
Friday:
The Kurds working five days a week and the holiday of them is Friday, but
for the
business
its not a problem that they have a business meetings, and to have contact,
normally
they
are present in their office.
Remembrance
days: Kurds have some important remembering days; they are concerning their
history’s,
like Halabja, and the Anfal (the deportation of thousand of Kurds by Iraqi
regime,
and
the distraction of many villages and area by central government of Iraq).
Also Iraqi Kurds
celebrate
the uprising of 1991.
4.2
Custom and etiquette
4.2.1
Titles
Kurdish
society don’t give importance to the titles and some others western organisation
in the
business,
they act very spontaneously, and the contact for making business will happen
directly
by
the boss of the company or business firm.
4.2.2
Losing Face
It
is especially important never to cause a Kurdish person to lose face in
front of others.
Understanding
their way of thinking, especially concerning this matter, is vital when
doing
business
in Kurdistan or with a Kurdish businessman. For example, when you find
a simple
error
in some issue, don’t point it out directly. Try indirectly to hint at the
mistake and offer
so
called-face saving solution. In this way a person is able to adjust the
mistake that has
occurred.
Offering indirect advice or solutions is far more effective than direct
criticism.
In
general Kurds deal honestly in business and commercial affair and they
have general deep
friendships
also in business world, and the human relation is important in business
4.3
Business communication in Kurdistan
The
Kurdish business operation, use like other Iraqi Kurdistan sectors the
last and best material
and
technical possibility, and one of the great opportunity after the Kurdish
uprising and the
creation
of KRG, Kurdistan Regional Government are the Kurdish communication revolution
4.3.1
Letters
At
present, in all Iraqi Kurdistan we have a normal post service, which is
connected with the daily
transport
with Turkey, and for the foreigner correspondent and Kurdish businessmen,
you can
receive
all kind of letters by the follow address through Turkey
From
any European countries or America, you can correspond any Kurdish company
by sending
to
this address:
Iraqi
Kurdistan (KRG)-Habour
P.O.Box
4-33
Sirnak-Silopi
Turkey
And
then you write the exact address of the Kurdish destination.
In
Iraqi Kurdistan, one of the innovations of Kurdish government, is the publication
of Kurdish
own
stamps and they are in used actually in all Kurdistan. (See the Annexe).
4.3.2
Phone / Fax
At
present you can find a private and public companies in Iraqi Kurdistan,
and the connection
are
very good with high technology.
The
telephone and fax service is very cheep and easy. Actually the most important
contact
between
the Kurdish businessmen and the foreign companies are marked by telex.
Since
1991, contacting Iraqi Kurdistan is not by using the international indication
number of
Iraq,
but you can find a multiple of international indication (British, Swedish),
and economically
they
are much more cheep than Iraqi communication costs.
4.3.3
Internet
Utilisation
of the Internet is growing quite rapidly in Iraqi Kurdistan, and the English
language
is
not a big obstacle in using the Internet, Kurds speak English language.
And there is a big
numbers
of Internet centres, and all the business companies have an internet connection
and
especial
e- mail.
In
Iraqi Kurdistan region, there is Internet connectivity. This is despite
that fact that the state of telecommunication in infrastructure is very
poor in the region although it is being rehabilitated
slowly.
In a region that is surrounded by unfriendly countries, and where the only
possible and
very
costly internet link is through space via earth-orbiting satellites, there
are probably around
5,000
Internet users in Kurdistan.(Karim Zebari, Kurdistan News, n13,p.3, 2000)
In
Iraqi Kurdistan the private enterprise in the computer business is growing
rapidly. Computer
stores
are thriving and Internet access is provided by communications Centres
for the general
public.
(Siham Mamand, Kurdistan News no 11, Kurdistan, 2000).
Iraqi
Kurdistan region is considered much better than many other countries. In
light of the
importance
of this sector, the Kurdistan Regional Government has funded projects in
the area,
and
Internet access has been introduced into most university colleges and administration
offices.
Chapter:
5.1 Observations Propositions
1-
The SCR 986 is an important programme for Iraqi Kurdistan economy, and
its vital question
that
the international community continue, the political stability and security
that Iraqi Kurdistan
people
need. It will also have to be matched by economic guarantees, and most
important these
guarantees
are in the continuation and improved implantation of SCR 986, the Iraqi
Kurdistan must
have
the 13% of the oil revenue even after the lifting of the international
sanction against Iraqi
government.
It
is vital that this resolution continues this program gives both political
stability and security
that
Iraqi Kurdistan people needs.
2-
At the present time, especially in business world, and the international
system a good
management
is a key for success in economic situation in any country, also in Iraqi
Kurdistan.
We
must developing the management sector, and when the responsible group decide
the
general
policy of the region, they must take in to consideration the importance
of the
management
element in the process of the socio-economic development.
3-
In Iraqi Kurdistan, the creation of a Ministry of planning and statistics
is very essential and
important.
We can’t plan for economic situation if we don’t have statistics and updated
information.
4-
Since 1991, Iraqi Kurdistan region began a new period of economic relations,
and commercial
exchanges,
permanently the Kurdish authority have some financial problems, and the
first
exchanges
money is the American dollars, it’s a good reason that In Iraqi Kurdistan
the creation
of
a Kurdistan Financial Market (Bousra) is very necessary. And developing
the bank systems
and
a modern method of management. And also the creation of private banking
is ambitious and
positive
factor for the economics development, and for the business operation and
commercial
activity
in general. The purpose of these proposals is to assist with needs of citizens
and
companies
and their transactions with international companies.
5-
The SCR-986 is an important resolution, especially for Kurdish agriculture
products. And we
can
develop the exporting sector, this international protection and agreement
can be very useful
for
the long term, if we can use it in a good way, to discover the new market
areas, and new
countries,
especially Europeans countries.
6-
At present there are more than Nine specialised UN Agencies who identify
and finance projects
in
Iraqi Kurdistan, which they are in co-operation with Kurdish administration
for the application
of
the humanitarian program of SCR-986. It will be a positive to take advantage
and learn from
their
knowledge and experience for post SCR-986, and used in future in Kurdistan
Region.
7-
concerning the private sector in Iraqi Kurdistan, Kurdish economic authority
should be careful
to
increase the domination of private sector in the economical life, we see
that at present the
public
sector must be the most present than any other sector.
After
the uprising of 1991, and the creation of Kurdish government, Kurdistan
most important
exchanges
are with the neighbour’s countries, it’s the responsibility of the new
cabinet in Iraqi
Kurdistan
region, that they discover the new markets, and the new partnerships in
Europe.
The
new areas permit a better quantity of Kurdish products to be exported to
other countries,
and
to have more exchanges with European and Scandinavian countries.
5.2
Summary and Conclusion:
With
uprising of 1991, a new horizon has been opened for the Kurdish people
in Iraq, and
immediately
all the political parties, they have arranged a democratic and legal general
election,
and they have formed the first Kurdish national government, and planned
that
they
rebuild Iraqi Kurdistan, and a significant changes produced in general,
since 1991, the
socio-economic
development continue in the region.
The
Kurdish Regional Government since 1996, KDP, Kurdistan democratic party
and other political
parties,
make a coalition, and they formed the third ministerial cabinet by Mr.
Nechirvan Barzani,
and
with the adaptation of SCR 986 by the international community, the region
has seen rapid
developments
in the field of agriculture, industry, reconstruction of public buildings,
education
and
school, hospitals and roads.
The
importance of this question is that it’s the first time, the Kurdish people
in Iraq, and also in
any
part of Kurdistan Kurds form a national government and they build their
country, and they
educate
their children and develop the peace culture. And they rebuild those, which
the long
years
of war and conflict destroyed.
This
study aims to provide basic information about Iraqi Kurdistan and Kurdistan
Regional
Government,
and the economical function of the region.
The
Kurds in general, and especially Iraqi Kurdistan are very open to meet
foreign business
people,
and for them it’s easy to make business with them, Kurdish business is
very strongly
based
on personal relationship.
Kurdistans
products are mainly exported to the neighbouring’ countries like Turkey,
Iran, and
Syria,
and the trade agreement between Kurdish companies and some other countries
will
create
excellent opportunities for Kurdish market.
The
aim of this study as whole was to provide information, guideline for the
European
companies
that are interested to start importing from Iraqi Kurdistan, and to discovering
this
new area. There would be of course more easy countries to make business
with, but
Iraqi
Kurdistan offers interesting opportunities for those companies that are
willing to invest
time
and effort.
References
Printed
Sources in English language:
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BANNA, 2001,the save havens, UK.
Gerard
CHALIAND 1978, People without a country, ZED, London.UK
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GHASSELMOU 1965, Kurdistan and the Kurds, COLLETS, London.UK
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R.IZADY 1992, The Kurds aconis handbook, Taylor, Washington. USA
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Brayeti
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Ghafur 2000,Geography of Kurdistan, Mukrian, Arbil, Kurdistan
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Gulderan.A.
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http://members.aol.com/krgsite |