Political Ties, Economy, the Current Situation and Indian Assistance

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Political Ties

  • “Treaty of Perpetual Peace and Friendship” in 1952 .India was amongst the first to recognize the Baath Party-led government after Iraq became a republic in 1958.

  • However, Iraq sided alongside other Gulf States in supporting Pakistan against India during the Indo-Pakistani War of 1971, but we still maintained military and defense ties

  • Iraq had supported India’s right to conduct nuclear tests following its tests of five nuclear weapons on May 11 and May 13, 1998

  • 2002 President Saddam Hussein conveyed Iraq’s “unwavering support” to India over the Kashmir dispute with Pakistan

  • In 2003 India opposing any unilateral action by the US and the UK against Iraq by bypassing the UN. Following the outbreak of war in Iraq, India supported a free, democratic,

  • pluralistic, federal and united Iraq

  • It normalized its ties with the new democratically elected government of Iraq in 2005

Economy

  • Before the Iran-Iraq war and the gulf war Iraq had been one of India’s largest export markets U.N. sanctions on Iraq and Iraq’s isolation further diminished India’s commercial and diplomatic ties. Further slowed after American invasion

  • Iraq has at least 9% of the world’s proven resources. Currently, Iraq is the third largest supplier of crude to India. In 2010, India imported 15

  • million tons of crude from Iraq.

  • Imports:$8.3b Exports:$.5b

Others

  • India is becoming the favorite destination for engineering and medical education and healthcare.

  • cultural exchange agreement , technical coop.

The Current Situation

  • As 2010 drew to a close, Iraq formed its second democratically elected government since the adoption of the Constitution in 2005. It was a year of change and transition, with the March 2010 national elections resulting in heavy turnover in the Iraqi Parliament and the U.S. ending more than seven years of combat operations in Iraq in August. The nine-month government formation process highlighted the increasing primacy of politics as the means for settling disputes in Iraq but also pointed towards the persistent divisions within Iraqi society. Key foci in the coming year are expected to be efforts to implement power sharing agreements that underpin the new government and to define the nature of the partnership between Iraq and the U.S. as the December 2011 deadline for the full withdrawal of U.S. troops approaches.

  • Despite hard won gains in stability, the conflict in Iraq is not over. Meanwhile, the extended disputes over government formation illustrates the broader continuing need to help Iraqis develop the capacities and institutions to prevent, productively manage and resolve conflict without resort to violence. These efforts will need to encompass not just national and local government, but also civil society groups and the education of Iraq’s next generation to play roles as active citizens. A tremendous amount has already been invested in Iraq, but a withdrawal without proper support for Iraqi institutions could have even more costly consequences.

  • The challenges posed by security, political accommodation, civil governance and rule of law, reconstruction, and economic development. The risks involved are complex, and involve a wide range of ethnic, sectarian and regional issues

Indian Assistance

  • In response to UN

  • Secretary-General’s appeal, India committed $20 million for assistance to the Iraqi

  • people. In cooperation with WFP, India provided

  • fortified biscuits to Iraqi school children and Iraqi refugees in Syria. In addition, India

  • contributed $10 million towards the International Reconstruction Fund Facility for

  • Iraq (IRFFI) for investments, reconstruction and development in Iraq.

  • training of Iraqi Foreign Service officers in diplomacy and training

  • of Iraqi officials in Information Technology, scholarship slots in ITEC, training for downstream oil sector

  • there has been no larger strategic restructuring of Indian foreign policy towards Iraq.

  • the Iraqi government had invited India to step in and help in Iraq’s reconstruction with its technology and management expertise. Iraq is slated to be world’s biggest oil supplier by 2015 and Indian companies have been looking forward to operating there.

  • Iraqi businesses are also exploring opportunities for joint ventures with their Indian counterparts in the field of cement, petrochemicals, hotels, oil and gas upstream and downstream projects. But the lackadaisical attitude of the Indian government has prevented a deepening of India-Iraq economic engagement.

  • India will have to seriously think about its role anew as a new Iraq emerged in a new Middle East. Delhi has an expanding set of interests in the region and Baghdad can once again emerge as a reliable partner if ties with it are nurtured carefully. Appointing an ambassador is a good, albeit modest, star

  • Compare this with China’s growing profile in Iraq. In the past three years, Chinese companies have walked away with stakes in three of the 11 contracts the Iraqi oil ministry has signed. It has secured a second deal to help to develop one of Iraq’s largest oilfields -- the 4.1 billion-barrel Halfaya field in southern Iraq as well as the rights to develop Rumaila, Iraq’s largest oilfield, alongside BP. It has agreed to cancel 80 percent of the 8.5-billion-dollar debt it is owed by Iraq even as the two countries have entered into trade deals valued at $3.8 billion over the last two years

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