Iraqi Dinar News - The International Compact with Iraq - A Shared Vision, A mutual Commitment

2007: The International Compact with Iraq - A Shared Vision, A mutual Commitment

The International Compact with Iraq - A Shared Vision, A mutual Commitment

March 13, 2007

The International Compact is an initiative of the Government of Iraq for a new partnership with the international community. Its purpose is to achieve a National Vision for Iraq which aims to consolidate peace and pursue political, economic and social development over the next five years.

The primary focus will be to build a framework for Iraq’s economic transformation and integration into the regional and global economy. However, it is recognized that good governance and resolution of security and political challenges are pre-requisites for progress in all other areas, including economic revival and normalization.

The objectives of this initiative are:

Iraq’s Economic Transformation and Integration into Regional and Global Economies
To realize a National Vision for Iraq

Consolidate peace and political unity and the vision of a united federal democracy
Establish a path to economic reconstruction, integrated national economy and self-sufficiency over five years

Advance goals of Iraq’s National Development Strategy
Strengthen stability and security
Mutually reinforcing commitments

Iraq’s pursuit of critical reforms
International commitments for support

Recognizing fundamental needs

Good governance
Resolving the political and security challenges

Benefits to the Iraqi People – Progress towards Peace and Prosperity
Benefits to the Government of Iraq – Support and Enhanced Legitimacy
Benefits to the International Community – Peace and Stability, a New Partner

The Compact will be implemented via a consultative group process, around a commonly understood fiscal framework against which substantive commitments will be made. As part of this process, progress will be measured in terms of achievement of key strategic benchmarks.

A follow-up mechanism will also be devised to coordinate pledges, trust funds and disbursement of capital in support of the Compact.

This initiative is not Iraq’s alone. A Preparatory Group tasked with providing strategic advice and engendering high level political support for the Compact, has been set up and is co-chaired by the United Nations and the Government of Iraq, strongly supported by the World Bank and UNDP. It is closely coordinated with the IMF and other international financial institutions. The Preparatory Group liaises directly with the Deputy Prime Minister of Iraq and the Deputy Secretary-General of the United Nations, as the focal points for the Compact process.

The Government of Iraq and the United Nations have designated an Executive Committee to assist the Preparatory Group in establishing a timetable, guiding negotiations and overseeing implementation, including the role of monitoring and evaluation against benchmarks once the Compact is launched. The Executive Committee will manage the process towards the adoption of the Compact and beyond. The Executive Committee will also assist the Government to formulate a strategy for economic regeneration and fundamental reforms for integrating Iraq within the regional and international communities.

As such, the Compact is intended to be a statement of strong regional and international support for the political and economic vision of the elected government of Iraq underscored by specific financial commitments.

FAQs

Exchange rate

Resources