A study of the government and administration of before and after the 1958 Revolution

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Authors Bassam, Naji Abdul Amir, 1927-

Publisher The University of Arizona.

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Link to Item http://hdl.handle.net/10150/347464 A STUDY OF THE GOVERNMENT-AND ADMINISTRATION . OF IRAQ BEFOREHAND AFTER THE ' 1958 REVODUTION .

by

Naji A. Al-Bassam

A Thesis Submitted to the Faculty of the

• COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION

In Partial Fulfillment of the Requirements

For the Degree of

- MASTER OF' PUBLIC ADMINISTRATION

In the Graduate College

, THE UNIVERSITY OF ARIZONA

1963 STATEMENT BY AUTHOR

This thesis has been submitted in partial fulfillment or require­ ments for an advanced degree at The University of Arizona and is deposited in The University Library to be made available to borrowers under rules of the Library.

Brief quotations from this thesis are allowable without special permission, provided that accurate acknowledgment of source is made. Requests for permission for extended quotation from or reproduction of this manuscript in whole or in part may be granted by the head of the major department or the Dean of the Graduate College when in their judgment the proposed use of the material is in the interests of scholar­ ship. In all other instances, however, permission must be obtained from the author.

SIGNED:

APPROVAL BY THESIS DIRECTOR

This thesis has been approved on the date shown below:

DAVID A. BINGHAM Date / Research Associate in Government ACKNOWLEDGMENT

. This opportunity is taken to express special appreciation to Dr.

Paul Kelso, Professor of -Government, for the kindly personal guidance which he extended to the author during his, several years of study at the

University of Arizona.

To Dr. David A. Bingham, Associate Professor of Business

Administration, and to Dr. Raymond A. Mulligan, Professor of Sociology and Public Administration, grateful acknowledgment is made of their excellent technical advice on the preparation of this thesis.

The author desires to acknowledge the encouragement and the assistance given by Dr. Dorothy I. Marquart, Associate Professor of

Psychology, in his course of study.

Thanks and appreciation are extended to Mr. Albert L. Ruiz,

Vice President of the Southern Arizona Bank and Trust Company, and to Mrs. Chula Saver a, Graduate student, College of Education, for their assistance in the preparation and drafting of this thesis.

Finally, he is grateful to the Iraqi Embassy, Office of the

Cultural Attache, Washington, D. C,, for providing the statistical information to support the thesis.

iii PREFACE

The purpose of this thesis is to provide a descriptive and analyt­ ical study of the government and administration of Iraq before and after the Revolution of 1958. Special reference is made to the current fiscal policies and the budgetary methods of the Government of Iraq with a view towards offering recommendations helpful to the economic develop­ ment and political freedom of the nation. The budgetary process described herein will cover the preparation of the budget by the Ministry of Finance, its submission to and its subsequent authoriza­ tion, execution and audit.

The budget of Iraq differs greatly from the federal budget of the

United States. The Government of Iraq is highly centralized and concen­ trated so that the (), (Qada), and (Nahyah) depend almost entirely upon the central government in for financial support and assistance.

A comparison is also made of the various governments which have administered the from monarchy through republic. Gov­

ernment policies which reflect the mood of the various administrations

are the subject of study and comment. Comment is also made of the impact of these policies and the administration of the budget upon the economic life of the nation.

Among the many new and developing , no nation has a brighter future or a greater potential for world good than Iraq. Due to its geographic location between East and West, and its situation in the midst of the Arab nations, a strong, progressive and prosperous Iraq is in a position to become a factor contributing to the peace and stability of an area far beyond its borders and out of proportion to its modest size and population.

The role as a moderator in world affairs is not new to the country as it looks back upon the golden age of Arab power when the center of world influence, wealth and culture was located in the Land of the Two Rivers.

However, before Iraq can hope to achieve the promise of a future "golden age" it must successfully meet many critical challenges and issues involving the administration of a country made up of a heter­ ogenous population of different ethnic origins and religious convictions.

Although substantial progress has been made, it is still too early in history to evaluate the achievements of the Revolution, especi­ ally in as limited a study as this. It would appear, though, that the right road to development, progress and prosperity has been selected. How­ ever rocky and troublesome the route may be, it is confidently believed

v that it will ultimately lead to the "golden age" so eagerly sought and so

earnestly desired by its leaders.

This study is advanced in the hope that it might make some modest contribution to the solution of what is believed to be some of the most critical and basic issues facing the government in its admin­ istrative and budgetary problems. TABLE OF CONTENTS

Page

/ACKNOWLEDGMENT...... iii -

PREFACE...... iv

CHAPTER

I THE EARLY ...... " 1

The Independence of Ira q ...... 13

H ' FACTORS LEADING TO THE REVOLUTION...... 21

Economic and Social Status ...... — ...... 21 The Land Distribution...... 24 The Political Situation ...... 24

HI THE POWERS AND STRUCTURE OF THE MON­ ARCHY (1925-1958) AND REPUBLIC (1958-1963)..... 27

The Monarchy...... 27 The Executive Branch...... 28 The Cabinet and Parliament 30 The Ministries ...... 31 The Council of Ministers...... 32 The Legislative Branch...... ----- ...... 33 The Judicial Branch...... ------37 Civil Courts— .— ...... 38 Religious Courts...... 40 Non-Muslim Courts ------41 Supreme Court for Bringing Cabinet Mem­ bers to Trial...... 41

vii TABLE OF' CONTENTS (Continued)

CHAPTER Page

The Republic...— ...... 42 The Executive Branch...... 43. The Council of Ministers - -Authority and Liabilities .... 44 The Ministries - -Personnel, Structure, and Organization — ...... 45 Departments and Agencies ...... 46 The Judicial Branch...... 49 Local Liwa Administration...... 49

IV ' PUBIIC FINANCE,.'...... 53

The History of the Monetary System of Iraq 53 The Banking System...... 55 The National Bank of Iraq or ...... ______—...... • 55 The Rafidian Bank... . 57 The Agricultural Bank...... 58 The Industrial Bank...... — 59 . Estate Bank...... — .. 60 The Mortgage Bank...... 61 Sources of Budget Revenues. ----- ...... —...... 62 Income Tax...... ----- 63 Income Tax Rates...... 66 Property Tax...... 67 Stamp Duties...... — ...... 67 ■ Indirect Taxes...... ------69 Istihlak Tax on A nim als...... 70 Land Tax...... — .... 70 Customs Duties on Imports...... 71 Excise Duties...... 72 Other Revenues...... — .... 73 Oil Royalties ...... — ..... 74 The Expenditures of the Government...... • 75 Introduction, ...... 75 Ministry of Defense...... 78 ' Ministry of Health...... 79 Ministry of Education...... ,...... — .. 80 viii TABLE OF CONTENTS (Continued)

CHAPTER Page

V ' GOVERNMENT BUDGETING...... 84

The Organization of the Ministry...... 84 Budget Preparation...... 87 The Minister of Finance...... 89 Budget Preparation...... 90 Estimation of Receipts and Expenditures in Iraq,...... 9,2 The Legislature...... 93 Approval...... — 94 The Financial Committee.....— ...... 95 Procedures of Approving the Budget in : .Parliament...... 96 General Discussion...... 97 Detailed Voting...... 97 Final Voting...... 98 Approval by the Head of the State...... i.. 98 Delay in Adopting the Budget...... , 99 'Special Allotments,...... 100 Rej ection of the Budget...... 100 Execution of the Budget...... 100 The Accountability of the Budget...... 103 Control During Execution...... 103 Control After Execution...... ^...... 104 judicial Control...... 106 Parliamentary Control...... 106 Liwa Budget...... 107

VI . CONCLUSIONS...... 109

APPENDIX A ...... 120

Interim Constitution of 1958..— ...... 120

APPENDIX B...... 127

Iraq[i.State Revenues and Expenditures...... 128 Major Sources of Iraqi State Revenues, 1956 -1957- -1960 -1961...... 129

.it-; . ; : - TABLE OF CONTENTS (Continued)

CHAPTER Page

Main Heads of Iraqi State Expenditureso...... 130 Actual Revenues and Expenditures on Budgets Supplementary to General Budget of the Iraqi/State for the Financial Years 1958- 1960...... v...... • ■ . ,131

• APPENDIX C...... •132

Estimation of Population in Iraq in 1958-1970. 133 Estimation of the Number of Children in Iraq of-7-12 Years of Age in the Years 1958- 1970... . 134

BIBLIOGRAPHY...... 135

x LIST OF TABLES

Table - Page

1. Receipts from Income Tax: 1956-59,...... 67

2. Receipts from Property Tax: 1956-59...... 68

3. Receipts from Stamp Duties: 1956-59.., ____ ...... 68

4. Revenue from Jstihlak on Agricultural and Animal Produce...... 70

5. Revenue from Land Tax: 1956-59...... 71

6. Revenue from Custom Duties on Imports: 1956-57.... 72

7. Revenue from Excise Duties: 1956-57...... 73

8. Main Heads of: State Expenditures ...... 77

9. Iraqi Educational Progress, 1920-1961, Elemen­ tary Level...... 80

10. Iraqi Educational Progress, 1920-1960, Secondary Level.... 81

11. Government Students Abroad to Study in the Various Fields...... 83

xi CHAPTER I

THE EARLY HISTORY OF IRAQ

Iraq represents one of the oldest cultures in history; yet it is also one of the newest of independent nations. Carved from the at the close of , modern Iraq consists roughly of the former Turkish of Baghdad, , and . It is bordered on the east by Iran., on the west by , on the north by

Turkey, on the northwest by , and on the south and southwest by the- and Sa'udi Arabia. It has an area of approximately

168,000 square miles and a population of about 7, 000,000.

Iraq can be divided into three different geographic : the desert in the west and southwest; the plains, most of which lie between the and rivers; and the mountains in the northeast corner of the country in an area called ’'Kurdistan" for the Kurdish tribes that live there. Each of these regions has distinct geographic features that contribute to the variety of the country's culture and eco-

... 1 nomics.

^ Piggott, Stuart (ed) The Dawn of Civilization. (New York- Torontp-London: McGraw Hill Bobk Co., Inc., 1961) p. 83.

. : : : ■ .1 '' Iraq's two great rivers, the Euphrates and Tigris? rise in the mountains of and flow southward through the country and finally join north of Basra to form the Shatt-al-Arab River which then flows

120 miles to the Persian Gulf. The influence of these waterways as a means of supporting early attempts at agriculture, as a means of com­ munication, and as a stimulant to trade between the early tribes can scarcely be overestimated. From earliest times men have attempted to construct irrigation works and dams to control these rivers and the floods that periodically inundated their fields and . These efforts continue to the present day. With a low annual rainfall, agri­ culture in Iraq has always been dependent on irrigation and that is why early settlements were established only along the rivers.

It is generally agreed that Iraq is the cradle of civilization. The very name IRAQ comes from the word meaning ORIGIN. The written history of this area (called by the Greeks - -or Land between Two Rivers) dates back at least as far as 3500 BC.

The first elements of civilization were to be found in the fertile

valleys of the Tigris and the Euphrates. The abundance of food in this

area gave man a surplus which was to change his life from that of a

nomad to that of a farmer and then to a community dweller.

As the population multiplied, villages grew into and towns

into . It has been estimated that the of numbered several thousand persons as early as 4000 BC. It was in communities such as this that man first began to specialize in different crafts to produce the tools, clothing and housing for community living. There was a necessity for trade to bring in the raw material not readily available in the neighborhood. Community living also brought forth in the first need for government as men soon learned that they could neither live nor work together without rules.

The leading group h i establishing the early civilization of

Mesopotamia were the Sumerians, a nonsemitic people, who invaded these fertile lands to establish well-developed cities and government.

The Sumerians were the first to codify civil law in writing and to estab­ lish commercial-banking practices as well as standard weights and measures. The small -states of the Sumerian civiliza­ tion, which began before 3000 BC, lasted until about 2600 BC, when

Sargon of Akkad, a Semitic conqueror, created a new kingdom, larger than that of the Sumerians. The two kingdoms of: and Akkad con­ sisted of several city-states among which were Ur, Eridu, Lagash,

Erech, Nippur, Kish, Agade, Isin, and Larsa. The first history of government reaching beyond the local level appeared with the Sumerian of city-states. The two kingdoms, Akkad and Sumer, combined in 2500 BC and formed one great nation, its most famous kings having been Sargon and 2 Naramsin.

Committee of Officials, Kingdom of Iraq. (Baltimore, Mary - land: USA: The Lord Baltimore Press, 1946) p. 13. . ' ' . 4

The dispute between Isin and Larsa allowed a new dynasty to come into power. This new dynasty took its name from the of

Babylon where it was established about 2200 BC. Located about sixty miles south of modern Baghdad, was to become one of the most famous cities of the ancient world, noted for the splendor of its temples, palaces and buildings.

Babylon became not only a city-state, but one of capital impor­ tance. The most important ruler of this dynasty was Hammurabi, who became noted for his progressive ideas and his wonderful Code of Laws, which had almost 300 legal provisions and was to greatly influence the civilization of the Near East. The laws covered such things as false accusation, military service, tariffs, witchcraft, wages, trades, loans, and debts. The code was based upon the principle that "the strong shall not injure the weak." It was the first set of laws establishing the rights of individuals and giving them protection under its authority. Under

Hammurabi Babylon was both the center of a political empire and a religious metropolis. After the death of Hammurabi, declined under the , who had invaded the kingdom from the northeast about 1750 BC. During this period the very able rulers of a city-state at Sshur, south of Musul, increased the boundaries of their dominion and founded the Kingdom of which lasted two hundred years

(1350-1150 BC). Assyria had a strong and powerful military which enabled the empire to increase its boundaries to include most of the .

The capital moved from Ashur to Nineveh, Mosul.. This city greatly surpassed the old Babylon in wealth and magnificence. The Assyrians dominated Babylonia. The old city of Babylon, built by Hammurabi, was destroyed by them.

Finally Assyria declined and split into many tribes, which hastened its downfall. The Chaldeans had been continually encroaching northward for four hundred years from the Persian Gulf and southern

Babylonia, finally occupying Babylon itself. King Nebuchadnezzer ruled for forty of the sixty-seven years during which the Chaldeans governed

Babylon. During Ms long rule the King rebuilt Babylon, copying much from and even surpassing Nineveh. Cities were rebuilt and fortified.

Trade and industry flourished once again. Repairs were made to the irrigation system and agriculture became productive again. The ruins of Babylon that can be seen today are those of Nebuchadnezzar's Babylon; nothing remains of the older city of Hammurabi. This period is often referred to as neo-Babylonian.

Afterwards Babylonia was overthrown by Cyrus the Great, King of Persia, in 539 DC, Babylonia became but a part of the great Persian empire though Babylon itself was chosen as the winter capital by its rulers. In 331 BC Alexander the Great invaded the country and changed

Persia to Greek rule. During the next seven years Alexander conquered 6

modern Persia and , crossed the frontiers of India, and

invaded the Punjab.

Alexander died to"..323 BC at Babylon after a reign of thirteen

years. He was thirty-three years old. . Seleucus, one of his generals,

acquired the Iraqi portion of his conquests. He built a new capital on

the Tigris known as Seleucia. Iraq came under Greek rule at that time.

The culture which they brought and the development carried out by them

influenced the country for several more centuries.

Seleucia was conquered by another invading group from Persia

called the Parthians. They built a new capital called Ctesiphon, oppo­

site Seleucia on the other side of the Tigris.

At that time the great Roman Empire was in existence and Syria

formed part of that empire. There was continual war between Sarthia

qnd Rome. * Afterwards, another. Persian dynasty* the Sasaniais, or

. Sasanids, overcame the Parthians in 226 AD. Iraq was in a fine state

of development under the Sasanids, and most of the disused irrigation

canals which are to be seen all over the country today are said to have

been in operation during their reign. The strength and length of the

: Sasanid rule made their epoch a most important one of the ’’foreign rule

period” of Iraq 's history.

In 570 AD the prophet Mohammed was born in Mecca. In 620 AD

he became a prophet of a new religion called and his call extended

through the Middle Eastern countries either by peace or by war. On his 7 death in 632 AD the Arabs, inspired and united by his teachings, organized campaigns which overran the fertile but mismanaged states surrounding their desert.

In 636 AD Arabs defeated the Bysantine Romans at the Battle of

Yarmuk and occupied Palestine and Syria, They reached Iraq and routed the Sasanians at Qadisiyah, fifteen miles west of A1 Kufal. The follow­ ing year the Arabs took Ctesiphon, the capital of the SaSanids and estab­ lished strongholds at A1 Kufal, Wasit, and A1 Basrah. There was at once an influx of Arabs into Iraq.

When the prophet Mohammed died, his successors, as the head of the Islamic religion, were called caliphs. The first three caliphs ruled in Medina in the Hejaz. The last one, Ali, came to Iraq. At that period A1 Kufal became the capital of Iraq. When Ali was assassinated, the Umayyad empire declined, a new empire appeared in Iraq called

Abbasid. In 762 AD Al-Mansur, the second Caliph of Abbasid began to build Baghdad, the new capital. He chose the location because he found the area healthy and well provided with water for irrigation purposes.

The new capital was a large, beautiful city surrounding a huge adminis­ trative fortress wherein every department of state had a properly regu- 3 lated and well-ordered public office.

^ Ibid., pp. 16-20. There schools and colleges abounded with philosophers, students, doctors, and poets. This period was called the Golden Period or the

Golden Century, because Baghdad stood alone as the rival of Bysahtium.

It attracted poets, philosophers, scientists and literary men from all over the Moslem world. The center of its intellectual life was Dar al-

Kikmah (the abode of wisdom) founded by al-Ma’mun as an academy, a museum, a library and a bureau of translation.

In 1258 AD, Hulaku Khan with his. Mongols conquered Baghdad and the Abbasid dynasty with its Arab rule was wiped out. When Hulaku entered Baghdad he destroyed the whole of the Arab civilization, especi­ ally in Iraq. This period is known in Arab history as the Dark Period or "A1 Eatra Almodlima.”

In 1534 AD, Iraq.came under the Turkish rule; this lasted until

1914. There were many Ottoman ru lers who reigned over Ira q in this period. The most prominent and progressive ruler was Midhat .

The vigor of his administration reflected a belated recognition of the land’s potential wealth. Midhat Pasha, an enlightened reformer, ushered in the last period with land tenure reforms, an attempt at planning, and the enforcement of modern laws. An effort was made to ensure closer administration and disciplining of the tribes, and for that end a more effective police system was introduced, along with a few secular schools as part of a plan to obtain a better educated civil service. The Turks failed to give good government to Iraq because the foundation of the Ottoman Empire was based on the philosophy that the lives and property of its subjects existed only for the benefit and glory of the ruling class.^ At the same time other more local, but no less important, political forces were beginning to come to the fore; i.e., the young Turks' policy of Ottomanization in Iraq had led to violent opposi- 5 tion.

Turkish rule over Iraq came to an end after much bitter desert fighting during World War I. In 1914 a British advance under General

Townshend was stopped at A1 Kut on the Tigris and the Anglo-Indian forces captured. Another force under the command of General Maude moved rapidly through the country and by 1917 had captured Baghdad •6 and occupied the whole of Iraq. Upon the capture of Baghdad, General

Maude had proclaimed that Britain intended to return to Iraq/some con­

trol of its own affairs. • As a matter of fact, the British did give up the

responsibility of civil administration but employed comparatively few

Arabs in responsible administrative positions, the remaining officials consisting Of British and Indian administrators. Nor were the various

4 ...... — Philip W. Ireland, Iraq. A Study in Political Development. (New York: ■ 1958) p. 77.

Ministry of Interior-General.of Propaganda, Iraq Today. (Baghdad and Government Press, 1953) p. 37.

6 • George L. Harris, Iraq Its People and Society. (New Haven P ress, 1958) p.-22. 1 - 10 advisory councils, of which so much has been made as indicating the participation of responsible Arabs in their own government, of any practical value, having been so organized as to make their effect neg- 7 ligible on the conduct of the Administration except in minor affairs.

The local official policy was one of direct control, maintaining that the interests of the country would be served by having a large pro­ portion of British personnel in all branches of the administration.

Great strides were made toward creating a bureaucracy, staffed and administered along Indian lines during that period with an increase in the hierarchy of officials (1918-1920). The titles born in India— civil commissioner, political officer, assistant political officer, revenue officer, judicial officer, and others were reproduced in the Iraq admin­ istration.^

The administration of occupied Iraq remained until October,

1920, as the responsibility of the commander-in-chief of the British forces exercised through his subordinate, the civil commissioner, but in practice the former had no frequent occasion to interfere in civil affairs. Sir was civil commissioner until his assignment as

British Minister to Teheran in May, 1918, when he handed over his

7 Op. cit.

8 Ibid., p. 149. 11 responsibilities to Lieutenant- as acting civil commissioner for the next thirty months. . ■

With the separate status of Mosul soon to become no more than nominal, the whole was, from early 1919 onwards, admin­ istered from Baghdad on generally, uniform lines.

The headquarters of the administration grew with each assump­ tion of new responsibilities. The elements of a secretariat were formed and something of the formality of organized government appeared. A personal staff which included the civil commissioner relied upon five secretariats.

The financial secretariat included all makers of expenditures, budgets, currency, audit, customs, hostile trading concerns and govern­ ment presses.

The judicial.secretariat directed the legislation, the courts, and the Awquaf.

A number of departments not covered by any secretariat, notably those of the police and education, were grouped under the civil commis­ sioner directly.

The administration of tribal, ’'political'' security, and, in gen­ eral, social matters, the collection of revenue, and relations with the army were main functions of the civil commissioner's personal office, acting in the provinces through his politieaTofficers. , 12

Among the departments of government operating were those of

Tapu (land registry) and the Awquaf directed by a committee of religious

notables.

The courts administering Turkish civil law were conducted, to

the general satisfaction, in Arabic, except for the wider bestowal of

magisterial powers on administrative officers which generally followed

' Turkish procedure. Government departments used senior Iraq personnel

from the first.

For criminal cases, a new and well-adapted code--the Baghdad

Penal Code--was compiled and introduced.

In the provincial government, a close approximation to the

Turkish administrative units was retained. The division represented

usually the former sanjaq or liwa, the District Gadha, while the nahiyas

were little changed.

Each division was under the command of a political officer and

within it, under his assistants, were grouped two or more .

Within each district;the familiar nahiyas, under ’IraqiM udirs, ” pre­

served the routine and nomenclature of their predecessors. At divi­

sional headquarters, the formation; of nominated advisory divisional

councils of notables and officials under the political officer’s chairman­

ship was a step taken in early post-war days. It intended to associate

the public, to some formal and limited extent, with the administration; 13 but the councils, however well chosen, were too powerless to be of ' Q effective service and did not survive the stormy days of 1920.

The Independence of Iraq

The Kingdom of Iraq has no historic traditions as a national state. Its boundaries were determined by the European powers in accordance with their rival interests. Its frontiers conform to no prin- in ' ■ ciple of nationality.

At the Paris Peace Conference in 1919, mandates for the govern­ ment and administration of former and territory of the defeated

Central Powers were drawn up. Since the British had occupied Mesopo­ tamia on behalf of the Allies, ratification of the Cov­ enant placed the British in a favored position for obtaining the mandate for this area.

An understanding was reached between the British and French on

September 15, 1919, at San Remo under which the French agreed to s u r­ render their claims to Mosul with the understanding that France would have a share in the petroleum of Mesopotamia and that British troops would leave Syria.

® Stephen Hemsley, Iraq , 1900 to 1950. (New York) pp. 107-112.

in . William Yale, The Near East. (University of Michigan Press) p. 304. . ' , ' ' 14

The war, however, had inflamed the spirit of nationalism throughout the Middle East and the mandate served as an instrument to weld the different Arab factions into a solid front to oppose the British in their administration of the mandate. Opposition took the form of open rebellion. Although of short duration, the rebellion produced heavy casualties and an exceptionally heavy drain on the British treasury. Due to the large financial cost and the jeopardy to British control and pres - tige in the Middle East, the revolt obliged Britain to change its policies in Iraq and try new ways to impose its influence and rule over the country.

Through experience, Britain learned that direct foreign admin­ istration was unsuited to Iraq. Within this framework, the first Iraqi cabinet was established from the natives of the country plus some out­ siders. This cabinet consisted of eight ministries and a prime minister.

These were as follows: ministry of interior, ministry of finance, min­ istry of justice,, ministry of defense, ministry of education and health, ministry of work and communication, ministry of commerce, and min­ istry of awquaf (religious properties). One year later in 1921, at the

Cairo Conference (requested by Mr. Churchill) the situation of recent events ip Iraq was surveyed. It was decided that in order for some of the promises to be fulfilled, the establishment of an Arab state in Iraq should be facilitated by Britain.^ Mr.; Churchill declared that Faisal,

11 Ministry of Interior, Directorate to General of Propaganda, op. ciL 15

son of Hussein, Sherif of Mecca, the Arab leader in Hejaz and Syria

against the Turks, should be king of Iraq.,

On April 18, 1921, it was announced by the secretary of state

for colonial affairs that His Majesty’s Government approved Emir Faisal 12 as a candidate for the throne of Iraq.

The ministry decided to proclaim him king in a constitutional,

democratic, representative government and he was enthroned on August

23, 192,1.

The period between 1922 and 1932 may be described as a period

of diplomatic and peaceful struggle, during which many boundary disputes

and claims were adjusted. Chief among these was the settlement involv­

ing Mosul, the former Arab bilayet of the defeated Ottoman Empire.

, Since the border between Turkey and Iraq had not been clearly defined

at the time of the armistice,,Mosul, with its vast petroleum reserves,

became the center of a dispute involving Turkey and Great Britain, acting

on behalf of Iraq. The matter was finally resolved by the Council of the

League of Nations on December 16, 1925, when it awarded Mosul to Iraq.

This settlement together with the establishment of boundaries with Syria

and Sa’udi. Arabia made final the scale and size of the Kingdome of lraq.

The strong Iraqi. Qpposition to the mandate led to a treaty, signed

on October 10, 1922, providing for a tutelary period of twenty years.

1 2 - — — ' • Ireland,'op., cit., p. '317. 16

This treaty, however, aroused widespread opposition, even after the protocol of April, 1923, had reduced the tutelary period to four years.

The treaty was affirmed by the constitutional assembly on 27,

1924, and ratified by a bare majority in the assembly on June 10 and 11 of the same year. The assembly also agreed upon the, constitution and passed the electoral law.in 1925.

The first election for chamber, deputies was in the same year ' 13 ' and the written constitution promulgated on March 21, 1925. The constitution clearly defined the position and prerogatives of the king and the rights and obligations of the people. The structure of the legis­ lature, the ministry, and the judicial, and the organization of local government, etc., were clearly stated within its clauses.

In final form the organic law as presented and ratified by the constitutional assembly consisted of 125 articles divided into ten parts plus an introduction. The introduction in the form passed by the assembly declared Iraq to be a , independent and free.

Her were declared indivisible and no portion thereof could be given up. Iraq was established as a constitutional, hereditary mon­ archy with a representative government.

It designated Baghdad as the capital and prescribed the form and design of the national flag, (article four)

13 Ministry of Interior, Directorate-General of Propaganda, op. cit., p. 39. . / 17

i " ■ , Part I dealt with the rights of the people.

Part H concerned the crown and its rights (article 19).

Part m concerned the legislation (article 28).

Part IV defined the number and duties of the ministers

(articles 64-66).

Part V concerned the judicial powers (article 71).

Part VE concerned financial matters (article 92).

Part VH dealt with administration of. provinces (article 109).

Part VBJ dealt with all the laws which were in force before

November 5, 1914, and the period between November 5, 1914,

and the constitution's ratification date, 1925 (articles 113-115).

Part IX made provision for constitutional amendments

(article 118), 14 Part X came under the heading of general. provisions.

But the mandate continued to be a constant source of irritation to Iraqi leaders and their political organizations, most of whom had as their only objective the shedding of the mandate. Further attempts at agreement, such as the treaty of 1926, did not greatly improve matters.

The draft treaty of 1927 was strongly disapproved of and consequently withdrawn. National demands were for independence, the admission to the League, and the creation of a strong national army.

14 Philip W. Ireland, op. ciL, pp. 382-392. ■ . 18

When Britain agreed in 1939 to recommend Iraq for admission to the League in 1932, the door was opened for negotiations, which were started in April, 1930, and led to the ratification of the Anglo-Iraqi

Treaty on June 10 of the same year. The Treaty established the inde­ pendence of Iraq and provided for a close military alliance with Great

Britain, The mandate was terminated by this treaty and Iraq was finally admitted to the League of Nations as a sovereign state in 1932. Thus,

Iraq achieved its bright dream of independence after having endured three hundred and ninety-eight years of foreign rule and occupation which had begun with its conquest and annexation by the Ottoman Turks in 1534. The Turks were the last in a long series of invaders, including

Mongols and Tartars, who periodically pillaged and destroyed everything of value in the valleys of the Tigris and Euphrates.

Under the Turks, the vilayets of Mosul, Baghdad, and Basra made little progress and were among the most economically retarded areas in the whole Ottoman Empire. The government paid little attention to the administration of these areas or to the needs of the people.

Beginning with the military occupation of 1914, the British did more for the country than the Turks had in several centuries of despotic rule. Even though most British policies were motivated by self-interest, and even though the mandate and its administration were highly unpopular,

British contributions to the welfare and development of Iraq were both varied and substantial. 19

Under British direction the elements of good government with a constitution and an elected parliament were established; government service was made attractive; the country’s boundaries and frontiers were stabilized; the financial structure of the government was over­ hauled; a modern police force was developed; and the nucleus of an army was formed with modern weapons and training. Social services and education were stimulated and promoted with British help. Important by-products of the mandate occupation were also the substantial improve­ ments made in the field of communications and transportation.

All of these factors enabled Iraq to take its place among the family of nations much better prepared and equipped to control its des­ tiny than many of the newer nations which have since achieved independ­ ence.

King Faisal, who had ruled Iraq during this stormy period, died in the summer of 1933 and his son, Ghozi, was proclaimed king. King

Ghozi was killed in a motoring accident in 1939 and his four-year-old son, Faisal II, became King of Iraq. Emir Abdul Allah was appointed 15 ■ Regent in accordance with the constitution. In September, 1939, Great Britain was involved in World War H and called on Iraq to fulfill her commitments under the Treaty of 1930. In January, 1943, Iraq decided to take up the cause of the as a belligerent.

Committee of Officials, op. cit., p. 28. During this early period of self-government, several important additions were made to the constitution. In 1942 the following clause was added:. "The king in case of necessity and when it conforms with public interest can dismiss the prime minister." A solution was also found to the question of Succession to the throne. The number of the senate was left indefinite with the provision that it should not exceed a quarter of the number of the elected deputies. The number of cabinet ministers was increased and a minimum of seven laid down.

More attention was giyen to social, economic, and educational problems. A policy of developing small land holdings was encouraged

and thereby many new social services were initiated. The increased

stress on economic planning resulted in the establishment of the Iraqi

Development Board. - CHAPTER H

FACTORS LEADING TO THE REVOLUTION

The July 1958 Revolution was neither the first nor the only revolt launched by the people against imperialism and corruption. The people revolted, or rose, in 1920, 1930, 1936, 1941, 1948, and 1952.

However, due to unfavorable conditions, none of these revolts attained the people’s aims or achieved their objectives.

Then came the July Revolution which was launched by the army with the sole-hearted support of the people. The king, prince, and prime minister were killed, while at the same time, Iraq became a republic in accordance with the aims of the revolutionary leader.

In the following pages a brief account is given of the circum­ stances which made the revolution inevitable.

Economic and Social. Status

Iraq possesses great potentialities for economic development.

They are unmatched by many other underdeveloped countries. Despite these impressive potentialities for development, the vast majority of

Iraqis remained ill-fed, ill-housed, illiterate, and disease-ridden. A few examples to illustrate this deplorable situation will be given.

21 22

The average per capita annual income is only about 100 dollars.

If maldistribution of income is taken into consideration, the actual average for the great majority of would not exceed 50 dollars.

Over 90 percent of the population is illiterate, and in some rural areas the rate is close to 99 percent. There is one elementary school for every 42,000 eligible children and one high school for every 80,000 eligible students.

The average life expectancy ranges between 28 and 30 years.

This is mainly due to the very high infant mortality rate, estimated at

300 to 350 per thousand live births per year. The corresponding figure

in 1955 was 25.

Malnutrition was widespread and responsible for the weak resis­ tance to infection. Malaria, tuberculosis, hookworm, bilharizia trach­

oma, children's diseases, typhoid, and other infectious diseases were

all prevalent.

Trachoma and other eye conditions resulting, in some cases, in

permanent loss of sight, were spread by the prevalence of flies and other

unhygienic conditions. Over half a million patients with eye diseases

attend government clinics for treatment each year. There are over

40,000 blind people in the country.

16 ' Special Committee, Revolution in Iraq. (Iraq: Society of Graduates of American Universities, 1959) p. 10. 23

Tuberculosis has a mortality rate in Iraq which was estimated by the United Nations World Health Organization at 200 deaths per

100,000 population per year. The 6,000 patients with tuberculosis attend government clinics and hospitals for treatment.

Haakinom and bilharizia trachoma and parasitic diseases which 17 caused much ill .

Hospitals numbered about 100 in the whole country in 1955, with a total bed capacity of 4,742. Many rural areas had no hospital facilities whatsoever. There were about 2 5 hospitals in Baghdad and other large

cities. There were about 1,100 doctors in the country, of whom nearly

500 were in Baghdad itself. There was a total of 418 qualified nurses in the country, 237 of whom were in Baghdad. There was one medical

school in Iraq, graduating less than 100 doctors a year.

Industrial development was, at first, completely neglected.

Under the pressure of severe popular criticism and for publicity pur­

poses, the old regime later established a few industrial projects. The

old regime's development program was the freezing of a large propor­

tion of the country's resources in luxurious buildings, although 70 per­

cent of the Iraqi people live in mud huts, some of them together with 18 their animals.

17 Tbid., p.-13. . V - 18 Dr. Fauzi El-Kaissi, The Republic of Iraq, Establishment, Policies, and Achievements. (Washington, D. C.: Embassy of the Republic of Iraq, 1959) p. 9. 24

The Land Distribution

In a basically agricultural country, the land tenure system determines the scope and direction of economic development and reflects the economic, political, and social structure.

In Iraq the land tenure system was based on large-scale holdings by the sheiks, aghas, or the city nobles. Usually, the owners were engaged in some political activity or used the rental income for purposes of luxurious living, without contributing anything to the national .economy.

They were a parasite group of absentee landlords who had little interest 19 ■ in the development of agriculture.

The Political Situation

Under the old regime, Iraq was ruled by a small group of indi­ viduals who had no regard, whatsoever for the national dignity and the welfare aspirations of the people. For years, they alternated power,

openly falsifying elections and bringing in obedient that were

ever ready to approve and support the policies inspired by the interests

of the big powers who backed them.

They abolished political parties and labour unions. They

deprived the people of such fundamental rights as freedom of the press,

of expression, and of assembly. They went so far as to withdraw Iraqi

19 Benjamin Shwadran, The Power Struggle in Iraq. (New York: I960) pp. 12-13. . . ' ' 25 nationality from citizens merely because they offended their policies.

Prisons were filled, demonstrators were fired upon, and hundreds of innocent people were killed.

In regards to foreign policy, the people of Iraq had long felt that in their drive for economic development and progress, the most suitable foreign policy to be followed was that of positive neutralism. This policy springs from their history, their geographical situation and their need to build for their future. This policy of positive neutralism does not only preserve Iraq’s independence, but it safeguards world com­ merce, communications, and vital traffic. The old regime's foreign policy was based on alignment and had to follow the British foreign 20 policy. Under such circumstances, revolution was inevitable in Iraq.

Because, as the American Foreign Policy Association pointed out in its latest publication, A WORLD IN TURMOIL, ’’revolution seldom comes unless people have no possibility of changing by peaceful means, conditions they regard as intolerable, and is almost never accomplished without struggle, violent incidents and the loss of traditions, institutions, 21 or patterns of life.”

The factors leading to the Revolution, therefore, can perhaps be

summarized best by restating the policies and objectives which the

20 The Historical Extempor Speech, by Abdul Karim Qassim at the Reserve Officers’ College, 1959, p. 11. "21 ., ■ Dr. Fauzi El-Kaissi, op., cit., p. 2. 26

Revolution sought to attain for Iraq. The most important of these were the following reforms which the royalist monarchy was either unable or unwilling to bring about:

a. Advancement of national development

b. Raising the standard of living

c. Expansion of agriculture

4. Institution of land reforms

e. Encouragement and protection of domestic industry

f. Encouragement of private capital to industrial investment

g. Curtailment of luxury imports '

h. Encouragement of private enterprise

i. Reforms in taxation

j . Price controls

k. Labor reforms

As has been suggested, the monarchy attempted to institute many

of these vital and necessary reforms, but its efforts were neither effec­

tive nor soon enough to satisfy the increasing demands and desires of

the Iraqi people. The failure of the government to recognize these basic

and long-felt needs, together with the aspirations of the people to enjoy

true freedom and independence, practically guaranteed the inevitable

downfall of the old regime. CHAPTER IH.

THE POWERS AND STRUCTURE OF THE MONARCHY (1925-1958) AND REPUBLIC (1958-1963)

Before July 14, 1958, the nature of Iraqi government was that 22 of an independent constitutional monarchy. Succession to the throne was determined by a constitutional hereditary system applicable to the 23 male members of the family of King Faisal Eben A1 Hus sin. The constitutional monarchy was changed to the present republic by the revolution of July 14, 1958, and then, as now, the religion was Islam 24 and the official language was Arabic. Constitutionally, Baghdad is the capital of the country, but the site of the capital may be changed if 25 necessary. .

The Monarchy

The 1925 constitution stated that the powers of the government

were derived from the people. The people exercised their power through

^ Iraqi Constitution, 1925, Article 19.

^ Ibid., Article 13. 24 Ibid., Article 17.

^ Ibid., Article 3.

27 ' ' 28 the legislative, judicial, and executive branches. The parliament was

composed of two houses: The House of Representatives and the Council

of Notables (senate).

The executive branch was headed by the king who, as chief

executive, exercised his powers through a cabinet in conformity with 26 the appropriate provisions of the constitution.

The judicial branch exercised its authority through the several different types and levels of the system of: courts. Judgment in cases 27 was pronounced in the name of the king.

The Executive Branch

At the head of the former government of the Iraqi state was the 28 king; he was immune from the legal.liabilities of his acts. The king

had broad powers over the executive branch in his role as chief execu­

tive over the legislative branch, which consisted of the king and parlia- 29 ' ment. The king had the power to dissolve the House of Representa- ■ 30 fives. He had the power to appoint the members of the Council of 3][ Notables (senate and accept their resignations.

. j ■ ‘______^ Ibid., Article 27. 27 Ibid. , A rticle 72. Ibid., A rticle 25. Ibid., Article 28. qn Ibid'.-, A rticle 26, paragraph 2. ^ Ibid., Article 26, paragraph 7. ■ 29

The king was able to influence the judicial branch through his Op power of appointing judges by royal decree. All laws passed by the parliament were to be confirmed by the king who had the power to issue the necessary orders to put them into effect,, provided their laws did 33 not conflict with the constitution or any existing laws.

The king had complete power over the appointment and dismissal of his prime minister. He had power also to dismiss any individual

' 3 4 minister on the recommendation of the prime minister.

All decisions of the cabinet were issued in the king's name.

The king was the commander-in-chief of the armed forces. He had power to declare war, sign for peace, and ratify, treaties and agree- 35 ments with foreign countries.

The king exercised his authority through royal decrees which had to include the signature of the prime minister and all ministries.

The king would notarize these signatures at this time. Functions of the king were exercised through the royal DIWAN (royal secretariat).

In time of emergency the constitution required the enactment of a national defense law which, among other provisions, designated the

^ Ibid., A rticle 68.

- Ibid., Article 26, paragraph 1.

' Ibid., Article 26, paragraphs 5-6. OK , , ' ' Ibid., Article 26, paragraph 9. . . 30 persons who had full authority and jurisdiction to take all necessary 30 steps for the defense of the country.

The national defense law could come into effect upon the decision of the cabinet and a declaration issued by royal decree. The king had the power, when a national defense law was in effect, to issue any nec­ essary rules, regulations and orders which suspended the ordinary laws of the realm.

The cabinet was not exempted from any responsibilities either by the oral or written orders of the king for any actions taken by it.

The Cabinet and Parliament: The prime minister and members of his cabinet could hold their positions in the Council of Ministers in addition to membership in either house of parliament. As members of either house of parliament they functioned in a dual capacity, retaining the right to vote and discuss any matter and defending the policy of the government. As long as they were cabinet members, they could take 37 only the salary of this capacity.

The cabinet was collectively and individually responsible to the

House of Representatives which had the privilege of subjecting the m in­ istry to a vote of confidence. This vote could be taken either on the ■ 38 ' • cabinet as a whole or on individual ministers. A vote of confidence ; — Ibid., A rticle 120, paragraph 1. ^ Ibid., A rticle 84. ^ Ibid., A rticle 66. in the cabinet had to receive a majority vote of the representatives to 39 ' succeed. If the cabinet failed to win this majority, it had to resign.

If only one cabinet member were involved, he must resign.

A vote of confidence could be called for upon the request of the prime minister, the cabinet or any individual minister; and either could request the postponement of the date, set; for the vote of confidence for a maximum of eight days. The king and his government had no constitu-

"1 ' tional right to dissolve the parliament during this eight-day extension ' ' - - 40 - "i'- as it was granted upon their request.

The Ministries: Iraqi ministries were, as in any other country, designed to fulfill specific functions and duties. Each minister was the legal, fiscal, administrative, personnel, and security head of his depart ment. All actions of the department were taken in his name and his out­ side dutibs were to explain and respect the policy of the existing govern­ ment. The minister’s departmental responsibilities included that of management leadership. He presumed authorization and delegation as 41 . he found it necessary. As a general rule, there existed in each depart ment the following divisions: personnel, accounting, law, and other specialized divisions as the nature of the work of the department or agency required. /;

Ibid., A rticle 66. ^ Ibid., A rticle 67.

^ Ibid., A rticle 67. 32

In each department or agency there was the service staff (l|fe and career section) which consisted of the permanent undersecretary, assistant undersecretary, legal advisor, personnel manager, chief accountant, and head of all the major divisions.

The Council of Ministers: The Council of Ministers had broad authority to administer the internal and external affairs of the country 42 and to carry out the states’ general policies.

The Council of Ministers was appointed by and, as mentioned above, could be dismissed by the king if he found it necessary to exer­ cise his right. In spite of this fact, the cabinet was collectively respon­ sible to the Chamber of Deputies of parliament for carrying out the 43 general policy of the country.

The powers of the prime minister and his ministers were stated

in rules and regulations prepared by the Council of Ministers and 44 approved by the king. All decisions of the Council of Ministers were to be signed by the prime minister and council members before being submitted to the king for his certification.

The prime minister and his cabinet executed their decisions,

each in his own field.

49 Ibid., Article 65. 43 Ibid., A rticle 67. 44 Ibid., A rticle 65. 33

If the prime minister resigned or was dismissed from office the entire membership of the council was considered to have resigned or to have been dismissed

The Legislative Branch '

According to the 1925 constitution, the legislative branch con­ sisted of the two houses, the Council of Notables (senate) and the House of Representatives (chamber of deputies). Members of the Council of

Notables were appointed by the king for a period of eight years. The entire membership was not to exceed a quarter of that of the lower 46 house . The minimum age for members of the Council of Notables was forty. Members were to be Iraqi citizens and not a relative of the ■ 47 king. When the term was ended the notables might be reappointed, if the king and his cabinet found it convenient. Chairmanship of that coun­ cil was determined by election of council members and was to have the 48 king’s approval.

Members of the Council of Notables, as the title suggested, were usually outstanding citizens, ex-ministers, former prime ministers, high judges, retired army generals, former ambassadors, former

^ Ibid., Articles 28-32.

- ^ Ibid., Article 31.

^ Ibid,, Article 30, items 2-8.

^ Ibid., A rticle 33. 34 representatives, heads of important leading families, or individuals who had gained the confidence and trust of the public through their work 49 and services to the people and the fatherland.

Both the upper and the lower house were to meet at the same time (the usual sessions for the two houses were set for the same date 50 each year).

If the lower house were dissolved or absent for any reason, the meetings of the upper house would be postponed until the other house convened. The members of the house served for a period of four years unless the entire body was dissolved by the king. The term of office began when the results of the election were published in the official government bulletin. Elections were to be held during the last four months of the parliamentary period.

To be eligible for membership in the house, a person had to be thirty years of age or over, ah Iraqi citizen not related to the king, and without any material interests in government contracts. Political crimes constituted no reason for exclusion from membership. Members of par­ liament were barred from sitting in both houses, nor could they, fill any ' 51 other salaried public position on either the national or local level.

^ Ibid., A rticle 31.

^ Ibid., A rticle 34. r Ibid.; Article .30, paragraphs 1-2, 5, 6, 8, 9. ' 35

- Any member of the house of representatives was allowed to resign. The resignation was to be in written form and submitted to the chairman of the house. The resignation of the membership of the house

5 0 was not valid unless it was accepted by the house as a whole.

During the four year parliamentary period the House of Repre­ sentatives could not be dissolved consecutively for the same reason.

Regular sessions of the House of Representatives were continu­ ous for a period of six months each year, but the king had the right to 53 extend the regular period. ,

Besides this power the king might call the representatives for an emergency meeting of unlimited duration. Such an action had to be established on vital grounds and for the purpose of discussing specific problems as stated in the royal decree.

As its presiding officer, the house elects from its membership a chairman for a one-year term of office. The chairman could be re­ elected. The internal rules and procedures of both houses for the con­ duct of their sessions were initiated by all the members of each house and had to be approved by the king. Decisions of each house were made by a majority of the present legislators except decisions which concerned the constitutional articles and votes of confidence. The chairman of the

■ ^ Ibid., Article 46.

Ibid., Article 38, paragraph 2, and Article 40, paragraph 3. • 36 house did not vote except in the case of a tie. Sessions were open to the public except when the government or the House of Representatives 5 4 requested secrecy.

Parliament members were protected from arrest or trial while parliament was in session unless caught in the act of committing a crime. Each member had complete freedom of speech in expressing his ideas in either house as he complied with the internal house rules. Mem­ bers could not be publicly criticized or punished for ideas, votes, or 5 5 speeches which they had given in parliament. Members of either house might question or submit written questionnaires to the government or any cabinet member in regard to the public affairs of the country of

v- •' 5 6 the general or detailed policy of the question or case concerned. This practice was somewhat similar to the question period of the British

House of Commons •

Proposed policies were always presented to the house first. If either house rejected the proposed law, a combined session must be called and a decision must be reached by a two-thirds majority vote of the entire parliamentary membership. After a law has been passed by 57 parliament, it is submitted, in turn, to the king for approval.

54 . - ' •' Ibid., A rticle 57. Ibid., Article 60, paragraphs 1-2. 56 Ibid., A rticle 54.

- , j” P 7 . • ' • 'V ' • • ■ • ' Ibid., A rticle 63. 37

A new law became effective when it was published in the govern­ ment paper. The king had the right to rej ect the laws within three months. The laws must be returned in this case to the parliament once again for a new enactment. If the same laws, without any changes, are passed the second time by parliament by a two-thirds majority, they automatically become laws regardless of the signature or rejection of 58 the king.

If for any reason the parliament were not in session, the con­ stitution provided for the temporary or emergency enactment of laws by the cabinet and the king. These laws must be presented to the parli­ ament during its first session following the emergency. These laws must pass through each of the parliamentary steps as previously out­ lined. .

Within each chamber there were several functional committees, such as foreign affairs, legal affairs, finance, and appropriations, for the study of specific phases and details involved in parliamentary work.

The Judicial Branch

Long before the country won its independence the had already taken shape. The legal system reflects the political history of the country as well as its religious diversity. During the mandate per­ iod the British retained the Turkish Civil and Commercial Codes, but

^ Ibid.,■ Articles 82-3. 38 the' French-inspired Criminal law of the Ottoman code ,«as replaced by the British with modifications of the legal codes then operating in

Egypt and the Sudan. These have been changed and amended consider­ ably, but they have never been superseded. A new commercial code was introduced in 1943 and a new civil code in . 1947. The two great divisions of Islam, the Sunni schools of the Shafi'i and Hanfi rites, and the Ja’fari. schools of the Shi'i persuasion, further contributed to the legal system of Iraq. and Christians are permitted to follow their own religious laws.

The Iraqi judiciary was an independent branch of government, relatively free of outside influences. A particular law was passed to establish each individual court. There were several different types and levels of courts.

Civil Courts. At the bottom of the civil hierarchy was the magis­ trate’s court, somewhat similar to the justice of peace court at the state level in the , whose jurisdiction is confirmed to minor cases involving not more than . 100 Iraqi dinars. A judge presides over each court. A magistrate’s court was located in each of the larger towns.

Courts of first instance are another type of civil court. These are above the magistrate's court and have jurisdiction over more impor­ tant cases, including those of a criminal nature which do not come under the authority of the magistrate's courts or the religious courts. A court of first instance is situated in each district of the country. 39

There are many courts of appeal which are located in the larger cities. Each consists of three or more judges and hear cases appealed from either the minor judiciary or the courts of first instance.

The court of cassation or supreme court, the highest court of

Iraq, was established by special law. It has original jurisdiction over civil cases and over criminal cases involving major offenses. Upon the request of the prime minister, judgments were given involving impor­ tant legal points of general interest and restraining orders were issued against wrongful actions.of public servants.

In addition, Iraq had a supreme council of adjudication or juris- prodence. This council consisted of nine members:: four judges from the high civil courts, four members from the House of Notables, and the chairman of the House of Notables, who served as head of the coun­ cil. The council served as the administrative office of the court system, with preliminary decision over the assigning, firing, promotion, and transfer of judges. This was another factor showing that the judicial branch was independent. Decisions of the supreme council were taken 59 by a two-thirds majority vote.

Another branch of the judiciary was the DIWAN KASS, an extra­ ordinary court. At the request of the prime minister only, it interpreted laws and passed on their constitutionality. The staff consisted of experts

Ibid., Articles 81-82. V ' ■ ■ 40 in law and high judges,, a senior official of the ministry concerned was also represented.

All judges of the civil courts were independent and appointment and dismissal required a cabinet decision and royal decree as recom­ mended by the judicial supreme council.

Religious courts. The judicial system of Iraq is unique from a western standpoint in that it has two. kinds of religious courts: (1) the

Shariah courts of the Muslims and (2) the religious community council courts of the non-Muslims. All judges of religious courts were appointed and dismissed by cabinet decision and royal decree. The judges were supposed to be independent as stated in the law and were protected from outside influences.

The Shariah courts consisted of a magistrate court, a court of first instance, and the many courts of appeal. Appeals from the appel­ late court could be taken to the cassation court. The Shariah courts had jurisdiction over marriage, divorce, inheritance, charitable endow­ ments (Waqfs), and guardianship.

These courts operated under Islamic law, which was derived from the Koran and the Hadith, or the sayings of the prophet Mohammed.

The Islamic law had been adopted because the Koran and the religion of

Islam on which it is based govern not onlyithe relationship of individuals to God but also to one another. Looking upon Islamic law as the will of 60 God, Muslims regard it as perfect and just.

60 Ibid., A rticles 75, 76, 77. • 41

Non-Muslim courts. Many of these courts were established.

They included the religious community council courts of the non-Mus­ lims . Their establishment had to be recognized by the government of

Iraq before they could become effective. The systems of these courts and their procedure had to be stated by speciaLprovisions made for the regulation of the internal and communal life and matters of personal status of the non-Muslims according to their religious law. With the exception of the religious courts which govern the personal matters of

Muslims and non-Muslims, all persons are equal before the civil : . 61- courts.

Supreme Court for Bringing Cabinet Members to Trial

The ministers of Iraq had to be tried before a supreme court for committing crimes in connection with their official duties. The supreme court consisted of the chairman of the upper house as the head of the court and eight other members. The members included four elected members of the upper house and the four judges holding the highest 02 seniority in the supreme court of the country.

The House of Representatives had the power to bring accusations against any cabinet member. Becisibns on accusations had to be issued 03 by two-thirds majority vote of the representatives. The house had to

61 Ibid., A rticles 78, 79, 80. . .Ibid., A rticle 81. ^ Ibid., Article 82, paragraphs 1-2. 42 appoint members from its body to submit facts and statements relevant to the accusations and prosecution to the supreme court. When a cabinet member had been accused by the House of Representatives, he was to be suspended from his office until the supreme court rendered its deci­ sion. During the trial period the accused member might resign, but his trial continued. Following the trial, he was subject to suit for any crimes for which he had been found guilty.

The Republic

The Iraqi Republic resulted from a military coup on July 14,

1958. A provisional constitution, published on July 27, 1958, declared the country to be an independent, severereign, and Islamic republic and an integral part of the Arab nation. It recognized Kurdish’s national right and emphasized the partnership of Arabs and in the Iraqi 64 state. The capital of the republic is Baghdad.

A three-member council of sovereignty serves as titular head of state, consisting of a president and two members. The provisional con­ stitution has not declared the duties of these members, but it states in

Article 20 that th e ’’Presidency of the Republic is vested in a presiden­ tial council.”^

^ Interim Constitution of 1958: A rticles 1, 2, 3, 4, 5. fiR Ibid., A rticle 20. 43

The Interim Constitution states that the powers of the republic are derived from the people. Because the Parliament was dissolved following the 1958 Coup, and also the Legislature, the people exercise their power through the Judicial, and Executive branches. The Executive powers are temporarily vested in a Presidential Council and cabinet so headed by a prime minister. The Legislative powers are exercised by the Council of Ministers subj ect to the approval of the Presidential 67 Council. '

The Judicial branch exercises its authority through the several different types and levels of the system of courts. Their organization

68 ! ■ shall be regulated by law. Court decisions and their execution are 69 made in the name of the people.

The Executive Branch

The head of state consists of three members: a president and . ' "" 70 two members, and this is called the Presidential Council. . In accord­ ance with the Interim Constitution, the Presidential Council has broad powers over the Executive branch in its role as a chief executive and

' 66 Ibid., A rticles 7, 20.

^ Ibid., Article 21.■

^ Ibid., Article 23. 69 ' " ' ' Ibid., A rticle 25. 70 . Ibid., A rticle 20. 44 over the Legislative branch which is exercised by the Council of Min­ isters . The Presidential Council is able to influence the Judicial branch through its power of appointing judges by republican decree.

All laws passed by the Council of Ministers must be confirmed by the Presidential Council. As a matter of fact, the Presidential

Council has the same power which the King of the former government had, but the Presidential Council has no power over the appointment and dismissal of the Prime Minister. It has no power to dismiss any individual minister unless it obtains the Prime Minister’s approval, because the Prime Minister is now considered the leader of the Revo­ lution.

The Council of Ministers: Authority and Liabilities - - The Coun­ cil of Ministers has broad authority to administer the internal and external affairs of the country, and to carry out the state’s general 71 policies. Each minister has broad powers and may be assigned to more than one ministry as designated by republican decree of the Pres­ idential Council. Moreover, the Council of Ministers has legislative powers, but these powers are subject to the approval of the Presidential

• i 72 Council. The powers of the Prime Minister and ministers are stated in rules and regulations prepared by the Council of Ministers and approved

71 Ibid., A rticle 22.

'7^ Ibid., Article 21. ■ 45

73 by the Presidential Council. All decisions of the Council of Min­ isters are signed by the Prime Minister and Council members before being submitted to the Presidential Council for its certification. The

Prime Minister and his cabinet execute these decisions, each in his own field.

The Ministries: Personnel, Structure, and Organization--The ministries are designed tp fulfill special functions and duties. Each minister is the legal, fiscal, administrative, personnel, and security head of his department. All actions of the department are taken in his name and his outside duties are to explain and defend the policy of the existing government.. The minister's departmental responsibilities include that of management and leadership. He presumes authorization and delegation as he finds it necessary. In general, there exists in each department the following divisions: personnel, accounting, and law.

Other specialties exist as the nature of the work of the department or agency requires.

In each department or agency there is the senior staff (line and career sector) which consists of the permanent undersecretary, assist­ ant undersecretary, legal advisor, personnel manager, chief accountant, 74 , and heads of all the major divisions.

^ Ibid., A rticle 21. 74 A1 Wakaya Aliraqia, No. 164. (Baghdad: Government P re ss, 1959) p. 12. ■ . 46

Departments and Agencies: The Administrative departments and agencies of the Republic of Iraq are as follows:

1. The Prime Minister’s secretary.

2. Ministry of Defence: The National Guards, military investi­ gators, Directorate of Medical Services, supplies and transportation, and the Directorate General of Recruiting.

3. Ministry of Planning: Directorate-General of Statistics, and the Economic Planning Board.

4. Ministry of the Interior: Directorate -General of the Interior,

Directorate-General of the Police, Directorate of Civil Defence, and the Administrative Supervision Committee.

5. Ministry of Social Affairs: Directorate-General of. Social

Affairs, Directorate-General of Jails, and Cooperative Directorate.

6. Ministry of Agriculture: Department of Agriculture, Direc­ torate - General. of Forests, Directorate -General of Government Farms,

Directorate-General of Agricultural Research and Proj ects, Director - ate-General of Animal Resources and Veterinary Services, and Direc­ torate-General of Irrigation.

7. Ministry of : Directorate-General of Munici­ palities, Directorate-General of the Passenger Transport Service,

Directorate-General of Planning and Design, Directorate-General of

Town Planning, Building Department, Directorate of Municipalities

Water-Supply Sections, and Sewage Administration. 47

8. Ministry of Communications: Directorate-General of Civil

Aviation, Civil Engineering Department, Iraqi Republican Railways,

Directorate - General of Posts and Telegraphs, Electrical Engineering

Department, Department Stores Mechanical Engineering Department,

Directorate-General of Beads and Bridges, and Directorate-General of

Communications.

9. Ministry of Commerce: Directorate-General of Import and

Export, Iraqi Maritime Transport Company, Directorate -General of

Public Exhibitions, Grain Board, The Date Association, The Hides and

Skins Association, and the Tobacco Monopoly Administration.

10. Ministry of Works and Housing: Directorate-General of

Housing, Directorate-General of Buildings, Fourth Technical Division, and Directorate-General of Supervision.

11. Ministry of Health: Directorate-General of Health, and

Directorate-General of Medical Services.

.12. Ministry of Industries: Directorate-General of Industries,

Chemical Industries Department, and Mining and Metellurgical Industry

Department.

13. Ministry, of Education: Directorate-General, of Education,

Directorate-General of Technical Affairs, Directorate-General of Cul­ tural Relations, Directorate-General of Vocational Education, Direc­ tor ate-General of Physical Education, Directorate-General of Adminis­ ... 48

tration, Directorate-General of Inspections, Directorate-General of

Educational.Statistics, and Directorate-General of Durdisti Studies.

14. Ministry of Agrarian Reform: Directorate-General of

Agrarian Reform, and Agrarian Reform Board.

15. Ministry of Guidance: Directorate-General of Guidance and

Press, Directorate -General of Engineering and Technical Affairs,

Directorate-General of Broadcasting and T.V., Directorate-General of the Popular Hits and Culture, and the Cinema and Theatre Administra­

tion.

16. Ministry of Oil: Directorate-General of Oil.

17. Ministry of Foreign Affairs: Directorate-General of Foreign

Affairs, Directorate - General of Economic Relations, and Ministry of

Justice.

18. Ministry of Justice: Directorate-General of Justice, and

Tapu Directorate-General.

19. Ministry of Finance: Directorate-General of the Budget,

Directorate-General of Finance, Directorate-General of Customs and

Exise Tax, Directorate-General of Property and State-Owned Lands,

Directorate -General of Accounting, the Department General, of Pensions, ■ ' - 75 Directorate-General of Rationing (la'sha) and State-Owned Banks.

' 75 The Iraqi Revolution in its third year, issued by the High Committee for the Celebration of the 14, July. (Baghdad: Rabta Press, 1961) A1 Wakaya A1 Iraqia. Nos. 146, 164, 200, 209, 212, 213, 214, 219, 222, 223, 226,' 231, 238.. - 49

The Judicial Branch

The Interim Constitution of 1958 states in Article 23 that the judges are independent, and within their judicial duties, they are sub­ ject to no authority save that of the law. No authority or individual shall violate the independence of the Judiciary or judicial affairs. The organ!- 70 zation of the Judiciary shall be regulated by law. Still, as was men­ tioned in Chapter IE, the Iraqi Judiciary is an independent branch of the government, relatively free of outside influence. Also, the organization of Judiciary is effective and there has been no change in it, except that the Supreme Court, for bringing cabinet members to trial, was abro­ gated after the Revolution because of dissolution of the Parliament.

The Interim Constitution also states in Article 24 that meetings of the courts shall be open unless otherwise decided by the court for reasons of public order or morals. The court decisions and their execu­ tion are made in the name of the people, and the laws shall be published in the official Gazette and are to be in force as from the date of such publication unless otherwise indicated in them that they shall be effec-

. 7 7 tive after the lapse of ten days from the date of their official publication.

Local Liwa Administration Under Turkish administration the territory of Iraq was divided into three provinces (vilayets), each administered by a governor (wali)

76 Interim Constitution of 1958, op. cit., Article 23. 77 Ibid., A rticles 24, 25, 28. 50 directly responsible to the government in Constantinople. The three provinces, Mosul, Baghdad, and Basra, were in turn divided into dis­ tricts (), each administered under an official responsible to the respective governors. ,

Following the establishment of Iraqi independence, the country was divided into 14 liwas (provinces) each governed by a mutasarrif

(governor). This appointed official,< who represents the central govern­ ment in the province and represents provincial interests to the central government, is immediately responsible to the Minister of the Interior but is also the agent of other ministers. He is assisted by two councils made up of both ex-officio and elected members; one council assists in the conduct of administration, the other devotes itself to public finance.

Recently there has been a tendency to increase the authority and discretion of the provincial governors, particularly with respect to finances and to education. Where there is an acute problem of public order or the province is on a difficult national frontier, the governor may be a military official. In any event, he, along with his subordinates at the lower levels, is empowered to call on the military for assistance in case of emergency or necessity.

Each liwa is divided into a number of qadas (districts), each administered by a qaimmaqam (deputy governor), who acts on behalf of the governor of the province and represents local interests in the dis­ trict before higher authority. He likewise is assisted by an administrative council. Each district is divided into a number. of (subdistricts

or ), each administered by a rnudir (director of the subdistrict

or county). The country’s desert areas are divided into three separate

administrations directly under the Minister of the Interior, acting through a director in each area. The main administrative problems in these areas are connected with tribal matters and with frontier rela­ tionships. Police posts distributed through the desert areas maintain

order and enforce the decisions of the authorities.

Every major (city or town) is administered under a

municipal council elected by the people and presided over by a rais

albaladiyah (mayor). The council considers all matters of importance

at the municipal level, but the mayor is appointed by the Minister of the

Interior and is responsible to him for the conduct of municipal affairs.

The muilicipality of Baghdad, as the capital, has a unique position, yet

also serves as a model for the others. It is called amanat al-asimah

( of the capital), and its mayor is called amin al-asimah 78 (guardian of the capital).

78 George L. Harris, Iraq. (New. Haven: Hraf Press) pp. 131- 133. CHART NO. 1 PROGRAM OF THE BUDGET RESPONSIBILITY GOVERNMENT OF IRAQ

Presidential Council

Parliament

Prime M inister

Foreign Defense Finance Education Social Health A ffairs

Guidance C omiminicat ion Agrarian Housing Planning Reform

Justice Commerce Industry In terio r Oil Municipal­ itie s

Source! Compiled by author from the C onstitution of Liwas 1925 and Interim Constitution of 1958 and Al-Wakaya Al-Xraqia, No. 1 4 6 , 200, 209, 212, 213, 214, 219, 222, 223, 226, 231 and 238, (Baghdad: Government Preaa_ CHAPTER IV,

' PUBHC FINANCE

-The'History of the Monetary System of Iraq

Up until 1931 Iraq was a member of the Indian monetary system 79 and Indian rupees were circulated as internal means of payment. But

in 1931 the Iraqi Currency Board was established to take care of the

issue of a national currency. This board, functioning in London, was

charged with the duty of ’'providing for and controlling the currency of

Iraq and to maintain the standard condition and value of the currency."

Its main functions were to issue notes and coins in Iraq against prepay­

ment in sterling in London and, conversely, to sell sterling payable in 80 ■ London against payment in Iraqi notes and coins.

The currency unit was called a dinar, which is equivalent to one

pound sterling and is divided into one thousand fils i

After the adherence of Iraq to the Bretton Woods agreement, the

value of the dinar was fixed at 3.58134 grams of pure gold. This was

followed by the establishment of an Iraqi national bank to which the powers

79 The rupee is now Ibout twenty cents in American money.

go ... Carl Iversen, Monetary Policy in Iraq. (Baghdad: National Bank of Iraq, 1954) p. 1. 54

of the Currency Board were transferred and which was/ in addition,

vested with powers usually associated with national banks in modern

states, such as the supervision of bonds and the control of the move­

ment of credit and the execution of obligations under international agree­

ments such as the Bretton Woods agreement. The national bank keeps

the accounts of the state and those of government and semigovernment

departments and establishes and controls foreign exchange in accord­

ance with regulations imposed in 1941 because of the exceptional cir­

cumstances arising out of the war.

The greater part of the Iraqi currency reserve consists, first,

of sterling deposits, British treasury bills, and sterling bonds. This

amounts to approximately 36 million dinars; and secondly, of Iraqi gov­

ernment bonds - -nearly two million dinars. It also takes care of Amer­

ican dollars equivalent:to 670,588 dinars, and finally, the value of stored

coins in silver which represent a comparatively small amount (accord­

ing to 1951 figures).

The amount of currency in circulation was enormously augmented

during the war as a result of Iraq's participation in the Allied war effort.

The amount in circulation in Iraq rose from 4.7 million dinars in August, Ol 1939, to 42.1 million dinars in April, 1946.

81 ■' Ministry of Interior, Directorate-General of Propaganda, • ; cit., pp. 85-87. - 55

The Banking System

The banking system consists of the national banks, five com- op mercial banks, a number of private banks or sarrafs, the post office savings bank, and three state -owned longer-term financing institutions: the Industrial Bank, the Agricultural Bank, and the Mortgage Bank. 83

The National. Bank of Iraq or Central Bank of Iraq: In 1947 the

National Bank (Central Bank) came into existence in order to take over the issue and control of currency, but its operation did not start until

1949. Aside from its note-issuing function, the Bank is charged with the administration, of foreign exchange control and the supervision of the banking system in accordance with the Bank Control Law which 84 became effective at the beginning of 1950-

The capital of the National Bank (Central Bank) was fixed atT.

B. 5,000,000, half of which came from the dissolved Currency Board and the other half is deemed to be a reserve guaranteed by the Iraqi treasury, to be covered from 25 percent of the Bank's annual profits,

82 A sarraf is a ’’Person or company licensed to deal in banking in Iraq .” (Article 1.3) He must deposit at least I.B. 12, 000 in paid-up capital if the place of business is in Baghdad and a smaller amount if in other localities. 83 The report of a mission organized by the International Bank for Reconstruction and Development, at the request of the Government of Iraq, was published for the International Bank for Reconstruction and Development, by the John Hopkins P re ss, 1952, p. 152.

84 Ibid., p. 152. • 56 which must: not be more than I.D. 25, 000 until this account has reached

I.D. 2,500,000.85

According to Article 4.a in the National Bank Law of 1947, the

objectives of the Bank shall be (a) to manage the currency and insure its

stability, (b) to serve the state's finances, (c) to facilitate internal and

external payments, and (d) generally to promote and facilitate credit 8’6 for trade, industry, and agriculture.

The Law of 1947 states that it is the duty of the Bank to "serve the state's finances, look after the accounts of the government, and

undertake transactions related to government and semigovernment loans

of all kinds." This means that it has been intended as a central bank.

So far, however, the former of these provisions has not been put into

practice. It is still the Rafidain Bank which keeps the government

accounts. This means, above all, that the latter bank retains 30 percent 87 of the oil royalties not allocated to the Development Board.

The National Bank of Iraq (Central Bank) has, since the Revolu­

tion, followed a policy aimed at facilitating, not only the satisfaction of

the Treasury’s temporary need for money, but also the securing by

semigovernment departments, such as the municipalities, the local

OK : Carl Iversen, op. cit-, p. 7.

86 Ibid., p. 7.

87 Ibid., p. 13. 57 administrations, the Water Supply Boards, and the specialized banks, of loans for expanding their operations.

After the Revolution, the National Bank (Central Bank) also facil­ itated borrowings from it by the commercial banks, aiming thereby at two basic objectives: First, to assist the stimulation of economic activ­ ities and to counter the various influences which have sometimes impeded them; and second, to support the young financial market in Iraq and to establish firm relations between it and the commercial banks and con­ solidate its position towards them. On this basis, the Bank reduced on

December 17, 1959, the rate for rediscounting promissory notes for the commercial banks from. 3.5 percent to 3 percent with the increase of the maximum value of such notes from 20 percent to 25 percent of the total deposits of each bank. On November 7, 1960, it again reduced the redis­ count rate to 25 percent and increased the maximum value to 30 percent.

It combined these facilities with corresponding bonds, for it reduced the rate of interest on such loans from 4.5 percent to 4 percent and then to

3.5 percent. Since November 7,, 1960, the Bank has also followed a new method of lending--namely, on the security of commercial bills up 88 to 60 percent of their total value and at an interest:of 3.5 percent.

The Rafidian Bank: The Rafidian Bank was established by the government in 1941 in order to act as the banker for the government

88 ' Ministry of Finance, Republic of Iraq. Explanatory note on the Draft Law of the General Budget for Fiscal 1962, p. 14. . : . 58

and, at that same time, to compete actively with the foreign banks.

Though established by the government and entrusted to act as the banker of the government, the Rafidian Bank is operated on purely commercial 89 lines, i.e., it attempts to obtain the largest possible profits.

The Bank has offered various banking services of a large scope against low commissions and charges. The activities of the Bank have been doubled and its branches have been extended. The figures of the deposits during the financial year I960 are 30 percent more than the figures of 1959. In 1960 deposits amounted to I.D. 34,.000,000; letters

of credit opened by the Bank amounted to I.D. 35,000,000, an increase

of about 119 percent over the preceding year. As regards the guarantees

issued by the Bank, these have amounted to I.D. 10, 623, 000, or an

increase of about 60 percent. The trade operations carried out by the

Bank equal almost the whole of the other transactions carried out by the 90 re st of the banks.

The Agricultural Bank: The Agricultural Bank was established

in 1940. The objective of the Agricultural Bank is nto assist agricul­

turalists and to develops and improve agriculture.” (Law No. 18 of 1940)

The law defines the activities of the bank in a very broad way. Apart

from granting loans, it shall sell on deferred payment implements of

^ Carl Iversen, op. cit., p. 19. 90 The Iraqi Revolution in its Third Year. (Baghdad: Rabta P ress, High Committee for the Celebration of the 14, July, 1961) p. 481. 59 agriculture, cattle, manure, and seeds; act as agent for the sale of agricultural products; found and administer establishments for the cleaning and grading of crops; hire out agricultural implements'; and

' ' ' Q -4 assist in the formation of co-operative societies.

The nominal capital of the bank was fixed at I.D. 2,000,000, out of which the government supplied a paid-up capital of I.D. 1,000,000.

In 1953 the paid-up capital was raised to I.D. 6,000,000; in addition, the bank has obtained loans from the National Bank, and it is also author­ ized to receive money on current accounts. But so far, these deposits have not amounted to much.

Loans granted by the Agricultural Bank range from I.D. 30 to

1.D. 3,000, and from 60 percent to 70 percent of the value of collateral

security such as gold, silver, bonds, shares or agricultural products for periods up to ten years.

, The Industrial Bank: The purpose of the Industrial Bank is to

develops and assist industry in Iraq. It was established in 1940. (Law

No. 12 in 1940) Its nominal capital was I.D. 3, 000,000 of which, how­

ever, the government has So far only supplied a paid-up capital of I.D.

2, 300,000. Similar to the Agricultural Bank, it has received some loans

from the National Bank and other institutions, and is also privileged to

receive money on current accounts.

91 Carl Iversen, op. cit., p. 31. 60

The bank has. supported many projects, such as the Iraq Cement

Company/the Vegetable Oil Extraction Company, the Iraq Trading and

Grain Milling Company, the Iraq Spinning and Weaving Company, the

Jute Industry Company, the National Leather Industry Company, and the;River Dredging and Reclamation Company.

In providing financial assistance to industry, loans may be granted against the security of property such as plants and machinery, gold and silver, and government bonds.

: Estate Bank: The Estate Bank was established in 1948 (Law No.

18) with the primary purpose of providing owners of dwellings with an

opportunity to convert loans secured by high interest bearing mortgages

on thdir properties into loans supplied by the bank and bearing a more

reasonable interest rate.

At present, the bank has three main functions. First, it has the

power to advance loans on the security of fixed property, thereby encour­

aging new building activity on the part of private individuals. The maxi­

mum amount of loans granted in any single case is I.D. 4,000, and in

addition, the loan cannot exceed 60 percent of the value of the property

in question, assessed according to the principles laid down in the laws

and regulations governing the operations of the bank. The rate of inter­

est charged is 5 percent per year, and the loan must be repaid by

- 92 installments over a period not exceeding eight years. (Originally 4 years)

92' " • . ' .Ibid., p. 35. 61

Secondly, in accordance with its original purpose, the bank is engaged in the business of converting old high interest loans into loans advanced by itself and bearing 5 percent interest, corresponding to the 93 rate charged in the previously mentioned cases.

Finally, it may be mentioned that the bank is allowed to con­ struct and maintain factories and workshops producing the materials required for the erection of dwellings and other necessary buildings. It may also enlist the aid of experts, architects, contractors, and agents; and establish, hold shares, or participate in other ways in public or private companies carrying on business falling within the field of the bank.

When the bank started to operate, its capital was set at I.D.

1,000,000 which the Ministry of Finance loaned without interest. In 1952 the amount was raised to I.D. 2,000,000, but the actual amount paid up whs I.D. 1, 200,000 at the end of the financial year 1949-1950. - Also, the bank obtained a 3 percent loan amounting to I.D. 125,000 from the ■ 94' ' ' National Bank.

The Mortgage Bank: The Mortgage'Bank was established in 1951 to make available small loans for government employees and others.

Transactions which the bank handled for the payment of loans to officials,

93 y Ibid,, p. 35. 94 Ibid., p. 37. 62 employees, and pensioners during the fiscal year 1960 numbered

20,688 cases for a total sum of I.D. 1, 873,406. A further 12,755 appli­ cations for loans from workers for a total sum of I.D. 349,287 have also been processed. As to loans against mortgaging moveable proper­ ties such as carpets, gold,, shares and bonds, these totaled 29,077 ~ \ 9 5 cases for a sum of I.D. 3., 942,618, which, have also been, processed.

Sources of Budget Revenues

Although Iraq’s budget is considered negligible as compared with other states (especially of western Europe), Iraq's growing pros­ perity is indicated by the increasing scale of annual revenue. The national income, 23,000,000 dinars in 1947-48, had risen to 48,000,000 in 1953-54, and for the year 1960-61 it was calculated at about

-100, 000,000 dinars. .

The most important source of taxation is the indirect tax, especi­ ally customs duties. Next in importance are the taxes levied on the con­ sumption of agriculture and animal.products. The third kind of taxation .97 is direct and can be classified as follows:

^ The Iraqi Revolution in its Third Year, op. cit., p. 482. 96 - The Director-General of Guidance and Broadcasting, Land of the Two Rivers. (Baghdad: Baghdad Government. Press, 1957) p. 29. 97 - Ministry of Interior, Director-General of Propaganda, op. c it., p. 83. 63

Income Tax .

The income tax was introduced in Iraq in 1939 (Law No. 36 of

1939) and made applicable to incomes derived from business, employ­

ment and other sources described later.

Various amendments were introduced in the law in order to

increase the revenue of the government. These involve the revisions

of Law No. 36, 1939, and Law No. 67, 1943, which are currently in

force. Taxable income is comprised of: (1) All interest.from loans,

bonds, dividends and d is c o u n ts (2) All salaries, wages, pensions,

yearly allotments (compensation for the parliament members, directors

of corporations and others), income from professions such as doctors,

lawyers, pharmacists and engineers. (3) Income from work and capital

including incomes from commerce and industry, and the purchase and

sale of property.

Taxable income comprises not only cash receipts but also includes payments in kind. Income taxes are imposed on net income

after deducting all costs, such as interest, rent, repairs, depreciation,

business costs and losses. Net losses may be carried forward for five 99 years.

^ Ministry of Finance, Law of Income Tax. (Baghdad: Baghdad Government P ress, 1943, in Arabic) No. 67 of 1943. 99 - ■ < Ibid., Article items a., b., c., d., f., g., h., and Article 10 of item 2. , '64

The income tax in Iraq is of two types - -personal and corporate.

For purposes of the personal income tax, the household is taken as the basic unit. Income is taxable whether or not the individual resides in

Iraq as long as it is derived from a source within the country. More­ over, every resident is taxed regardless of the place from which he derives his income. Every individual in one of the following categories is considered a resident of Iraq:

1. Every person, regardless of his nationality, who resides in

Iraq.

2. • All government employees outside of Iraq- -members of the foreign service.

3. Every Iraqi who lives temporarily outside of Iraq, and has a residence or business in Iraq.

4. Every Iraqi who resides in Iraq for four months or more , . 100 during any year.

Regarding the corporate income tax, all companies whose main

offices are in Iraq are subj ect to tax on their entire income whether

derived within or outside of Iraq.. Should a company’s main offices be

outside of Iraq, then its income is treated as that of a nonresident indi­

vidual. The main office of every company is considered to be in Iraq if

Ministry of Finance, Law of Income Tax. (Baghdad: Baghdad Government Press, 1939) No,. 36 of 1939. 65 it was established in compliance with the laws of Iraq, or if its main 101 activities, or main offices are in Iraq, or if it is audited in Iraq.

Partnerships are not considered as being incorporated, there­ fore, they are treated as individuals and every partner’s income is con- 102 sidered as personal income.

Exempted from the tax are the incomes of: the king, crown prince, and the regent, those who were in the previous government, representatives of foreign countries and their non-Iraqi staff, plus others who may be exempt because of special privileges or international agreements. In addition, certain incomes are exempted because they are subject to other taxes, thus avoiding double taxation. These include incomes derived from agriculture and livestock produce which are sub­ ject to the excise tax, and income from property which is subject to property tax. Also exempt are government and eleemosynary institu­ tions such as municipalities, the w aqfdepartm ent, religious institu­ tions , and philanthropic organizations, provided that their income is not 104 derived from any commercial activities. "

Ibid., items 3,'4, and 5.

Ibid., A rticle 1, item 6.

Waqf: Ah arabic word meaning "to denote.” Usually refers to property whose income is to be spent for philanthropic purposes.

104 Law of Income Tax, op. cit., Article 6, items a, b, c, d, f, g, h, j, k. Income Tax Rates: Income taxes are levied according to a pro­ gressive rate. The progression is, however, not very marked. After allowing for certain tax free minimums (I.D. 150 to 300 dependent on the number of children), the income tax takes 6 percent out of the first

'I.D. 150, 9 percent out of the income from I.D. 150 to 500, 12 percent out of the income from I.D. 500 to 1,200 and 15 percent out of the income above I.D. 1, 200. The surtax goes higher, leaving incomes below I.D.

1, 500 free of tax and taking 5 percent on the next I.D. 1,000, continuing with 10 percent out of the following I.D. 1,000, 15 percent in the next bracket of I.D. 1,000 and so on. It ends up by taxing that part:of income • inK which is above I.D. 9, 500 by 45 percent.

Taxes are collected on the income of the preceding year. The year should conform with the fiscal year beginning April 1 and ending

March 31.106

The revenue from income tax amounted to about I.D. 2,706,611

in 1957-58 which was approximately 4.6 percent of the total revenue,

while in 1958-59 it amounted to about I.D. 3,764,934, which was approx­

imately 5 percent of the total revenue.

Carl Iversen, op. cit., pp. 64-65.

Law of Income Tax, op. cit., Article 1, item 9. 67

Table L Receipts from Income Tax: 1956-59.

• * T ; , Excess Income Tax , Percentage to Year , I.D. Tax Included , Total Receipts

1956-57 2,543,626 4.1 1957-58' 2,706,611 4.6 1958-59 3,764,934 5.0

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: Zahra Press, 1958-59) pp. 301, 343..

Property Tax

The property tax is levied on dwellings, commercial buildings and nonagricultural land. The rental value of these properties is taxed 107 at a rate of 10 percent with a certain tax free minimum. The rev­ enue from this tax amounted to about LB. 951,124 in 1957-58 which was approximately 1.6 percent of the total revenue.

, Stamp Duties The execution of any financial transaction on official corres­ pondence requires stamps. The cost of these duties depends on certain

rates which, are either fixed or expressed as a percentage of the value

of the transaction. Fixed rates could range from 10 fils to I.D. 50 in .

accordance with the type of document. They are levied on the registra­

tion of documents, certificates of companies, commercial papers, lic­

enses, receipts, insurance policies, visas, petitions and other different rights.

107 C arl Iversen, op. cit., p. 64. 68

Table-2. Receipts from Property Tax: 1956-59. I Property Tax Year ' , Percentage to LB. , Total Receipts

1956-57 838,100' . 1.3

1957-58 951,124 ' 1.6

1958-59. ; 981,711 . . 1.3. ■

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: : Zahra P re ss, 1957, 1958, 1959) pp. 34, 35, 36.

Table 3. Receipts from Stamp Duties: 1956-59.

? t .. . . ■ Stamp Duties , Percentage to ■ Year /, . . - ’ LB> ; , : Total Revenue

1956-57 V \ 897,002 ' . ' ■■ 1.4

1957-58 1,001,723 1.7

1958-59 974,790 1.3

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: Zahra P re ss, 1958-59) pp. 301, 343. -69

Indirect Taxes

■As was mentioned before, there is no income tax on agriculture and the only taxes on produce are the Istihlak taxes and land taxes.

Indirect taxes provide the largest share of the total tax revenue in Iraq. The Istihlak tax on agricultural products is collected at the marketing point and is paid by the wholesale purchasers who buy the products from the farmer. Iversen has stated in his reports that even the ^duties on animal and agricultural products which comprise prim ar­ ily the so-called Istihlak, a tax on farm products brought to the com­ mercial, centers for sale, are believed to be shifted to the consumer through their influence on prices. There are somewhat differing opinions on the question, but it is difficult at any rate to see that a complete shift­ ing to the consumer should be possible in case the Istihlak is accompanied 109 by an export duty as actually has been the case in Iraq.”

In 1953 the government abolished the tax on several items and submitted a draft law proposing a scheme of land taxation to replace the 110 above tax and this law came into force in 1954. The revenue from this tax amounted to about X.D. 223,206 in 1957-58 which was approxi­ mately 3 - 7 percent of the total revenue.

An excise tax on agricultural and livestock produce. 109 Carl Iversen, op. cit., p. 64. 110 Fernando J. Jacaman, "The Economic Development of Iraq.” (Tucson^ Arizona: Univ. of Ariz., unpublished M aster's thesis, 1956) p. 49. ' : ’ 70

IstiMak Tax on Animals

This tax is levied against sheep, goats, camels, oxen and cows that are slaughtered at slaughter houses or exported from Iraq.

The revenue from this tax amounted to about I.D. 242, 778 in 1957-58 which was approximately 1.6 percent of the total revenue.

Table 4. Revenue from Istihlak on Agricultural and Animal Produce. .

. T • ? ? ’ Total Year , Agricultural , Percentage, Istihlak ■ , Tax , Total , Revenue V Percent ’ Revenue 1956-57 2,340,373 ' / :3.7 270,320 0.4 1957-58 2,708,139 4.5 242,778 0.7 1958-59 1,893,663 2.5 215,769 0.3

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: Zahra P re ss, 1958-59) pp. 301, 343.

Land Tax

The land tax rates specified in Law No. 73 of 1936 is estinaated

on the basis of the type of cultivated land or by agreement between the

farmers and the government on the condition that a record be kppt of the

tax paid previously by the farmer with the Directorate -General of Rev­

enues. The revenue from this tax amounted to about I.D. 181,355 in 111 1956-57, which was approximately 3 percent of the total revenue. I l l ' Ministry of Economics, Statistical Abstracts. (Baghdad: Zahra Press, 1958-59) pp. 301, 343. 71

Table 5. Revenue from Land Tax: 1956-59.

? ? Percentage Year T Tax ? of Revenue

1956-57 181,355 0.3

1957-58 272,732 0.4

1958-59 206,056 0.3

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: • ' Zahra,Press,: 1958-59) pp. 301, 343. .

Customs Duties oh Imports .

Two customs laws are in effect in Iraq: (1) Customs Law No. 56 of 1931, and (2) the Tariff Customs Law.

The first deals with the general laws of customs, while the second sets up the custom rates and its relation to the different goods upon which the tax is levied.

Among the indirect taxes, customs duties and excise taxes are among the most important. These duties brought in approximately LB.

20 million in 1957-58, which was about 34 percent of the total govern­ ment revenues.

Duties are levied chiefly on a specific basis but some are ad

valorem rates levied on the value as determined by cost, insurance, weight, etc. Customs receipts are mainly derived from duties imposed 72 . on machinery, automobiles, sugar, tea, cotton, woolen and artificial silk textiles, clothing, timber and paper. Recently rates have been raised on nonessentials or luxuries such as automobiles, gold, silver- plated goods, silk, furniture and others in order to protect local indus­ try and augment government revenues.

Table 6. Revenue from Custom Duties on Imports: 1956-59.

• - ' t Customs Duties T Percentage Year ’ Imports Tax r Total ! I.D, f Revenue

1956-57 19,062,757 30.4

1957-58 20,578,709 34.7

1958-59 18,679,069 24.7

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: Zahra Press, 1958-59) pp. 301,343.

Excise Duties • '

Excise duties are also an important source of revenue, account­

ing, for over 12 percent of the total ordinary budget receipts in 1957-58.

The principal excise duties are received from the following: cigarettes,

tobacco, salts, liquor, gasolene and kerosene. 73

Table 7. Revenue from Excise Duties: 1956-57.

. ? ? Percentage Excise Duties Year ’ f Total t I.D. • t Revenue

1956-57 6,119,370 9.8

1957-58 7,972,164 : 12.9

1958-59 8,538,211 : n .3

Source: Ministry of Economics, Statistical Abstracts. (Baghdad: Zahra Press,: 1958-1959) pp. 301,343. '

Other Revenues

The receipts of the Department of Post and Telegraphs are among the major items of revenue, which include the sale of stamps and telegrams, commission for the transfer of money by postal money orders, fees for use of telephone and radio. The revenue from this particular tax amounted to about I.D. 2 million in 1957-58, which was approximately 4 percent of the total revenue.

Pension contributions received from the monthly deductions from the salaries of government officials are considered ordinary budget revenues. The revenue from these items amounted to about ID 702,364 in 1957-58, which was approximately 1 percent of the total revenue. The amounts which the government pays to officials on pensions are consid­

ered to be ordinary budget expenditures: 74

Government receipts include a variety of items from public services such as registration fees from courts, dues and fines, and fees from the registration of property with the registration office, which amounted to I.D. 3/335, 049 in 1957-58 or about 5 percent of the total revenue. This revenue includes police fees, driving licenses, vehicle registration, sales of goods produced in prison, irrigation fees, inspec­ tion and survey fees, fees from antiquities, and laboratory fees for civil aviation services. In addition to the above, there are several otte r sources from which revenues are collected:

a. cement tax

b. tobacco duties

c. tobacco monopoly profits (government shares)

d. government shares from various companies

e. land and other property sales

f. monetary transactions and miscellaneous

g. contributions from central bank and other banks

The revenue from the above sources amounted to about l.D.

4,214, 602, which was approximately 7.1 percent of the total revenue.

Oil Royalties

Oil is a very great source of national revenue. The production of oil is carried on by Iraq’s petroleum companies in , Mosul,

Basra and Khanaquin. These companies, as an international group, have 75 constructed pipelines to the Mediterranean to carry oil to Europe. An oil of very high quality and grade was found in the southern part of Iraq and production was started in 1954. In 1958 Iraq exported $219,500, 701 of crude oil, the government of Iraq receiving 50 percent of the profit.

In any case, it receives not less than $70,000,000 every year under the agreement of February 3, 1952, between the government and the Iraqi,

Bassaraans and Mosul petroleum companies. In order to promote development of the country the Iraqi government divides the oil royalties, giving two-thirds to the Ministry of Development and one-third to the 112 Treasury for the general budget.

The Expenditures of the Government

Introduction

The increase in revenue in the last decade, brought about by the expansion of oil royalties, encouraged the government to spend more on health and social and educational services. The expenditures of the ordinary budget increased from I.D. 63 million in 1956-57 to I.D. 100 million in 1960-61, an increase of 35 percent.

Table 8 reveals that expenditures of the Ministry of Defense and

Ministry of Interior absorb more than 40 percent of total expenditures.

112 Khalid Al-Doori, "The Administration of .” (Tucson, Arizona: University of Arizona, unpublished Master's thesis, 1960) p. 33. 76

Other important ministries, in terms of expenditures, are the Ministry

of Education, Ministry of Financial and Economic Affairs, and the

Ministry of Health. These five ministries put together account for

almost 70 percent of the total disbursements.

There were twelve ministries in Iraq until July 13, 1958: defense, foreign affairs, interior, finance, education, social affairs, health, justice, communications, public Works, agriculture, and economics

and development. Under the new government there are eighteen minis­ tries: defense, foreign affairs, finance, interior, education, social

affairs, health, justice, communications, agriculture, guidance, housing

and public works, planning, commerce, industry, agrarian reform,

municipalities, and oil. Each ministry receives its allowances from the

ordinary budget which is worked out with the co-operation of the Ministry

of Finance after the latter receives the requests of the former. The

final form of the expenditures has to be approved by the cabinet before

the budget is sent to the parliament according to the procedure previously

explained.

Expenditures on the security of the country amounted to about

I.D. 30 million in 1957-58 and has increased to LB. 40 million in 1960-61, > . which is about 40 percent of the budget expenditure. Education accounted

for 8 percent of the budget expenditure in 1957-58 and has increased to

about 24 percent, according to the 1961 expenditures. Economic and

social activities (under the supervision of the ministries of communica- Table 8. Main Heads of State Expenditures.

. Y • M inistry '19 56-5 7’ ’ 1957-58 i 1958-59. !■ 1959-60 1960-61 - - In thousands of dinars ------— National Defense -28, 647 ' ' 30,092."'.'31,253 37,277 40,311 and Security Education 9,957 11,238 14,381 20,248 23,783

Social and Munici­ 2,771 6,519 6,794 7,727 5, 343 pal Affairs Health 4,997 4,862' 4,897 5,409 5,865 National Guidance — — 314 506 - 608

Financial and 11,904 9,242- 4,175 12,833 11,571 Economic Affairs

Communication, 2,837 3,557 .3,304 . 4,053 3,895 Work and Housing Foreign Affairs 984 :1,155 1,218 2, 818 2,967 Administration 4,870 2,906 2,559 2,774 2,920 and Justice

Pensions, Grati­ 2,876 3, 762 5,017 6,323 5,257 tudes

Other Expendi­ 4,428 488 285 199 194 tures

Source: Quarterly Bulletin of the Central Bank of Iraq, Statistics and Research Department, No, 39, July-September 1961, p. 48, . . 78 tions, work and housing, financial and economic affairs, and social and municipal affairs) accounted for 10 percent of the budget expenditures of

1957-58. This has increased to about 20 percent of the budget expendi­ tures of 1960-61. However, there have been factors which contributed to the increase of expenditures in real terms. These factors consist of the growth of population, the increased requirements of defense, educa­ tion and health.

There has been a continuous growth in population since the estab­ lishment of the state, nevertheless Iraq is still underpopulated in rela­ tion to resources.

The population was estimated in 1942 at about 4 million, while the last estimate of the population in 1957 indicated that it had increased to 6,500,000.

The increase in population is expected to be higher in the future because of improvements in health facilities. This rise in population whould be taken into consideration when planning projects of social serv­ ices, education and housing.

Ministry of Defense

Defense is a main item of expenditure and its costs will continue to rise and engage the government with a continually rising burden. The situation in the Arab countries in particular, and the condition of the world in general, have contributed to this burden. Since was ■ 79 established in Palestine, the Iraqi government has tried to supply the military with modern equipment. The supplying of the military forces of the country with modern equipment and arms is very costly, especi­ ally when a war industry does not exist in the country. There is no evidence that a cut in defense is possible in the near future as long as the political problems of the Arab countries have not been settled. Also, the situation of the between the east and west plays an impor­ tant role in the necessity for heavy defense expenditures.

Ministry of Health

The poor health conditions that still exist in Iraq make it incum­ bent that more funds be allocated for this end. The Health Ministry’s budget has run from I.D. 4, 847,000 in 1957-58 to I.D. 5,865,000 in 1960- 113 61. Iraq had only 122 hospitals, 108 dispensaries and 1,192 doctors.

The health problem is especially difficult due to the existence of endemic diseases that spread widely among a large proportion of the population.

There are areas in Iraq such as the Liwas of Amara, Muntafiq, and Kut where the incidence of bilharizia is particularly high. In 1958

124,729 cases of infectious diseases were known. Out of this number

27,909 were malaria, 290,455 trachoma, 56,358 were bilharizia and

23,226 were ankylostomiasis.'^ . . _ _ _ _ _ Ministry of Economics, Statistical Abstracts, op. cit., p. 331.

114 - • ' .Ibid., p. 332. 80

In -spite of the improvement that has been made, the need is still

great for further preventive measures and for additional public health

services to be made available to the people, thus requiring a continuous

increase in the budget of the Ministry of Health.

Ministry of Education

In the field of education there is great demand for more facilities

since the number of students is continually rising. The government has to face this situation by opening more schools and training more teachers.

The following tables reveal the growth of educational institutions, reflect­

ing the increasing expenditures of the Ministry of Education.

Table 9. Iraqi Educational Progress, 1920-1961, Elementary Level.

' ; T ? . 1 , Number of Year Number of , , Number of , Schools , Teachers ' , Students

1920-21 88 486 8,001 .1930-31 ,316 1,325 34,513 1940-41 735 3,525 90,794 .1950-51 1,101 6,367 - "• 190,779 1960-61 .4, 648 , , 14,578 673,426

Source: News of the Iraq Republic (Washington, D. C.: Office of the Cultural Articles, Embassy of Iraq, April 1960) p. 8. 81

Table 10. "'Iraqi' Educational Progress, 1920-1960, Secondary Level.

. f ? • ? Number of Year ; ■ ' t Number of t Number of t Schools t "Teachers t Students 1020-21 : 3 . 34 , 110 1930-31 14 124 2,082 1940-41 44 472 13,469 1950-51 95 999 22,706 1959-60 368 4,622 118, 277

Source: News of the Iraq Republic (Washington, D. C.: Office of the Cultural Articles, Embassy of Iraq, April 1960) p. 9.

Because public education is almost entirely supported by the government, its growth is reflected in the budgetary provisions for the

Ministry of Education, which rose from I.D. 11,238 in 1957-58 to I.D.

23, 783 in 1960-61, a more than two-fold increase.

The goal of the Ministry of Education is to reach a stage where it is possible to enforce compulsory education. Because only one-third of the potential pupils are enrolled at the present time, it will be neces­ sary for more appropriations to be made for education in the future.

The government sends students abroad to study in various fields.

During the last few years the Ministry of Education has sent abroad an average of 150 annually for study. The total of these students was 557 82

in 1953, most of them.being in the United States and the United . 115 Kingdom.

In addition, the government offers financial, aid to Iraqi students

who study abroad at their own expense after having passed through first

year final examinations. The grants offered to such students vary from

one Country to another. Between October 1959 and May 1961, 443 students

received such grants. The distribution is shown in Table 11.

In addition to the previously described services in the field of

education, the Ministry of Education sponsors other programs to fight

illiteracy and to train people in the essentials of hygiene and agricultural

crafts.

115 Ministry of Interior, Directorate-General of Propaganda, Iraq Today, op. cit., p. 68. 83

Table 11. Government Students-Abroad to Study in the Various Fields.

! Country , Students Requiring , Grants

Federal Republic of Germany 115 Turkey 74 78 26 United States 64 A ustria 25 Bulgaria 17 Czechoslovakia 13 Lebanon 7 France 4 Italy 4 3 Hungary 2 Japan 2 Rumania. 1 German Democratic Republic 1 Total 443

Source: The Iraqi Revolution in its Third Year. (Baghdad: Rabita P re ss, 1961). p. 390. ■ CHAPTER V

■ GOVERNMENT BUDGETING

The Ministry of Finance is the Treasury of Iraq. It is the only agent, in accordance with law, that deals with the financial matters of the government. In the Constitution it has been clearly given certain 1 1 R authority.

The Organization of the Ministry

The Minister of Finance is the head of the ministry, and he is directly responsible for the operation and conduct of its employees. All orders and resolutions are delegated through him and under his control.

The ministry is divided into ten Directorates -General. Each Director­ ate is headed by a general director, who is aided by one or two assistant directors. The General Director is responsible for the operation of his division in accordance with the law enacted, and regulations and orders he receives from the Minister of Finance. The ten Directorates are as •117 follows:

The Constitution of 1925, Article 96. "All money received by government officials must be paid into the consolidated public treasury and accounted for in accordance with the rules prescribed by law.” 117 A1 Wakaya A1 Iraqia, No. 213, June 20, 1959.

84 85

1. The Directorate-General of Finance, which is divided into

five subdivisions.

a. Service and Personnel

b. Judicial Matters

c. Financial, Matters

d. The Press and Stationery

e. Administration and Correspondence

2. The Directorate-General of Budget

a. The Preparation Section

b. The Executive Section

c. Economic Projects Section (that comes under the

Central Government)

d. Research

e. Administration and Documents

3. The Directorate-General of Customs and Excise

4. The Directorate-General of Revenue

a. Checking and Statistics

b. Istihlak Tax

c. Other Taxes

d. Administration

5. The D irectorate-G eneral of Income Tax

a. Collection

b. Checking 86

Co Assessment and Registration of Individuals

d. • Assessment and Registration of Corporations

e. Administration

6. The Directorate ^General of Property and State-Owned Lands

a. Land

bo, Property and Claim Matters

c. Statistics

do Accounting

e« Documents .

7. The Directorate-General of Accounting

a. Treasury

bo Government Employees

c. Agencies and Treasuries

d. ■ Checking, Inspection, and Conformity

e. Checking Accounts of Irrigation and Public Works

f. Stamps

g= Cash Transactions

h. Administration and Correspondence

8. The Department-General, of Financial Inspection

9. The Directorate-General of Pension 118 10. The Directorate-General of Rations

A1 Wakaya A1 Iraqia, op. cit., pp. 2-3. (In Arabic) 87

Budget Preparation

On June 14, 1958, Iraq had a change of government resulting from the revolution. The new government has been in power since that date and will remain in power until a general election is called.

During the interim period Iraq is governed by a provisional con­ stitution. The primary change occurring during this interim is a tem­ porary suspension of parliamentary procedure, which will be resumed after the general elections. The temporary suspension of parliamentary procedure affects budget preparation.

During the transitional, period the budget is presented to the 119 ' council of ministers (cabinet) which exercises legislative powers.

With the exception of this deviation, all other laws and regulations in 120 force prior to the revolution continue in force.

The budget procedure detailed on the following pages is the sys­ tem which was in effect prior to the revolution, and it is expected that with the backing of the general elections the same system will be , 121 resum ed.

The 1925 provides for the allotment of funds through the budget article. In Article 98 it stated, that the allotment shall

1 IQ Interim Constitution of 1958, op. c it., A rticle 21.

120 Ibid,,. Article 28. ■ I 9 I Khalid Al-Doori, op. cit., pp. 24-25. ADMINISTRATIVE ORGANIZATION OF THE IRAQI MINISTRY OF FINANCE

Ministry of Finance

Dir.Gen.of Dir.Gen.of Dir.Gen. of Dir.Gen.of Customs & Dir. Gen. of Finance Budget Revenue Income Excise Taxes

Service Judicial Prepara­ Checking Exec. Istih la k Collection Checking & Pers. Matters tio n Section Tax Section S ta tis tic s

Econom. Admin. & Assm,t.& Assm't.& Finance Other Adminis­ R egist.of Project Documents Taxes tra tio n R egist.of Section Indiv. Corp.

Admin. & Adminis­ Corresp. tra tio n

Dir.Gen. of Dept.Gen.of Property & Dir.Gen.of Dir. Gen. of Financial Pension Rations S tate Lands Inspection

Property land & Claim Treasury Govt. Matters Employees

S ta tis tic s Accounting Agencies & Checking Treasuries & Inspec

Checking Documents Acc’ts .o f Stamps Irrig atio n

Cash Transac­ Admin.& tions Corresp,

Source: Compiled by author from Al-Wakaya A l-Iraqia, No. 213, • . 89 be sanctioned yearly by a law known as the budget law which must con­ tain an estimate of the income and expenditures for the year.

Also, parliament must approve the budget in the session pre­

ceding the commencement of the fiscal year to which the law in question relates.122

In the general accounting procedures law the fiscal year is "the period when the budget law is executed which usually begins April 1,

every year and-ends March 31." The accounting period is defined as being "the assigned period that settles all the accounting and financial 123 matters that arise from executing the budget law." It begins with the day the budget law goes into effect and ends on March 31 the follow­

ing year.

The Minister of Finance

Each ministry and department of the state prepares an estimate

of its receipts and expenditures which it must send to the Ministry of

Finance before the end of October each year. The Minister of Finance

prepares the ordinary budget and presents it to the cabinet to be studied 124 before it goes to the Chamber of Deputies. It is also his duty to pre­

sent it to the financial committee of the Chamber of Deputies.

122 The Constitution of 1925, Chapter VI, Financial M atters. 1 9 Q The Ministry of Finance, General Accounting Procedures Law (in Arabic) (Baghdad: Baghdad Government Press, 1948) p. 1. 124 Ibid.-, Article m . 90

Budget Preparation

A periodic circular is sent every year by the Minister of Finance to all ministries six or seven months before the beginning of the new fiscal year, demanding estimates of expenditures and receipts for the

coming year. This enables him to prepare the proposed budget and to 125 present it to the Chamber of Deputies on time.

The circular usually provides certain explanations of the finan­

cial conditions in the country and certain regulations and instructions to be taken into consideration by each ministry in preparing its receipts

and expenditures.

As soon as this circular is received, every minister writes to

his subordinates in the different provinces and counties, requesting them to prepare their estimates and suggestions for any new additions or dele­

tions. He urges them to economize, if possible. The subordinates

instruct their subordinates, whose reports are checked and revised.

After all the reports have been received by every minister, the

minister checks them with the help of his accountants and makes them

conform with the expenditures and receipts of his ministry. An explana­

tory statement will accompany the accounts, justifying the proposed

125 The Constitution of 1925, A rticle 100, "The M inister of Finance must submit to the Chamber of Deputies in the first place, all laws for the appropriation of monies for increasing, decreasing, or , cancelling the approved budget estimates; the budget law and all draft laws relating to loans which the government may contract shall be sim i­ larly dealt with.” 91

expenditures and the reasons for increasing or decreasing them. It will then be sent directly to the Minister of Finance.

During the period of departmental budget preparation by other ministries, the Minister of Finance prepares the expenditures of his ministry and the revenues of the state, since the directorate-general

of tariffs and taxes is under his control.

When all reports are received by the Ministry of Finance, from the different ministries and departments, the total proposed expenditures for the whole state are estimated. The Ministry of Finance includes the

estimates of receipts and revenues of the different ministries and

departments, such as judicial fees and receipts from the railways and

post office. All receipts will be arranged in one schedule in accordance

with their nature and source.

The proposed expenditures of the cabinet are estimated by the

general secretary of the cabinet and sent to the Ministry of Finance.

The proposed expenditures of the General Accountant, Control­

ler’s Office, are also sent to the Ministry of Finance by the General

Accountant.

When the expenditures and receipts schedules are ready, the

Minister of Finance prepares the proposed budget with an explanation

of the proposed expenditures and receipts and the changes that have been

made in the budget for the cabinet. A survey of the economic and finan­

cial conditions of the country is also included. The cabinet examines 92 the proposed budget and either approves it or amends it. Finally, the

Minister of Finance presents it to the parliament in the form that has been approved by the cabinet.

Our discussion has been limited to the general or ordinary budget: without any reference to the subsidiary budgets. There are many subsidiary budgets that are largely independent but related to the ordinary budget. These subsidiary budgets are budgets for certain pro­ jects or departments or agencies of the government, such as the railways, tobacco department, the Foadam Authority and the Basra Port Authority.

The purpose of such budgets is to give government agencies more freedom in dealing with their own particular problems since they have their, separate expenditures and receipts. It is easier to decide whether a certain project has proven to be a success or a failure with such an arrangement. These budgets are not entirely independent be­ cause they are subsidiary to the ordinary budget and are presented to the parliament for approval, along with the latter.

Estimation of Receipts and Expenditures in Iraq

The budget of Iraq is divided into many divisions for proposed

expenditures in accordance with the number of ministries and depart­ ments. The schedule of proposed expenditures of every ministry or

department is divided into the following subjects: 93

1. Salaries

2. Services, including traveling, transportation, purchase of

books, furniture, printing, water and electricity.

3. Other expenditures, including "special services, " which

are secret in the cabinet bill.

Receipts from the income tax, fees, property taxes and Istihlak fees are estimated by considering last year's experience, current con­ ditions, and expected changes in the coming fiscal year.

Salaries are estimated on the basis of last year in accordance with the current approved payroll, giving attention to new and eliminated positions. Allotments and services are estimated on the basis of the receipts of the previous year, taking into consideration any expected changes. Finally, the "projects and Special Expenditures" are estimated in accordance with the recommendations of the experts and advisors. If the new projects are for long-term purposes, however, all of the total expenditures will be estimated for the period involved, though only the expenses that will be incurred in one year will be included in the budget.

The Legislature

■ 126 The final approval of the budget is in the hands of parliament.

It is stated in the 1925 Constitution, Article 91:

1 9R Ibid., A rticles 98, 99, and 100. 94

Taxes and dues shall not be imposed except by law, provided that this shall.not apply to charges col­ lected by government departments in return for public services rendered by them, or in return for the enjoy­ ment of state property - Taxes and duties may not be imposed by ordinance.

There are certain limitations imposed on the parliament:

The Chamber of Deputies shall not, without the consent of the king, pass any decision, or propose any amendment to a draft law, which tends to reduce the expenditure arising out of treaties approved by parlia­ ment or by the constituent assembly.127

Approval

The Chamber of Deputies and the Senate in Iraq do not have the

authority to increase the allotments requested by the government, though they have the power to cut them. But if these allotments are the

result of treaties signed with other governments, they cannot introduce

any cut without the approval of the head of state. The detailed discussion

of the budget is mostly held in the Chamber of Deputies. This, however,

does not mean that the Senate may not revise or amend the bills sub­

mitted to it.

In case of disagreement between the Chamber of Deputies and

the Senate, Article 63 of the Constitution states:

127 Ibid., A rticle 106. 95

If one of the assemblies rejects a draft law twice, and the other assembly insists upon its acceptance, a joint meeting of the members of the Senate and Chamber of Deputies shall be held, presided over by the president . of the senate, with the object of discussing the disputed articles only. If the draft law is accepted with or with­ out amendment by a majority composed of two-thirds of the members of the joint assembly it shall be considered to have been confirmed by both assemblies but shall not become law until it has been confirmed by the king.

However, Article 63 does not solve the problem regarding the budget if a two-thirds majority is not obtained. Therefore, in this case the problem will be solved in accordance with Article 107 of the Consti­ tution.

If the financial year begins before this budget law is promulgated and parliament is in session, the Minister of Finance must submit a draft law making temporary pro­ vision for a period not exceeding two months. At the end of the period of such provision, the Minister of Finance may. submit a further draft of the same nature and so on, repeating as may be necessary. If parliament is not in session, the budget of the previous year shall be followed, without prejudice to the right of issuing the ordinance described in Article 102.

The Financial Committee

The Minister ;of Finance presents the budget to the financial com­

mittee of the Chamber of Deputies. This committee examines the budget thoroughly. It has the right to call on the ministers and heads of depart­

ments for questioning. It is one of the most important committees of 96 the Chamber of Deputies. It is elected by the Chamber of Deputies for 128 a whole term--four years.

This committee concentrates on reviewing the proposed projects and their relations to the financial conditions of the government and the expenses to be incurred by the government. It has the right to examine government documents and statements.

After the committee has thoroughly studied the budget, it pre­ sents a detailed report to the chamber, including any opinions, observa­ tions, and suggestions or amendments that,it thinks are necessary. The chamber has the right either to accept the changes or to reject them.

When the Chamber of Deputies is through with the budget it is sent: to the Senate, where it is discussed by its financial committees with rather less detail.

Procedures of Approving the Budget in Parliament

There are three stages in discussing the budget in the parliament of Iraq:

1. General discussion 2. Detailed voting . 3 . Final vote

1-98 The Constitution, Article 38, paragraph 1: "The term of the Chamber of;Deputies is four ordinary sessions, one each year, be­ ginning on the first day of December or, if that day falls on a legal holi­ day, on the day following...." 97

General Discussion .

A general discussion of the financial and economic conditions of the country takes place„ The government of Iraq is either criticized or complimented for certain actions it has taken without going into any detailed discussion of the different items of the budget.

Detailed Voting

After the close of the general discussion, a detailed study of the budget takes place. The government’s receipts and proposed expendi­ tures are examined.

In Iraq no draft law may be introduced nor any proposal put for­ ward in either assembly involving the expenditure of any portion of the 129 public revenues except by one of the ministers.

Article 101 of the Constitution requires that debate on the budget law and the voting thereon shall take place on each separate chapter, and then it shall be voted upon as a whole.

The difference in voting on the chapters of the budget and on the chapter and the item is that in the latter cases ministers and department heads cannot transfer items from one chapter to another without the con­ sent of parliament, while in the first case this is possible without any legislative authority. It: is stated in the law of Public Accounting

Ibid., ■ Article 105. 98

Procedures, Chapter I, item 7, '’funds may not be transferred from one chapter to another, except by law, yet the Minister of Finance has the authority to transfer items in the chapter itself."

Final Voting

When the detailed discussion and voting are over, the members will vote on the budget as a whole in its final form. If it is approved by the majority, it is passed. Therefore, the budget in Iraq is adopted in 130 - parts and then as a whole.

After the ordinary budget has been approved, the time comes to go over the subsidiary budgets. The same procedure observed for the ordinary budget by the financial committee is then followed for the sub­ sidiary budgets.

Approval by the Head of the State

If the Senate does not approve it, the budget is sent back and forth until both the Senate and the Chamber of Deputies agree on a final form. Then it is sent to the head of state (previously the king) who may

sign it and make the budget effective. If the head of state does not sign, 131 the proposed budget does not become effective.

1 qn . • Ibid., A rticle 101. 1 <31 Ibid., A rticle 62. 99

Delay in Adopting the Budget

When the budget is not adopted or approved in time for the new

fiscal year, which has already begun, in accordance with the law, the

pariliament grants the government temporary appropriations for two

months. They are repeated if necessary until the budget has been

adopted. This procedure is necessary for the civil service to be able to continue the operation of the government and to continue to spend and

collect revenue until a new budget has been approved. In case the parli­

ament is not in session, the government will work on the basis of the

old budget with the right to issue ordinances that are allowed in accord­

ance with Article 102 of the Constitution:

Should it be found necessary, when parliament is not sitting, to incur urgent expenditures which are not sanctioned by the budget or by a special law, the king (the head of state) may, with the concurrence of the council of ministers, issue royal ordinances directing that financial measures shall be taken as provided by - paragraph 3 of Article 26.182

1 QO Article 26, paragraph 3 of the Constitution: "if necessity shall arise, when parliament is not sitting, for taking urgent measures to maintain order and public security, to repel a public danger, to incur urgent expenditures not sanctioned by the budget or by a special law, or to carry out the obligations of treaties, the king may, with the approval of the council of ministers, issue ordinances having the force of law, prescribed the measures to be taken as may be necessary in the circum­ stances, provided that they shall not contravene the constitution. All ordinances must be submitted to parliament at its next session, except those which have been issued for the purpose of fulfilling the obligations of treaties which have been approved by parliament or the constituent assembly. If parliament does not confirm the ordinances, the govern­ ment shall notify the termination, of the operation thereof, and they shall stand replaced from the date of such notification, (coiit’d next page) 100

Therefore, in Iraq in case of any delay in the adoption of the budget, a temporary budget could be planned, either using the old budget or a new one. It seems that the three ways are used with certain limi­ tations.

Special Allotments

The future is not fully known to the executive or legislative branches of government; therefore,the estimates may not be exactly correct. Certain events or crises may arise which oblige the govern­ ment to meet certain demands. So, if the government is limited in its action, it would be handicapped to meet such emergencies. Special allotments might be needed in emergencies. If parliament is in session then new proposed allotments must be sent to it. If it is not in session then ordinances may be issued in accordance with Article 102 of the

Constitution, which will later be submitted to the parliament when it . 133 first convenes.

. Rejection of the Budget

Parliament has the right to reject the budget if it seems not to meet the financial and economic conditions of the country- Yet this 132 - (cont’d from p. 99) All ministers must sign the ordinances and Article 4 in the law of Public Accounting Procedures states ’The Minister of Finance can follow the new budget even if it has not been adopted if its estimates are less than the budget of the preceding year.’ ” 1 9 9 Ibid., Article 102. 101 rejection might cause embarrassment for the government and oblige it to resign. By rejecting the budget, the government will be unable to spend or to collect revenue. In those cases the government either will present a new budget, or will resign and the new cabinet will present another budget.

Execution of the Budget

After approval by parliament and the head of the state, the budget becomes the law of the state. It is the duty of the executive departments to comply with it.

Although the Prime Minister has the responsibility of executing the budget, the Minister of Finance in Iraq has the main task of imple­ menting, it. The Ministry of Finance collects all revenub* and pays out all expenditures since the Treasury is a part of the ministry.

The Ministry of Finance allots funds to each ministry, of. state in accordance with its budgetary requirements. The Ministry of Finance supervises the Treasury and its expenditures through the Directorate-

General of Public Accounting.

The execution of the budget is divided into two stages: ' . i (1) Compliance with the expenditure: Before taking any steps to spend, a check must be made to make sure that there are allowances for every expenditure item. Every minister has the authority to make con­ tracts to meet certain circumstances that deal with his ministry. Yet, 102

in accordance with Item 10 of the law of Public Accounting Procedures,

contracts should not exceed I.D. 5,000. If they exceed that amount,

they must be cleared with the Minister of Finance.

(2) Determination of the amount owed: Measures must be taken

to make sure that the amount the government owes is definitely for a job authorized by law and that it has been approved by a proper official.

This check must be made by the minister or his assistants. It is always

the responsibility of those the government owes for any amount to pres- 134 ent their credentials and authorized documents upon request.

(3) The order of payment: A check or an order is given to the

payee to be presented to the Treasury by a minister or any person

authorized by him, stating the reasons and the department that is incur­

ring the expense.

(4) The actual payment: This is made to the payee.

The procedures of payment are executed by the ministers or

their assistants. Usually, the accountant of every department prepares

the request form for payment and checks whether funds are available

for that particular ministry.

If any disagreement arises between the minister or the head of

the departments with the accountants regarding financial procedure, they

134 ' Law of Public Accounting Proceduresj op. cit., Articles 26 and 27. 103

are to be settled with the Minister of Finance after he receives a

written report regarding the matter.

Also, the Ministry of Finance has the right to inspect the finan­

cial matters of every ministry, so that it can be sure that procedures

are being carried out in accordance with the law and financial instruc­ tions.

Taxes are considered the most important revenue for the state.

They are collected in Iraq by the Directorate-General of Revenue in the

department of the Ministry of Finance. The minister is assisted through- 135 out the country by his agents at the revenue departments in each liwa.

The Accountability of the Budget

In the control of the budget it is important that no embezzlement

or misuse of funds occurs. The control in Iraq is a control maintained

during the execution of the budget, which is a form of pre-audit in the

American sense. Control is further maintained after execution of

expenditures and throughout the fiscal year.

Control during Execution

This is a control maintained over all the collection of revenue

and the disbursement of expenditures, As stated in the law of Public Accounting Procedures, "...no revenue could be collected in a ratio higher than what it is sanctioned 135 Iraq is divided into fourteen liwa or provinces. 104 to by law, ...and the revenue could only be collected by authorized 136 personnel appointed by the Minister of Finance.”

While in the case regarding expenditures, the law states that:

All transactions should be supported with docu­ ments chosen by the Minister of Finance, and also sup­ ported with receipts for the people concerned. No pay­ ments will be executed when only personal evidences are produced except if approved by the Minister of Finance and the amount must not exceed l.D. 50 in every transaction,

The control over the budget during its execution is under the supervision of the M inistry of Finance.

Control after Execution

In order to make sure that the executive body of the government has complied with the laws and regulations of the budget, a post audit is necessary. This control must be achieved through an independent body.

Control through an independent body in Iraq is obtained through the general.auditing department, which was established according to

Article 104 of the Constitution:

A law shall be passed for the setting up of a department for the purpose of: examining all expendi­ tures and for the drawing up of a report for submission to parliament at least once in each year, stating whether such expenditure is in conformity with the appropriation approved by parliament and has been made in accordance with the rules prescribed by law. 1^8

Constitution of Iraq of 1925, op. c it., A rticle 21. Ibid., A rticle 26. 138. Ibid., A rticle-104. 105

The controller, who is the head of the general auditing depart­

ment, is responsible to parliament for auditing all government accounts „

His appointment is by a royal ordinance, after nomination by the Prime

Minister and the approval of the cabinet. He may not be removed from his office except by the request of the Prime Minister and the approval

of the senate.

The controller's duties are the following:

1. To audit all expenditures from the allotments that are assigned to the different departments that: have been approved by parliament in

accordance with the budget law and other laws. He has the right to look

over all the accounts, documents, and reports that are related to the

accounts. .

2. To request, if he deems it necessary, that all disbursement

. requests that are prepared by the ministers and departments shall first

be cleared through him before execution.

3. To raise any necessary objection to the procedure that has

been followed by any ministry regarding certain expenditures; and if the

response is not fully adequate, he should refer the problem to the Min­

istry of Finance and include a statement concerning it in his report to

the parliament.

4. It is his duty to send to the parliament a report at least once

a year including his observations and remarks about the government’s

financial operations. 106

Judicial Control 139 Judicial control is provided by the Diwan of accounting- The

Diwan has been granted a limited judicial and auditing powers. Its only power is to present some recommendations to the Minister of Finance.

Its members are three directors -general of the Ministry of Finance

(including the director -general of the public accounts and the director- general of the revenue who have the position ex-officio), and two account­ ing auditors. It meets twice a month, and the Minister of Finance has the right to call.a meeting whenever he deems it necessary.

The special duties of the Diwan are as follows:

1. To look after the damages done by certain employees due to negligence or intentional acts.

2. To suggest to the Minister of Finance whether a certain dis­ bursement authorized by a certain officer was justifiable and legal.

3. To suggest desirable revisions in the accounting procedure 141 or any regulation regarding financial matters.

Parliamentary Control

It is the responsibility of the parliament to approve the accounts after the execution of the budget. In Iraq it is the responsibility of the

The word Diwan means, in Arabic, bureau. 140 Public Accounting Procedure, op. cit., Article 39. ■' 141 Ibid.,, Article 40. 107

Minister of Finance to present to parliament one month after presenta­ tion by the controller-general of accounts, a legal schedule that includes the approval of the accounts. After, examination has been made by the parliament, a law will be issued approving the general accounts.

Liwa Budget

The liwa budget is considered as a part of the budget of the Min­ istry of Interior, which in turn is a part of the national budget. In other words, funds to implement the liwa budget come from national rather than local sources.

The Ministry of Interior, upon receipt of the budget circular from the Ministry of Finance, issues an internal budget circular to all of its liwas. In order to prepare the budget the chief accountants and the heads of the departments of the liwas meet in Baghdad to discuss their mutual problems and to undertake their preliminary estimates.

The liwa budget is based upon the following important points.

. 1. . Salaries of officials and employees

2. Annual recurring requirements

3. Funds anticipated for development and contingencies

After the estimates have been finalized, a meeting is then held with the mutasarrifs (governors of the liwas) under the chairmanship of the Minister of Interior. At this meeting each mutasarrif is given the opportunity to present the budget for his liwa and to defend it if necessary. 108

Upon presentation, the budget is accompanied by a letter of transmittal,

certifying that the estimate was prepared in accordance with the require­ ments of the liwa.

The Ministry of Interior will check the budget of each liwa and after approving it will consolidate all of the fourteen liwa estimates and

include them within the budget of the Ministry of Interior . CHAPTER VI

CONCLUSIONS

The birth of a new nation or of a new government is always accompanied by an extended period of uncertainty, of political experi­ mentation, and of unrest as elements of both the new and the old orders seek a common ground of understanding before going forward together to a common destiny.

As was indicated in earlier chapters, Iraq could not have started its existence as an independent and sovereign nation under much greater handicaps than existed at the time the Mandate was lifted. Under Otto­ man rule, little had been done to encourage the development of a civil service or the education of a corps of public administrators. In addition, the geographic and political isolation of Iraq from sources of Western culture left the country ill-prepared for independence.

However, independence itself appears to have been the catalytic agent which converted the illiterate, impoverished, but ruggedly individ­ ualistic Iraqi into a proud citizen who now firmly believes in the ultimate success of the revolutionary objectives to achieve a better way of life, if not within his own life’s span, then certainly within that of his children.

109 110

This mood of achievement has brought about both a social and

industrial revolution. There is pride and a sense of accomplishment as new construction takes shape and as urgent and much needed social

services are expanded. The fact that all this has taken place within the comparatively short span of a few decades indicated something of the character of the Iraqi people. The Government of Iraq is no longer

in need of foreign experts or advisors to operate the complex machinery

of state. It has developed its own civil service and public administrators.

It has stepped up the pace of economic development to increase the

standard of living for its impoverished masses and, through social

reforms, has undertaken to improve the health and living conditions of

the fellahin.

Ever since independence was achieved, the first and paramount

problem facing the government has been to satisfy the long-neglected

needs and wants of its citizens whose demands for reform became

increasingly outspoken with each passing year.

Faced with the organization and administration problems of a

new and inexperienced nation suddenly cast into a world of turmoil, sus­

picion and power politics, the attempts of the monarchy to take care of

its domestic problems more often than not ended either in failure or

were futile because of their inadequacy. The error of the monarchy

appears to have been that few in authority realized the importance of

'’first things first, ” particularly in as new a country as Iraq where Ill practically everything of human importance had to first be firmly established on new foundations before the dream of the common man could ever hope to be realized. Vast public projects whose value and importance to the future of the country could never be questioned or underestimated were, nevertheless, of little interest or value to the

Iraqi peasant who was perpetually hungry and who had neither a roof of his own or clothing on his back.

The Revolutionary government has made an important contribu­ tion in this respect since it has concentrated its efforts in attaining limited short-term goals in health, education and other social reforms.

Though these efforts would appear modest by European and American standards, they have, nevertheless, achieved spectacular results in giving the people of an underdeveloped area an increased standard of living. This in turn has stimulated the desires of the Iraqis for even more of the things which they have learned to like and enjoy. The chal­

lenge to the government will lie in keeping abreast of these ever-increas­

ing demands and yet to do so without creating a dangerous inflationary spiral that could wipe out all of the hard-won achievements of the

revolution.

Inflationary tendencies have been strong, due largely to the con­

tinually increasing sums devoted to the defense budget. The turbulent

character of political unrest throughout the Middle East, as well as the

uncertainties of the cold war, have mate it imperative that a large part 112 of the Iraqi national wealth be devoted to this single, unproductive and inflationary item. Unfortunately, the state of world affairs and politics appears to offer no relief from this heavy burden for many years yet to come.

From its infancy the Iraqi Republic has always maintained an excellent position in regards to its finances. The public debt of Iraq is relatively small, since until recent years expenditures have usually been kept close to revenues. Oil royalties and the foreign currency gained from oil exports have helped the country to keep down the tax burden, and to eliminate the need for government borrowing. Income from its oil fields, therefore, covers the otherwise dangerous deficit

in the trade balance, for Iraq must depend upon imports for most of its consumer goods and some industrial raw materials. The presence of

oil in such vast reserves makes up somewhat for the scarcity of other

minerals and forms the backbone of the national economy. Oil royalties

help to balance the budget, stabilize the currency, establish a surplus

balance of payments and make possible the long-term national develop­

ment program.

Even though the various Iraqi governments since the Mandate

may have lacked administrative talent and sophistication, yet it is to

their credit that they have set an enviable record for other oil rich

countries of the Middle East for their conservation of income from oil . 113 royalties and its application in a manner to promote the national welfare.

Previous to the receipt of the present bountiful income from oil,

Iraqi governments often had great difficulty in achieving a balanced budget. As a result, the government from time to time has placed heavy restrictions and limitations on outlays for public works, improvement

: and administration. A frugal attitude towards budgeting was thus created. Although this financial philosophy has undergone a radical change with the increase in royalties, conservatism is still the keynote of the budget.

The government must recognize that heavy disbursements in the field of public expenditures must be made to raise the efficiency and productivity of government employees, to increase educational facilities, to improve health facilities, and to raise the quality and scope of local administration. All of these important and necessary steps must be taken as rapidly as possible as the mood of the country will not tolerate

delay now that political independence and freedom have been achieved.

In a country so new, so undeveloped and faced with so many fundamental problems, the task of the government is difficult and per­

plexing in assigning priorities to the many basic needs which must be

met out of the annual budget.

. Administrative objectives and budgetary considerations should

be oriented towards placing a primary emphasis on agriculture. A 114 thorough reform of land tenure, a promise of the revolution, should be carried out to fulfillment. With the majority of the population engaged in earning a precarious living from the land, any improvements that can be brought about to increase the private ownership of land, the pro­ ductivity of the agricultural worker, the utilization of irrigated land, and the improvement of marketing facilities will immediately reflect in the improvement of living standards of a large portion of the population.

It should be the government's objective to concentrate its efforts in this area. In spite of the fact that these will not be spectacular gains that will appear impressive in the national statistics, they will never­ theless prove the most effective in the long run in building up the living standards of a helpless, long-oppressed segment of the Iraqi people.

Contentment of this group can have long-range beneficial results in assisting the country to return to a period of political peace and stability.

This is particularly important in Iraq since any type of large-scale

economic action must be government inspired and supported. If the government is concerned with domestic unrest, no advancement can be

made in this critical field where the need is the greatest,

Oil is the key and a fertile, productive land is the door which

needs to be unlocked to reveal a source of wealth for the entire country.

A prosperous, contented agricultural population will have the buying

power and the desire for consumer goods that will inevitably bring about

the industrialization of the country. 115

Concern is expressed in connection with the vigorous attempts being made to industrialize the country as rapidly as possible. Although such a program is certainly worthy of praise and fits in perfectly with the fierce nationalistic pride observed throughout the country, yet it would appear that the huge sums being spent on these projects could more profitably be employed in the advancement of health and education, which are the symbol and the pillar of good government throughout the world. In spite of its fabulous royalties, the treasury of Iraq is not unlimited, and it is believed that it would be in the national interest for the government to make its heaviest budgetary commitments in those areas where its treasury would be most effective in modernizing agri­ cultural methods, in combating illiteracy and in curbing the many endemic diseases that have plagued the country from the beginning of time.

Industrialization will be secured inevitably by orderly develop­ ment and it is for this reason that the national pride and passion to achieve a century’s progress in the establishment of industry in the short

: span of Iraq’s existence should be curbed. It would appear to be an unrealistic route to achieve national development since it would be sur­

rounded on every side by dangers of inflation and domestic discontent.

The government’s task and burden in pursuing a policy of indus­ trialization is greatly complicated by the lack of a large group of investors willing to assume the risk of capital where the probability of a safe

return cannot be readily seen or predicted. Due to the turbulent political . 116 situation which was an inevitable by-product of the revolution, condi­ tions have not been particularly encouraging as far as the private investor was concerned. However, confidence grows daily in the ability of the government to maintain order and, to perform the complex serv­ ices required of a modern government. Time itself is the best restora­ tive and it is felt that given a few more years of peace, the private investor will return to make a substantial contribution to the national welfare and economy.

Although reference has been made repeatedly to the lack of education, it would be well to comment further, in this area to point out where illiteracy is the most damaging to national progress.

In relation to its population, Iraq has an adequate labor force but its productivity and .utilisation are exceptionally low. The deficiency of labor in these two areas is largely the result of a lack of education amongithe peasant class. It imposes a most formidable obstacle in the way of national development, particularly in regards to industrializa­ tion. There is a large and desperate need for technical schools, for mechanical training in industrial arts, and for a, sound and comprehen­ sive system of adult education. Modern tools and machines cannot be used effectively or productively by unskilled hands.

The growth and development of business activity has also been

restricted and hampered by a lack, of trained and competent clerks, typists, bookkeepers, accountants and business administrators. The 117 government> too, needs administrators, accountants, engineers, econ­ omists and scientists. These experts, so vital to good government, will continue to be in short supply for many years to come as the development of the country is moving so rapidly that the need far outnumbers the supply of technicians that can be produced by the Iraqi educational sys­ tem. In this connection it would be well to add that technical education would do much to improve the effectiveness of the civil service in per­ forming its functions with increased productivity and efficiency. Improve­ ments in the effectiveness of the machinery of government would reflect great credit upon the administration of the revolutionary party.

Since much of the domestic economy is based upon barter or compensation in kind instead of; money, the government's efforts to bring about general prosperity and a stable economy should be directed towards discouraging this traditional method of buying and selling. This would do much towards eliminating a traditional and historical suspicion and dis ­ trust of banking procedures which often takes the form of hoarding to the general detriment of the economy.

This suspicion could be greatly reduced by an expansion of the

banking system through the medium of branch offices in order to bring

banking services and an expansion of credit into rural areas where only the sarrafs (money lenders) now operate. It is believed that the useful­

ness of the sarraf to the general economy is now questionable. It is true

that he offered short-term credit, usually without collateral, but the high 118 interest rates charged by the sarraf benefitted neither the borrower nor the economy. It is believed that an extension of the banking system, together with a more tolerant attitude towards the amount of collateral necessary for a loan, would do more to assist the small land--owner, business man and peasant than many other more ambitious projects.

The budget, as it is published, is very difficult to understand, except by persons who are familiar with its terms. The Iraqi Govern­ ment should try to adopt a better way to present it or to supplement it with simplified graphs showing the receipts and expenditures of the government. This would be especially helpful to those without a know­ ledge of government financial operations.

The Statistical Bureau is urgently in need of improvements which would not only provide the government with accurate data but would evaluate it so that prompt action could be taken when required.

The Treasury should establish an.economic and fiscal research office of its own, operating in close co-operation with similar agencies of other government offices. The Iraqi Government should make a ser­ ious effort to improve the integrity and the efficiency of its civil servants by increasing their salaries and by dismissing the less competent.

In spite of all the trials and tribulations which the revolutionary government has experienced in its administration of Iraq, it is believed that substantial progress has been made and will continue to be made as various projects in both social and economic fields begin to exhibit solid, 119 tangible results. The strong nationalistic spirit that pervades the

country will undoubtably permit it to survive whatever test may still lie ahead for this infant nation.

The economic problems do not appear to be either too large or too difficult to be overcome. Problems of a political nature can be handled by skill, understanding and a conviction that Iraq has a place and a destiny to fulfill in the Middle East. Its leadership must guide it to become a model of progress, social enlightenment, and a strong factor contributing to the stability of an area which has been noted too

long for the tempestuous, unstable and extravagant character of its governments.

The national awakening which Jraq has experienced since the

Revolution of 1958 gives promise that this Arab nation may once again

rise to occupy a position equal to that of its former status as the center

of wealth, power and civilization in the Middle East. ■..APPENDIX A

INTERIM' CONSTITUTION OR 1958

120 Interim--Constitution of the Republic of Iraq

Article 1. The state of Iraq is an independent sovereign Republic.

A rticle 2. Iraq is an integral part of the Arab Nation.

A rticle 3. The structure of Iraq stands on a basis of mutual coop­

eration among all its citizens and respect of their rights

and protection of their liberty. Arabs and Kurds are

considered partners in this nation and their national

rights within the unity of Iraq are recognized by this

constitution.

Article 4. Islam is the Religion of the State.

A rticle 5. The Capital of the Republic is Baghdad.

A rticle 6. The Iraqi Flag and the National Emblem of the Republic

and all matters relating to them shall be determined by

Law.. '

Chapter II

Source of Powers, Public Rights and Duties

A rticle 7. The people are the source of all powers.

A rticle 8. Iraqi Nationality is determined by Law.

A rticle 9. Citizens are equal before the law in their public rights

and obligations and there shall be no distinction between

121 them by reasons of. race, origin, language, religion

or belief.

Article 10. Freedom of thought and expression are guaranteed and

shall be regulated by law.

Article 11. Freedom of the individual and the inviolability of the

home are safeguarded and shall not be violated except :

according to the requirements of public safety. The

principals shall be regulated by law.

Article 12. Freedom of religions are safeguarded and religious rites

shall be respected provided that they do not violate public

order or are contrary to public morals.

Article 13. Private property Is safeguarded. Its social role is to be

regulated by Law and it shall not be seized except for the

public interest and against fair competition according to

law.

A rticle 14. (a) Agricultural ownership shall be limited and regulated by

law.

(b) Title to agricultural property shall be preserved accord­

ing to existing laws until new laws are enacted and pro­

visions made for their implementation.

Article 15. No tax rate or duty shall be imposed, nor amendments

or cancellation thereof shall be made except by law. Article 16. National defence is a sacred duty and military service

is a source of price for citizens. This is to be regulated

by law.

Article 17. Military forces in the Republic of Iraq are the property

of the people and its function is the safeguard of the

sovereignty of the country and the defence of its territory.

Article 18. The State alone may establish Armed Forces and no

organization or group may set up military or para mili­

tary establishments.

Article 19. Persons enjoying Political Asylum shall not be handed

over to their country or origin.

Chapter III

Form of Government

Article 20. Presidency of the Republic is vested in a "presidential

council” consisting of a President and two members.

Article 21. Legislative Powers are exercised by the Council of Min­

isters subject to the approval of the Presidential Council.

Article 22. The Council of Ministers and the Ministers each accord­

ing to his function shall exercise the executive authority.

Article 23. Judges are independent, and within their judicial duties.::

They are subject to no authority save that of the Law. No

authority or individual shall violate the independence of the 124

judiciary or judicial affairs. The Organization of the

Judiciary shall be regulated by law.

Article 24. .Meetings of the courts shall be open unless otherwise

decided by the court for reasons of public order or

m orals.

Article 25. Court decisions and their execution are made in the name

of the people.

Article 26. Laws shall be published in the Official Gazette and are to

be in force as from the date of such publication unless

otherwise indicated in them. If no date of their coming

into force is indicated in them, they shall be effective

after the lapse of ten days from the date of their official

publication.

Chapter IV

Provisional Rules

Article 27. All decisions, orders, proclamations and regulations by

the Commander-in-Chief of the armed forces or the

Prime Minister or the Presidential Council in the Interim

period from July 14, 1958, until the coming into force of

this provisional Constitution shall have the force of Law,

whenever there appears to be variation between these and

the existing laws and regulations then in force the 125

latter shall be considered amended by the

form er.

Article 28. All laws and regulations in force prior to July 14, 1958,

shall continue to be in force. These laws and regulations

may however be abrogated or amended as provided in

this provisional Constitution.

Article 29. This provisional Constitution shall come into force from

^ its date of publication in the Official Gazette.

The Minister of the State shall enforce this Constitution.

Done at Baghdad on the Ninth of Muharram Al-Haram 1378 of the

Hijra Corresponding to the Twenty-seventh day of July, 1958, of the

Christian Era.

4. Republican Ordinance No. 15

The Presidential Council, having perused the Notification No. 1

issued by the Commande r - in - Chief for the National Armed Forces on

14th July, 1958, pursuant to the proposal of the Minister of Justice and

with the approval.of the Council of Ministers, promulgates the following:

The reduction of 20 per cent of the original period of the sentences

of all the prisoners in Iraq which have had the final judgment.

The Ministers of Defence, Interior and Justice are charged with the execution of this Ordinance. 126

Made at Baghdad this 2nd day of Maharram. A l-Haram , 1379, and the 19th day of July, 1958. • APPENDIX B

Iraqi State Revenues and Expenditures.

Major Sources of Iraqi State Revenues, 1956-57, 1960-61.

Main Heads of Iraqi.State Expenditures.

Actual Revenues and Expenditures on Budgets Supplementary to General Budget of the Iraqi State for the Financial Years 1958-1960. . , '

127 128

Iraqi State Revenues and Expenditures.

t ' ? ? Surplus (+) Period ’ Revenues r Expenditures ’ or t ? T Deficit (-) (In thousands of dinars)

1956-1957 62,713 . 70,276 7,563 (-)

1957-1958 61,851 73,821 11,970 (-)

1958-1959 : v75, 572 79,207 ’3,635 (-)

1959-1960 89,950 99,761 9,811 H 1960-1961* 100,657 102,764 2 , 107 H

April 1961- 47,512 . ' . 39,911 7, 601 August 1961* W

* Provisional figures.

Source: Quarterly Bulletin of the Central Bank of Iraq, July-September 1981, No. 39. (Baghdad:; Statistics and Research Department, Central Bank of Iraq, 1961) p. 46. Major Sources of Iraqi State Revenues, 1956-1957—1960-1961, r ! " Revenue , Source , 1956-57 i 1957-58 : ’ 1958-59 ,1 9 5 9 -6 0 * ’ 1960-61** (In thousands of dinars) Oil revenue 20,652 14,655 ■ 26,067 43,298 47, 547 Income tax, death D irect and inheritance taxes and 2 , 544 2, 710 3,765 3,755 4,230 tax duties Property tax 838 970 981 1,265 1,618 Stamp duties , : 897 1,014 '."975: . '1,099 ' 1,167 Total 24,931 19,349 31,788 49,437 . 54, 562 Taxes on animal and agricultural 2,611 2,774 2,445 1,945 1,903 products Indirect taxes Customs and 25,501 29,143 27,695 : 27,166 . 32,173 excise tax Cement tax 197 344 320 323 442 Total 28,309 32,261 30,460 ■29,434 34,518

Post and tele- Govt, 2,244 3,560 .2,723 2,937 2,779 . graph agencies’ Other govt. income and 5,753 6,192 . 8,969 5,687 5,994 agencies other Other revenues incomes . 1,476 1,489 '1,632 2,229 2,804 Total 9,473 10,241 13,324 . 10,853 11,577 Grand total 62,713 / 61,851 75,572 - 89,724 100,657

** Up to March final 1960.

Provisional figures, . 129 Source: Quarterly Bulletin of the Central Bank of Iraq, July-September 1961, No. 39. (Baghdad: Statistics and Research Department, Central Bank of Iraq, 1961) p. 47. Main Heads of Iraqi, State Expenditures. T Main Heads of State , 1956-57 i 1957-58 |. 1958-59 • 1959-60* ' 1960-61** (In thousands of dinars) National Defence and Security 28,647 30,0.92 - ' 31,253 37, 277 40,311 Education 9,957 11,238 14,381 20,248 . . 23,783 Social and Municipal Affairs ■ " 2, 771 6,519 6, 794 7,727 . 5,393 Health 4,997 4,862 4,897 5,409 5,865

National Guidance — — — 319 506 608 Financial and Economic Affairs 11,909 9,242 9,175 12,833 : 11,571

Communications, Works and 2,837 3,557 3,309 4,653 . 3,895 Housing Foreign Affairs 984 1,155 1, 218 2,818 2,967 Administration and Justice 4, 870 2,906 2,559 2,774 2,920 Pensions and Gratitudes 2,876 1,762 5,017 6,323 5,257 Other Expenditures 428 488 285 199 194 Grand Total 70,276 73,821 79,207 100,167 102,764 * ' ' ■ Up to March final I960. ** Provisional figures. Source: Quarterly Bulletin of the Central Bank of Iraq, July-September 1981, No. 39. (Baghdad: Statistics and Research Department, Central Bank of Iraq, 1961) p. 48. Actual Revenues and Expenditures on Budgets Supplementary to General Budget of the Iraqi State for the Financial Years 1958-1960.

. 1958 ' ’ 1959 ' 1960 t ' . . ; ■ •. ? • ■. • ' ' . ' ' .. ., . r ■ ______■ ; , S or D* . E** i R / " .S or D* t E**" ' R f - S or D*' E** ' R / (In thousands of dinars) .K Iraqi Railways 59 (-) 6,970 6,911 1,162 (->8,151 6,989 441 (-) 7,843 7,402 Ports Administration 490 (+) 3,864 4, 354 2,480(+) 4,689 7,169 738(4-) 6,157V 6 ,895V Fao Dredging Scheme 1, 649 (+) 1,350 2,999 1,522(4-) 1,554 3,076 626(4-) • 1,492 V 3,118 4 Tobacco Administration 677 (+) 2,200 .2,877 2,158(4-) 982 3,440 0 1,057 V 1,057=/ Higher. Agrarian Reform Body (1) . " ~ 0 . 2,244^ 2,244V 0 3,763V 3 ,7 6 3 / Atomic Energy Commis­ ------1 ,000 (-) 1,000 —- 6 3 # — sion (2) 63 V

The A.D.P. (3) — — — ---- — 135 (-) 428 293 36(-) 116 80 Total 2, 757 (-1-) 14, 384 17,141 4,163 (4-) 19,048 23, 211 824 (4-) 21,491 22,315 1 * Surplus (+) or deficit (-). The Higher Agrarian Reform Body was set up on 30/9/59. 2 Expenditure The Atomic Energy Commission was set up on 3/1/59. 3 ^ Revenue The Administration of Liquidation, of ex-Royal Family ^ Provisional figures Properties was set up on 5/10/1958.

. Source: Quarterly Bulletin of the Central Bank of Iraq, July-September 1961, No. 39. (Baghdad: Statistics and Research Department, Central Bank of Iraq, 1961) p. 51. APPENDIX C

Estimation of Population in Iraq in 1958-1970.

Estimation of the Number of Children in Iraq of 7-12 Years of Age in the Years 1958-1970.

132 133

Estimation of Population in Iraq in 1958-1970.

. ? . ? Y T , Centres , Year Rural , Nomades' Total ' Hale Female 1 Male Female ’ !

1958 1,265,039 1,209,774 1,882,589 1,939,589 69,522 6,366,513 1959 1,284,319 1,228,190 1,908,013 1,966,739 70,495 6,458,706 I960 1,303,906 1,246,890 1,986, 340 1,994,271 71,482 6,552,181 1961 1 ,323/7S8 1,246,890 1,962,529 1,962,529 72,438 6,646,866 1962 1,343,959 1,285,150 1,990,007 2,050,506 73,498 6 ,7 4 3 , 120 1963' 1, 364, 438 1, 304,713 1,972,861 2,079,214 ' 74,527 6,840,753 1964 1,385,237 1,324,575 2,046,109 2,108,379 75,570 6,949,870 1965 1,406,845 1,344,805 2,073, 743 2,137,885 76,628 7,039,756 1966 1,428,306 1,365,209 2,102,562 2,167,597 77, 701 7,141, 285 1967 1,450,074 1,385,809 2,131,993 2,197,918 78,789 7,244,484 1968 1,472,181 1,406,910 2,161,854 2,227,508 79,892 7, 349, 241 1969 1,493,784 1,428,128 2,191,130 2,259,711 81,010 7,455,485 1970 1,517,386 1,431,979 2,222,982 2,291,317 82,144 7, 563, 681

Source: High Committee for the Celebrations of the 14th July, The Iraqi Revolution in Its Third Year. (Baghdad: Rabita Press, 1961) p. 53. 134

Estimation of the Number of Children in Iraq of 7-12 Years of: Age in the Years 1958-1970.

T ? ? . , Centres . Rural Year ’ Total * * Male Female f Male ' Female ?

1958 227,789 217,654 338,863 349,287 1,133, 595 1959 231,203 ■ 221,209 344,160 354,193 1,150,764 1960 234,847 224,582 348,976 359,136 1,167, 541 1961 238,353 . 228,016 353,717 364,144 1,184,230 . 1962 241,974 ' 231,554 358,745 . 369,282 1,201,555 1963 245, 583 235,101 : 363,804 374,463 1,218,851 1964 249,134 238,191 368,347 .379,506 1,235,178 1965 253,031 242,056 373,479 384,818 1,253,384 1966 256,904 245,747 378,708 390,207 1,271,566 1967 260,819 249,408 ■ .383,974 397,592 1,289,856 1968 . 264,794 253,243: 389,346 401,118 1,308,502 1969 268,821 256,953 389,974 408,749 1,327,401 1970 272,942 261,009 400,348 410,983 1,346,812

Source: High Committee for the Celebrations of the 14th July, The Iraqi Revolution in Its Third Year, (Baghdad: Rabita Press, 1961) . p. 54. BIBLIOGRAPHY

Books

Al-Hassani? , Abdul Razak, History of Iraqi M inistries, 2nd ed. 8 vols. Saida, Syria: Arfan P re s s , 1955. (in .Arabic).

Burkhead, Jesse, Government Budgeting. New York: John Wiley and Sons, Inc., 1956.

Committee of Officials, Kingdom of Iraq. The Lord Baltimore Press- Baltimore, Maryland, U.S.A., 1946.

Cooke, Hedley, V., Challenge and Response in the Middle East. New York: H arper, 1952.

Directorate-General of Propaganda, Iraq Today. Baghdad: Ministry of Interior, Government Press, 1953.

Fisher, Sydney Nettleton, The Middle East: A History. New York: Knopf, 1959.

Harris, George L., Iraq: Its People, Its Society, Its Culture. New Haven: Hraf Press, 1958.

International Bank for Reconstruction and Development, The Economic Development of Iraq. Baltimore: Johns Hopkins Press, 1952.

Iraqi Directorate-General of Guidance and Broadcasting, Land of the Two Rivers. Baghdad Government Press, 1954, 4 vols.

Ireland, Philip Willard, 'Iraq:1 A Study in Political Development. New York: MacMillan, 1938.

Langley, Kathleen M., The Industrialization of Iraq. Cambridge: Har­ vard University Press, 1961,

135 136

Longrigg, Stephen Hemsley, Iraq, 1900 to 1950: A Political Social and EconomioFiHistory. New York: Oxford University Press, ' 1953, ' / "

Nutting, Anthony, I Saw for Myself. Garden City, N. Y.: Doubleday P re ss, 1958.

Pfiffner, John M., Public Administration, 4th ed. New York: Rinald P re ss, 1960.

Piggott-Stuart (ed), The Dawn of Civilization. New York, Toronto, London, McGraw-Hill Book Co.,. 1961. .

Qubain, Fahim L, The Reconstruction of Iraq: 1950-1957. New York: Frederick A. P raeger, 1958.

Shwadran, Benjamin, The Middle East, Oil and the Great Powers. New York: Frederick A. P raeger, 1955.

Shwadran, Benjamin, The Power Struggle in Iraq. New York: Council for Middle E astern Affairs P re ss, 1960.

White, Leonard D., Introduction to the Study of Public Administration, 4th ed. New York: M acmillan, 1955. i .

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(Iraqi Embassy, Cultural Attache, Washington, D. C.)

El-Kaissi, Dr. Fawzi,* The Republic of Iraq: Establishment, Policies and Achievements. Washington, Iraqi Embassy, 1959.

High Committee for the Celebrations of the 14th July, The Iraqi Revo­ lution in Its First Year. Baghdad, Rabita Press, 1959.

High Committee for the Celebrations of the 14th July, The Iraqi Revo­ lution in Its Second Y ear. Baghdad^ Rabita P re ss, 1960.

High Committee for the Celebrations of the 14th July, The Iraqi Revo­ lution in Its Third Year. Baghdad, Rabita Press, 1961.

Iraqi Constitution of 1925. Baghdad: Government Press, 1944, (in Arabic). I raqi Interim - Constitution of 1958, The Republic of Iraq. Baghdad, 1958.

Iversen, Carl, A Report on Monetary Policy in Iraq. Baghdad, National Bank of Iraq, 1954.

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Ministry of Finance, General Accounting Procedure Law. Baghdad, Government P ress, 1948. (in Arabic)

Ministry of Finance, Law of Income Tax, No. 83 of 1943. Baghdad, Government P ress, 1943. (in Arabic)

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Ministry of Finance, Law of Iraqi Budget 1981. Baghdad, Government Press, (in Arabic)

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Ministry of Finance, Regulations for the Preparation of the Budget of Iraq of 1981. Baghdad, Government Press, 1961. (in Arabic)

Ministry of Guidance, Republic of Iraq, Provisional Economic Plan, 1959.

Ministry of Oil, On the Result of the Negotiations with the Oil Com­ panies. 1961.

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Al-Wakaya Al-Iraqia. Baghdad: Government Press, 1959, vols. 164, 196, 200, 209, 212, 213, 214, 219, 223, 226, 231, 238. Official Newspaper in Arabic.

New Iraq . No. 2, Feb. 1962. Department of Popular A rts and Culture. Baghdad: A r-E abita P ress, 1962.

New Iraq . No. 3., M arch 1962. Department of Popular.A rts and Culture. Baghdad: A r-Rabita P ress, 1962.

New Iraq . No. 7, July 1962. Department of Popular A rts and Culture. Baghdad: A r-Rabita P ress, 1962.

Statistics

Quarterly Bulletin of the Central Bank of Iraq, July-September 1961, No- 39. Baghdad:: Statistics and Research Department, Central Bank of Iraq, 1961. ,

Statistical Abstract: 1957-58 and 1958-59. 2 vols. Ministry of Eco­ nomics. Baghdad. Zahra P re ss, 1959.

The Annual Report on the Operation of the Agricultural Bank for the Financial Years 1959, i960, and 1961, ended on 31st March 1961. Baghdad: National Printing and Publishing Company, 1961.'" '

Theses

Al-Doori, Kalid, The Administration of Education in Iraq. Tucson: University of Arizona, 1960.

El-Miqdadi, Wael, The Budget of Iraq. Philadelphia: University of Pennsylvania, 1957.

Jacaman, Fernando J., The Economic Development of Iraq. Tucson: University of: Arizona, 1956.

Mahmoud, Nuri.A., Domestic Capital Formation in Undeveloped Countries with Special Reference in Iraq. Tucson: University of Arizona, 1960. ;