Dr.mohmmed  A  almusawi

The economy of Iraq is largely based on agriculture and petroleum. Agriculture was once the backbone of Iraqi economy, and is still important, though more as the livelihood of many people. Petroleum production and export, which had played a vital role in the economy since the mid 20th century, is still of great significance. The latter part of the 20th century saw Iraq developing, and then again declining due to the effects of the wars, which disrupted trade routes, and destroyed factories. A trade embargo was further placed on oil exports in the August of 1990, which was partially lifted in 1996, and then fully lifted in 2003. Iraq is now focusing more on the development of industries, and is trying to reduce its reliance on petroleum.
Iraq's basic currency unit is the Iraqi dinar.
The Tigris-Euphrates lowland—an easily irrigated area of rich alluvial soil—has been devoted primarily to farming since the dawn of civilization. About one-fifth of Iraq's people make their living from farming and herding.
Before the restrictions brought about by the trade embargo placed on Iraq by the UN in 1990, the country was importing around 70 percent of its food products. This was because there was poor organization, and a lack of labor and private investment.
Agricultural amendments in the mid 20th century led to the relocation of land, which had been held until then by large landowners. During the period of 1967–83 the government encouraged the growth of cooperative farms, after which encouraged more private ownership.
Principal crops include wheat, barley, rice, dates, tomatoes, potatoes, melons, grapes, and oranges. Other crops include cotton and tobacco. Livestock raising is widespread, especially among the nomads, who roam steppe grazing lands with their flocks and herds. The most numerous domestic animals are sheep, goats, and cattle.
Mineral Production
Oil is the chief mineral resource of Iraq, and the country once ranked as the second-largest producer and exporter of oil in the Middle East. In the late 20th century, the oil industry accounted for about 60 percent of Iraq 's gross domestic product (GDP), the total value of all goods and services produced within the country in a year. During the war with Iran (1980–88) and the Persian Gulf War (1991), however, many oil reservoirs, pipelines, and refineries were destroyed, and the oil trade was disrupted. Also, after 1990 much of Iraq 's petroleum exports terminated as a result of commercial prohibitions imposed by a UN trade embargo. Iraq is a member of the Organization of Petroleum Exporting Countries (OPEC).
Major oil fields of Iraq lie to the south of the country, near the Kuwait border, and also to the west of Kirkuk in the north. Iraq 's chemical and oil plants also lie near Baiji, Basra, and Kirkuk . Other natural resources that are mined in Iraq include phosphates, sulfur, and natural gas.
Although Iraq has built a number of modern manufacturing plants since World War II, industrialization has been slow. Only about 7 per cent of Iraq's workforce is employed in manufacturing.
Iraq's chief industries include food processing, petroleum refining and chemical manufacturing. Goods produced by manufacturing industries include textiles, shoes, beverages, cement, and iron and steel and soap. Nearly all large modern plants are owned by the government. Baghdad, Basra, and Mosul are the principal industrial centers.
Service Industries
Industries which include banking and real estate, provide employment to many workers in the country. Prior to the Iraq War, about 25 percent of the work force of the country worked for the government.
Energy Sources
Oil and natural gas provide all the energy required in Iraq. The availibility of electric power, however, has bee hampered by the wars.
Many of Iraq's roads, and most of its railways, ports, and airports, were heavily damaged or destroyed during the Persian Gulf War. The country's road and railway systems are concentrated in the Tigris-Euphrates region and converge on Baghdad. Iraq's chief port facilities are at Basra, which international airports are at Baghdad and Basra. Most Iraqis cannot afford automobiles and use public transportation. Many city dwellers travel on bicycles, and in the countryside people use donkeys and camels.