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Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution

Iraq is a country with exceptional natural resource wealth, but also consistent political turbulence manifested by high levels of state corruption, patronage networks, weak governance, poor institutional quality, civil unrest and sectarian conflict, all of which have undermined the sovereignty of it...

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Main Author: Moosajee, Muhammad Ali
Other Authors: Edwards, Lawrence
Format: Thesis
Language:English
Published: School of Economics 2019
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access_status_str Open Access
author Moosajee, Muhammad Ali
author2 Edwards, Lawrence
author_browse Edwards, Lawrence
Moosajee, Muhammad Ali
author_facet Edwards, Lawrence
Moosajee, Muhammad Ali
author_sort Moosajee, Muhammad Ali
collection Thesis
description Iraq is a country with exceptional natural resource wealth, but also consistent political turbulence manifested by high levels of state corruption, patronage networks, weak governance, poor institutional quality, civil unrest and sectarian conflict, all of which have undermined the sovereignty of its vast petroleum wealth and limited its potential for economic prosperity. As a mechanism for reducing the high levels of corruption and patronage networks as well as stimulating economic activity, this dissertation proposes the use of citizen-based direct distribution of oil revenues and studies the economic impacts of this policy using Social Accounting Matrix analysis. The methodology for this analysis includes testing the policy at different levels of per capita distribution, as well as with three variations in the design of the distribution programs. These variations include a universal cash transfer funded by oil revenue surpluses, a targeted cash transfer funded by oil revenue surpluses and a universal cash transfer funded by the reallocation of funding from the existing food subsidy system. The results illustrate that in each of the scenario variations, cash transfers are shown to have a significant positive impact on household incomes, producing activities and aggregate demand in the economy. The results also illustrate a net welfare gain to households when replacing the existing food subsidy system with cash transfers. In the comparison of distribution variations, targeted programs are shown to have the largest effect on the economy, primarily as lower-income households were allocated a greater proportion of income and subsequently also spend a greater proportion of their income on goods with lower leakages. Higher-income households, who are non-recipients in the targeted programs, benefit from targeted programs through the indirect/induced effects, which are largest in comparison to the other distribution variations. The results also show increased consumption on essential goods & services, primarily agricultural produce, which would ease concerns that cash transfers may generate increased consumption on non-essential/temptation goods.
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institution University of Cape Town (South Africa)
language eng
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license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2019
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spelling oai:open.uct.ac.za:11427/29484 Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution Moosajee, Muhammad Ali Edwards, Lawrence Economic Development Iraq is a country with exceptional natural resource wealth, but also consistent political turbulence manifested by high levels of state corruption, patronage networks, weak governance, poor institutional quality, civil unrest and sectarian conflict, all of which have undermined the sovereignty of its vast petroleum wealth and limited its potential for economic prosperity. As a mechanism for reducing the high levels of corruption and patronage networks as well as stimulating economic activity, this dissertation proposes the use of citizen-based direct distribution of oil revenues and studies the economic impacts of this policy using Social Accounting Matrix analysis. The methodology for this analysis includes testing the policy at different levels of per capita distribution, as well as with three variations in the design of the distribution programs. These variations include a universal cash transfer funded by oil revenue surpluses, a targeted cash transfer funded by oil revenue surpluses and a universal cash transfer funded by the reallocation of funding from the existing food subsidy system. The results illustrate that in each of the scenario variations, cash transfers are shown to have a significant positive impact on household incomes, producing activities and aggregate demand in the economy. The results also illustrate a net welfare gain to households when replacing the existing food subsidy system with cash transfers. In the comparison of distribution variations, targeted programs are shown to have the largest effect on the economy, primarily as lower-income households were allocated a greater proportion of income and subsequently also spend a greater proportion of their income on goods with lower leakages. Higher-income households, who are non-recipients in the targeted programs, benefit from targeted programs through the indirect/induced effects, which are largest in comparison to the other distribution variations. The results also show increased consumption on essential goods & services, primarily agricultural produce, which would ease concerns that cash transfers may generate increased consumption on non-essential/temptation goods. 2019-02-11T13:36:24Z 2019-02-11T13:36:24Z 2018 2019-02-11T09:30:21Z Master Thesis Masters MCom http://hdl.handle.net/11427/29484 eng application/pdf School of Economics Faculty of Commerce University of Cape Town
spellingShingle Economic Development
Moosajee, Muhammad Ali
Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
thesis_degree_str Master's
title Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
title_full Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
title_fullStr Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
title_full_unstemmed Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
title_short Challenging Patronage Networks and Corruption in Iraq: A social accounting matrix analysis of citizen-based oil revenue distribution
title_sort challenging patronage networks and corruption in iraq a social accounting matrix analysis of citizen based oil revenue distribution
topic Economic Development
url http://hdl.handle.net/11427/29484
work_keys_str_mv AT moosajeemuhammadali challengingpatronagenetworksandcorruptioniniraqasocialaccountingmatrixanalysisofcitizenbasedoilrevenuedistribution