By Saman shali
To promote transparency regarding their debts, the Kurdistan Regional Government (KRG) can implement several measures. Here are some ways the KRG can enhance transparency between the Iraqi Government on one hand and on the other gains the support of the people of Kurdistan:
1. Publish comprehensive financial reports: The KRG should regularly publish detailed financial reports that include information about their debts, including the amount owed, terms, and repayment schedules. These reports should be easily accessible to the public and provide a clear breakdown of the debt situation.
2. Establish an independent auditing body: Create an independent auditing body or commission that is responsible for auditing the KRG's finances, including its debts. This body should have the authority to access relevant financial information and provide objective assessments of the KRG's debt position.
3. Engage external auditing firms: To ensure impartiality and credibility, the KRG can engage reputable external auditing firms to conduct regular audits of its financial statements, including debt-related information. This practice can provide an additional layer of transparency and validate the accuracy of the KRG's financial disclosures.
4. Implement debt management policies and procedures: The KRG should establish clear debt management policies and procedures, outlining how debts are acquired, monitored, and repaid. These guidelines should include mechanisms for evaluating debt sustainability, risk assessment, and contingency plans to mitigate potential financial challenges.
5. Economic Reforms and Diversification: Implement economic reforms to promote fiscal discipline, enhance revenue generation, and reduce reliance on borrowing. This could include diversifying the economy by developing sectors beyond oil, improving tax collection and administration, reducing corruption, promoting private sector growth, and attracting foreign investment.
6. Enhance budget transparency: Transparent budgeting practices can shed light on how the KRG plans to allocate funds to service its debts. The KRG should publish detailed budgets that outline debt servicing expenses, revenue projections, and the overall financial strategy. This information should be presented in a manner that is easily understandable for the general public.
7. Foster collaboration with international financial institutions: Collaborating with international financial institutions, such as the International Monetary Fund (IMF) or World Bank, can help the KRG gain access to expertise and guidance on debt management. Working with these institutions can also enhance transparency by adopting best practices and adhering to international reporting standards.
8. Engage civil society and media: Actively involve civil society organizations and the media in monitoring KRG's debt management practices. Encouraging independent scrutiny can provide an additional layer of oversight and ensure that any irregularities or concerns are brought to light.
9. Promote public awareness and education: Conduct public awareness campaigns and educational initiatives to help citizens understand the KRG's debt situation and the implications it may have on the region's financial stability. This can include publishing informational materials, organizing public forums, and leveraging digital platforms to disseminate relevant information.
By implementing these measures, the KRG can foster transparency and accountability regarding their debts, enabling citizens and stakeholders to have a clearer understanding of the region's financial position and the steps being taken to manage debt effectively. This can help KRG to gain the support of the people of Kurdistan, the Iraqi Government, and international communities.
It's worth noting that the specific challenges and options for debt resolution in the Kurdistan Region may require consultation with experts in international finance and engagement with relevant stakeholders, including creditors and development partners.
Saman Shali has a Ph.D. in Science (1981) from the University of Sussex. Dr. Shali worked as an Assistant Researcher and Assistant Professor at the University of Sussex, King Saud University, and Pennsylvania State University. He is also a senior fellow at the Mediterranean Institute for Regional Studies.