I'm not an economist and I have a very limited background about economy since its a very big science but when economy contradicts logic I try to find an explanation.
Today, we received a press release. As a summary for the release, the Iraqi minister of finance received the Italian ambassador in Iraq and they discussed the procedures of ending the subject of the Italian loan to Iraq. The loan (400 million euro) will be used to buy Italian agricultural machines to be distributed to the Iraqi farmers
Until now, everything seems normal and logical. A third world country takes loan money from an industrial country. That would be completely acceptable if this third world country is a poor country but is it acceptable for a country that gained 32 billions dollars only as supplementary budget from the increasing of oil prices?
Why does Iraq need this loan? Our government wastes millions of dollar everyday in putting more blast walls, renewing pavements and of course in buying new armored vehicles for the enormous and increasing number of Iraqi officials. We can buy thousands of agricultural machines with the millions that have been wasted for the faked projects. Of course I'm not talking about the millions that had been stolen by the former ministers or even by the contractors.
I'm seriously waiting for an answer by an economist because the whole loan seems one more contract in the wallet of someone.