141. The Status of Erbil-Baghdad Relations
- Author:
- Dlawer Ala'Aldeen
- Publication Date:
- 09-2020
- Content Type:
- Policy Brief
- Institution:
- Middle East Research Institute (MERI)
- Abstract:
- In Iraq, politics is personal, and the politics of Baghdad-Erbil relations is no exception. Improvements and deteriorations in this relationship have largely been dictated by interpersonal dynamics, such as the rapport and mutual confidence between leaders. In May 2020, the Kurdistan Region’s major political parties played an unusually decisive role in having Mustafa Al-Kadhimi selected as the Prime Minister (PM) of Iraq. The Kurdistan Democratic Party and Patriotic Union of Kurdistan declared their support for his designation before he was officially nominated by the Iraqi President, Barham Salih. The Kurdistan Regional Government (KRG) leaders knew Al-Kadhimi personally and had enjoyed good working relations with him when he was the chief of intelligence. Importantly, they believed that demonstrating early support was a worthwhile investment that could help to extend the period of tension-free engagement between Erbil and Baghdad, similar to what they experienced with Al-Kadhimi’s predecessor, Adil Abdul Mahdi. After a period of frozen relations that followed the Kurdish referendum for independence in September 2017, Erbil-Baghdad relations regained a degree of normality in the run up to the 2018 elections and were further bolstered by the appointment of Adil Abdul Mahdi, a personal friend and close associate of many KRG leaders. In 2019, Baghdad agreed to send Erbil 12.67% of the federal budget; in return, the KRG agreed to offer Baghdad 250,000 barrels of exported oil per day. For various reasons, the KRG never delivered the oil or its revenue, and the Shia political parties exerted unbearable pressure on the PM to cut the KRG from the national budget altogether. Nevertheless, Abdul Mahdi’s government continued to send the Kurdistan Region its share of the budget. Negotiations continued, and both sides eventually reached a comprehensive agreement to resolve the revenue issues from the KRG’s oil sales and border crossing customs. These negotiations, as well as the implementation of previous agreements, were suspended upon the resignation of Abdul Mahdi’s government at the end of November 2019. Nevertheless, budgetary payments to the KRG, minus the calculated revenue from the agreed KRG oil exports, continued until April 2020 (total IQD 454b, c. $278m). Unexpectedly though, in the final few weeks of his premiership, Abdul Mahdi ordered the finance ministryto halt the delivery of the KRG’s public-sector salary payments.
- Topic:
- Politics, Governance, Leadership, and Local
- Political Geography:
- Iraq and Middle East