Political and Economic Landscape of the KRI

The Kurdistan Region of Iraq is an autonomous region within the Federal Republic of Iraq. It consists of four northern governorates of Iraq, including Erbil, Sulaymaniyah, Dohuk, and Halabja. The region cooperates with the federal administration in Baghdad while operating as a separate entity inside the Federal Republic of Iraq. Moreover, the chapter underscores obstacles to economic progress, including but not limited to a reliance on the oil sector, a sizable public sector, a high degree of imports, a cash-based monetary system, and underdeveloped financial sectors. The present chapter analyzes the tensions between Erbil and Baghdad, with a particular emphasis on the conflicts that arise over disputed territories, budget allocation, and control of natural resources.