THE INTERNATIONAL MONETARY FUND AS A POLITICAL TOOL: A STUDY OF THE IMPACT OF THE FUND'S PROGRAMS ON IRAQ'S ECONOMIC SOVEREIGNTY (2011–2020)

Abstract This study seeks to investigate the complex and intertwined relationship between the International Monetary Fund (IMF) and its programs’ impact on Iraq’s economic sovereignty during a critical decade (2011–2020). The Fund is not viewed merely as a lender or technical advisor but as a politically influential actor capable of shaping the economic policies of borrowing states. This raises fundamental questions about these states’—such as Iraq’s—ability to chart their own independent development path. The study concludes, among other findings, that the conditions imposed by IMF programs (such as deficit reduction, freezing public employment, and cutting expenditures) significantly constrained the fiscal space available to the Iraqi government. These constraints, despite their apparent economic rationale, affected the government’s ability to allocate resources in line with its independent developmental and social priorities, representing a setback to a significant aspect of financial sovereignty. One of the main recommendations is that Iraq should heavily invest in building the capacities of its national cadres specialized in economics, law, and international finance. This would enable Iraq to negotiate the terms of IMF programs from a position of strength, better understand the available options, and identify conditions most compatible with its national development goals without compromising its sovereignty.