Publication

This paper compares the economies of those regions in Iraq controlled by Baghdad, the Kurdish Regional Government (KRG) and the Islamic State of Iraq and Levant (ISIL). Overall, the author notes that 1) while ISIL has had considerable military and political victories, the territory captured by them is economically weak and constrained; 2) the territory controlled by the KRG has a more favorable economic situation than that controlled by ISIL, but also faces economic challenges; and 3) although Baghdad has lost a lot of territory, the parts it does control may end up better off economically due to the capital's trade links and 84 percent control of Iraq's oil resources.