Faces of Economic Inequality in the Iraqi Kurdistan ( ): The Role of Regulation

Transcription

1 Faces of Economic Inequality in the Iraqi Kurdistan ( ): The Role of Regulation Submitted by Nyaz Najmudleen Noori to the University of Exeter as a thesis for the Degree of Doctor of Philosophy This thesis is available for Library use on the understanding that it is copyright material and that no quotation from the thesis may be published without proper acknowledgement I certify that all material in this thesis which is not my own work has been identified and that no material has previously been submitted and approved for the award of a degree by this or any other University. 1

2 1. Abstract This thesis sheds light on the main aspects of economic inequality in the Iraqi Kurdistan. The main objective of this journey is to determine the reasons for the growing inequality in the period under study ( ) in Iraqi Kurdistan, hoping to reach some conclusions which pave the way to researching it. Within this long journey, it has been argued that inequality is firstly inherited. Families have left different stores of abilities and skills to their children. However, this is not the only type of inheritance inequality. Part of the inheritance inequality has been caused by the nature of the economy and the political system, which have dominated in Iraq and Kurdistan during the last three decades. In the past, government intervention and massive regulation have been responsible for corruption and expanding inequality as a consequence, left another period of chaos. After removing Saddam, the political system has shifted to a free market, but without bringing the promised fruits for people. Corruption has a hand in expanding distances between individuals, social groups, and geographical areas. Though elements of corruption can be seen through distributing national incomes, an evaluation for the public policies tells us that even in the absence of corruption, inequality can be expanding. The culture of the labour market does not let the individuals perform well. It does not offer equal opportunities for two agents of the same age who hold the same certification. The traditional division of labour, between the market and the home, can still be observing. This division has made two types of market: the labour market and the marriage market. Women are socially encouraged to spend their energy and time on collecting the abilities that are necessary to make a good choice in the marriage market. The skills of the marriage market are clear: to be an honoured wife, who has had no previous relations with men and able to prepare food and take care of their children. Nevertheless, when they enter the labour market, they see another division: some jobs are for men, others for women. The official surveys, done by international organizations in accordance with the Ministry of Planning of both Iraq and Kurdistan, in addition to the two surveys conducted by the researcher, show that there has been a huge gap between urban and rural areas as well. 2

3 Acknowledgments The thesis has received help from many people. Therefore, my acknowledgement is going to be long, though I will certainly not be able to mention every single name. First, I would like to inform the reader that the project has been granted by the Kurdistan Regional Government with full financial support. I am thankful for this opportunity, which I first got from what is called the Fourth Cabinet. After this, I must acknowledge my extensive debt to Professor Gerd Nonneman for his extraordinary encouragement and valuable suggestions and advice. I also learned a great deal from Dr Kamil Mahdi who has supervised me for the first year of the program. I have benefited from helpful effort of the other members of the supervising team, particularly professor Christine Allison. The whole academic atmosphere at IAIS was also helpful to develop my ideas. My special thanks go to my family (my mother, my wife, my brothers, and my sisters), I would not have been able to meet the challenge uncounted on obstacles I have been faced with since my first arrival at Heathrow on the 19 th of April I also appreciate the support that I received from my father-in-law s family. I owe Janet Johnston, a lecture at the American University of Iraq-Sulaimani, for spending many hours proofreading this thesis. My lovely friends, Dr Yadgar Kamal Ahmad, Lecturer at the University of Koia in the Kurdistan region, Dr Twana Salih, lecturer at University of Salahadin, Dr Ismail Mustaffa, lecture at Soran Institute, Ava Omer Fatah, lecturer at Sulaimaniyah University, Hemn Salah, the owner of Lalo Company for Agricultural Trade, Dana Bahadin, the deputy of Human Resources department at Helebge Group Companies, Soran Husammadin, Hikmat Maruf, Roshna Salah and her husband, Soran Hama Amin, Saman Balakey, PhD candidate at Exter University at the time of writing this thesis, have given a great help in shaping the thesis in one way or another. I am thankful to the academic and administrative staff at the Sulaimaniyah University and College of Administration and Economics, for their facilitation. Furthermore, slightly more than 500 people, from Sulaimaniyah city, Qaradakh district, and Derbendikhan district, have a voice in this thesis in one way or another. They all spent valuable time filling out the questionnaires. A few of them contributed through open interviews. Their views have been tremendously useful for me in developing my 3

4 ideas. I am in debt to the directors of those directories for letting me meet with the staff as well. It is exceedingly hard to mention every single name who has given his/her support in completing the thesis. I am thankful for everyone who even helped me with a word. Maybe I am not the only one who is responsible for the weaknesses of the thesis, but those who have been acknowledged are certainly not. 4

5 Dedication I dedicate this thesis to Professor Gerd Nonneman, and my little son Las. 5

6 Table of Contents Title... 1 Abstract...2 Acknowledgments... 3 Dedication... 5 List of Tables... 9 Chapter One: Introduction Rationale, Research Questions, and Hypotheses Objectives The Profile of the Region Conceptual Framework Diversity versus Inequality Income Inequality versus Economic Inequality Gender or Sex inequality? The Definition of Corruption Methodology Official Data Questionnaire Obstacles and Potential Errors Case Study Thesis structure Chapter Two: Inequality: A Literature Survey What is wrong with Inequality? The Theoretical Framework of Inequality Karl Marx s Approach to Inequality Inequality from the Perspective of the Human Capital Approach Years of Schooling, job Experience, Sheepskin effect, and Job Segregation Family Background and Earnings

7 2.3 From Human capital to Human Capability and beyond Identity and Inequality Evidence from Previous Studies Summing up the Theoretical Framework Chapter three: Faces of Economic Inequality in the Kurdistan Region Wage and age profile Disparities in Educational Background Inequality through the prism of the Labour Market Index (LMI) The Dependency Ratio Employment distribution across sectors The unemployment rate and its causes in Kurdistan Region Life Expectancy Rural-Urban disparities Primary Results from the Inequality Survey Basic data of the wage model The model of wage inequality Conclusion Chapter Four: Gender inequality in Kurdistan Region Wage disparities and women's empowerment Disparities in Education and Training opportunities Labour Market Index The Labour Market Culture Unemployment among women Distribution of employees in Economic sectors Women's empowerment The model of wage discrimination Chapter Five: Government Intervention, Corruption and Inequality Inequality as a product of Corruption The Free Market against Regulation The Free Market approach

8 5.2.2 Regulation and the Government Intervention On the link between corruption and inequality in Kurdistan The Hegemony of Oil Sector within the Public Sector Sanctions and civil war impacts From Chaos to Corruption How big is Corruption in the Kurdistan Region? Government and Corruption The Power of the Private Sector Access to Information and Transparency The Reaction of People against Corruption The Budget and Public Policies Conclusion Chapter Six: Conclusion Appendices APPENDIX I: Survey Result Tables APPENDIX II Questionnaires Inequality questionnaire BIBLIOGRAPHY

9 List of Tables Table Title Page Table (2.1) Lower Average Wage for Women (1994) 75 Table (3.1) Hourly Wages by Regions (2004)/Per hour 83 Table (3.2) Distribution of Households according to their Income 84 Categories(Iraqi Dinar-2007) Table (3-3) Educational Level and Hourly Wage in Iraq (2004)(Iraqi Dinar) 85 Table (3.4) Literacy Rate by Region in Iraq (2004)(In percent of population 87 aged 15+) Table (3.5) Estimated Population, Working-Age, and the Economically 89 Active Participants in Kurdistan Region (2004)(Absolute numbers in thousands) Table (3-6) Employment Distributions by Sectors in 2004(In % of Employed 91 Population aged 15+) Table (3-7) Employment and Unemployment in Iraq (2004)(In percentages) 92 Table (3-8) Relaxed Unemployment Rate by Age Groups in Iraq ( )(Percentages) Table (3-9) Life Expectancy in Iraq by Governorates (2006) 97 Table (3-10) Deprivation Rate from education, health care, and infrastructure 100 in Iraq by Region and Rural-Urban (2006) (%of Families) Table (3-11) Distribution of Labour Force over Economic Sectors in 101 Iraq(2004) Table (3-12) Educational Level of the Sample 104 Table (3-13) Parents Educational Level 105 Table (3-14) Wage Level of the Sample in Iraqi Dinar 106 Table (3-15) Wage Inequality in Sulaimaniyah City, Table (3-16) ANOVA, The Significance of the Model as a Whole 110 Table (4-1) Median Income of Aged 15+ in 2007, Kurdish Region 113 (ID 000 per month) Table (4-2) Discrimination against Women in Rewards 115 Table (4-3) Discrimination against Women in Mission 116 Table (4-4) Literacy for Women and Men (15+ ) in Iraq, 2004(%) 120 9

10 Table (4-5) Highest Completed Education in the Kurdish Region (15+) 121 (2004)(%) Table (4-6) Net Enrolment Rate in Primary Schools for Ages 7-13 in (%) Table (4-7) Discrimination against Women in Training Sessions 124 Table (4-8) Labour Force Participation Rate by Sex in Iraq (2004) (%) 126 Table (4-9) Marital Status of Men and Women in 2004(%) 127 Table (4-10) Age of getting married in Sulaimaniyah Governorate 128 Table (4-11) The Sample's View in Regard to Men as a Breadwinner 130 Table (4-12) Women Should Work Outdoors 132 Table (4-13) Women Should not Work at Night 133 Table (4-14) Women Should not be a Taxi or bus Driver 133 Table (4-15) Beauty as a Means for Job Opportunity and Change Positions 136 Table (4-16) Unemployment Rate in Iraq (2007) (%) 137 Table (4-17) Economic Activity and Unemployment Rates for Ages 15+ in 139 Iraq (2007)(%) Table (4-18) Males and Females Distribution over Economic Sectors in Iraq 141 (%) Table (4-19) Discrimination against Women in Allocating Positions 143 Table (4-20) Job Experience by Sex 144 Table (4-21) The Average Age of Females and Meals Within the Sample 145 Table (4-22) The period been Unemployed by Gender 145 Table (4-23) Reasons for being Unemployed 146 Table (4-24) Educational Level of the Sample according to Sex 147 Table (4-25) Wage Differentials Models According to Sex Table (4-26) Model Summary 151 Table (5.1) Priority of Social Problems in IKR 184 Table (5.2) Means to Get the Selected Opportunities and Requirements 187 Table (5-3) People s Perception in Regard to the Effectiveness of WASTA 188 Table (5-4) Causes of Poverty in People s Perception 189 Table (5-5) Discrimination against Employees in Rewards according to 190 Sectors Table (5-6) Discrimination in Allocating Positions according to Sectors

11 Table (5-7) The Illegal Relationship between Government Sector and Private 193 Sector Table (5-8) Information on Budget and National Income Published by 195 Government Table (5-9) Anti-corruption Policies in People s Perspective 196 Table (5-10) Reasons to avoid Claiming against Authorities and the Relevant Employee