Fixing Iraqi federalism

Iraq’s management of its energy sector and oil and gas revenues is badly organized and promotes competition over resources and corruption, rather than cooperation within a federal context. Constitutionally, many articles in the country’s Federal Constitution of 2005 are supposed to outline how the sector should be managed, but due to vague language these articles have become legally contested, resulting in conflict between the semi-autonomous Kurdish region of Iraq and the Federal Government while hindering key legislations to pass. This requires a constitutional reform. Institutionally, what is missing is a number of federal laws and entities that shape the federal state of Iraq, such as the creation of a Federal Oil and Gas Council. This institution will help regulate the petroleum sector at a federal level and balance the relationship between the producing regions and the federal state according to the constitution, and ensures a ‘wall of separation’ between the Ministry of Oil, who would have a clearly defined management and oversight role for managing the sector as a policy maker, and the day to day operations of state-owned enterprises that are regulated by the ministry. This essay highlights the petroleum related issues in the constitution with focus on regulator and regulated bodies.