ABSTRACT
This chapter reviews the literature on the role of the public sector in the development process and the role of oil in providing a suitable basis for economic development plans and diversification, as well as the relative importance of oil export revenues for the ordinary budget for the period 1968–1980. It is concerned with the oil export revenue, because this revenue represents more than 90 per cent of the total Iraqi revenues during the period under study. In a country like Iraq, in which most of the state revenue comes from oil, the need exists for rationale allocation by the government. The argument for planning in Iraq dates back to the 1950s when it was found necessary to inject some rationality into the economy after the government established a development board to serve as a vehicle for the utilisation of the rising oil revenue. Oil revenues continued to dominate the government revenue sector despite the government’s diversification policy.
