Author name:
صفاء كاظم عباس
Supervisor name:
علي خيري مطرود
University location:
Wasit
Abstract:
The nationalization movement is one of the major implications which many populations, especially in third world countries, attempted to maintain with a view to control their resources and escape foreign exploitation.However, many of such attempts have fallen short from achieving the aspired goals due to several reasons, for example exploiting nationalization as a slogan to obtain political gains or the inability of the states or their respective peoples to do so efficiently. The real action stopped many states and peoples from taking such a step since it has bad consequences in case of failure, and the nationalizations in the oil field and on the developing countries' scale have been limited.Actually, there is a sense of fear and hesitation standing as a stumbling block in the way of the productive countries, especially after the nationalization movement by Dr. Mossadegh in Iran in 1951 failed. So, many specialists in oil affairs, economics, both inside and outside Iraq, considered that the action taken by Iraqi government as an unconsidered adventure with unpredictable consequences, which many parties anticipated to fall or at least to be contained in one way or another by the international cartel companies, but Iraq has overcome all obstacles and reached the desired success, so the research issue (The Nationalization of Iraqi Oil from 1972 to 1975) fills a certain historical gap in our library since this period is not addressed in a separate academic study, in addition to the change in the Iraqi government's policy after 1968 in the economic field and the oil side, in particular. The government has relied on oil as one of the tools of change in economic policies.The Iraqi government's adoption of a new approach in the field of oil during that stage, trying to put an end to the dominance of foreign companies over Iraqi oil gives the upper hands on the exploration, production and export. Besides, this issue stems from a main duty; i.e. how far the nationalization of Iraq's oil achieved aspirations of the IraqiBgovernment in economic structure and advancing development during that stage, but the lack of the relevant detailed researches and studies despite the subject is diverged and expansive motivated us to try as possible to discuss the main aspects and to mention briefly the other topics, which gives more importance to this study that deals with a subject matter of political and economic nature.However, we deal with the study from a historical point of view, which imparts the study special significance. The study had been set to start in 1972, the year that marks an important stage in the history of Iraq against foreign companies.Nationalization has had a prominent impact on the revival of the Iraqi economy and has stimulated other countries to claim their rights from another point.The study ended in 1975 after which Iraq has proceeded to complete all aspects of nationalization with exit of the last foreign companies and the independence of the oil policy. By the end of that year there began a new stage in the history of the Iraqi oil policy.The current study starts with an introduction and is divided into four chapters and ends with a conclusion. In the first chapter (General Variables Occurred in Iraq's Oil Policy from 1968 to 1972), the main variables in the Iraqi arena in the political and economic aspects during that period have been monitored, while the second chapter have discussed the (General Measures Taken by the State to Prepare for the Process of Nationalization), and the third chapter tackled the (Nationalization Laws and the Companies Reactions). The fourth chapter has determined the (Internal and External Situation of the Nationalization of the Iraqi Oil).After long efforts, Iraq could have full control over the entire oil, and thus achieved the first practical steps in the field of economic development at the time when the oil resources increased which enabled Iraq to developCstable economic policy. Moreover, the success of nationalization required a comprehensive and integrated planning based on vast experience able to confront oil monopoly. Iraq has proved through direct investment experience to know the secrets of the oil industry, in addition to the clarity of the intellectual foundations of the Iraqi government that have experts and the presence of human and material potential able to stay the course and to stand against the embargo imposed by the oil cartel.Nationalization is a principle that is internationally accepted in the transfer of ownership of basic resources in the community, even if they belong to foreign nationals because nationalization is based on the supreme national interest in order to achieve economic independence.The international community condemns every action preventing this goal from being achieved, and the Iraqi government has taken the most important action towards the Iraqi economy by nationalizing oil on the first of June 1972.Nationalization is important for some reasons; the first of which is that this decision was taken to create a shift in the balance of power on the world's oil level for the benefit of oil - producing countries. Moreover, this step is distinguished from the precedent ones because it constituted, in terms of dimensions and implications, an alternative to the relations of dominance and subordination that existed between the Petroleum exporting countries and the oil monopoly cartel, and a new model for Petroleum exporting countries in their conflict with the cartel in order to restore their control over their own national wealth.The Iraqi experiment is one of the nationalization experiments, that have all the circumstances to make it work, taking advantage of the shortcomings and mistakes of the previous experiments, which had weaknesses, so, the Iraqi experiment is inclusive, unlike the Iranian experiment which though comprehensive lacked planning and tools necessary for of success, and the brave Algerian experiment that hadDcontinued to work with the joint ventures method and in a manner closer to that of several international companies.The success of the Iraqi nationalization experiment was a dangerous precedent that seriously threatened the interests of the international monopolies and became a model, and strengthened the position of the oil producing countries and made them in stronger position than before. These factors precipitated the collapse of the traditional system of privileges, where foreign companies began to offer participation and entrepreneurship and even whole ownership.The competent oil services in Iraq managed to keep pace with the rapid development in the oil sector after nationalization, and it appears that the servants there were well - versed in performing their work responsibly and produced appreciable results in this area after making impressive achievements in the fields of excavation, exploration and production etc.Therefore, the hard working national company in Iraq has topped all the national companies all over the world, and this position requires doubled efforts to reflect the potentials available more in the oil sector than in the rest of the national economy sectors for use in technical areas and practical experience.It has been manifested throughout the study that nationalization has had a positive impact on the development process in Iraq, where substantial resources have been dedicated for the advancement of various sectors of the national economy.It is apparently clear that there required a quick review of allocations of the plans and investment programs after the nationalization process, but the inability of some of the relevant agencies in the state to keep pace with the rapid development in Iraq led to the lack of access to the complete results of the development plans.
