Whilst corruption is not a new phenomenon in Iraq, ever since the 2003 invasion, an inherent corruptive behaviour has further hampered the ability of Iraq’s future development of a conducive political and economic system. The growth of the shadow economy, the lack of trust, and the ongoing violence are the major factors which have fueled this corruptive downward spiral, evidenced by figures from Transparency International (found below) which place Iraq as one of the world’s most corrupt countries year after year, corroborating the erosion of all formal channels of governance. But beyond the individual responsibility attributed to Saddam Hussein as well, as the role of the CPA (Coalition Provisional Authority), there also lies a complex array of factors, one of which is the context of oil wealth. We will expound three of the major causes of corruption in Iraq, specifically chosen because of their relevance to how they affect human capital development, which in the main is the major source of economic growth. 

The issue of entrenched interests and nepotism in the post-Ba’athist period has major explanatory power in explaining the way corruption has developed in Iraq. For instance, “it took the government eight years to repeal article 136(b) of the criminal procedure code, an article which stated that an investigative judge could not prosecute a state official without the relevant minister's prior permission," which meant that ministers could unilaterally grant their staff immunity” (Zaid Al-Ali 2014 p.200).  This article was introduced by the Baath governing party before 2003  to ensure that “strategic departments were not left understaffed (since anyone accused of corruption would immediately be suspended)” (Ibid). However, in the post-2003 war period, this article was seen as an open invitation for government officials to grab public resources as they pleased. This is further illustrated by the corruption scenario depicted by the Iraqi politician Misha’an al-Juburi. In an open interview, he admitted that himself, as well as the entire Iraqui political class, is corrupt. He exposed how “members of the Commission of Integrity, one of the independent bodies tasked with fighting corruption, routinely agree to close corruption files in exchange for bribes” (Mahdy 2016 p.31). The major implication of this confession was that it evidenced the levels of corruption reached by Iraq today, where a politician may openly admit that the entire system is corrupt without fear of repercussions (as prosecuting him would resemble opening Pandora’s box).