Analysis of the Relationship Between Economic Growth and Some Social Welfare Indicators in Iraqfor the Period (2004–2023)

Abstract

Although Iraq achieved varying rates of economic growth during the period (2004-2023), social welfare indicators, such as spending on education and health, did not witness commensurate improvements. This raises questions about the extent to which economic growth reflects the reality of social welfare in Iraq. Accordingly, the research problem is represented in identifying and analyzing the nature of the relationship between economic growth and some indicators of social welfare, and revealing the reasons for the disparity or weak impact in some vital sectors, such as the education sector, for example, despite its importance in achieving sustainable development. Accordingly, the research aims to analyze indicators of social welfare and identify the most important challenges facing indicators of social welfare in Iraq. The research is based on the hypothesis that economic growth in Iraq plays a major role in achieving social welfare in Iraq. Therefore, increasing economic growth will contribute to enhancing social welfare represented by (spending on health and spending on education). The research concluded that increased growth is not directly reflected in an increase in the budget for social welfare (education, health) in the same year, or that there are other spending priorities. This may be due to the reallocation of resources towards other sectors, such as, which is what happens in Iraq, because when looking at the path of indicators of social welfare in Iraq, it witnessed a noticeable decline in most years and was fluctuating in rise. This is due to the decrease in allocations for investment spending in this direction, as the increase is mainly due to the rise in operating expenses without investment. The research recommends increasing directed financial allocations. The education and health sectors will receive a share of the general budget and government expenditures, as well as an increase in the percentage of investment spending in these sectors to develop infrastructure and spend on research and development.