BASRA, Iraq - Abbas Aboud, a 34-year-old resident of Basra, the oil-rich city in southern Iraq, navigates through the day with two jobs. From 5 am to 4 pm, he toils as a laborer at an oil site, earning a monthly wage of 600,000 Iraqi dinars (around $460). 

He then shifts to a grocery store from 5 pm to 10 pm, adding an extra 300,000 dinars to his earnings. Despite his efforts, providing for his wife and four children remains a struggle.

"My hair used to be jet black before I started working at the oil site in the scorching Basra desert, where temperatures can exceed 50 degrees Celsius in the summer. Now it has turned brown, but at least I still have hair on my head. Many dream of having my job,” Abbas ran his hand through his hair and recounted with a wry smile.

Abbas and his family inhabit a rented house in al-Hussein district, a popular area in central Basra. He chose there after he dropped out of school in ninth grade due to financial hardships faced by his family, leaving him with limited options for employment.

Despite grappling to make ends meet, Abbas remains steadfast in his work. He observes how even his younger relatives, despite higher education, face challenges in securing decent-paying jobs due to a scarcity of opportunities, long hours, and low wages.

Workers like Abbas often find themselves in a bind, with private companies flouting labor laws.

Article 55 of the Iraqi labor law, which stipulates an eight-hour workday, remains a myth for many. Private firms demand over 10 hours daily work with paltry pay, dismissing dissenters without recourse to legal protections.

Mohammed Hussein, a 28-year-old university graduate searching for job opportunities for the past six years, believes that the local government in Basra is unfair in providing employment opportunities, accusing it of granting jobs to political parties, factions, and their supporters, over others.

Hussein, who spends hours at a cafe near his home, shares his frustration after countless unsuccessful job applications.

"Thousands flock to Basra from other provinces due to job scarcity," he said. "They flood every sector, driving wages down."

"The impoverished and those with meager incomes bear the brunt due to the scarcity of private industrial companies. Political parties monopolize major companies, barring us unless we're affiliated. Even if we land a job, it's often minimal work with minimal pay,” he added.

Poverty rate hits 21 percent in the country

According to the spokesperson of the Ministry of Planning, Abdul Zahra al-Hindawi, Iraq's poverty rate, with a population of 43 million, stands at under 21 percent, as per a 2018 survey conducted by his ministry.

Hindawi noted a new socio-economic survey initiated in July 2023, divided into two phases and slated for completion by mid-2024.

The spokesperson stressed the Iraqi government's commitment to addressing poverty as a top priority, outlining the ministry's initiatives to address this issue through its policies and developmental plans, highlighting a dual approach.

The plan is to first craft a new anti-poverty strategy spanning from 2024 to 2028. Then, advancing the Five-Year Development Plan to span the next half-decade.

“We are establishing a fund to bolster the most impoverished provinces, part of the tripartite budget for 2023, 2024, and 2025,” Hindawi said, expressing his optimism and citing improved conditions in Iraq fueled by recent oil revenue surges.

Economists highlight the positive impact of enhanced food ration distribution, providing essential items like rice, flour, oil, sugar, and legumes to millions of Iraqis nearly every month.

This initiative has notably contributed to reducing poverty rates over the past two years. Yet, despite these efforts, challenges persist.

Escalating unemployment figures, coupled with inflation and the escalating cost of housing, education, and healthcare, keep over a third of Iraqis teetering close to the poverty line.

According to data from the German firm Statista, specializing in global market insights, Iraq grappled with a staggering unemployment rate of 15.55 pencent in 2022. This placed it among the highest ranked globally. Notably, 2021 witnessed Iraq's highest unemployment rate in two decades, peaking at 16.23 percent.

These statistics echo the sentiments expressed by Ministry of Planning spokesperson, who highlighted findings from a survey conducted by the Central Statistical Organization in collaboration with the International Labor Organization in 2021.

Amid the tumult of the COVID-19 pandemic, the survey revealed a stark reality: the unemployment rate surged to 16.5 percent among economically active individuals aged 18 to 63 actively seeking employment.

Notably, this percentage excludes housewives and university students, who fall outside the category of the labor force.

The unemployment crisis deepens for Iraq's younger population, particularly those aged 18 to 30, where the rate spikes to approximately 21 percent.

This demographic represents a pivotal segment of the country's population, with hundreds of thousands graduating from universities and institutes annually, eagerly searching for elusive job opportunities.

However, the public sector grapples with the monumental task of meeting this demand, while the private sector languishes in a state of weakness. Nowhere is this dilemma more accurate than in the southern provinces, including Basra, where birth rates are higher.

Skepticism shrouds these official figures among some economists, including university professor Safwan Ghanem.

Ghanem questions the accuracy of the data provided by the Ministry of Planning, contending that the poverty rate likely surpasses official estimates. He attributes this discrepancy to unchecked population growth, which lacks accompanying strategic initiatives for revitalizing idle factories and plants in Basra and surrounding areas, or initiating new ventures altogether.

He believes that the government's grasp of poverty and unemployment lacks precision, citing a lack of comprehensive surveys conducted over the years, adding that the government relies on rough estimates and flawed surveys.

While acknowledging a marginal improvement in the current economic landscape compared to the tumultuous period marked by significant militant group activities between 2003 and mid-2017, Ghanem deems it insufficient.

He calls for heightened governmental intervention to catalyze economic projects and combat entrenched corruption, which obstructs implementation efforts and squanders valuable resources, hindering the creation of viable job opportunities.

Moreover, he underscores the pivotal role of bolstering the private sector, which he characterizes as exceedingly feeble, stating that without it, genuine economic recovery is unattainable.

Poverty and informal settlements in the wealthiest provinces of the country

The southern provinces of Iraq, including Muthanna, Diwaniyah, Thi Qar, and Maysan, grapple with staggering poverty rates exceeding 40 percent, as per a Ministry of Planning survey conducted at the close of 2018.

 This dire economic situation propels tens of thousands of residents to seek opportunities in Basra, exerting immense pressure on the city. Despite hosting over 3 million inhabitants, Basra contends with a poverty rate of 16 percent, according to the same survey.

Despite being an oil-rich province, economic stagnation due to the spread of the coronavirus in 2020 has unofficially doubled the poverty rates.

Remarkably, Basra holds 59 percent of Iraq's total oil reserves. It boasts 15 oil fields, ten of which are operational, with five undergoing rehabilitation and development. Additionally, it houses six commercial ports, including Umm Qasr, Khawr al-Zubayr, al-Maqal, Abu Flus, al-Amiq, and the Port of Basra. Moreover, Basra features land border crossings like Shalamjah and Safwan.

Nevertheless, Basra shares a common challenge with many other oil-rich cities in the south: the prevalence of informal settlements.

These settlements, characterized by illegal construction and haphazard planning, resemble small towns. Poverty-stricken neighborhoods with rudimentary housing structures are widespread, lacking essential services despite accommodating a significant portion of Basra's population.

These areas paint a stark picture, one that official authorities often try to shield from public view.

In a bid to hide the reality of poverty, the local government went as far as erecting barriers to block access to impoverished neighborhoods during the Gulf Cup held in Basra in early 2023.

Civil activists shed light on the tribal conflicts and the presence of organized crime syndicates, particularly engaged in drug trafficking. Many of these criminal groups hold sway and are armed, posing a formidable challenge to law enforcement efforts.

One notable area exemplifying these challenges is Sahat al-Ihtifalat in central Basra, which stands as a testament to the proliferation of informal settlements.

Spanning 5 square kilometers, it accommodates over 2,000 families. Moreover, informal settlements line the edges of Baghdad Street, the primary gateway to Basra from Maysan and Thi Qar provinces, housing an estimated 150,000 families.

Informal settlements dot the landscape in areas like Hayaniya, Qibla, Engineers' District, Mufakkiya, A'aliya, Ashar, Republic District, Police Quarter, and Internal Security, with activists estimating the number of informal dwellings in these zones to surpass 100,000 units. Moreover, beyond the city center of Basra lie informal settlements like Zubayr, accommodating over 300,000 housing units.

These areas suffer from a lack of fundamental infrastructure, including hospitals, health centers, schools, electricity, water, and paved roads. With cleaning companies neglecting these areas, waste piles up, while the absence of a proper sewage system leads to the accumulation of sewage water.

Despite its immense potential, Basra remains in a state of neglect, plagued by years of stunted development and thwarted growth plans.

Rampant corruption, power struggles among political factions, and militia conflicts over Basra's resources have left the city languishing. Consequently, the majority of its residents endure substandard living conditions, exacerbated by a feeble economy, deteriorating services, urban neglect, and the relentless influx of people coupled with ongoing displacement from surrounding areas.

Class discrimination

Civil activist Zain al-Abidine al-Khuwaildi believed that since 2003, they have “witnessed successive local governments failing to erect housing complexes to uplift the residents of informal settlements from their dire circumstances."

Pausing briefly, he reflected, "we tend to level accusations of crime, backwardness, and ignorance against the inhabitants of these areas, overlooking their harsh realities and the government's inability to foster a nurturing environment through adequate housing, education, healthcare, and other essentials."

"Conversely, we observe the proliferation of upscale residential complexes in certain Basra locales, boasting unparalleled luxury, security, and amenities. Encircled by imposing walls and gates, these complexes restrict access to outsiders, predominantly housing officials or offspring of the burgeoning affluent class,” he added

Among the notable complexes cited by al-Khuwaildi are al-Amal andaAl-Amal al-Sakiniyyin complexes, each spanning approximately four square kilometers, and the al-Narges complex, sprawling over six square kilometers.

Each of these enclaves boasts a robust security apparatus, top-notch infrastructure, educational facilities, and comprehensive services, he said.

"The underlying premise behind the inception of these complexes was to tackle housing shortages and facilitate citizens' access to respectable dwelling spaces. Initially, these expansive plots were tendered by the local government to construction firms at nominal rates,” he said. “However, the subsequent selling prices soared to exorbitant levels, ranging from 350 million to one billion Iraqi dinars, driven by supply constraints and the imperative to erect tens of thousands of new residences."

Al-Khuwaildi lists the nature of the majority of owners of these housing units as general managers in government departments, judges, members of parliament and provincial councils, influential politicians in ruling parties, traders, and an emerging affluent class.

"These individuals have ensconced themselves behind towering barriers, turning a blind eye to the harsh realities of Basra and the neighborhoods inhabited by the impoverished and middle-income families," he asserted.

Low wages

Civil activist Haider Bassem underscores that a cursory survey of Basra province underscores the pervasive poverty levels.

“It is unjust to distort the truth about Basra, portraying it as a haven of employment opportunities with wages and salaries sufficient to sustain families,” He said, posing the question, "who can subsist on a monthly income of 600 or even 800 thousand dinars? How can they afford rent or medical expenses?"

Bassem cites statistics released by the Office of the Human Rights Commissioner in the province at the close of 2020, amidst the COVID-19 outbreak, indicating that the poverty rate surged to 40 percent, elucidating, "this equates to 1.2 million individuals grappling to meet their rudimentary needs of survival!"

He delineates the factors contributing to the prevalence of poverty in a city as affluent as Basra.

“Inequitable wealth distribution, favoritism in job allocation, the erosion of industrial and private sectors, and even deliberate endeavors by political factions to keep the youth entrenched in destitution and dependency to further their own agendas and interests,” he said.

Regarding the remuneration offered within the province's private sector, Haider said that "numerous enterprises operating in the private domain adhere to the statutory minimum wage stipulated by Iraqi Labor Law No. 37, revised in 2015, which stands at a meager 350,000 Iraqi dinars."

He advocates for a revision of the legislation to align with prevailing economic realities, emphasizing, that “with such paltry wages coupled with extended working hours, employees struggle to meet even their basic personal needs, let alone provide for their families."

Additionally, he implored the local government to embark on a series of initiatives, "such as establishing vocational training institutes to equip individuals with the skills and trades demanded by the market, followed by extending financial assistance to facilitate their entry into the freelance job sector."

Minister of Labor and Social Affairs, Ahmed al-Asadi, asserted in a statement issued late in 2022 that the minimum wage for laborers would be raised to 450,000 Iraqi dinars, equivalent to $346, upon the enactment of the Social Security Law.

However, he refrained from specifying a timeline for the implementation of the wage hike, which necessitates prior parliamentary sanction.

Adnan al-Jaberi, a Basra province parliamentarian, identifies three primary factors contributing to unemployment and meager wages, which consign a significant portion of the province's populace to subsist below the poverty threshold.

“Competition from labor influx from other regions, opacity in employment procedures spanning all sectors, and the deficiency in requisite skills among Basra's youth, stemming from the dearth of vocational training programs to hone their practical proficiencies,” he said.

Jaberi advocates for curtailing the influx of foreign labor, particularly, "coupled with concerted efforts from both local and central authorities to furnish comprehensive training and skill development initiatives to the youth."

He cautioned that poverty and joblessness will precipitate compounding issues like substance abuse, violence, and emigration of young individuals abroad.

Despite Basra's substantial population, the count of government personnel doesn't surpass 90,000 people, according to former MP Rahim al-Daraji.

He underscores that these employees are dispersed across various departments under the purview of ministries encompassing education, health, electricity, agriculture, oil, and the provincial council.

Government employment, however, cannot accommodate the millions of unemployed individuals nationwide. Consequently, given the limited prospects in the private sector, hundreds of thousands of youths, particularly university graduates, vie annually for advertised job openings, hoping to secure employment. A testament to the magnitude of the challenge was witnessed when over 8 million Iraqis applied for positions at the Counter-terrorism Agency within a mere 24-hour period, as affirmed by the agency's director, Major General Kareem al-Tamimi.

Daraji highlights that the majority of Basra's populace is engaged in the private sector. Nevertheless, individual earnings fail to meet their daily expenses due to soaring commodity prices, service charges—especially for healthcare—and escalating real estate costs.

"In any scenario, a worker's daily income does not exceed 25,000 dinars,” he said.

The Disappearance of the Middle Class

The issue of poverty and informal settlements extends beyond Basra city, encompassing its associated districts and areas. In Zubair district, with half a million population, civil activist Noor al-Din al-Khaikani, a resident of the Arab neighborhood in Zubair, notes a staggering count of over 44,000 registered unemployed individuals.

Khaikani, in collaboration with fellow activists, partnered with the Zubair Employment Office to compile a comprehensive database of job seekers. They meticulously documented their numbers and submitted the findings to the district's administrator.

However, it is crucial to acknowledge that the roster falls short of capturing the myriad other unemployed individuals who either distrust the efficacy of registration or remain unaware of the opportunity altogether.

Highlighting the socioeconomic landscape, Khaikani underscores the disappearance of the middle class in Basra.

"What remain are the impoverished and the low-income earners, constituting the overwhelming majority, alongside the affluent, many of whom hail from families with affiliations to political entities and the governing establishment,” he said.

Moreover, Khaikani sheds light on Zubair district's status as a haven for internally displaced persons (IDPs) from regions beyond Basra province, particularly those fleeing dire poverty and the desiccation of agricultural lands in Thi Qar and Muthanna provinces.

Engaging in informal employment such as taxi driving, bakery work, or construction labor, these IDPs grapple with meager wages amid challenging circumstances.

Government officials in Basra acknowledge the pressing crises confronting the province while asserting their commitment to launching projects aimed at enhancing living standards and services.

They have announced the distribution of 32,000 residential land plots across various segments at nominal prices, in addition to initiatives to improve sewage and road networks. Addressing the chronic water shortage issue, they also plan to provide water for household consumption, a necessity that currently compels residents to rely on private water suppliers.

In late 2019, the Basra government announced the allocation of 30,000 job positions in various government institutions for the residents of Basra to alleviate the unemployment crisis.

Furthermore, as part of the federal budget for 2023, which included the creation of 150,000 job opportunities nationwide, Basra was allotted 13,295 positions. The overwhelming response saw over 340,000 applicants vying for these opportunities, underscoring the severity of the unemployment dilemma.

Explosive budgets and protests

Walaa Abdul Kareem, Director of the Planning and Monitoring Department at the Basra Governorate Office, disclosed that Basra's financial allocations for the 2023 budget reached approximately 2.8 trillion dinars.

This encompassed allocations from petrodollar funds totaling 1.447 trillion dinars, as well as regional development allocations amounting to 187 billion dinars. These funds are earmarked for an array of projects, including strategic initiatives to combat poverty, with a budget allocation of 5.6 billion dinars.

Alongside these allocations are funds for other projects such as a water desalination plant with 500 million dollars, the construction of the bypass road with 100 billion dinars, the establishment of a cancer and kidney treatment center with 20 billion dinars, and the first phase of the Oil and Gas University project with 50 billion dinars.

Moreover, funds have been allocated for the Basra Economic Capital project (200 billion dinars) and other endeavors totaling 260 billion dinars.

Commenting on government announcements regarding development plans, a civil activist, who chose to remain anonymous, expressed skepticism, saying that “while there is a semblance of a reconstruction movement after two decades of stagnation, these efforts merely scratch the surface of Basra's profound needs."

"Despite the substantial budgets allocated, akin to those of entire nations, tangible improvements in living standards, housing, education, and healthcare for Basrawis are yet to materialize,” he said.

In addition to the persistent challenges of poverty and unemployment, the activist highlights three escalating problems that demand urgent attention.

"Weapons and tribal and factional conflicts, the proliferation of drug users, and the deadly pollution that has contaminated water, air, and soil,” he said.

Against the backdrop of Basra's deteriorating conditions, residents have mobilized in numerous protests over recent years, decrying inadequate services and rampant corruption in construction project implementations, which have resulted in the squandering of billions of dollars.

The apex of these demonstrations occurred in September 2018, following a mass poisoning incident due to drinking water contamination. Similar protests erupted in June and October 2019, amid setbacks and failures in executing projects under the influence of powerful parties and armed factions, with little to no accountability.

Revival of Provincial Councils?

In Basra, opinions diverge regarding the potential reinstatement of the Provincial Council, with some advocating for its return as a mean to address economic challenges and alleviate unemployment.

They argue that the council would prioritize the interests of Basra's residents. However, dissenting voices, including civil activist Amar al-Hilfi, cautions against this move.

Al-Hilfi contends that reviving the councils would likely reignite corruption and favoritism, with political factions wielding even greater influence over projects, often at the expense of rival parties.

He underscores that the suspension of Provincial Councils in past years has coincided with a relative improvement in service delivery, recalling a time when corruption was rampant within the councils, resulting in misappropriation of funds and preferential treatment for members' associates.

He warns that reinstating the councils could perpetuate these issues, exacerbating unemployment and poverty in Basra.

However, civil activist Ali al-Noor believes that the return of the Provincial Council is "an urgent necessity to address the problems that Basra is suffering from due to the monopoly of the Governorate's Office in making decisions throughout the previous period, and to find solutions to them."

According to him, one of the advantages of reinstating a Provincial Council is the provision of monitoring and oversight. He believes that Basra faces numerous challenges requiring the council's attention, particularly after years dominated by the Governorate's Office, which prioritized personal interests over those of the citizens.

Among the issues requiring investigation, he highlights housing, unemployment, price inflation, and delays in project completion by companies, often involving violations such as exceeding the legal limit for employing foreign labor.

Seeking a decent wage

Ali Shakir Hussein, a 33-year-old resident of the Dour Nub al-Dibbat area, a father of two daughters with special needs, finds himself navigating what he calls "difficult stations" in his job search, hoping to secure employment that offers a decent wage, allowing him to provide for his family.

“Unfortunately, my two daughters have been grappling with mental disabilities since birth, and it falls on me to ensure they have the medication and supplies they need regularly. But most of the jobs I've had just don't pay enough,” he said, his hands coming together in frustration.

Despite being trained in field medical care and serving as a security guard trainer, with proficiency in English, he has moved between five companies over the years. Each time, he has been forced to move on due to the meager wages offered by employers.

In his most recent position at a telecommunications company, Hussein toiled for twelve-hour shifts, from 8 am to 7 pm, earning a mere 16,000 Iraqi dinars per day (equivalent to $12 US dollars), without social or health insurance, and no transportation or meal allowances.

Previously, he had been employed as a laborer in an oil company, earning a monthly salary of $400. However, he faced a difficult ultimatum when the company offered a stark choice: accept a significant pay cut to 400,000 Iraqi dinars (equivalent to $307 US dollars) or leave the job altogether.

With a heavy heart, he reflected, "I struggle immensely to secure employment that can sustain my family and provide for the needs of my two ailing daughters, but decisions always seem to favor a select few—the party officials and their allies. They monopolize opportunities and employment, constructing their lavish homes and establishing their own businesses, schools, and universities. Meanwhile, they expand their wealth and profits, inhabiting a world entirely apart from ours."

"As for the majority of us, we find ourselves trapped in a cycle of unemployment, poverty, crumbling services, and barely scraping by,” he added.

*This feature was produced in collaboration with the Network of Iraqi Reporters for Investigative Journalism (NIRIJ)