Best of the Week
Most Popular
1.Four Shocking Economic Bombshells Bernanke Did NOT Tell Congress About Last Week - Martin_D_Weiss
2.Obama Preparing to Attack Iran - Webster G. Tarpley
3.U.S. House Price Forecast 2010 to 2015 - Andrew_Butter
4.The Illuson of Economic Recovery, Major Indicators Point Towards Further Collapse - Bob_Chapman
5.Unusually Uncertain Outlook Shows The Fed is Killing the Economy - Washingtons_Blog
6.Economic Warnings From Niall Ferguson and Nassim Taleb - Gary_North
7.Gold Market Spooked by Deflationary Double-Dip Recession Fears - David_Galland
8.Stocks, Commodities and Financial Markets, The Shape of Things to Come - Steve_Betts
9.Elements of Deflation and the Super-Trend Puzzle - John_Mauldin
10.Wages and Subsistence - 24th July 10 - Ludwig von Mises
Last 5 Days Analysis
The Fed Flashes the Nuclear Quantitative Easing Trump Card - 29th July 10
You’ll Hate Your Gold So Much You’ll Want to Spit On It - 29th July 10
Austrian Business Cycle Theory Vs Keynesians - 29th July 10
Gold Promises and Currency Lies - 29th July 10
Investing for Deflation Part 2: More Reader Questions - 29th July 10
An Corporate Earnings Feast to Digest - 29th July 10
The Number of ETFs Exploding to Over 1,000 - 29th July 10
Stock Market Balancing on a Knife Edge... - 29th July 10
Escalating Violence From the Animal Liberation Front - 29th July 10
How to Pick Stocks in the ‘New Normal’ Economy - 29th July 10
Did BP Accidentally Tap Into the Rigel Gas Field? - 29th July 10
How Think Tanks, Foundations, Big Oil and the CIA Undermine Democracy - 29th July 10
Is WikiLeaks Release Anti-war Whistleblowing or Obama War Propaganda? - 29th July 10
Price Stability Not a Fed Priority - 29th July 10
Bill Gross Ponders "Deep Demographic Doo-Doo" - 29th July 10
Financials, Oil and Gold on the Move - 29th July 10
Kindergarten Double Dip Recession Economics - 28th July 10
Putting Money on the Junior Gold Miners - 28th July 10
Economists Miss Durable Goods Orders Slump - 28th July 10
2011: The Year Of The Tax Increase - 28th July 10
Banks Find A Bid After Basel Watered Down - 28th July 10
Profit From the Global Thirst for Clean Water - 28th July 10
Evolving Global Financial Crisis, U.S. Dollar Heading Down Again - 28th July 10
Investors Beware of Municipal Bonds as Defaults Soar - 28th July 10
Government Economic Lies, The Grossly Problematic Gross Domestic Product - 28th July 10
Economic Warnings From Niall Ferguson and Nassim Taleb - 28th July 10
Will U.S. House Prices Drive The 4.8% “Consensus” Nominal GDP Growth Forecast? - 28th July 10
Gold Counting Down to Assault on $1300 - 28th July 10
America's Vision: National Capitalism - 28th July 10
European Sovereign Debt Crisis, Running Through a Minefield Backwards - 27th July 10
Gold, Hoping for a Break - 27th July 10
Stock Market Take-Off Tuesday Already? - 27th July 10
The Unlimited Power of Suppressing the Interest Rate - 27th July 10
Should the Fed Pump Even More Money? - 27th July 10
Is the Star in Starbucks Fading? - 27th July 10
Nasty MLP ETF Indicator Flashing Investor Warning Signal Again - 27th July 10
NAFTA Has Resulted in Increased U.S. Unemployment - 27th July 10
WikiLeaks Exposes Imperialist War in Afghanistan - 27th July 10
A Decade of Falling House Prices - 27th July 10
The Continuing Crisis in the New World Order - 27th July 10
WikiLeaks and the Afghan War - 27th July 10
BP Hopes for a CEO Savior in American Robert Dudley - 27th July 10
Will China Grab the Credit-Rating Business? - 27th July 10
Unemployment is Worse Than We Know, Economic Recovery Challenge Harder Than We Think - 27th July 10
Plausible Gulf Oil Spill Scenario: Underground Blowout and Mudflow - 27th July 10
The 'I's' of the Illuminati - 27th July 10
Good Potential in Junior Gold Miners - 27th July 10
Three Emerging Economies Bucking the Depression Downtrend - 26th July 10
U.S. Financial Reform Bill is 2300 Pages of Gobbledygook - 26th July 10
Crude Oil and Natural Gas Trading Using Technical's or Fundamentals, Which is Better? - 26th July 10
The Deflationary Cycle Full Monty, Eight Risks That Will Cause Deflation - 26th July 10
Stocks Search for Direction Post Bank Stress Tests - 26th July 10
Crude Oil Headed Unimaginably Higher! - 26th July 10
Four Shocking Economic Bombshells Bernanke Did NOT Tell Congress About Last Week - 26th July 10
China Stock Market Ready to Surge 50%: Part II - 26th July 10
Why Second Quarter Corporate Earnings Haven’t Spurred a Stock Market Rally - 26th July 10
Stocks Stuck in Trading Range Despite Positive Corporate Earnings Reports - 26th July 10
The Illuson of Economic Recovery, Major Indicators Point Towards Further Collapse - 26th July 10
Money Supply Divergence TMS1 vs. TMS2 vs. M2, What does it Mean? - 26th July 10
The Breakup of the United States - 26th July 10
Inflation, The Coming Rice in Prices - 26th July 10
Stocks, Commodities and Financial Markets, The Shape of Things to Come - 25th July 10
Yes, You Can Time the Market – Here’s How! - 25th July 10
Mid 2010 Investment and Economic Thought - 25th July 10
SP-500, GLD and GDX Investor Sentiment Trumps Everything - 25th July 10
Charting the Stock Market is Similar to Tracking a Squirrel Crossing a Busy Street - 25th July 10
Stocks Bull Markets Generate Economic Growth - 25th July 10
Metals Investing in Burkina Faso, The Land of Upright People - 25th July 10
U.S. is Insolvent and Faces Bankruptcy as a Pure Debtor Nation - 25th July 10
Obama Preparing to Attack Iran - 25th July 10
U.S. Taxpayers the Largest Source of Taliban Revenue - 25th July 10
Credit Based on Consumption Not Savings, Real Bills Revisted - 25th July 10
Thoughts on the Economy - 25th July 10
Positive European Bank Stress Tests Sending Markets Higher - 25th July 10
The Golden Chalice and Gold’s Greatest Correction Since 1980 - 25th July 10
Wages and Subsistence - 24th July 10
Why Currencies Play an Important Role in Corporate Earnings - 24th July 10
Elements of Deflation and the Super-Trend Puzzle - 24th July 10
Making Sense of the Economic Puzzle - 24th July 10
Statistical View of Price Ranges for U.S. and China Stock Markets - 24th July 10
NATO Pulls Pakistan Into Its Global Network - 24th July 10
U.S. Jobless Claims and Housing Market Data Point to Worsening Economy - 24th July 10
U.S. Need Not Fear Sovereign Debt Crisis, Unlike Greece, It Actually Is Sovereign - 24th July 10
Shadow Banking Makes A Comeback - 24th July 10
U.S. Economy Never Came Out of Recession, Pray and Hold onto Gold - 24th July 10
Gold BubbleOmics Revisited - 23rd July 10
Gold Market Spooked by Deflationary Double-Dip Recession Fears - 23rd July 10
U.S. Dollar's Never-Ending Plunge and Its Gold Consequences - 23rd July 10
Gold and Silver For Investor Profit and Protection - 23rd July 10
Credit Deflation Lands in Britain - 23rd July 10
Gold Diverging Trend From Weak U.S. Monetary Inflation - 23rd July 10
Markets Stressful Finish To The Week - 23rd July 10
Oil Stocks XOI Undervalued - 23rd July 10
The Strategic Ramifications of a US-Led Withdrawal from Afghanistan - 23rd July 10
A Battle Royal in the S&P 500 Stocks Index - 23rd July 10
Gold Market Manipulation, Swaps Signal the Roadmap Ahead, BIS The Super SIV Solution - 23rd July 10
UK Stealth Economic Boom, GDP 1.1% Growth Catches Press and Academic Economists By Surprise - 23rd July 10
Three Dividend Stealth Stocks - 23rd July 10
Mortgage Debt … Credit Card Debt … Corporate Debt — It’s all Shrinking! - 23rd July 10
U.S. House Price Forecast 2010 to 2015 - 23rd July 10
Hungary Could Trigger Next Sovereign Debt and Credit Crisis Event - 23rd July 10
How to Buy Gold - 23rd July 10
Signing Financial Reform Is Signing Up For A New Struggle To Make It Real - 23rd July 10
Plan For America To Control Federal Deficit Spending - 23rd July 10

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Robert Prechter's Stock Market Forecast to 2016

Iraqi Elections Likely To Fuel Ethnic Tensions, Further Delay Access To Kirkuk's Reserves

Politics / Iraq War Mar 05, 2010 - 03:19 AM

By: OilPrice_Com

Politics Best Financial Markets Analysis ArticleThe elections in Iraq on March 7, 2010, are likely to serve as an important indicator of the prospects for a resolution of the long-running dispute over the administration of the ethnically mixed and resource-rich province of Kirkuk in the north of the country.


The Iraqi Kurds have repeatedly called for Kirkuk to be transferred to the control of the semi-autonomous Kurdistan Regional Government (KRG), which already administers three provinces in the predominantly Kurdish north of Iraq. The other ethnic groups in Iraq – including the Arab-dominated government in Baghdad – are equally insistent that Kirkuk should remain under central control and that any oil or gas revenues should be divided between the entire population of the country rather than all going to the KRG.

The failure to resolve the issue of the eventual status of Kirkuk threatens not only prospects for permanent political stability in Iraq but also hopes of extracting the province’s huge reserves and building new oil and gas pipelines from Kirkuk to Turkey, and from there to energy-hungry Western markets.

“We are very interested in the oil and gas reserves in Kirkuk. Who wouldn’t be?” said one executive from a leading European energy company. “We would like to invest in the region, perhaps even become involved in building one of the pipelines. But we can’t do anything unless this issue is resolved. At the moment, the risk of political instability is just too great.”

The Iraqi Kurds have long maintained that, historically, Kirkuk is a Kurdish province but that it was subjected to a process of Arabization under former Iraqi President Saddam Hussein, who deported a significant proportion of its indigenous Kurds and replaced them with ethnic Arabs. No one doubts that such a campaign was launched, although the scale of the deportations is hotly disputed.

Since the US-led invasion and occupation of Iraq in 2003, the KRG has assumed de facto control of education and security in Kirkuk. Other ethnic groups have accused the KRG of resettling hundreds of thousands of ethnic Kurds in the province, including not only those who were originally from Kirkuk but also a large number of Kurds from other areas. They claim that the KRG’s ultimate aim is to change the demographic balance in the province in the run-up to a constitutionally required – but long overdue – referendum on the status of Kirkuk. They fear that, if a referendum results in a vote for union with the KRG, the Iraqi Kurds will attempt to use the revenue from the province’s oil and gas reserves as the economic foundations for their long-held dream of an independent Kurdish state. It is a prospect which alarms not only the Iraqi government in Baghdad but also several of the country’s neighbors. Syria, Iran and – particularly – Turkey all worry that the creation of an independent Kurdish state in northern Iraq will further fuel secessionist tendencies amongst their own already restive Kurdish minorities.

The evidence on the ground in Kirkuk suggests that there is some truth to the allegations of demographic manipulation. In September 2009, local officials in Kirkuk estimated that the population of the province stood at 1.4 million, up from 850,000 at the time of the US invasion in March 2003. More significantly, the voter registry in Kirkuk has increased from 400,000 in 2004 to 900,000 for the March 7 elections. A dispute between Kurds and other ethnic groups over how many seats to allocate to Kirkuk to accommodate this huge increase in voters resulted in the entire election being put back two months after originally being scheduled for January 2010.

Although a compromise was eventually agreed, the real test is likely to come after the election itself. As happened at the last Iraqi general election, the two main Kurdish parties – the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK) – are running on a joint ticket, the so-called Kurdistani Alliance, together with five minor parties. However, this time they will face a challenge from a new party called “Goran” (meaning “Change”), which is dominated by former members of the PUK who had become exasperated by the widespread corruption and misuse of resources in the three provinces under the KRG’s control.

In the July 2009 elections for the KRG, Goran picked up 23.5 percent of the vote. It is also expected to perform well in Kirkuk on March 7, 2010. But Goran has already declared that, however much it may be opposed to the KDP/PUK in other areas, it is in complete agreement with them on iconic issues such as the transfer or Kirkuk to KRG control. As a result, the predominance of ethnic Kurds in Kirkuk means that the main hope for those opposed to the transfer of Kirkuk to the KRG is that voters break with the pattern of previous elections in Iraq and vote across ethnic lines. If the Kurdish parties fail to win an overwhelming majority in the province, then it will be much more difficult for them to push for the inclusion of Kirkuk in the territory administered by the KRG and they may be more prepared to reach a compromise with other ethnic groups on the division of revenue from Kirkuk’s oil and gas. But, for the moment at least, the signs are that the Kurds of Kirkuk will again vote along ethnic lines – which is likely to encourage the Iraq Kurds to renew their calls for a referendum and the eventual transfer of both the province and its oil and gas to the KRG.

Even if the Kurdish parties sweep Kirkuk, there is still no indication that any of the other ethnic groups in Iraq or the central government in Baghdad is prepared to allow the KRG to take over Kirkuk. Consequently, the most likely outcome of the March 7 general election in Kirkuk appears to be an increase in political tensions; and, as long as the standoff remains unresolved, energy companies are likely to continue to be reluctant to make substantial investments in extracting the province’s hydrocarbons and transferring them to Western markets.

Source: http://www.oilprice.com/article..

By Gareth Jenkinsfor Oilprice.com who focus on Fossil Fuels, Alternative Energy, Metals, Crude Oil Prices and Geopolitics. To find out more visit their website at: http://www.oilprice.com

© 2010 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2010 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


Post Comment (Moderated)




(Note Commenting Issue: If after Submitting you are returned to the Main Index Page then due to site caching your comment has not been accepted. Solution - Click the Browser Back Button to the article page and Press PAGE REFRESH (you should see the message "You are not authorized to carry out this operation") Now re-enter your comment (ignoring the notice) - If all's well then you will remain on the article page after submitting, a moderator will check and authorise the comment. Alternatively EMAIL to comments @ marketoracle.co.uk , quoting the article number.

FREE Deflation Survival GuideFREE Updated 118 Page Independant Investor E-book