In a bid to expand trade opportunities and diversify its economy, Iraq has drawn up plans for the Iraq Development Road. If realised, it would be a 1,200km twin rail and road transportation corridor that begins at Iraq’s Grand Al Faw Port on the Arabian Gulf, passing through Basra, the country’s main oil field, and other oil-rich regions, and then northward to its border with Turkey.
Having secured initial support from Turkey and other regional countries, Iraq envisions the Development Road as an alternative economic Eurasian pathway to the long-established Suez Canal and the in-progress India-Middle East-Europe Economic Corridor (IMEC).
If the project is successfully executed, it will provide a huge boon to domestic employment and facilitate transcontinental trade. By creating new special economic zones and cities focused on green development, oil-dependent Iraq would finally be able to depend on a new driver for national growth.
Myriad challenges
Unfortunately, however, the project has been plagued by myriad challenges after decades of war have chipped away at Iraq's national fabric. As a potential Eurasian trade corridor, the free flow of goods must be supported by a strong security architecture.
The project's success also hinges on robust trade growth between Asia and Europe—specifically China and Europe—to offset construction and operating costs. If trade between the two regions remains limited, then the corridor's viability becomes jeopardised.
