By Payraw Anwar
The recent developments between the Kurdistan Regional Government and international oil companies, particularly those based in the United States, have triggered a shift in Baghdad’s approach to the Kurdistan Region. Following the signing of oil contracts by the KRG, the central government in Baghdad once again withheld the payment of civil servants’ salaries, citing various justifications. Despite extensive efforts by Kurdish political leaders to ensure that salaries would be disbursed before Eid, the payments were not made.
According to the 2005 Iraqi Constitution, the Kurdistan Region, as the only constitutionally recognized federal entity within Iraq, possesses the legal right to extract and export natural resources in coordination with the federal government. However, Baghdad claims that the KRG has failed to remit both oil and non-oil revenues to the central treasury, among other grievances. These tensions reflect a broader political strategy by Baghdad, particularly in reaction to the KRG’s recent energy agreements with U.S.-based firms.
Key Elements of Baghdad’s New Policy
1. Rejection of Decentralization
The federal government continues to exhibit strong opposition to any form of decentralization in Iraq—whether administrative or political—especially in matters related to natural resources. The Kurdistan Region has exercised its constitutional rights in this regard. It is worth noting that the current Iraqi Constitution, ratified by over 80% of the population in 2005, was designed as a social contract to redistribute power and resources across the country. Baghdad’s reluctance to uphold this framework signals a shift toward centralization that undermines the principles of federalism.
2. Ideological Opposition to Federalism
Many Arab political leaders, both Sunni and Shiite, appear to have grown disillusioned with the federal structure enshrined in the Constitution. There is a prevailing resistance to the notions of power-sharing, social justice, and regional self-governance. Instead, there is increasing support among political elites for a centralized model of governance that seeks to exert authority uniformly from Zakho to Al-Faw.
3. Undermining Federal Status and Legal Autonomy
Baghdad’s recent actions reflect a broader objective to erode the constitutional, legal, and de jure standing of the Kurdistan Region. Invoking principles such as national sovereignty and territorial unity, the federal government is effectively attempting to weaken the Kurdistan Region’s autonomy. Furthermore, there are growing concerns in Baghdad about other regions, such as Basra, following the Kurdistan model and pursuing federal status. To operationalize true federalism, Iraq must establish a second legislative chamber (e.g., a senate) to provide a check on the current unicameral system dominated by the Council of Representatives. However, this institutional reform is viewed as a threat by those seeking to maintain centralized control.
-Financial Pressure as Political Leverage
One of the most contentious elements of Baghdad’s policy has been the use of civil servant salaries as a political tool. Despite a ruling by Iraq’s Federal Supreme Court in 2024 affirming that public sector wages in the Kurdistan Region must not be politicized, salary delays and financial manipulation persist. These practices directly contravene Iraq’s constitutional and legal frameworks and undermine public trust in federal institutions.
What is increasingly evident is that financial issues are being weaponized by various internal and external actors in Iraq to exert pressure on the Kurdistan Region. This not only destabilizes governance but also exacerbates public suffering in Kurdistan. Rather than recognizing the KRG as a constitutional component of Iraq, Baghdad’s policies suggest an inclination to consolidate power at the expense of legal pluralism and regional autonomy.
The current trajectory of Baghdad’s policy toward the Kurdistan Region reveals a systematic move toward re-centralization. This shift contradicts the foundational principles of Iraq’s post-2003 federal framework and risks further destabilizing relations between the central government and the Kurdistan Region. The politicization of fiscal matters, particularly the withholding of civil servant salaries, is a dangerous precedent that undermines constitutional governance and national unity. If not addressed through dialogue and legal mechanisms, this policy may have long-term implications for Iraq’s cohesion and democratic development.