Can positive economic incentives achieve what negative economic incentive cannot: Iraq 1991 – 2003

Economic incentives are offered to encourage the people living in the society to make their choices according to their needs and preferences in a certain way. the economic incentive mainly includes money but also it is related to goods and services that the governing body provide to the society as a whole for their benefits (Armstrong et al., 2015). The economic incentive is mainly useful to influence consumption and production procedure in the society where the economy can be developed well, and the organisations or government take initiatives to encourage people through providing them incentives. Positive economic incentive rewards the people living in the society financially for making certain choices in a certain way so that their values can be maximised as well as they can fulfil their needs and preferences. Positive economic incentive in this regard plays a crucial toll for motivation of the people by ensuring economic growth and social development. Negative incentive mainly punishes the people in the society financially for making their choices and preferences. negative economic incentive mainly makes the individual to pay money for the society which is worse for the people as the individuals have the burden to pay (Levy, 2015). The aim of the essay is to analyse the positive and negative incentive and evaluate the positive incentive is good for the social communities as compared to the negative economic incentive in considering the Iraq War 1991-2003 where the country can develop the commercial strength and make a better place for running the economy successfully.

There are positive impacts during pre-war phase where the country Iraq focused on improving their international trade with Kuwait for oil import and export which provided a scope to the nation Iraq to enhance the business opportunities and operational activities in the country. This can be treated as positive incentive as it helped the country to generate profitability through international trade as well as enhance their national income and Gross Domestic Product (GDP). Economic growth and social development are possible through this positive incentive in Iraq and this initiative helped the oil producers to improve their business by managing the employees employed in the oil industry. During the phase 1990, the country had industrialisation through oil export that in turn helps the country to maximise their national income as whole. The economy during 1990 had high growth with sustainable social development which was considered as positive economic incentive in the country (RodeGómez-Baggethun, and Krause, 2015). High sales volume in the minerals, income generation and profit maximisation provided an opportunity to Iraq to stabilise their economic position across the globe. the deals with Kuwait further enhanced the agricultural industry where the country Iraq was successful in generating high levels income through increasing international trade of agricultural products.


The Iraq communities was witnesses with high economic growth and social development that ensures positive economic incentive for the country. During the pre-war phase that is 1990, the country Iraq was successful to create positive economic incentive through increasing industrialisation, commercialisation of the agricultural and service sectors as well as enhancing international trade. The leadership and management of the country was efficient to create the country Iraq a famous oil producing and exporting country in the international business which was effective to manage the citizens of Iraq and create values for them through economic growth and social development (Tietenberg and Lewis, 2016). The Iraqi leadership was hereby effective to create employment in the country and provided a scope to the citizens to gain higher through employment and improve engagement with the international trade to enhance positive economic growth which was considered as positive incentive in the society of Iraq. Pre-war phase was effective where the country was successful in developing their society and enhancing economic growth as well as making strong relation with UAE, Kuwait and Saudi Arabia, ensure industrialisation and urbanisation which attracted foreign investment where positive incentives, enhancing industrial performance, prospects in different fields like agriculture and mining and positive outcome for the citizens of Iraq can be ensured.

During the war 1991- 2003, the country has faced lots of challenges as there was lack of foreign investment, low economic growth and poor international trade due to instability on political situation and war which was considered as negative economic incentive in the country that worsen the economy and social development of the country becoming an economic block in the Gulf nations. Iraq can establish their economy, but the situation of war deteriorates the country’s position and the leaders failed to make the economy strong. political instability, deterioration of social development, negative economic growth and internal imbalances are the results of such war which worse the economy of Iraq. Hereby, the positive economic incentive is good for the country and the social communities as a whole to be encouraged and motivated to conduct their responsibilities in the society and be rewarded. The positive economic incentive is effective for the country Iraq to enhance positive outcome for the citizens of Iraq which the positive economic incentive cannot. The positive economic incentive can provide better economy where the negative economic incentive cannot and thus it is effective for the countries to follow and ensure positive economic incentive and avoid the negative incentive for making the nation better and providing an opportunity to sustainable economic growth and social development.

Reference List

  • Armstrong, C.S., Blouin, J.L., Jagolinzer, A.D. and Larcker, D.F., 2015. Corporate governance, incentives, and tax avoidance. Journal of Accounting and Economics, 60(1), pp.1-17.
  • Levy, J. S., 2015. Counterfactuals, Causal Inference, and Historical Analysis. Security Studies, 24(3), pp. 378-402. DOI: 10.1080/09636412.2015.1070602 Rode, J., Gómez-Baggethun, E. and Krause, T., 2015. Motivation crowding by economic incentives in conservation policy: A review of the empirical evidence. Ecological Economics, 117, pp.270-282.
  • Tietenberg, T.H. and Lewis, L., 2016. Environmental and natural resource economics. Routledge.

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