The Effect of the Economic Crisis on Internal Policy and Foreign Relations in the Kurdistan Region (2014-2024)

An Analysis of the Decision-Making System

Abstract

From 2014 to 2024, the Kurdistan Region confronted a significant economic and financial crisis that immensely  affected its national policies and international relations. This situation is crucial for regional decision-makers as it scientifically analyses the impact of the economic crisis on policies and relations in the Kurdistan Region that audit and review decision-making institutions to develop strategic and effective solutions to tackle  economic challenges and foster development within the region. To reach this goal, researchers utilized quantitative methods for data analysis in certain areas. Ultimately, they reached several conclusions. Financial strains from the Iraqi federal government—especially due to budget cuts and declining oil prices—along with other economic issues since 2014 have exacerbated the economic crisis in the Kurdistan Region. This has led to significant negative effects on service sectors, resulting in increased poverty and unemployment rates. This study includes three discussions along with several recommendations. The first discussion focuses on a theoretical analysis of decision-making processes. The second analyses how economic factors influence internal policies within the Kurdistan Region, while the third investigates the effects of these economic conditions on Foreign Relations.