On the other hand, everyone getting a regular oil revenue check seems to work fairly well in Alaska.
It IS socialism. "The People" own the oil?
And too bad this article doesn't mention the corrupt case of Mexico (another oil-ogarchy), or the looming problems faced by another giant Oil-Welfare State-from-Hell, Norway.
Oil and gas have been the basis of Norway's economy but today, "The current focus is on containing spending on the extensive welfare system and planning for the time when petroleum reserves are depleted." (CIA FACTBOOK)
These oil economies are too specialized. They need to diversify, or -- as soon as the next dip in global oil prices takes place (due to a warm winter in the West), social & political turmoil (because export earnings will fall as prices fall), will return. They usually do. It's very predictable, and it's also Econ 101.
Good luck, Iraq.... start diversifying, ASAP, or you'll be right back to square 1. Infighting between the Kurds & other groups over things like who "owns" Kurku (which controls 40% of Iraq's exports) will just continue, despite "democracy." Saddam engaged in "Arabization" of Kurkuk and forced the Kurds out, to capture that oil. And the Kurds had been interested in forming the new nation of Kurdistan which would INCLUDE Kurkuk, for just that reason -- oil.
Selling or holding only one asset or commodity, no matter what it is, can cause both macroeconomic and social instability. WHen the price drops for that single commodity, you're in trouble.
Iraq needs to privatize its oil industry, but also needs to increase economic diversification, pronto. Otherwise, I don't see how the democracy can remain stable over time, when oil prices drop...
Not unhappy with the WOT; just being realistic, given the nature of the Iraqi economy.