Yeah, to a considerable extent--leaving aside whatever make-work (or much worse) there was in Saddam's economy . . .But 2/3 or so of the country was, putatively, being fed by the UN's oil-for-food program. Wasn't that a pure handout? If so, won't they need a transiton to an actual economy?
But ultimately the oil should be a small fraction of the economy of Iraq--and the oil $$$ should all go either directly to Social Security outlays or to investments for the future retirement of any Baby Booms which may exist in their demographics. In that respect it could be argued that the oil reserves should be sold off, and the people should get used to the idea that natural resources are a small fraction of a nation's wealth--that investments in productive facilities and professional education are ultimately much more important.