The Iraqi economy is witnessing a transitional phase from a socialist system in which the state controls most of its economic activities to an open economic system in which the state monitors the performance of economic activities and contributes to facilitating them and helping to overcome economic crises if they occur. The private sector undertakes most economic operations and activities and has the first role in bringing about economic development and achieving economic growth, but this stage took longer than planned and that resulted in a distorted economic system that is difficult to define, in which the state performs many responsibilities and the private sector is expected to play its role without the creation of the appropriate environment for it to thrive, as it began since Approximately in 2004 with the adoption of a number of laws and instructions related to the issue of economic transformation and culminated in establishing this in the state constitution in 2005, and until the present time it is not possible to determine the economic system on which the state is running for many reasons in addition to security, political and economic circumstances.
