The Study Group report notes some promising economic developments:

• "Consumer imports of computers, cell phones, and other appliances have increased dramatically"
• "New businesses are opening, and construction is moving forward in secure areas."
• Because of Iraq's ample oil reserves, water resources, and fertile lands, significant growth is possible if violence is reduced and the capacity of government improves. For example, wheat yields increased more than 40 percent in Kurdistan during this past year."

The continued and escalating violence is an enormous impediment to economic growth. "Unemployment estimates range widely from 20 to 60 percent [and] too many Iraqis do not see tangible improvements in their daily economic situation."

Oil:
The vast oil reserves provide Iraq a "tremendous potential for growth." Iraq produces about 2.2 million barrels of oil per day, "below prewar production levels and the Iraqi government's target of 2.5 million barrels per day, and far short of the vast potential of the Iraqi oil sector." The difficulties in the oil sector " are caused by lack of security, lack of investment, and lack of technical capacity." Corruption is another problem. "Experts estimate that 150,000 to 200,000 - and perhaps as many as 500,000 - barrels of oil per day are being stolen."

Oil is not simply an economic issue, but also a political one. A critical concern is the manner in which oil revenues are to be distributed. Some have argued for a "national oil company [to] reduce political tensions by centralizing revenues," while others propose regional or even per capita redistribution of oil revenues. Of course the viability and appropriateness of any such proposal needs to be viewed through the sectarian lens as to how it would effect the Shia, Sunni and Kurd communities.