[{"bbox": [72, 108, 301, 137], "category": "Section-header", "text": "2. RATIONALE"}, {"bbox": [72, 171, 205, 197], "category": "Section-header", "text": "2.1. Context"}, {"bbox": [83, 241, 1145, 744], "category": "Text", "text": "Following two decades of wars and conflict, Iraq is still fragile and in a process of post-conflict recovery. Despite\nIraq's designation as an Upper Middle-Income Country with substantial resources, Iraq ranked only 105 out of 166\nin the SDG Index Dashboard Report of 2021, mainly as a result of the past conflict and structural deficiencies. The\ncountry is challenged by political instability, economic recession and poor public service delivery, especially to the\nlarge numbers of displaced Iraqis who require assistance. Its economy remains heavily dependent on oil exports,\nwhich accounts for 90% of Government revenue and is, therefore, continuously strongly affected by the sharp\nfluctuations in oil prices. Today's fragmented political landscape undermines effective Government action, security,\nand transparent governance, conditions being protested through popular widespread demonstrations since October\n2019. The Government needs to delivery faster on economic and political reforms and on national reconciliation if it\nwants to avoid resurgence of violence and withstand demographic pressures, including an annual increase of 300.000\njob-seekers entering the job-market. The COVID-19 pandemic and the sharp decline in oil prices and output have\naggravated Iraq's socio-economic vulnerabilities. Partly as a result of conflict, the Iraqi state has struggled to provide\nadequate basic services such as access to drinking water, electricity, health and justice, and to offer a comprehensive\nsocial safety net, employment and educational opportunities, particularly for the growing youth population. Poverty\nhas risen from 20% in 2018 to an estimated 36% in 2021, severely affecting the Iraqi population and in particular\ngroups in vulnerable situations such as women and children in vulnerable situations, and displaced populations\n(Syrian refugees, Iraqi internally displaced persons and returnees from the EU and elsewhere). There has also been\nan increase in the number of people in need of humanitarian assistance (4.1 million), and an increase in un- and\nunderemployment in a country marked by a predominantly informal private sector."}, {"bbox": [83, 771, 1145, 1006], "category": "Text", "text": "In addition to difficulties in delivering basic services and providing decent work to the fast-growing population, Iraq faces the challenge of displaced persons. Whilst the number of IDPs has drastically reduced since the defeat of Da'esh in 2018 from 5.8 million (16% of the population) to 1.2 million in 2021 (2% of the population), and the number of Syrian refugees in the Kurdistan region remains stable at around 245.000 households since 2015, displacement remains a key driver of conflict and a threat to Iraq's internal stability and security. National authorities and international partners are increasingly focussed on addressing protracted displacement and finding durable solutions for displacement-affected groups. This situation of deteriorating socio-economic conditions for the Iraqi population and the most vulnerable, in turn has the potential of fuelling violence thereby perpetuating the conflict cycle together with the dissatisfaction around the 2021 national elections."}, {"bbox": [83, 1035, 1145, 1327], "category": "Text", "text": "In light of this challenging yet changing context, the EU is concluding its shift from post-crisis recovery support to\nIraq through Special Measures to long-term development programming through a dedicated MIP and AAPs. The\n2021-2027 MIP for Iraq aims at improving conditions for all Iraqis and in particular displaced populations and youth\nto thrive in a more prosperous, shock-resilient and democratic Iraq. Operationally and financially speaking, the Action\nis fully underpinned by the three priority areas of the MIP for Iraq 2021-2027: i) Job creation and economic\ndiversification; ii) Human development and social contract; and iii) Digital participatory governance and democracy.\nThe EU has established itself as a credible partner and sector leader through longstanding engagement in the MIP\npriority areas and can build on a well-established policy dialogue and strong partnerships. Similarly, this Action is\nguided by the Partnership and Cooperation Agreement (PCA)² between the EU and the Government of Iraq from\n2012 and the EU Strategy on Iraq from 2018³, both of which outline the EU's interest that Iraq emerges stronger from\nthe multiple crises the country has faced in the past decades."}, {"bbox": [83, 1353, 1145, 1512], "category": "Text", "text": "There is a strong coherence between this Action with the policy priorities of the New European Consensus on\nDevelopment of ‘People’ (2.1 - strengthen the sustainable provision of essential services), ‘Prosperity’ (2.3 – create\ndecent jobs) and ‘Peace’ (2.4 – promote good governance). The action will contribute to the EU Gender Action Plan\n(GAPII 2021-2025) objectives and the thematic area on promoting economic and social rights and empowering girls\nand women.⁴ The Action contributes primarily to SDG 1 (poverty), but also to SDGs 2 (zero hunger), 4 (quality\neducation), 5 (gender equality), 8 (decent work and economic growth), 10 (reduced inequalities) and 16 (peace,"}, {"bbox": [72, 1571, 994, 1594], "category": "Footnote", "text": "² https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:22012A0731(01)&qid=1498939228584&from=EN."}, {"bbox": [72, 1593, 1014, 1615], "category": "Footnote", "text": "³ https://eeas.europa.eu/sites/default/files/join_2018_1_f1_communication_from_commission_to_inst_en_v2_p1_961709.pdf."}, {"bbox": [72, 1615, 724, 1638], "category": "Footnote", "text": "⁴ https://ec.europa.eu/international-partnerships/system/files/join-2020-17-final_en.pdf."}, {"bbox": [1051, 1663, 1158, 1686], "category": "Page-footer", "text": "Page 5 of 30"}]