Statebuilding and Foreign Direct Investment: The Case of Post-2003 Iraq

Within the broader debate over the political economy of statebuilding, the role of foreign direct investment (FDI) in fragile and post-conflict settings is increasingly controversial but still understudied. This paper examines the tensions between the good governance agenda currently being implemented in Iraq and the investment dynamics occurring at the country's national and provincial levels. Drawing on disaggregated data, the paper argues that the flow of FDI is reinforcing destabilizing dynamics in Iraq by increasing levels of inequality, deepening the decentralization process, and undermining internal and external balances of power.