ILO Supports Iraq Plan for Inclusive Economic Model

Iraq has formally begun drafting its first National Social and Solidarity Economy (SSE) Policy, supported by the International Labour Organization (ILO) under the PROSPECTS Partnership. The policy is aimed at expanding employment, supporting vulnerable groups and diversifying Iraq’s economic model, prioritising social benefit alongside profit-driven market activity.

The initiative follows a 2025 decree by the Prime Minister’s Office establishing a national committee tasked with preparing the SSE framework. The committee held its inaugural workshop on 8–9 February in Sulaymaniyah, bringing together government institutions and stakeholders with technical backing from the ILO. This support forms part of the wider PROSPECTS programme focused on improving livelihoods and economic inclusion for displaced people and host communities in Iraq and beyond.

The workshop marked the start of the consultative process intended to produce a practical policy roadmap rather than just new legislation. Discussions focused on defining the role of cooperatives, community enterprises and social initiatives in Iraq’s economy, while reviewing international experiences from Jordan, Tunisia and France for possible adaptation.

Participants also outlined the structure of the policy-making process, agreeing on consultation mechanisms, stakeholders and a timeline. The next steps will include a nationwide assessment of existing social-economy actors, followed by stakeholder validation sessions and drafting of an implementation plan. 

Officials framed the policy as part of broader efforts to address unemployment and economic inequality. Igor Bosc, ILO Country Coordinator in Iraq, states: “The launch of the national policy development process on the social and solidarity economy marks an important step toward strengthening decent work and economic inclusion in Iraq. The International Labour Organization is proud to support the Government of Iraq in this process, drawing on international standards and global experience, and aligning with national priorities.”

Ali Makki, head of the national committee at the Council of Ministers Secretariat, described the social and solidarity economy as an approach centred on cooperation and social justice rather than profit, arguing it could help empower vulnerable communities during economic transition. He explains: “This model places people and communities at its centre, rather than profit alone.”

ILO specialists emphasized that such economic structures already exist informally across Iraq but lack a clear enabling framework. If implemented, the initiative could represent one of Iraq’s first attempts to institutionalise a third sector between the state and private market, potentially reshaping how employment programmes and local development projects are delivered nationwide.

Source: International Labour Organization