Iraq's Maxi Malls Marginalize Public Sector

The nation of Iraq is building itself anew after the last of the US troops evacuated six months ago, but experts are saying that their wealth, which has created an invasion of shopping malls around the country, is subsidizing the public agenda.

2 minute read

July 5, 2012, 5:00 AM PDT

By Emily Williams


Oil production has given the country a surplus of wealth, but the country's private sector continues to suffer from malnourishment. Instead of financing new businesses and supporting the build-out of a private sector, which is virtually non-existent in the country, the accumulation of wealth has been given the task of financing the government work force, which currently employs about one-third of the nation's population. Another beneficiary of this increased revenue? Super malls. "'Basically, Iraq is trying to build a consumer society, not on state capitalism like in China, but on socialism,' said Marie-Hélène Bricknell, the World Bank's representative in Iraq."

"Given the statist mentality of most top Iraqi officials and widespread corruption," writes Arango, "diplomats are generally pessimistic that the expected boom in government revenues will be used either to help develop a private sector or to pay for an ambitious public works program - something the country, where 40 percent of the population still lacks access to safe drinking water, desperately needs. Instead, experts worry it will finance more of what Iraq already has: corruption and a huge government work force."

This increasingly skewed spread of wealth essentially robs the nation from the ability to support itself, by not providing basic needs and services or nourishing a self-sustaining working class. "Building a consumer society on top of nothing is like building a bubble that will burst in the future," Ms. Bricknell said. With the shopping malls, she said, "you are putting a veneer over a rotting core, basically."

Arango, sensing a storm brewing ahead, is not optimistic for future conditions in Iraq, and claims that history may be repeating itself. "In 'The Modern History of Iraq,' he writes, "the American historian Phebe Marr described a similar trajectory in the 1970s when, she wrote, 'the era of prosperity rapidly created a consumer society dependent on government employment.'"

Saturday, June 30, 2012 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 25, 2025 - Diana Ionescu

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Aerial view of new neifhborhood under construction with enpty lots in foreground.

In California Battle of Housing vs. Environment, Housing Just Won

A new state law significantly limits the power of CEQA, an environmental review law that served as a powerful tool for blocking new development.

1 hour ago - CALmatters

Low-rise Pearl Sreet mall in Boulfer, Colorado.

Boulder Eliminates Parking Minimums Citywide

Officials estimate the cost of building a single underground parking space at up to $100,000.

2 hours ago - Boulder Reporting Lab

Two-story buildings with porches in walkable Florida neighborhood.

Orange County, Florida Adopts Largest US “Sprawl Repair” Code

The ‘Orange Code’ seeks to rectify decades of sprawl-inducing, car-oriented development.

3 hours ago - CNU Public Square

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.