The Role of Government Spending in Enhancing Human Capital in Iraq (2010-2023)

Abstract

The research aims to track the impact of government spending, both current and investment, on the development of human capital in Iraq. It relies on an inductive approach and a descriptive-analytical approach. It is based on the hypothesis that government spending plays a positive role in enhancing human capital in Iraq. The research problem is represented by the expansionary financial activity directed towards markets through government spending, which coincided with a decline in human capital indicators, negatively impacting the implementation of sustainable development plans. The research concluded that the weak allocation of financial resources to good government spending areas, such as health and education, caused a deterioration in human capital indicators. The research recommended increasing the efficiency of financial specialization towards investment spending areas in order to increase future returns and reduce current value costs, thus supporting the development of human capital, which truly enhances development activities in the country.