Funding Facility for Economic Reform- Federal

Title: Funding Facility for Economic Reform (FFER) - Federal
Status: Ongoing
Duration: 2016 – 2020
Budget: US$5.6 million 
Coverage: National
SDG: SDG 16: Peace, Justice and Strong Institutions
Partners: The Government of Iraq 


Programme Summary

The Funding Facility for Economic Reform (FFER) is a four-year programme designed by UNDP Iraq to promote sustainable poverty-reducing economic reform, growth strategies, integrity, and anti-corruption. The programme began in 2017, with two programme branches which support reforms designed and undertaken at the Federal level – FFER-Federal, and at the region level – FFER-KRG. 

FFER provides technical assistance to support specific government-identified institutional reform initiatives through the deployment of international expertise on two key aspects - economic reforms and anti- corruption.

In cooperation with the Economic Reform Unit (ERU) of the Federal Government, which was established with UNDP’s support and assigned as the main project counterpart from the Government, FFER-Federal identified and employed international and national technical assistance to support government priority reform initiatives. FFER-Federal also works with other government line ministries and institutions involved in the economic reform and anti-corruption process by deploying international and/or national experts to address identified priorities and a need to assist. 

In line with the commitment of the Government of Iraq to undertake economic reform that contributes to the sustainable development of the country and the achievement of Iraq’s Vision 2030, FFER is designed to address the need for a responsive public financial administration and achieveme financial sustainability, a diversified economy , improved Integrity, transparency, and anti-corruption.

In response to the 2019-2020 protests, FFER-Federal has supported the undertaking of a review process of economic reform priorities and, in cooperation with the ERU and key line ministries, will propose a roadmap and action plan for its implementation.


UNDP supports an enabling environment for SME growth in Iraq.


What have we achieved so far

Below are main areas of cooperation with the Government of Iraq and the support provided by the FFER Federal:

  • Support for reform management and coordination.The unit operates under the Prime Minister’s Office and plays an important role in the design, coordination and monitoring of the reform agenda;
  • Assist with developing an Anti-Corruption Strategy (ACS) and National Corruption Index, providing technical assistance and building the capacity of the Commission of Integrity and other relevant institutions; 
  • Ongoing Improvement to the Budget Systems in Iraq, through development of a strategy for the GoI to introduce the Program Budgeting (PB) in the Medium-Term Fiscal Framework (MTEF) context, which will strengthen budget discipline and increase the efficiency of public money; 
  • Increasing the quality and the pace of economic reform, through support to the development of a  revised agenda for current and future economic reform and a roadmap and action plan;
  • Support for formalization and growth of Small and Medium Enterprises (SMEs) Access to Finance through the development of a Credit Guarantee Scheme (CGS) and undertaking of formal and informal surveys to understand their needs. A program was developed and endorsed by Government partner agencies and the bidding is opened for its implementation; 
  • Strengthening the capacities of investigative and auditing agencies tasked with combating and preventing corruption;
  • Design and launch of an Anti-Corruption Media campaign to enhance public trust in government institutions and increase citizen awareness of the effects of corruption on political development, economic and social development.

What we aim to achieve

FFER-Federal will continue support to the Government of Iraq to implement economic reform and anti-corruption activities designed to achieve Iraq Vision 2030. Activities include:

  • Encourage and strengthen public institution capacity to take measures against corruption by producing a self-reporting mechanism in the form of a National Corruption Index (NCI);
  • Analyze market dimensions to better understand key factors influencing on the national economy and MSME and private sector growth to determine whether the market of Iraq is conducive for a new Credit Grantee Scheme;
  • Ascertain the needs of Small and Medium Enterprises via a survey;
  • Develop new supporting programs based on the revised economic reform agenda focusing on: Improving the budget system, promoting agriculture sector development, improving public and social services and establishing a modern public administration system.