The past week has been another dramatic one for Iraq, with significant developments both in its turbulent political scene and the fight against so-called Islamic State (IS). Both the 20 May storming of the Green Zone and Prime Minister Haidar al-‘Abadi’s decision to launch an offensive to retake Fallujah two days later should be examined together.

Mr ‘Abadi has been criticized from across the political spectrum for being weak and unfit for the job. In seeking to counter these attacks he is at least showing his commitment to remain in office. But the deterioration of governance is disconcerting for foreign firms operating in the country and potential investors, and is therefore a further handbrake on economic development. (CONTINUED - 1082 WORDS)