Through three decades of conflict, food rations delivered through the public distribution
system (PDS) have remained the largest safety net among Iraq's population. Reforming the
PDS continues to be politically challenging, notwithstanding the system's import
dependence, economic distortions, and unsustainable fiscal burden. The oil price decline of
mid-2014 and recent efforts to rebuild and recover have put PDS reform back on the
agenda. The government needs to find an effective way to deliver broad benefits from a …

Abstract The Iraqi Public Distribution System is the largest universal, in-kind subsidy system
in the world. In 2012, the Public Distribution System transfers accounted for as much as 30
percent of incomes of the poorest 10 percent of the Iraqi population and provided 70 percent
of the calories of the poorest 40 percent. In effect, the Public Distribution System remains the
only safety net program that covers all the poor and vulnerable in the country. Yet, it is a very
inefficient and expensive means to deliver transfers to the poor and creates distortions in the …