Recently, KRG PM Masrour Barzani inaugurated a project in Erbil called “Eagle Post,” ostensibly providing postal services throughout the Kurdistan Region (although it only operates only in Erbil and Duhok) and international delivery services. On the surface, this project could be seen as a positive initiative that showcases PM Barzani’s vision for a “Strong Kurdistan.” Postal services are often considered a crucial component of a modernizing economy, with some scholars arguing that connectivity through transportation networks and postal systems has been a key pillar of nation-building and unification, as in the case of the United States. However, there are several concerning aspects of this project that offer insight into broader issues surrounding PM Barzani’s tenure:

1. The “Eagle Post” project is owned by the Ster Group, through a subsidiary company called Eagle, whose CEO is the deputy CEO of Ster Group. Notably, the Ster Group is majority-owned by PM Barzani and has been the primary vehicle for building his business empire over the years (See the Substack version of this article for links).

2. The concerning issue is that this project has been undertaken through PM Barzani’s private company rather than as a public service initiative by the KRG. Given the increasingly blurred lines between public and private spheres under his tenure, this project poses a significant threat to smaller businesses that have been providing postal and delivery services in the region over the past decade. With unlimited government support, such a project can stifle competition and force smaller businesses who have been burned with several-fold increase in taxes to capitulate and shut down.

3. This example is emblematic of PM Barzani’s modus operandi since assuming power in 2019, where virtually no projects have been undertaken through the KRG. Instead, even many KRG sectors have been gradually privatized and handed over to companies directly owned by him or his associates (in Sulaimani, it usually goes to the Talabani family), particularly in the construction and service sectors.

4. This approach is problematic for two main reasons:

A. Since these projects are awarded with unlimited government support and without competition, their quality is often subpar. For instance, the Lalav company, which suddenly emerged and secured over two dozen construction projects in each of Erbil and Duhok after Masrour Barzani became PM, is a case in point. Most of their projects are years behind schedule, and even the completed ones exhibit extremely poor quality, with several reports of cracks appearing in flats within the first year of occupancy.

B. Such an approach has effectively stifled small businesses and longstanding projects that have been operating for decades. This is achieved through a combination of exorbitant taxation on these companies while granting numerous benefits to companies affiliated with PM Barzani and his associates. Another notable example to illustrate is the health sector, where longstanding companies exporting medicine have been burdened with over 500% taxation, while numerous government contracts are awarded to companies linked to the ruling families.

The “Eagle Post” project exemplifies the predicament for the region’s economic development and democratic governance, leading a growing number of people to become disenchanted with the very idea of the KRG as a viable polity. They increasingly perceive it as becoming a fiefdom of the two ruling families. Even those who previously benefited from the corrupt system have been increasingly sidelined, as the new generation of Barzanis and Talabani seek their share of power and resources, often at the expense of former allies of these families.