Abstract
Poverty is considered a complicated phenomenon which has serious social, political and economic dimensions. Poverty scope is unlimited by a certain geographic region or a certain period of time. If the problem of poverty had increased and with no solution for it, then, there would have been negative reflections that might have threatened the whole community. Thus, this research aims at explaining the role of rural development in fighting poverty in Iraq for the period 1980-2005 by recognizing the economic variables of development. The relation represented poverty index (Individual Share of Income) being a relevant variable and its Limited factors. These factors are (Agricultural Investment, Invested capital in agriculture, cultivated area, Agricultural Productivity, Inhabitants of the Countryside, and expenditure on Education) as being independent variables. It has been clear throughout the analysis that there is an effect for Capital invested in agriculture, agricultural productivity, income demand flexibility has been estimated to recognize the economic welfare of agricultural sector in Iraq. The ratio is 1.7%.This signifies that individual income in this sector does not achieve the wishes in Consumption. Therefore, agricultural sector in Iraq Suffers from shortage of providing so many necessary needs for production, investment and agricultural techniques. The backwardness of agricultural development in Iraq represents the most significant features of productivity imbalances in which the Iraqi economy faces. This has been reflected upon poverty in agricultural sector. People living in rural areas under poverty line from 70 -80 % and it is a high percentage . Therefore, it is necessary to use policies and rural development programs which may work to increase local capacities and to concentrate upon the poor and to encourage sustainable development and to find out new chances for work.
