When the Grants End: The Employment Dilemma Facing Iraq’s INGO Workforce

As international non-government organizations (INGOs) begin scaling down their operations in Iraq, a profound transformation has been taking place, one that is primarily affecting their local Iraqi workforce. This shift is not merely organizational; it reflects a complex intersection of professional, economic, and psychological disruptions that redefine the employment prospects for individuals who were once navigating their career path in internationally funded organizations.

In light of recent global developments, many international organizations are either withdrawing their operations in Iraq or shifting their focus elsewhere. This shift is largely driven by changing donor country priorities, with financial resources now being redirected to crises in regions such as Syria, Gaza, Ukraine, and Sudan. At the same time, the Iraqi government continues to position itself as increasingly self-reliant and economically stable, further accelerating the exit of foreign aid organizations. Iraq is not alone in facing these challenges, but it may be less prepared than some other countries currently experiencing a similar shift.

This trend extends beyond the US-funded organizations, it includes a broad range of international actors. Organizations such as the International Committee of the Red Cross and other organizations affiliated with the UN mission in Iraq and Doctors Without Borders (Médecins Sans Frontières (MSF)) have reportedly begun laying off Iraqi staff, relying on short-term contracts, or even redeploying Iraqi employees to other countries where humanitarian needs are more pressing.

For those still working in the field of INGOs in Iraq, this serves as a wake-up call. The landscape is changing rapidly, and future job layoffs are likely happening sooner rather than later. Therefore, planning for the next career move is not only advisable, it is necessary.

There is increasing skepticism about the direction of recent international development programs in Iraq. Many initiatives have prioritized entrepreneurship, especially in the tech sector, which is driven more by donor interest than by understanding of Iraq’s local needs. While innovation and entrepreneurship have their place in the development of the Iraqi ecosystem, this focus has often come at the expense of long-term sustainable development in critical sectors such as agriculture, manufacturing, and infrastructure.

In reality, Iraq stands to gain far more in terms of sustainability and job creation through investment in agriculture than through entrepreneurship and digital ventures. This is particularly relevant given the country's generally low levels of educational attainment and digital literacy, which may limit participation in tech-driven initiatives.

Additionally, many of the development programs emphasize themes like women's empowerment, entrepreneurship, and climate change. While these are critical issues to address, short-term visibility initiatives, such as conferences, events, social campaigns, and roundtables, often lack long-term, scalable outcomes. This has led to a gap in tangible and long-term development efforts, which may have contributed to a vital source of livelihood for many Iraqi communities and had significant potential for sustainable growth.

Among the most immediate and pressing consequences of this shift is the growing sense of instability among former local INGO employees. As many INGOs have come to terminate long-term contracts, those people are now confronting unemployment and potentially experiencing the collapse of broader personal and professional aspirations. For those who had hoped to secure permanent residency abroad, particularly in the United States through immigration or green card pathways, the withdrawal of USAID and many other funding sources has marked the end of what was once seen as a reliable professional career path. What was once a stable and structured career trajectory has become a landscape defined by ambiguity and unpredictability.

Many employees of international organizations have become stagnant in their career growth as they assumed these jobs would be long-term, stable career paths. Working in INGOs allowed them to easily build connections with other organizations and network with government entities. However, this comfort zone created a sense of dependency and left many unprepared for the demands of the evolving Iraqi job market and new professional challenges.

The work environment within international organizations is typically structured around standardized procedures, such as drafting reports, writing briefs, and managing specific processes. As a result, employees often develop skills related to documentation, meetings, and email communication rather than hands-on experience and output. These competencies are well-suited for roles in coordination, assistance, and monitoring and evaluation, but they often do not align with the dynamic demands of Iraq’s private sector.

Since their work primarily involved coordination, they followed predefined reporting formats used consistently across the international offices of their organizations. Resulting in a limited exposure to more adaptive or results-driven workflows. As Iraq moves toward digital transformation and adopts enterprise resource planning (ERP) systems, the ability to work in flexible, tech-integrated environments is becoming more and more important. This shift further widens the gap between the skill sets of former INGO employees and the evolving needs of the local market. 

Moreover, their experience has been largely centered on spending grants and managing donor-funded humanitarian projects, rather than generating revenue. This has left many lacking core business, sales, marketing, and crisis management skills, making the transition into Iraq’s competitive private sector particularly difficult.

The hiring practices within INGOs can sometimes be overly reliant on personal connections rather than solely on qualifications. This system created opportunities for some and left many qualified people unemployed. As a result, now that the INGOs are leaving Iraq due to the suspension of USAID funds, these relationship-based networks are not generating new opportunities in the private sector.

There is a clear divide between working for INGOs and the Iraqi private sector, particularly in terms of salaries, benefits, and adaptability. Transitioning into the private sector requires former INGO employees to adjust to a different work culture, one that may lack the structured benefits they were accustomed to, such as healthcare, social security, and standardized five-day workweeks with weekend holidays.

Many of these professionals continue to seek the high salaries they once earned, which were more attainable within INGOs. However, such compensation is rare in the local private sector. Such compensation might be limited to selected firms and entities whose practices might not align with the values of former INGO staff, leading them into an ethical dilemma. While they are driven to maintain their standard of living, doing so in the private sector could mean compromising on values they once held sacred, such as community-focused work, transparency, and entrepreneurship. As a result, successful integration into the local job market requires more than just skill alignment; it calls for a realignment of expectations and, in some cases, values.

One of the most important skills in the Iraqi job market today is proficiency in the English language. It is worth mentioning the fact that former employees of international organizations possess strong communication skills with foreigners due to the culture of their previous work experience with international INGOs from various countries. This is a very positive point, as local Iraqi companies can benefit from and invest in such skills, in addition to their soft skills.

However, Iraqi companies are unable to provide job opportunities for this large number of people, as opportunities in the private sector are limited. Therefore, the remaining options are the public sector and turning toward freelancing by learning new skills, such as consultancy.

Here, we face another problem: even in cases where these individuals establish their own consultancy firms, their chances for growth remain limited due to the lack of alignment between the skills they possess and the needs of the Iraqi market.

Some turn to higher education and seek scholarships, and they are usually graduates of public universities, hoping to land jobs in Iraqi companies. However, the reality is that the private sector relies on skills rather than academic degrees. Another truth is that pursuing higher education raises individuals' expectations regarding the kind of jobs they believe they deserve, while simultaneously decreasing their actual chances of getting one.

Therefore, it is better to start working in the private sector—even if that means starting over in an entry-level job or an internship—to sharpen skills and develop one’s CV. The question remains: will the INGO's former staff compromise to take the step in the right direction?