Who really controls Kurdistan’s gas? The Dana Gas deal, the KRG’s silence and the hidden cost of selling energy to Iraq

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By Dr. Pshtiwan Faraj | Kurdish Policy Analysis      A $2.239 billion arbitration settlement, a contract running until 2049, expanded rights for Pearl Petroleum and a new battle over gas sales to Baghdad are raising uncomfortable questions about who ultimately controls Kurdistan’s most strategic natural resource. The latest dispute over Khor Mor gas is exposing a much deeper problem in the Kurdistan Region’s energy sector: the public still does not appear to have a clear picture of who controls the region’s gas, who is authorized to sell it, and how much of its future value has already been committed to private companies. At the center of the controversy is Pearl Petroleum, the consortium led by Dana Gas and Crescent Petroleum, and a settlement agreement reached with the Kurdistan Regional Government (KRG) on August 30, 2017. Kurdistan Parliament member Kawa Sheikh Ali has now sharply criticized that agreement, asking why a government would effectively commit its natural ...

The AI Techlash: Why Governments Risk Losing the Global AI Race

 


By Dr. Pshtiwan Faraj

As fear of artificial intelligence spreads across Western democracies, governments face a defining geopolitical choice: lead the AI revolution or allow political hesitation to hand strategic advantage to global rivals.

Introduction

Artificial intelligence has become far more than a technological revolution—it is rapidly evolving into one of the defining geopolitical competitions of the twenty-first century.

While governments worldwide race to build AI infrastructure, attract investment, and dominate emerging technologies, an unexpected obstacle has emerged inside many advanced democracies: growing public distrust.

Across Europe and North America, fears surrounding job losses, privacy, misinformation, energy consumption, and corporate power have fueled what many analysts now describe as the "AI techlash." Demonstrations against AI, proposals to halt new data centers, and increasingly restrictive regulatory initiatives illustrate how political caution is beginning to compete with technological ambition.

Yet the stakes extend far beyond domestic politics.

Artificial intelligence is becoming a decisive source of economic growth, military capability, diplomatic influence, industrial competitiveness, and national power. Countries that successfully integrate AI into their economies and state institutions are likely to enjoy substantial strategic advantages for decades. Those that hesitate risk falling permanently behind.

The central question is therefore no longer whether AI will reshape global politics—it already is. The real question is whether democratic governments can maintain public trust while remaining competitive in one of history's fastest technological revolutions.

The AI Race Is Becoming a Geopolitical Contest

Artificial intelligence increasingly resembles previous strategic revolutions such as nuclear technology, space exploration, and the internet.

Leadership in AI now influences:

  • economic productivity
  • military modernization
  • intelligence capabilities
  • cyber operations
  • scientific research
  • healthcare innovation
  • diplomatic leverage

Major powers increasingly view AI infrastructure as critical national infrastructure rather than merely commercial technology.

The United States and China remain at the forefront of global AI competition, but Europe, India, Gulf states, and several emerging economies are investing heavily to avoid strategic dependence on foreign technologies.

Countries that delay adoption risk creating long-term disadvantages that may prove difficult to reverse.

Why Public Confidence Is Declining

Despite AI's strategic importance, public skepticism continues to grow.

Many citizens increasingly associate AI with:

  • automation replacing jobs
  • widening inequality
  • misinformation
  • deepfakes
  • online fraud
  • surveillance
  • loss of privacy
  • concentration of corporate power

Importantly, many of these concerns predate AI itself.

Artificial intelligence has simply become the latest symbol of broader anxieties surrounding globalization, economic insecurity, and declining trust in political institutions.

Governments therefore face a dual challenge: managing technological disruption while rebuilding confidence in their own ability to govern.

The AI Techlash Is Not Really About AI

The growing backlash reflects deeper structural frustrations.

Many Western societies continue to struggle with:

  • rising living costs
  • housing shortages
  • slow economic growth
  • overstretched public services
  • declining trust in institutions

Against this backdrop, AI is often perceived less as an opportunity than as another disruptive force beyond public control.

Rather than opposing innovation itself, many citizens question whether governments possess sufficient capacity to regulate powerful technologies responsibly.

This distinction is crucial.

The challenge is institutional credibility as much as technological change.

Why Reactive Policies Could Become Strategic Mistakes

Several governments have responded to public pressure through restrictive measures, including proposals limiting AI infrastructure and new data centers.

While such policies may provide short-term political reassurance, they carry significant long-term risks.

Restricting AI development could result in:

  • slower innovation
  • reduced investment
  • loss of skilled talent
  • declining competitiveness
  • technological dependence on foreign powers

History demonstrates that countries missing major technological transitions often struggle to recover lost ground.

Industrial revolutions rarely wait for political consensus.

Lessons From Nuclear Energy

The current AI debate bears striking similarities to previous technological controversies.

Following accidents at Three Mile Island, Chernobyl, and Fukushima, public opposition contributed to decades of stagnation in nuclear energy development across many countries.

Although legitimate safety concerns existed, political reactions often extended beyond risk management into broad technological retreat.

Many analysts now argue those decisions delayed innovation, increased emissions, and weakened long-term energy security.

A similar pattern surrounding AI could produce comparable strategic consequences.

China's Different Approach

One of the most striking contrasts lies between advanced Western economies and many emerging states.

Several countries increasingly frame AI as:

  • an economic opportunity
  • a productivity revolution
  • a development accelerator
  • a strategic asset

China has consistently treated AI as a pillar of national power, integrating technological development into long-term industrial strategy.

Rather than debating whether AI should advance, policymakers primarily focus on accelerating deployment while maintaining state oversight.

This approach has strengthened China's competitive position across multiple AI sectors.

The Future Economy Will Depend on AI

Artificial intelligence is expected to transform nearly every major sector:

  • manufacturing
  • finance
  • healthcare
  • education
  • logistics
  • agriculture
  • defense
  • scientific research

Governments therefore face an unavoidable reality.

Refusing to participate in AI transformation will not stop global technological progress.

It will merely reduce national influence over how that progress unfolds.

Government Must Become More Capable, Not Less

One misconception surrounding AI governance is that more regulation alone will solve public concerns.

Effective AI governance requires stronger institutions capable of:

  • evaluating AI systems
  • managing risk
  • certifying safety
  • coordinating regulation
  • supporting innovation
  • improving digital infrastructure

The objective is not simply controlling AI but governing technological transformation intelligently.

Institutional modernization therefore becomes just as important as technological innovation itself.

AI Must Deliver Visible Benefits

Public trust cannot be built through strategy documents alone.

Citizens need tangible evidence that AI improves everyday life.

Governments should prioritize practical applications capable of producing immediate improvements, including:

  • faster healthcare services
  • more efficient public administration
  • improved education
  • smarter transportation
  • enhanced emergency response
  • reduced bureaucratic delays

Visible success builds political legitimacy.

Without practical results, AI will remain an abstract concept associated primarily with risk.

The Workforce Challenge

Perhaps the greatest source of anxiety concerns employment.

Automation will undoubtedly reshape labor markets.

Rather than denying this reality, governments should prepare comprehensive transition strategies including:

  • workforce retraining
  • digital education
  • lifelong learning
  • skills development
  • social protection mechanisms

Managing labor-market transformation proactively is likely to prove less costly than responding after widespread disruption occurs.

Energy Will Become a Strategic Bottleneck

Artificial intelligence requires enormous computational power.

Consequently, AI expansion increasingly intersects with national energy policy.

Rather than viewing data centers solely as consumers of electricity, governments may increasingly integrate AI development with:

  • renewable energy
  • nuclear power
  • smart grids
  • energy storage
  • advanced transmission systems

Countries capable of simultaneously expanding AI capacity and energy infrastructure will possess significant competitive advantages.

AI Is Reshaping Global Power

Artificial intelligence increasingly influences international relations.

Future geopolitical influence will depend not only upon military strength but also upon:

  • computational capacity
  • semiconductor production
  • AI talent
  • research ecosystems
  • digital infrastructure
  • technological alliances

The AI race therefore resembles a competition over future national power rather than merely commercial innovation.

The Leadership Test

Political leadership now faces an uncomfortable reality.

Leaders must simultaneously:

  • reassure anxious citizens;
  • encourage innovation;
  • regulate responsibly;
  • remain internationally competitive.

Failure in any one of these areas could weaken national resilience.

The countries most likely to succeed will neither blindly embrace AI nor unnecessarily restrict it.

Instead, they will combine strategic investment with credible governance capable of maintaining public confidence.

Conclusion

The growing AI techlash represents one of the defining political challenges of the digital age. It reflects legitimate concerns about employment, privacy, misinformation, and the concentration of technological power, but it also exposes a deeper crisis of confidence in governments' ability to manage profound economic transformation.

Retreat, however, is not a realistic option.

Artificial intelligence will continue to reshape economies, militaries, diplomacy, and global competition regardless of political hesitation. The real strategic choice facing governments is whether they intend to shape that transformation or merely react to it.

Those that invest in capable institutions, modern infrastructure, public trust, and responsible innovation are likely to emerge as leaders in the new AI era. Those that allow fear to dominate policy risk surrendering technological leadership—and the economic and geopolitical advantages that accompany it—to more confident competitors.

The AI revolution is no longer simply about algorithms or automation. It has become a test of national leadership, institutional resilience, and strategic vision. The winners of this race will not necessarily be those with the most advanced technology, but those capable of convincing their societies that technological progress can strengthen both prosperity and democracy.

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