It's fails because it was a poorly designed country in the first place. The brits were requested to help set the border between the Ottoman and Persian Empires back in the 1600's setting up the eastern border along the river. The Ottoman Empire was a mess when the Brits and French took over their Mandates. In interest, both the population rose and the Infant mortality fell in the duration of the British Mandate of Palestine, I don't have similar information for Iraq, but likely things improved. Apparently Iraq was initially run out of the India Office and the Indian rupee was one of the official currencies.
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