Main issues facing the state

Baghdad:  As the counting of votes is still going on and with final results to be certified by the end of March, the next government faces a raft of thorny issues that have at times paralysed the previous administration.

Following are the main issues facing Iraq's next government:

Kurd-Arab ties

Iraq's Arab majority and Kurdish minority have long-running, bitter disputes over land, oil and constitutional rights that have threatened to spill over into violence and which US officials fear could spark Iraq's next major conflict. The next government will have to find a solution for the disputed oil-producing city of Kirkuk, which Kurds consider their ancestral homeland and want to wrap into their largely autonomous Kurdistan region in northern Iraq.

The Kurdistan Regional Government (KRG) is also at loggerheads with Baghdad over the legality of contracts the KRG signed independently with foreign oil firms, a dispute that resulted in the halting of oil exports from Kurdistan last year.

Oil

As well as disputes with Iraq's Kurds over oil, the next government's stewardship of multi-billion-dollar oil contracts agreed with foreign firms will be closely scrutinised.

The way Iraq handles its commitment to the deals will be a strong signal for foreign investors nervous about a lack of legal frameworks and clear recourse for arbitration.

The sooner Iraq, which depends on oil for almost all its revenue, is able to exploit its vast reserves, the quicker it can rebuild infrastructure shattered by war and sanctions.

Reconciliation

Sectarian tensions are rising ahead of the election amid suspicions among Iraq's once dominant Sunnis that the Shiite majority is trying to deprive them of their fair share of power.

The next government will have to heal the wounds of sectarian warfare that killed tens of thousands after the US invasion, and construct a lasting peace between the two sides.

Basic services

Improving basic services will be key to reversing growing Iraqi scepticism about democracy after Saddam Hussain's fall.Seven years after his overthrow, the national grid supplies only a few hours of power a day. Rubbish fills cities, many roads are almost unusable and health care is basic.

Security

Iraq's security forces will be under greater pressure as the US military speeds up its troop reductions after the election, before a full withdrawal by 2012.

Statute reforms

Politicians have long discussed amending the constitution drawn up after the US invasion. At stake are issues relating to the separation of religious and state laws, and the power balance between the central government and the provinces.