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This study examines the persistent challenges of language policy and practice in Iraq from 1920 to the present, employing grounded theory to analyze interviews with 20 Iraqi policymakers alongside historical literature. Findings reveal an inherent "confoundedness" among policymakers that obstructs coherent national language policies and planning. This policy paralysis exacerbates educational inadequacy and inequality, leaving Iraqi students at a severe disadvantage in a capitalistic, globally competitive environment. The study highlights how unresolved linguistic tensions and confoundedness among Iraqi policymakers perpetuate sectarian divides and hinder economic mobility, arguing that language policy is not merely pedagogical but central to Iraq’s national cohesion and prosperity.