This paper tracks the evolution in two dimensions of human development, namely health and education in Iraq, 1960 to 1990. In evaluating the growth of various indicators (e.g. life expectancy, literacy and school enrollment rates), tentative conclusions are made; the pattern of growth in the indicators is found to somewhat uneven. Changes in public policy (largely responsible for improvements in health and education) are consequently studied. The resulting discussion contests some fundamental assumptions regarding the resource curse—the notion that oil income necessarily stifles growth and development in the goods producing sectors of manufacturing and agriculture. The discussion also casts doubt on a main tenet of the rentier state paradigm: the notion that oil income works to immunize oil-producing states from social pressures or at least enhance the state’s maneuverability in respect to its citizenry.