Legal Studies in Digital Age In Press 2027 08 01 From Financial Compensation to Restorative Justice in Administrative Law: A Comparative Case Study of Iran and Iraq From Financial Compensation to Restorative Justice in Administrative Law: A Comparative Case Study of Iran and Iraq 1 14 EN Journal Article 2026 07 28 <p>The development of state liability in modern administrative law reflects a broader transformation in the relationship between public authorities and individuals. Traditional remedial models in Iran and Iraq have largely relied on financial compensation as the principal response to unlawful administrative conduct. Although monetary compensation remains essential for repairing material and certain non-pecuniary losses, it is often insufficient where administrative wrongdoing affects dignity, reputation, legal status, professional position, procedural fairness, or public trust. This study examines the possibility of moving from a predominantly compensatory model toward a restorative conception of administrative justice in the legal systems of Iran and Iraq. Using a descriptive-analytical and comparative legal method, the study analyzes the theoretical foundations of state liability, the structure of administrative remedies, the treatment of pecuniary and non-pecuniary damage, and the institutional capacities of administrative justice in both jurisdictions. The findings indicate that Iranian and Iraqi law already contain important foundations for a broader remedial framework, including recognition of state liability, non-pecuniary damage, restitutionary measures, judicial review, and the principle of effective reparation. However, both systems continue to conceptualize administrative injury primarily through monetary compensation and provide limited systematic recognition of non-monetary restorative measures. The study argues that effective administrative reparation should combine compensation with restitution, reinstatement, correction of administrative records, acknowledgment of wrongdoing, rehabilitation, declaratory relief, and institutional measures aimed at preventing recurrence. It concludes that restorative justice should not replace judicial review or civil liability but should broaden their remedial function. A layered model of administrative reparation can strengthen individual rights, improve governmental accountability, and contribute to more responsive and legitimate public administration in both Iran and Iraq.</p>