“Privatization .. and the specificity of the Iraqi economy 2-3″
Or you can call it….Economics Basics…”Supply and Demand”
“Cancellation of foreign exchange controls. & Pursuing a free market for foreign exchange”….
Turki al – Qaisi
in the first part we pointed to the policies needed to conduct privatization in state projects and that in a closer look at the importance of the privatization of the Iraqi economy and its role in the process of promoting the long – term it is not rejected the policy but they need to study and develop appropriate plans to contain the collapse witnessed by the Iraqi economy.
The objectives of privatization in all developing countries, including Iraq, can be summed up by raising the efficiency of the performance of institutions through redistribution of roles between the public and private sectors and reducing the role of the state in economic life.
And financial objectives are to reduce the burden borne by the general budget of support for the economic establishments losing and the sale or lease of these projects will lead to the completion of part of the budget deficit.
As well as the establishment and development of efficient domestic financial markets to encourage domestic and foreign investment, as well as the alleviation of external debt burdens, the promotion of economic efficiency through competition and the emergence of economic growth.
The reasons for the privatization of Iraq include domestic and external justifications and pretexts and the latter is the external pressures exerted by the United States of America because one of its motives to enter Iraq is the privatization of the Iraqi economy, in addition to the pressure exerted by the international economic institutions on Iraq, especially after granting Iraq a loan starting from 82 million These institutions, as well as banks and commercial banks, often link their assistance to the extent to which the state implements privatization programs.
The internal rationales revolve around the economic dimensions of privatization. The existing public companies have not made a profitable profit as a source of income for the state, but have become a tool to drain the state budget.
The conditions required of Iraq to implement them are the conditions of the International Monetary Fund, which in turn works to achieve efficient management of the total demand and increase the supply is:
First – the adoption of measures to eliminate the deficit in the balance of payments: •
Reduced the value of national labor. • Cancellation of foreign exchange controls. • Pursuing a free market for foreign exchange. • Cancellation of competitive trade agreements. • Freeing import from private sector restrictions.
2. Adopting anti-inflation measures, including: • Pressure on public spending, raising taxes, raising prices, canceling advertisements and supporting the state. • Increase in credit and debit rates. • Set high limits for bank credit allowed to the government. • Increasing energy prices.
“Governance The beginning of economic reform”
“Waiting for the formation of the government and the announcement of its next economic approach and then we will see whether it is possible to achieve good governance to manage the economic file”
Everyone here is waiting and wondering: Will the next phase witness a real change in the patterns of economic activity?
The prevailing and agreed upon discourse now is that there is a glimmer of hope in the expected change in the nature of dealing with the economic file and its administration after the reasons that led to the chaos of solutions.
Today, all hopes are built on the possibility of achieving economic, administrative, political and social reform in light of the evacuation of the cloud of war and terrorism. There is no excuse for the weak and the losers with respect and appreciation for the successful because the ruling was not decisive.
We are talking here within the specialization and specialization of the page economically that the obsession with change in the patterns of economic activity is possible and we naturally adhere to optimism and non-despair, so it must be talk today towards the possibility of change and achieve the desired economic reform.
There is almost complete agreement by most economists in the world that governance is the best way and the correct starting point for any reform of the entrepreneur, and governance in its simple sense is independent and free of the constraints of the owners of money, both in the public and private sectors.
A simple example of the owners of the money Chairman of the Board of Directors himself as a general manager, both in the State or in companies, but imagine the image of decisions how to go to his interests and here highlights the role of governance in the separation of power from the money to correct the goals and administrative decisions only to clarify to those who do not know the meaning of governance and objectives.
In the years 2008-2010, a ministerial committee was formed in the Ministry of Industry and Minerals. It included a group of economists in the public and private sectors. I was a member of the Iraqi Media Network. The committee was formed by the Committee on Corporate Governance. This committee established rules and regulations of governance that almost achieved its objectives, but it collided with the wall of corruption, Its decision without a ministerial decision to dissolve it, Lapas not Tasvn on the past took over.
Now it has been heard that a governance institute may be formed in the Kurdistan region with well-known experts from the private sector who have a long history in accomplishing the important projects with the support and care of solid international institutions such as the International Finance Corporation of the World Bank, which is working on establishing rules and foundations for good governance and spreading a culture of governance May find a resonance in the economic institutions, it is not a shame to recognize the administrative failure in many economic facilities, but the defect to go to failure, this project of governance must take its way under the stage of change in the next phase.
Waiting for the formation of the government and the announcement of its next economic approach and then we will see whether it is possible to achieve good governance to manage the economic file and able to eradicate corruption.
At the end of the day….I do agree with most…. Iraq is on the verge of obtaining great success for the country…..we are in a very…very good window right now….