In order to optimally invest resources Mokhtassan: advanced technology reduces production costs

3/18/2017 0:00

BAGHDAD / Imad emirate is
witnessing Iraq 's population annual growth rate is high for Aitlaem with the exploitation of the attributes of the human and natural resources, which means that the economy does not grow in a healthy, oil exports are considered the catalyst for the economic growth , the President, as economists believe that the performance of other productive sectors are still weak in terms of contribution in GDP and the current fixed or annual growth rates, Mayad negative indicators in the balanced development along the path to the local and overall supply of goods and services.
Economic academic Dr. Awad Fadel stressed that the loss is limited correlation between economic sectors to benefit from the available financial resources for investment due to inefficient management and lack of technical knowledge and a lack of expertise and skilled labor.
He said other factors causing decline in the economy is to pursue exchange rate policies that reduce the competitiveness of local exports midwife international trading, and bad for the employment of productive resources and rare way, which led thus to the failure of development efforts and the increase in poverty as a result of lack of fairness in the distribution of income and the low utilization rate of the labor force in National economy .
Fadel warned continued, successive wave of contradictions in the macroeconomic management being made Iraq 's dive into the warped monuments economic system works in the framework of minimal economic structure and effectiveness of the organization.
It has become these contradictions constitute a challenge that requires addressing the inevitability of macroeconomic policy consensus to achieve monetary stability, and the belief that the structural transformation of the economy of the process backward to a developing economy that is not based only union arm of economic development , a customization and exploitation efficient resource productivity so as to maximize investment.
He said Fadel that after 2003 , entrusted the task of improving the economic performance of the sectors of the national economy to the state budget through the channel of the government and development spending, the common denominator remained between eras time periods continuation of the weight of the public sector in the conduct of the economy and increasing dependence on foreign supply (outer) of goods and services to meet the needs of domestic consumption, production and reassurance to the high abundance Time to funding provided by the oil and is limited to policy development. Fadel stressed that this shift in the way the performance of development and revive the domestic aggregate supply of goods and services did not achieve positive results marked on the level of increase productivity, reduce costs and increase the flexibility of the production machinery and increasing exchanges between domestic and foreign goods, but the opposite has intensified sliding economy in further imbalance in the production structure , coupled with reduced activity of commodity production space to generate total economic activity.
To address these imbalances in the Iraqi economy , he stressed the economic academic D.gosai Jabri need to diversify sources of income so that the Iraqi economy is not depend on the vagaries of oil prices or affecting the global oil market policy by stimulating investment in the real sector.
He called al - Jabri in an interview for the "morning" to open the way for foreign investment because plays a role in lowering production costs and improve quality through the use of cutting - edge technology as well as the wealth of experience and training of local labor, adding that the local volume of investments can lead to economic growth and it provides jobs to absorb the unemployment of the economy and thus reduce the pressure on the budget and correct the imbalance in the structure of the national economy.
Jabri between the need to provide an enabling environment to attract foreign investment through the enactment of appropriate legislation and laws to encourage foreign investment and to provide sufficient guarantees to adopt the style of engagement between foreign and local investors, to integrate with foreign capital in order to achieve high growth rates.
He suggested Jabri re - invest part of the financial surpluses of foreign investment at home to develop the project itself or financing other with forward and backward linkages of investment projects, to have this investment as a catalyst for the diversification of productive activity and the development of the productive base, explaining that this would reduce pressure on the budget hand and reduce the current account deficit in terms of bringing imports so as to provide a surplus in the current account can be used to finance government spending.

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