The housing sector and its role in reviving the national economy

The housing sector and its role in reviving the national economy



2017/04/11 | 16:01
(Encyclopedia of this day , news | News Iraq ) -
Writer / d.

Haider Hussain Al Tohme

Required chronic decline in oil prices economic decision - makers in Iraq to search for alternative economic sectors to support the attribution of the national economy and remove him from the sharp part of the crisis, especially with the continued decline in oil revenues , and the pressures of expenses resulting from Daesh material and humanitarian costs of war.

And increases the depth of the current crisis , the Iraqi economy is sliding again Bfaj foreign debt , which threatens economic difficulties besetting the immense landscape economy in the short and medium term.

The government has determined the economic reform program on guiding compass policy towards the revitalization of economic sectors generating employment and stimulating local economic activities to isolate the Iraqi economy, at least partially, from the ripples of world oil prices and achieve greater stability in growth and financial and economic stability rates, as well as to secure alternative outlets to finance the general budget.

In this context , it highlights the housing sector as an engine for growth and revitalization of the national economy because of the benefits generated by the macroeconomic Perhaps the most important:

- Housing sector believes in front of the employment opportunities and the various specializations available skills and to ensure operation of a large proportion of the unemployed, especially with the government stopped providing more jobs for searchers because of surfeit government apparatus of government officials on the one hand and the decline of the necessary recruitment of financial resources on the other.

- is characterized by the housing sector in Iraq , dynamic entanglements with the front and rear of all economic sectors in the country , which means the possibility of the adoption of this sector as an engine for growth and employment generation rather than the volatile oil sector in terms of revenues and prices.

Stimulate residential projects where various carpentry, blacksmithing and construction materials, health, electrical and other supplies required for the completion of these projects definitively factories.

- Iraqi citizens have been suffering for decades from a severe housing crisis worsened with the weakness of governments in the formulation and implementation of successful housing policies and the growing population spectacularly since the last decade of the last century until now.

Which requires the government to rely on new policies and frameworks in the implementation and follow - up to the success of the efforts of previous governments in addressing this crisis.

- house prices and Aejaratha contribute significantly to determine the price of any country levels, and in Iraq , this variable is a great weight in the index of consumer prices, which represents a cash rate of inflation in the country index.

This means that solving the problem of housing, ensuring landing homes and Aejaratha prices, an urgent need to improve price levels and raise the welfare of the Iraqi citizen.

However, despite the mention of great importance to the housing sector to stimulate the Iraqi economy, the successive governments ' efforts characterized by humility and decline even under the explosive budgets resulting from the recovery of oil prices for more than $ 100 a barrel until the first half of the year 2014. This is

consistent with the weakness of economic policies in the country 's system and the failure of the planning and implementation of the government departments to diagnose and cope with the enormous resources and to exploit the opportunities available in Iraq challenges.

Mention may be made to highlight the challenges that hindered the growth and the start of this sector, despite the availability of all justifications for this:

- the significant shortage in the infrastructure of cities and public services, limiting the expansion and extension of the urban movement in the country, especially with a severe lack of roads, sewage networks and services of water and electricity in entire neighborhoods built.

- the volatility of the political mood in Iraq after the 2003 grants and the allocation of residential land to the beneficiaries of the staff and the martyrs and fair view of the multiplicity of government decisions in this regard and volatility of electoral volatility seasons.

- despite what the Iraqi government provided housing loans for all citizens in the country , but they were not the level of ambition to support this pioneering sector.

It has been complex, health and the multiplicity of laws and guarantees necessary to obtain it, limiting the maximum benefit from the bridges of government funding in this sector to extend the necessary funding.

This coincided with the country sliding in the current financial crisis caused by the deterioration of oil prices.

- low efficiency of government investment spending dedicated to the construction sector and the failure of most government projects aimed at the establishment of large residential complexes in terms of quality, costs and implementation dates of the deterioration of the sector has increased.

Financial and administrative corruption rampant has contributed to most government episodes in the weak implementation of the scheme of housing projects and the poor ones are completed.

- In addition to the above, it dropped other challenges, such as the situation of security and the spread of slums and other, a shadow on the growth of the housing sector and prosperity to rates in the country without ambition.

Finally , it should be noted that the need for government economic policies focused on the search for promising economic sectors as a substitute for the oil sector, because of the suffering of the world 's oil market glut could last for years.

And discloses local economic activities in Iraq , about the importance of the housing sector in moving the various production capacities and absorb a large part of the manpower and the various disciplines.

These advantages oblige the government to draw a national strategy for the advancement of this sector to be a lever for economic activity in the country through a period necessary funding and to overcome all the limitations of legislative and legal checks and securing appropriate for the growth and expansion of this sector infrastructure.

That coincides with the strengthening of links to the sector of national production sectors and other cement as factories, iron and other national industries.

Thus , the government may succeed in finding new outlets for employment and an important source of funding for the general budget as well as to solve the housing problem , which strangles the country for decades.

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Jobs in construction, home loans, it's going to stimulate banking and constrcuction sectors