1. adoption of the gross domestic production of crude oil and its derivatives.
2. cash flows arising from that and towards domestic consumption.
For the first point, namely the adoption of the country's gross national product on crude oil revenues, and the limited contribution of sectors of agricultural and industrial production. Where only a small percentage of GDP overall. This broad provision of the balance of payments and general revenue on export of crude oil.
This underlines the faulty system or economic structure prevailing in the country and based on traditional policies. This imbalance stems from the almost absolute dependence on the export of crude oil and imports constituted a high proportion of the gross national product.
This increase in oil resources has imposed relative scarcity prevailing in world markets.
The danger here lies in oil as a resource is dead in the near term or long as well as what can lead to scientific and technical progress in the world of discovery for some types of energy as a possible replacement for oil may affect prices, the level of economic benefit realized from export. Of course, it is not possible to address this flaw through certain actions or behaviour of traditional investment to economic returns which can be obtained from any new investment activity, however appropriate, measurement of high oil revenues seem insignificant and non-beneficial.
As for the second, the main point of the country's cash flow by high oil revenues, and mostly, but mostly for direct consumption, and the resulting effects and negative consequences in economic life and public life of the country.
The proceeds from oil exports are the main source of revenue shortfall coverage of various investment activities on the face or relatively high expenses.
Resulting in serious breach of economic mechanisms and structures in society, making the relationship between the level of productivity of individuals with different types and level of consumption relationship of unequal and unbalanced.
With consumption levels rise incrementally, so become a serious obstacle to the establishment of any local produce fruitful at this time.
This seems a clear imbalance in the case not to use oil resources to support any investment activity, whether private or public activity, relying solely on its own resources. Thus, the expansion or increase in local consumption quality individual and Government, has led to the gradual rise of prices, and the increased cost of living, changing forms and styles, thus increasing the demand for more income to keep pace with rising consumption levels occurring currently.
Let's face it, successive Governments have tended to use oil resources to assist and support instead of direction finding different investment opportunities, and work on raising production efficiency, achieve the productivity of individuals and their potential for consumer acceptable levels and opportunities.
Thus, revenues from the export of crude oil and its derivatives are the main source of financing of the various areas of consumption.
It is no secret, that continue to apply such a policy constitutes a major threat to find and create the necessary investment areas in the country. Here we note that altdfka cash increasing oil export revenues, and not used in developmental activities are a major obstacle to building a solid and solid production base, and the transformation or the means to develop mechanisms and physical and human infrastructure to production to allow for the consolidation of the foundations of development and development operations, and support broader areas.
There is no doubt that the use of these cash flows in areas of direct consumption would hurt too much production capacity and investment to the country, and constitute an obstacle to the ability of individuals in the various categories, creativity and economic tender.
Dropping a critical overview on the different categories of consumption levels of evidence and proof of the extent of the economic imbalance of the society, and shows how difficult finding any investment activity or serious and sophisticated production offers product competes with similar foreign products.
Besides, all this economic imbalance is a major obstacle and head to develop efficient local manpower in areas most productive investment and interest and importance.
It is essential for the misuse of natural resources, agricultural land and oil derivatives, etc..
And also, this economic dislocation resulted also convert many productive areas of activity into a means for direct consumption. This applies to all aspects of agriculture and service sectors, including various means of transport. Instead of exploiting their resources and revenue raising production efficiency, they tend to expand in various areas of consumption.
The confrontation of the phenomenon of increasing cash flow as a result of the higher oil revenues requires serious consideration and the national oil policy linking the oil revenues with the needs and requirements of a crisis to find investment or creating genuine development capable of developing the country's economic structure, and create strong and productivity tools necessary to ensure that an appropriate and reasonable level of income to individuals.
This course requires a lot of awareness and orientation or growing pressure and effective in building effective and independent national will. What is important is to have clear vision, goal and plan implementation will sound sincere and honest, and that's what we aspire to.
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