Transmission of operational management to the private sector

Transmission of operational management to the private sector

Friday June 23, 2017

Privatization of modern economic concepts that emerged in the eighties has known many economists different definitions Perhaps the simplest is ( the process of transfer of ownership and operational management of the state - owned enterprises to the private sector partially or completely and could be the private sector , either institutions or businessmen or foreign companies).
From this definition we conclude that privatization is to give a greater role to the private sector in the ownership, operation and management of production units in the country so as to raise the production efficiency of these units in order to achieve the goals set out in the economic and social development.
If Arab economies we take a model , we find that in most of the public sector will be in control of most of the economic activities in the country and interfere in all joints of the economy directly or indirectly, this case was the result of owning the state of the elements of basic production caused to marginalize the role of the private sector it is clearly the result sector failure General in the joints of the economic process management properly that achieves the required development and performance of the public sector was below the required level, and indicated the general indicators to measure the degree of efficiency in many Arab economies on most of the public sector institutions at low rates in Mq Profits House and the emergence of deficits in public budgets, low productivity and lack of exports, ie , that the results are generally not satisfactory and that the principle of the state 's monopoly of the means of production in absolute principle is wrong and has failed and must be given a significant role for the private sector to contribute to the management of the economy and the best way to do that is (privatization) , and
in developing countries and the Arab countries, the privatization main objective of trying to remedy the economic crisis through economic stabilization and structural adjustment programs so we find that these countries have had as a result of weak international financial institutions, particularly the World Bank and the international Monetary Fund to adopt the principle of privatization so as to treat the crisis The economic that swept most of their economies and here Tbdoovernmat these countries to activate privatization procedures or structural adjustment programs , which is a package of economic policies that differ from one country to another, but typically include the following: -
1. The withdrawal of government subsidies on goods and services and public sector organizations.
2. The reduction of the monetary currency of the value of a country.
3. The liberalization of goods and services prices.
4. Reduce government spending.
5. Reduce foreign exchange controls.
6. liberalization of interest rates in order to be real.
7. end Giralkmarkih protection enjoyed by the local industry.
8. tighten controls on credit.
9. Encourage the private sector to lead the economic development process and that Pfsh him to enter the field for all economic sectors which were monopolized by the public sector institutions.
It came the National Security Strategy , which was approved recently confirmed in its provisions concerning the economic side , on the principle of privatization , which is an integral part of the package of economic reform and structural adjustment and the role of policies and programs is the treatment of the economic crisis by correcting the negative effects of the financial performance of the public sector which caused the creation of a crisis in the budget General state, by reducing financial support and increase their revenues, in addition to raising the efficiency of enterprises that have been privatized , assuming that the private sector is more efficient than his public and thus would lead to an increase in the economic growth of the state and to reduce the rate of Gm financial and economic crisis.
Economic and financial crisis experienced by Iraq to disband it only by following privatization in all public sector institutions and support the private sector considerably so that we can overcome this big crisis that Iraq did not pass its ideals throughout its long history.

* Edit Nour economic magazine,


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