Foreign investment flows are key to economic development

Foreign investment flows are key to economic development



15/8/2017 1:06 am

Baghdad / Emad emirate is
no doubt that foreign capital is moving according to the determinants of the overall stability of the countries , along with the laws included the transfer of funds and profits to the parent company 's state or direct investor, and on this basis, the country needs to speed up foreign investment flows to pay to the growing, requires - According to specialists - to increase openness to foreign and domestic investments by creating the legal ground to establish an attractive investment environment in Iraq.
The Economist Abdul-Karim Jaber Shangar explained to "Sabah" that the country sought to establish an appropriate investment environment in attempts to overcome the difficulties of entering foreign investment to its economic sectors.
He pointed out that the unstable country is not encouraged to enter the investment due to the various risks to the direct investor, such as the confiscation of investments or exposure to various attacks, which may create loss of life for workers.
He pointed out that the economic determinants are linked to the appropriate monetary, financial and accounting policies in the host countries, in addition to the size of the market supported by the relative abundance of natural resources necessary for the establishment of foreign direct investment, stressing that the banking system is the basis for the success of the entry of foreign direct investment, The independence of the monetary authorities from the legislative and executive authorities, the foundations of a banking system to enter the foreign investment of Iraq.
He called for the establishment and development of infrastructure, which is considered an important part of the productive capacity directed to production or providing services to increase the capacity of the state production such as machinery, equipment, construction and paving roads, bridges, airports, public utilities and buildings, and increased competitiveness with the radical shifts in economic and political relations is the main factor in Attracting investments.
Investor Rayan Al-Oussi pointed out that there are many factors that affect the psychology of the local and foreign investor and thus determine his behavior, the most important of which is tension, as well as excessive confidence and its influence in acting.
He explained that the tension represents the imbalance between one's perception of what is required in a particular situation and its ability to meet those demands, indicating that the investor faces events seen as threatening to lose, moreover there can be behavioral or cognitive pressures, so the emotional reactions Generate a catalytic energy to meet and identify the problem.
He stressed that economic pressures can raise behavioral reactions to the investor, reflecting the low skills of coping and dealing with the situation, and in the end, the pressure reduces the confidence of investors to succeed in their future work.
The academic economist d. Ahmed Omar Al-Rawi said:
Iraq was not an experiment in opening up to foreign investments, where the policies and ideologies adopted before 2003 were the openness to foreign investment country is governed by external forces. "The narrator said in an interview with" morning "that in view of this did not allow the laws adopted then any foreign investment activity, stressing that Iraq today has become a dire need for investment in all its forms, especially after the changes that have occurred in the country and the implications of the emergence of "Daesh" terrorist and control over large areas.
He added that the financial resources fell due to the decline in oil prices in recent years and the high cost of military operations to liberate the Different areas of terrorism, has crippled the national economy in all its sectors.
Rawi stressed the need to speed up work hard to attract investment and activate the legal and institutional frameworks necessary to provide for the arrival of foreign investment facilities.
He pointed out that the important question posed today and more than a decade after the issuance of the investment law, is really Iraq has achieved the investment environment to attract foreign investment? What are the conditions for attracting investment? Because Iraq today is in dire need of foreign investment to reconstruct the areas liberated from terrorism and revitalize the national economy.
Al-Rawi said that the advantages and disadvantages of openness to foreign investment are based on two interests that are mutually beneficial to the investor and the interest of the host country for investment. Therefore, if foreign investment is not organized in a manner that preserves the social and economic interests of the country, this investment will be in favor of international capital.

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