Report: development in Iraq linked to political stability

Report: development in Iraq linked to political stability




15.01.2014 


World Bank headquarters in Washington


The World Bank published a new report on the prospects for the development of the world economy in 2014. The report notes that the world economy will grow stronger in the new year with high growth rates in developing countries and transition countries finally advanced to a new phase of recovery five years after the financial crisis that struck in 2008. 
World Bank the World Bank noted that the removal of the effects of the financial crisis in developed countries and continuing high growth rates in China will promote economic growth in developing countries. But the World Bank warned in its report that growth prospects remain bleak. In this regard, said World Bank Group President Jim Yong "the performance of developed economies is gaining momentum and that this momentum should support growth in developing countries over the coming months. But the developing countries, in order to accelerate poverty reduction, to implement structural reforms to create jobs and strengthen the financial system and expanding the social safety net. 
With regard to Iraq the World Bank predicted in its report that the setbacks that wished their political process and/or the escalation of violence to undermine confidence and delay the necessary structural reforms to boost growth and declining oil production. 
In contrast, the restoration of political stability and sound policies can contribute to strengthening confidence and focus attention on the implementation of structural reforms and a return to levels of growth potential in the long term.
The IMF issued its report before the World Bank criticised the results achieved by Iraq at the level of economic development. 
Radio free Iraq met the planning Ministry spokesman Abdul Zahra Al-Hindawi, who acknowledged that the security situation has had a serious impact on performance in the implementation of development plans, but noted that the five-year plan prepared by the Ministry of planning for the period 2013 12017 took into account the security and political challenges or what he named "circumstances ruling or Cairo."
If security is a major challenge facing the development plans internally, the Iraqi economy on the export of petroleum and petroleum market fluctuations affected a key factor in this area, can exert negative impact on the development in the event of falling oil prices, said Ministry spokesman Abdel Zahra Al-Hindawi.
But Hindawi confirmed that the Iraqi economy despite the challenges of increased magnitude in the past made significant progress on key indicators such as per capita income rising to about $ 6000 a year late 2012, compared with 500 or 600 dollars a year by 2003, as well as achievements in reducing unemployment and poverty alleviation.
He noted the spokesman of the Ministry of planning with the proportion of people living below the poverty level from 23 percent in 2007 to 19 percent expected decline to 16 percent by the end of 2014 as the unemployment rate fell from 20% in 2008 to 12 percent now, according to alhendwai.
The World Bank report cited as an example of the challenges facing Iraq overcome the oil production production of Iran before its decline due to the difficult situation of the country. In this regard, a member of the Parliamentary Committee on oil and energy crisis, Shara succession describing AFM disagreement between the Federal Government and the Kurdistan Regional Government in strategic disagreement in particular to export oil pipeline new territory through Turkish territory but expressed optimism that a solution especially as Chairman of the regional government nechirvan Barzani in Baghdad for this purpose.
Shara said there were points of convergence on important aspects between Baghdad and Erbil on export to Turkey and across its territory including the agreement on the role of oil marketing company SOMO and installation standards and the nature of the balance of sales, with the possibility of reaching agreement on other issues such as where to deposit the proceeds of the oil and how to distribute and invest. 
Shara agreed with the view that there can be no development without security and no security without political stability due to the dialectical relationship between these aspects, he said.
Beautiful name Economist Antoine described the World Bank's report on risks to economic development in the absence of stability and political process that accurate diagnosis, warning that the more delayed political leaders resolve their differences was the effect of these differences more significant economic life.
Antoine noted the paradox with Iraq on oil revenues and lack of investment to achieve genuine economic development, saying that the increase of the average per capita income is not distributed evenly just as the poverty and unemployment rates that remain high.
The World Bank said in its report that Iraq submitted to Iran to become the second largest producer in the Organization of the petroleum exporting countries OPEC at the end of 2012, when the production of 3.2 million barrels per day before falling to 3 million barrels a day last November because of attacks on the oil pipeline from Kirkuk to the Turkish port of Ceyhan on the Mediterranean.
More details on the audio file has prepared a free Iraq radio journalist Ghassan Ali.

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