Economist warns of the consequences of Iraq's continued reliance on a single supplier Economy

Economist warns of the consequences of Iraq's continued reliance on a single supplier Economy
 
 
 



02.02.2014 - Lubna al-Rubaie


Criticized the economic expert on behalf of Jamil Antoine Iraqi economic policy that relies on a single supplier and the oil sector to finance the budget.
And between Antoine told KNNC: "The requirements fortify the Iraqi economy to achieve food security intercom run agricultural and industrial sectors, giving a distinct role and active private sector in order to fortify the agricultural and industrial sectors, as well as attracting investment to the country to support and strengthen the Iraqi economy."
He said: "There are annual budgets, accompanied by five-year plans, and the Iraqi budget consists of two paragraphs are the operating budget, which represents more than 60% and the investment budget, which constituted 40%, and revenue of the Iraqi budget comes from oil revenue, which is the main supplier of the budget, the government has not been able to create additional income for the last budget, through activation of key sectors of agricultural, industrial and tourism. "
He Antoine that he "can other sectors to work through the provision of funds from oil revenues, and this will create many job opportunities in industrial sectors and reduce the size of poverty, as well as the agricultural sector, which occupies 30% of Iraq's population, which can be activated as well, so not to manipulate us for these sectors resulted in the presence of gaps that did not achieve a balanced development, despite the passage of ten years did not get any advancement in the business sectors of Iraq. "
He explained that: "In the event that the main supplier (oil) to any tremors global both in lower prices to sell it or get a security situation is stable in the region, or may occur in a global crisis affecting the oil sector, it would damage the Iraqi economy and makes the Iraqi government is dragging its feet on funding Budgets will depend exchange, and this Malahznah in 2008 and the price of a barrel of oil $ 30 and almost the Iraqi government is unable to pay the salaries. "
The student Antoine Iraqi government to "diversify the economy so goes the right direction, and choosing economic elites and competencies to develop economic plans and to contribute to its implementation and take responsibility away from quotas political, partisan and sectarian, in order to elevate the elite of the Iraqi economy to a good level and is working to protect it from economic shocks that are taking place frequently in capitalist systems. "
An official at the International Monetary Fund has recently warned the public finances in Iraq are increasingly exposed to the impact of a fall in oil prices, which may make the Iraqi government is facing difficulty in financing the budget plan this year because of the large increase in spending.
He criticized the Fund in an earlier report Iraq because of poor planning and execution of the budget and overspending and poor implementation rates of investment, as well as that Iraq must ensure the independence of the central bank policy of the government and keep the management of the Reserve Bank's separate from the Development Fund for Iraq, noting that the reserves of the Development Fund for Iraq, which is used The government projects public investment amounted to 6.5 billion dollars at the end of 2013 from 18.5 billion dollars in 2012.


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