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Saturday 09 November 2019
Baghdad/ Hussein Thaghb
Economic specialists have put forward a number of steps that can reform the national economy and overcome the problems that limit the implementation of development trends, as the proposals have been towards the establishment of industrial cities in strategic areas, the establishment of a sovereign wealth fund, and the support of stock market activities to attract regional and international capital.
The economist Bassem Brahimi renewed his call for the creation of a sovereign wealth fund aimed at isolating the general budget and macroeconomics from external shocks to the global economy, as well as global oil prices, to help them move away from instability due to external shocks, as well as guarantee the rights of future generations, as well as several important foundations to start projects with economic and social priorities on the way to success in the process of economic development.
He added that "many countries have adopted this trend and worked to create this type of funds to achieve goals that vary from country to country, and there are countries that have called it the Reserve Fund of generations, including Kuwait, and others called the Government Reserve Fund as in Oman, each of which aims to achieve economic stability or future savings or combine the two as in Norway."
"After we have missed many opportunities to diversify the Iraqi economy during the (quail years), some believe that we have no economic problems left today, except to pray for oil prices to recover, is that true? Or do we still have solutions to at least address the non-recurrence of financial crises? I believe that we still have many solutions and sovereign wealth funds, one of them, through international experience, we believe that the creation of a sovereign wealth fund in Iraq can contribute to strengthening the balance sheet to counter the failures of annual revenues and to face unexpected deviations between revenues Public expenditures, with an average balance determined from the budget surplus continuously and invested financially as a sovereign investment portfolio, i.e. a certain percentage of revenues are determined to be deducted annually to be placed in this fund and managed according to its own law of transparency to ensure the success of its work ".
"The iraqi economic situation is currently experiencing many problems, including the decline of the basic economic sectors, production and services, with continued demands for multiple financial revenues and a departure from the rural status of the national economy, as oil revenues tend to be on operational expenditures and import their needs, accompanied by a decline in allocations to important investment operations that can address a range of economic problems," said Financial Specialist Mohammed Ali Jaber.
"The need to activate and support the activities of the Iraqi Stock Exchange and support the market's attempts to cover the shortage of liquidity, by adopting internationally adopted methods that contribute to attracting capital from investors in regional and foreign countries, and to involve private banks and the Association of Iraqi Banks as well as government banks in this conference and benefit from their expertise in the field of banking, especially as the banking system is the cornerstone of the success of the national economy and move it to a better stage that puts it in its proper position on international regulations," Jaber said.
"Funding is the fast est driver of the current situation, which needs real constructive cooperation between the ministries and all government institutions, notably the Central Bank of Iraq and the Ministry of Finance so that the national economy can get through this crisis," he said.
A real role.
"The most important requirement for activating industrial production is the establishment of advanced industrial cities, where land is allocated to every industrial country with the necessary infrastructure, and must be near the main roads and in safe areas, with a real role in the selection of sites like this."
"The Iraqi market is vast and can accommodate large industries and there is a desire in this aspect by many international companies, but it requires overcoming the routine that confuses the completion of completion transactions for projects, because the step that is completed in two days outside the country needs more than four months in our circles, and this must be overcome," he said.
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