Privatization. An effective tool for achieving economic reform

Privatization. An effective tool for achieving economic reform

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Baghdad / Imad al-Amara
 
Privatization programmes are one of the most important tools of economic reform, and their application is accompanied by a number of positive and non-positive economic impacts, and the state can benefit from the positive effects and develop it and overcome all the challenges that may arise during the application, and use it to stimulate national production in the light of the voices calling for the revival of the local industry that the citizen is looking for seriously.
 
The advantages of privatization
Academic Dr. Abdul Karim Shanjar said: "One of the advantages of privatization programs is to increase domestic and foreign investment, in terms of domestic investment, private capital will invest in the purchase of public institutions, as savings shift to investment, increasing economic efficiency by producing goods at affordable prices and high quality through the introduction of new methods of administration and the purchase of production lines, and this is in line with the voice of the Iraqi street in reviving the national product and the rise of the Iraqi economy."
"At the level of foreign investment, the state's financial deficit attracts this type of investment that helps in the actual implementation of privatization by creating new jobs and increasing profitability, and privatization programs lead to the country's stability and financial position by excluding the expenditures it incurred in strengthening public sector institutions and trying to cover its losses, which reduces inflation, as well as the possibility of the country getting a return from the sale of its institutions," he said.
 
Regulatory structures
"Privatization programs are working on a regulatory reform process that covers both the regulatory structures and regulations of the activities of productive enterprises responsible for investment policies, financial and monetary policies, and the enactment of legislation and laws for the growth and expansion of the private sector during a certain period, in addition to the development of markets that are the cornerstone of the success of privatization by providing an opportunity for foreign and domestic investors to sell and buy shares, and programs to reduce the cost of performance by reducing excess labor and efficiency of work improve swell swells when decision makers feel the importance of work because they are They were given the opportunity to be owners and contributors to the production process, not to mention the technology that did not exist."
 
The downsides of privatization
He explained that "some confused international experiences must be taken advantage of and careful, given the accompanying privatization of corruption in several countries, where narrow individual interests have taken over valuable assets and resources that were publicly owned by the state and then bought cheaply, and these have become billionaires, for example in Russia, for example, in Russia, the costs of privatization, which many elements of society do not want to pay because they are part of existing social systems and are afraid of making changes as a result of the application." 
"There are new rules introduced by privatization, including increasing working hours and reducing the benefits they were receiving, and unemployment is one of the most important drawbacks of the implementation of privatization, which the state faces because it is unable to create alternative jobs," he said.
 
Funding process
"The importance of having financial institutions to deal with the financing process that needs the transition phase, as it requires the support that institutions need for restructuring, maintenance expenses and asset replacement before the transition and other expenses, is a problem for the state, which does not have the resources and has a broad public sector," he said.


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