Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Join the forum, it's quick and easy

Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

Would you like to react to this message? Create an account in a few clicks or log in to continue.
Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    After the end of oil, does Iraq have alternatives to cover its annual expenses?

    Rocky
    Rocky
    Admin Assist
    Admin Assist


    Posts : 270596
    Join date : 2012-12-21

    After the end of oil, does Iraq have alternatives to cover its annual expenses? Empty After the end of oil, does Iraq have alternatives to cover its annual expenses?

    Post by Rocky Fri 25 Mar 2022, 8:48 am

    [You must be registered and logged in to see this link.]
    After the end of oil, does Iraq have alternatives to cover its annual expenses?

    Ultra Iraq - Editorial Team 
    Expectations and warnings do not stop talking about the need to reduce Iraq’s dependence on oil and find other alternatives as a source of its annual revenues, with a dependence of more than 95% to provide its revenues and expenses, which makes Iraq’s economy hostage to the fluctuations of the oil market and global demand for it and the confusion of global crises, while this talk leads to the question On the fact that Iraq can achieve revenues comparable to what it obtains from oil.
    share
    Iraq is the candidate most affected in the event of a decline in demand for oil
    The average annual revenue that Iraq needs to achieve a good spending budget on operating and investment expenses is approximately $90 billion annually, most of which is generated from the sale of crude oil, as Iraq annually exports more than one billion barrels of crude oil, and the barrel price controls the amount of Iraq’s annual revenue.
    Read also:  [You must be registered and logged in to see this link.]
    The danger of relying entirely on oil as a source of revenue does not stem from the fact that oil is subject to global fluctuations and is most rapidly affected by crises, but the danger goes beyond what the future holds of reducing dependence on oil, and the decline in demand for it, as experts warn, especially in the transport sector, which consumes about 60 % of global oil production.
    [You must be registered and logged in to see this link.]
    In a narrower scope, Iraq is the most affected candidate in the event of a decline in oil demand, as expectations indicate that if global demand for oil falls by half, for example, this decline will not be divided equally among all producing countries, but consumers may go to Filling their simple needs of crude oil from the most competitive exporters to Iraq, and ignoring the purchase of Iraqi oil, as Minister of Oil Ihsan Abdul-Jabbar points out in [You must be registered and logged in to see this link.] .
    Hence, the questions arise about “what are the sectors that can replace oil or contribute at least half of Iraq’s revenues instead of oil?”, as well as whether Iraq actually possesses capabilities and areas that could provide it at least 40 billion dollars annually to contribute 50% with oil to achieving the required revenues?
    The first thing that comes to mind in this regard is the sectors of agriculture, industry and tourism, and it is assumed that Iraq possesses the resources, raw materials and the main elements for the success of these sectors and the achievement of significant financial revenues.
    Tourism, agriculture and industry
    In terms of tourism, religious tourism is more common than other forms of tourism in Iraq [You must be registered and logged in to see this link.] this sector by successive governments, lack of marketing and  [You must be registered and logged in to see this link.] , so that Iraq’s annual tourism revenues may not exceed one billion dollars.
    Assuming that tourism enters Iraq at least $10 billion annually to contribute along with the rest of the sectors in reducing dependence on oil, Iraq needs to enter nearly 200 million tourists annually, or more than 5,000 tourists per day to various governorates and tourist areas, calculating the price of entry visas. Set by Iraq at 50 dollars per person, this is except for what is spent by tourists in the Iraqi markets and the service sector, which contributes to increasing commercial activity.
    With regard to agriculture, Iraq has an export capacity for some crops, especially strategic crops such as wheat, barley, rice and dates. However, the continuous decline in the quantities of water entering Iraq, which is expected to deepen further in the coming years, makes Iraq unable to meet its needs even of these materials. This makes it difficult to talk about the possibility of obtaining “billion” financial revenues from this sector [You must be registered and logged in to see this link.] .
    Sectors that need a lot of money
    The economic expert and consultant in industrial development and investment, Amer Al-Jawahiri, says that "Iraq needs a major renaissance through investments in the industrial, agricultural and tourism sectors before talking about the possibility of achieving financial revenues that contribute with oil revenues by financing the budget."
    Regarding industry, Al-Jawahiri indicates in his speech to “Ultra Iraq” that “there are deteriorating facilities in the government industrial sector, as well as the private sector and the mixed sector,” noting that “the matter is not limited to supporting and reviving these industries, but rather by demand for the products of these facilities. and the ability to market it.
    With regard to the agricultural sector, as soon as Iraq was able - and to speak to Al-Jawahiri - to meet its local need from its cultivation and stop importing, it is in itself considered a success and a good contribution to agriculture in saving money instead of wasting it on imports, noting that "the agricultural sector can generate many financial revenues, But it requires foreign and local investments that can target exporting products. The success of the agricultural sector in this regard requires investment projects to provide water, electricity, infrastructure, improve irrigation methods, and provide pumps for the success of agricultural projects.”
    share
    The public sector’s contribution to revenues, excluding oil, may not exceed 2 trillion dinars annually
    Tourism is no different from other sectors, according to Al-Jawahiri, as it "needs huge funds to rehabilitate it and make it able to attract tourists, by providing infrastructure, transport, communications and developing heritage sites."
    Read also:  [You must be registered and logged in to see this link.]
    Al-Jawahiri suggests that each governorate develop its economic capabilities individually through a “development and reconstruction council of its own and that invests in the governorate’s advantage, whether tourism, industrial or agricultural, and according to the elements available in it,” noting that “any development in the governorates’ capabilities and their economy will belong to the state as a whole.”
    The first step: removing sectors from the hands of the state
    In the opinion of the researcher in economic affairs, Nabil Al-Ali, the "password" in making these sectors productive and income for the state is by removing them from the hands of the state.
    Al-Ali said in an interview with "Ultra Iraq", that "Iraq possesses the ingredients and factors to reduce its dependence on oil imports and revenues as a major and semi-sole source of revenue, by adopting strategies to develop other disruptive sectors," noting that "oil revenues contribute to accelerating the growth of other sectors as Availability of abundant capital to initiate projects on various developmental levels.
    He added, "If we look closely at the structure of the Iraqi economy for the state, it can be said that the Iraqi economy is an economy dominated by the state and monopolizing most of its sectors, the transport sector, energy and public services (electricity, water and municipal services), as well as the natural resources and minerals sector, and many other sectors that dominate the Iraqi state. Most of its economic activities without investing or activating them, and even without giving the private sector the opportunity to benefit from them.”
    He continued, "Likewise, the state's public companies, which are more than 70 companies, 250 factories, most of which are idle companies, and the state may spend and feed its losing spending periodically, without there being any plan or strategy to stop this continuous financial bleeding reinforced by corruption." 
    How can expenses be saved? 
    Al-Ali points out that “the operational spending of the state, which is about 60 billion dollars annually (90 trillion dinars), is important to reconsider and analyze its size, as most of this amount goes in the form of spending the salaries of employees at 45 trillion dinars annually for the salaries of state employees and the public sector, which is from It is supposed to be profitable, in addition to 16 to 18 trillion dinars that go to the salaries of social workers and retirees, and the remaining amount is other operating and consumer expenses.” 
    In the beginning - and speaking to Ali - it is necessary to reconsider the "salary scale and reduce the high salaries of presidencies and some ministries in order to ensure the achievement of social justice, then directing and reforming public sector companies to be productive rather than remaining a loser, bearing the state with the consequences of its mismanagement, and striving to reduce and legalize spending for approximately 10 - 20%".
    The public sector’s contribution to revenues, excluding oil, may not exceed 2 trillion dinars annually, according to Al-Ali, who points out that “governments focus on collecting taxes and fees to increase their non-oil revenues, ignoring and ignoring the importance of the public sector and its development to supplement state budgets with revenues that may exceed 50 trillion dinars if What you invested correctly.
    Agriculture does not affect state revenues..Tourism is likely to be at the top
    Agriculture cannot be a source for providing large financial revenues to the state, according to Al-Ali, who points out that “agriculture in Iraq is in which lands are managed by peasants and farmers, and the success of agriculture may be due to macroeconomic indicators in the trade balance or the balance of payments, but the government’s economy may not Its revenues are affected by the growth of the agricultural sector or not.
    As for tourism, Al-Ali believes that it “could be at the top of the economic pyramid, after the completion of the other cycles of the economy, or ensuring security and economic stability.” As for industry, Al-Ali asserts that “its success is linked to the release of the private sector’s hand and its withdrawal from the hands of the state and its monopoly on these sectors.”
    Regarding the possibility of the state investing money outside Iraq, such as sports clubs or buying stakes in international companies in the field of electronics and others, Al-Ali considers that "it is better for the state to invest money inside Iraq first, with hundreds of possible sectors for investment."
    share
    Governments ignore the importance of the public sector and its development in order to supplement state budgets with revenues that may exceed 50 trillion dinars if invested correctly.
    In sum, experts agree that the components of oil alternatives are not completely ready to achieve huge revenues equivalent to what Iraq needs annually for its expenses, and it needs a lot of work and money to spend on it in a way that enables it to generate for Iraq at least half of the money that oil generates, which makes the country’s future If oil prices fluctuate or fall, it seems gloomy or not so good. 
    [You must be registered and logged in to see this link.]

      Current date/time is Wed 22 May 2024, 9:42 am