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- SATURDAY, MAY 14-2022, AM 9:32
- TAYSEER AL-ASSADI
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The industrial sector in Iraq has faced major and severe problems since the US invasion of the country in 2003. As Baghdad, which succeeded in establishing a huge industrial sector that achieved self-sufficiency in many commodities, with the help of Eastern European countries and the former Soviet Union since the mid-seventies of the last century, suffers today from a halt Thousands of state-owned projects and factories due to vandalism, theft and neglect.
And the crisis does not stop here, as beyond the disruption of this productive sector, millions of dollars are paid from the state budget to the workers of hundreds of stalled factories. While officials in the Iraqi Ministry of Industry said that the chronic inability to revive the factories was caused primarily by the lack of financial allocations, others stressed that political motives stand behind this to ensure that Iraq continues to import its needs, especially from Iran and in hard currency.
pressure on budget
An Iraqi official in the Ministry of Industry explained that the number of government factories and factories operating in Iraq does not exceed twenty percent of the total production factories amounting to more than a thousand factories and factories in various sectors, most of which have been out of service since the American occupation of the country.
And he indicated that the industrial sector in Iraq represented 23 percent of the total output before 2003, and that the factories of medicines, spinning, weaving and clothing, fertilizers and phosphates, sugar factories, cement and iron steel factories, precision industries, and others for foodstuffs and dairy, had achieved self-sufficiency, Today, however, it has become a burden on the state, which pays the salaries of thousands of its employees and workers without them doing any work.
He added that the payment of salaries for factory and factory employees is still according to the advance system, meaning that the government is lending to the Ministry of Industry in the hope that it will pay off production later, but in practice since 2019, thousands of factories and Iraqi production sectors have stopped, and therefore these payments will not be recovered.
The General Coordinator of the Iraqi Economists Network, Dr. Bariq Shubar, explained that Iraqi factories cost the state treasury more than 500 million dollars annually, and there is no country in the world, regardless of its economic system, whether capitalist or socialist, that pays salaries to employees or workers who do not work.
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In an interview with Al-Araby Al-Jadeed, Shubar stressed that continuing to pay salaries without working means exhausting the state budget and wasting financial resources that can be used to build schools, hospitals, roads and infrastructure.
He explained that economic policies in all countries of the world are based on plans and strategies to reduce the risks of any crisis, for example in the capitalist system when the factory stops working, special programs are designed, either early retirement, financial rewards, or the transfer of factory ownership to workers, while in the economy Socialist Workers are transferred to factories or other facilities. He stressed that Iraq is the only country in the world in which neither of these two solutions is adopted, due to the absence of political will and the dominance of parties over the state's industrial and economic policy.
losing companies
In turn, the researcher in Iraqi economic affairs, Hamza Al-Hardan, stressed that neglecting the production sectors and the country's dependence on Iraqi oil sales imports and the trend towards strengthening operational budgets restricted the Iraqi economy and made it an economy completely dependent on oil after the industrial sector constituted an important percentage of GDP. Before 2003
, Al-Hardan added to Al-Araby Al-Jadeed that most state-owned industrial companies are losing companies, and depend on the state budget to provide financing and employee salaries, due to some of them continuing on the old methods of production, which are expensive compared to modern methods that rely on industrial technology. In which.
He stressed the presence of large numbers of employees that exceed the needs of industrial companies at very high rates, which represents one of the disguised unemployment in Iraq, and explained that 80% of the annual allocations for the operational budget are spent on salaries and employee entitlements, while these sums were supposed to be invested in rehabilitation Factories and their modernization.
In order to solve and confront this crisis, Al-Hardan suggested that the Iraqi government work to offer these factories for investment and allow the private sector to take its role in developing the industrial sector, and relieve the burden of annual budgets of this huge number of unproductive employees.
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and indicated that this step will provide a transformation process in Iraqi industrial production, as the private sector is more keen on the sustainability of production because it is linked to rates of profit and growth.
unemployment crisis
For his part, the independent representative in the Iraqi parliament, Yasser Watut, indicated that “one of the main reasons that led to widespread popular congestion and the outbreak of the demonstrations in 2019, is unemployment, the most prominent of which was the absence of Iraqi factories and laboratories that used to absorb graduates and experiences before the American occupation, Which most Iraqi parties failed to rehabilitate.
Al-Araby Al-Jadeed pointed out that "this file is one of the files that the independent representatives are carrying out in order to put it in Parliament during the coming period, and to remove Iraq from the rentier economy that put the country in dependence on selling oil and buying all market requirements from abroad."
Watout emphasized that "
He stressed the need to "exclude import companies affiliated with parties and politicians in the next stage, especially that Iraq is going through a major financial crisis, and that there are potential economic risks for the coming years that may lead to government appointments to a complete halt due to inflation in the number of employees, which will lead to higher unemployment rates." As a result of the increasing number of college graduates.
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During the past two years, Iraqi activists, traders and investors sought to restore life to the local industry, but the campaign did not continue due to the lack of financial support for the factories by the government, and it also did not move towards the open borders with Iran and Turkey, according to MP Hadi al-Salami.
Al-Salami told Al-Araby Al-Jadeed that "all Iraqi governments are remiss in rehabilitating the factories and factories that made Iraq, in several periods, satisfied with what it produces and manufactures." He continued his speech by stressing that "there is a political will and large companies that do not want Iraq to be stable, or to reach a good economic situation, because they are parties that live on crises, and they want Iraq to be affiliated in all ways to neighboring countries."
Last March, the economic and financial advisor in the Iraqi government, Mazhar Muhammad Salih, presented a proposal to establish a fixed committee for the productive partnership between the public and private sectors. Agriculture, digital services and factory operation, to be able to generate millions of jobs.”
But the economic expert, Bashir Al-Jawahiri, pointed out that “in the coming years, Iraq needs complete industrial cities, not just factories and factories, due to the large number of graduates annually, in addition to the need for more products and foodstuffs,” explaining to Al-Araby Al-Jadeed. "Opening Iraqi factories requires a strong, united political will towards saving the country, and without that, all political or parliamentary moves will not reach results."
Previous government data indicate that Iraq was one of the industrially prosperous countries in the world in the seventies, sixties and fifties of the last century, and the volume of production of the industrial sector met the needs of the local market, as well as exports abroad.
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