Eid fever hits markets, poverty rates jump to 31%

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[size=52]Eid fever hits markets, poverty rates jump to 31%[/size]

[size=45]Baghdad / Mustafa Al-Jourani[/size]
[size=45]Similar to the epidemics afflicting Iraq, local markets in all governorates witnessed the spread of a fever, but this time it was not a sick fever, but an economic fever represented by the high prices of clothes and other materials in conjunction with the approaching Eid al-Adha. On (March 8, 2022), the Council of Ministers approved a number of additional decisions to confront the crisis of high international prices and take the necessary measures to support food security in the country, including those related to wheat prices and support the ration card.[/size]
[size=45]Citizens expressed their dissatisfaction with the noticeable rise in prices in the markets a few days ago, which coincides with the approaching Eid al-Adha, calling on the government and the concerned authorities to "immediately intervene."[/size]
[size=45]Umm Ahmed, a resident of the capital, Baghdad, said in her interview with (Al-Mada), that “the markets witnessed a significant increase in prices without warning,” stressing that “clothing prices were the most affected by the process of raising prices by merchants in most provinces.”[/size]
[size=45]Umm Ahmed added, "Some importing traders raced to increase the prices of materials in the markets, under the pretext of the ongoing war between Russia and Ukraine and the high prices of sea freight."[/size]
[size=45]For his part, one of the clothes merchants said, "There is a significant decline in the purchase of Eid clothes, unlike what happened during last year's holidays, which witnessed a great turnout, especially in the few days before Eid al-Fitr and Eid al-Adha." In an interview with Al-Mada, the trader Ibrahim Bassem indicated that "the markets these days are suffering from a clear and great recession for many reasons, most notably the high prices and the political conditions that the country is suffering from, which cause fear among the street."[/size]
[size=45]Bassem reveals that he has suffered a great loss as a result of the economic stagnation in Iraq and for consecutive days, noting that “traders importing goods are the ones who control the markets, especially since Iraq is a consumer country and depends mainly on imports.”[/size]
[size=45]In the meantime, one of the merchants of Al-Shorja area in the center of the capital, Baghdad, says that prices have increased these days by about 25%, and the reason is due to the rise in the source and the high cost of shipping.[/size]
[size=45]The trader, who preferred not to reveal his name, explained to (Al-Mada), that “the rise in prices has nothing to do with holidays, and even if there is no Eid in this month, the prices will be the same.”[/size]
[size=45]In turn, the researcher in economic affairs, Nabil Al-Tamimi, said in an interview with (Al-Mada), that “Iraq suffers from a structural defect in the nature of the political system, which can be described as a (sterile) system that is unable to adopt strategies or policies beneficial to the Iraqi people. The circumstances that coincided with the formation of governments during the past 19 years are exceptional circumstances in which Iraq faced major financial and security shocks and crises.[/size]
[size=45]Al-Tamimi points out that “the current government, despite its constitutional description as (the caretaker government), has broad and great powers, including the powers to spend according to the Financial Management Law No. 6 of 2019 and (its amendments), which authorized the government to spend equivalent to what it spent in the past year. , that is, up to 120 trillion dinars during this year, in addition to the legislation of the emergency support law for food security and development, which added to the government, and authorized it to spend another 25 trillion dinars, a large number that may exceed 145 trillion dinars during this year only. On a related level, the economist adds, “A large segment of citizens was affected during the period of the spread of the Corona pandemic due to social restrictions and restrictions, which may cause those outside the (functional environment) to accumulate debts and economic damages that they have suffered for a longer period than after the end of those restrictions. Without governmental responsibility towards these segments, as is the case in the rest of the world.”[/size]
[size=45]Al-Tamimi went on, saying that “the damages of that segment rose again when the government and the Central Bank of Iraq imposed a change in the dollar exchange rate against the dinar; This contributed to the rise in price inflation by about 18%, which put pressure on the entry of these weak and fragile segments.”[/size]
[size=45]According to Al-Tamimi, (global monetary easing policies) produced inflationary processes in global prices prior to the European (Russian-Ukrainian) crisis, which was referred to by international organizations such as the FAO and the World Food Program, which caused an increase in the suffering of the poor and middle segments inside Iraq.[/size]
[size=45]He concluded his speech by saying, “The European crisis and the Russian war have caused more pressures on prices, especially the prices of fuel, energy, grains and oils; What constituted additional inflation was paid for by the poor, for all of the above, the recent events between 2020-2022 have caused the poverty rate to rise to significant levels, up to 31%.” In addition, economic expert Duraid Al-Anzi said, in an interview with (Al Mada), that “the phenomenon of high prices during holidays and special occasions is normal, and it occurs in all countries of the world.”[/size]
[size=45]Al-Enezi indicates that with “prices rising beyond the normal level, the matter becomes worrying, and urgent government intervention is needed to reduce it,” pointing out that “the government is required to carefully study the markets and know the needs, especially before any occasion in the country.”[/size]
[size=45]He added, "Providing the goods required by the government makes merchants in a competitive stage with the government, and therefore they reduce prices instead of raising them on occasions."[/size]
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