A window on the formation of sources of income for the prospective sovereign fund / prospective national welfare funds in Iraq
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Aqil Jaber Ali Al-Mohammadawi / researcher in financial and development affairs
17 . views
Added 07/25/2022 - 11:59 AM
Update 07/25/2022 - 12:40 PM
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Aqil Jaber Ali Al-Mohammadawi / researcher in financial and development affairs
With a careful research look at some successful international practical experiences within the practices of sovereign funds in China and the Russian Federation, they can be used in the maturation of the model for forming the structure of the National Sovereign Fund in Iraq and extracting the following ...
The importance of focusing methodologically and practically to contain and enable the shift from scientific theorizing to the reality and methodology of the financial and economic model to form the applicable sovereign fund (National Welfare Fund), which is the biggest challenge and in parallel we think about who is the institutional and specialized body responsible for forming and formulating the structure of the Iraqi sovereign fund in a way Real and realistic methodologically, structurally and institutionally in the reality of institutional work away from non-productive and practically unproductive theorizing, and who are the scientific and professional bodies, personalities and mentalities that should exist and participate in a real and without dispensation from them to form, build, devote and mature the structure, model and methodology of the Sovereign Fund !
Sovereign funds can be created and formed from the surpluses of the federal public budget, surpluses of government revenue from the activities of companies whose assets occupy a large share, revenue from certain tax savings, including foreign exchange reserves of central banks, and international trade surpluses. This, for example, is how money is made in China .
Sovereign funds, representing the state, dispose of national savings, invest them in funds of various companies and other financial instruments, in particular, in stocks, bonds and funds of foreign countries. In principle, the foreign exchange reserves of the Fund are used differently from the official reserves of the government. Specifically, the state usually has two other schemes for investing financial resources :
A central bank that invests mainly in bonds, and state-owned companies that invest their money in private equity. But the resources of the last two institutions can also be transferred by the state to sovereign funds .
Sovereign investment funds, owned by the governments of sovereign countries, manage state rental income (the public domain) and budget surpluses. Each sovereign fund seeks to increase its potential and capabilities by investing in various national and international financial instruments .
If the main goal of pension funds is to ensure the financing of pension obligations, then sovereign accumulation funds pursue various goals, such as: pooling savings for future generations, promoting the implementation of social and economic projects, and protecting the economy from fluctuations. In commodity prices, to promote restructuring and scientific and technical development. This management of national wealth in the name of developing society and the state as a whole can be considered a new type of modern international economic approach based on the formation of national welfare funds. It opens new horizons for organization, planning and macroeconomic methodology .
17 . views
Added 07/25/2022 - 11:59 AM
Update 07/25/2022 - 12:40 PM
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