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Away from the human side.. An expert diagnoses four negative effects of expanding social protection
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Economy News-Baghdad
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Added 04/27/2023 - 4:04 PM
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Economy News-Baghdad
On Thursday, economist Nabil Al-Marsoumi identified a number of negative aspects of government expansion in the field of social protection salaries.
Al-Marsoumi told "Al-Iqtisad News" that "the Ministry of Labor seeks to expand the base of those covered by social protection salaries from 1.5 million to 2.5 million people for the purpose of addressing the high poverty rate in Iraq, which amounts to 25% of the population," considering that this is "a policy that is considered an acceptable humanitarian It works, but it has some drawbacks.
He explained that "it indicates the absence of a real economic process in Iraq that produces goods and provides job opportunities," adding that it represents "interest in the distributional aspect of oil revenues instead of investing them in developing and diversifying the Iraqi economy to provide job opportunities."
He pointed out that among the negatives is also "adding permanent burdens to a public budget funded mainly from unstable oil revenues, which may later lead to the government not fulfilling its obligations towards those covered by social protection salaries if the oil price drops below $60 a barrel."
And he considered that social welfare "encourages Iraqis not to care about work and rely on cash subsidies, noting that a significant part does not deserve such subsidies, and the evidence for that is the Ministry of Labor's refusal of the applications of more than 900,000 people who are not eligible to obtain these subsidies."
Views 131
Added 04/27/2023 - 4:04 PM
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