The government's five-year plan...was it born "lame"?

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[size=52]The government's five-year plan...was it born "lame"?[/size]

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08/05/2024
Successive governments after 2003 approved dozens of plans, on the economic and financial levels and in the agricultural and industrial fields, but they quickly disappeared over time, as they lacked many of the foundations of construction and proper implementation, in light of the rampant corruption in most state institutions, which made them ink on paper.[/size]
[size=45]Yesterday, Prime Minister Mohammed Shia Al-Sudani launched the five-year national development plan 2024-2028, in recognition by the government (according to him) of the importance of the country having a development plan with achievable paths and goals, stressing the importance of adhering to the plan’s goals; as it is the way to change the lives of Iraqis for the better, according to the official statement.[/size]
[size=45]Regarding this matter, economic expert Abdul Rahim Al-Mashhadani said, during an interview with “Al-Alam Al-Jadeed”, that “these plans are always announced, but there is usually no room for implementing them, and the strange thing is that the same people who have been making the plans since 2007 are the same ones who are making this latest plan, even though the Ministry of Planning held a conference to announce it.”[/size]
[size=45]Al-Mashhadani believes that “this plan will be like its predecessors, as it includes great ambitions, but it was not framed in the government’s budgets and programs, as is the case in such cases.”[/size]
[size=45]He rules out “the possibility of financing these plans from the banking sector, because it does not have such an approach, despite the initiatives of the Central Bank of Iraq. The banks were living off the currency selling window in order to achieve large profits, in addition to being a gateway to corruption and money smuggling, especially since the theft of the century is not far away, as most of it was taken out through the window.”[/size]
[size=45]He explained that “focusing on the banking sector within this plan will not achieve the goals of the national development plan, in light of the presence of 28 sanctioned banks and more than four banks under guardianship out of the 70 banks, and we also have seven government banks that will be restructured.”[/size]
[size=45]The economic expert points out that “the contributions of the 63 private and Islamic banks are very weak. If these banks were effective and capable of leading development, they would have attracted capital to implement development projects. Otherwise, they are weak and unsuitable. Otherwise, what is the benefit of having a bank that cannot increase its capital over 20 years? Therefore, these remain mere dreams.”[/size]
[size=45]Regarding the private sector, Al-Mashhadani explains, “There are great opportunities for it through government facilities, including issuing two regulations to facilitate its work, especially in a group of industries, leading to the localization of pharmaceutical industries. We have about 50 pharmaceutical factories within the private sector, some of which are under construction and others are solid global production lines, in addition to focusing on construction industries. We currently have about 25 iron factories, and next year we may reach self-sufficiency.”[/size]
[size=45]Prime Minister Mohammed Shia Al-Sudani stressed that the five-year development plan includes paths with economic dimensions based on the philosophy of economic diversification, and works to reform the banking and financial sector, automate all economic and service activities, and govern government and service work.[/size]
[size=45]In this context, Member of Parliament Mohammed Al-Ziyadi explained, during an interview with “Al-Alam Al-Jadeed”, that “our economic situation is fragile and depends on selling oil and relying on the revenues we obtain to provide salaries and other investment plans. This is what is called a one-sided economy and it is very dangerous.”[/size]
[size=45]He points out that "the government did not take into account the facts that may arise in the region in light of the current tension, and we seek to ensure that Iraq does not suffer losses on the economic level in the future."[/size]
[size=45]In May 2018, the government of former Prime Minister Haider al-Abadi launched the five-year national development plan for the period from 2018 to 2022, which focused on developing the economy and finding financial resources away from oil. According to what was announced at the time, the plan includes raising the volume of investment in the private sector from 34 percent at the time to 40 percent, and keeping government investment at 60 percent, with the aim of activating the role of the private sector in development.[/size]
[size=45]Al-Abadi stressed during the announcement of the plan that the focus during the coming years will be on developing the housing sectors through building new units, building schools, developing the health and education sectors, providing services, and providing job opportunities.[/size]
[size=45]In addition, economic analyst Abdul Hussein Al-Shammari explained, during an interview with “Al-Alam Al-Jadeed”, that “the five-year plan comes if the country is stable and its leaders are highly qualified, meaning that each minister is specialized in his field of work, and this includes planning, trade, industry, and others.”[/size]
[size=45]Al-Shammari warns that “when the five-year plan is drawn up lamely and depends on small amounts compared to the expenses, miscellany, and illegal allocations for all state officials, it will not achieve its goals, because the country is plundered and the amounts that come into it from oil go to useless allocations.”[/size]
[size=45]He added, “We are not optimistic about the five-year plan, which may include projects that do not exceed 10 percent of the budget, which is very small. Since 2003 and until today, the state has not focused on building real infrastructure for the Iraqi governorates.”[/size]
[size=45]The economic analyst and researcher states that “the banking sector has not developed itself, and the Central Bank of Iraq is the one supervising this matter, which also lacks first-class specialists, and what it issues are reactions to failed procedures.”[/size]
[size=45]It is noteworthy that the Iraqi economy is distinguished by two basic features that help give it preference in foreign investment: the first is the cash flows in foreign currency reflected in the current account of the balance of payments relative to the gross domestic product, which is estimated by international economic and national centers at a surplus estimated at about (positive 7 percent). Iraq also ranks second in OPEC oil production and fifth in the world in that production, according to specialists.[/size]
[size=45]According to the index reviewed by Al-Alam Al-Jadeed, the Iraqi projects market achieved gains worth $26.3 billion, or 7 percent, due to the reactivation of plans to establish a national network of high-speed railway lines across the country.[/size]
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