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Activating and supporting the private sector provides job opportunities
Reportage 09/23/2024
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Every year, Umm Malak waits impatiently for winter to return to her job, which provides for her three daughters and sick husband. She heads to the gas station near her home and buys a small cart to put the oil barrels in, which are distributed according to the fuel card distributed among families. When winter comes, the difficult journey begins for Umm Malak, who does not have any salary or other source of income that would enable her to live comfortably with her daughters. Umm Malak is not the only one who suffers from such conditions, as there are hundreds like her who suffer and endure difficult conditions imposed on them by poverty.
Social care is known as one of the simplest welfare systems, which is followed in most developed countries of the world. As for Iraq, the Social Care Department in the Ministry of Labor and Social Affairs has a specific system for disbursing salaries to eligible groups, especially those who have been harmed by terrorist operations and the difficult circumstances that the country has gone through.
Last June, the Ministry of Labor announced the launch of social assistance for more than two million and (118) thousand families. The official spokesman for the Ministry, Najm Al-Aqabi, pointed out that the number of covered families supported by men amounted to more than one million and (155) thousand families.
The Ministry’s Social Protection Authority recently announced that the total number of individuals covered by the system amounts to 7 million and 600 thousand individuals. According to social protection, this number represents 5.6 percent of the total population of Iraq, which exceeds 43 million people.
Difficult circumstances
The social welfare salary helped Umm Malak a lot and helped her support her daughters, especially with the deterioration of her husband’s health and his being prevented from working. Therefore, this woman was forced to work in the most difficult professions, and what made matters worse was the cessation of that salary, due to the great deterioration that affected Abu Malak’s health.
Academic and business administration specialist Dr. Hoda Hadi Hassan explains that poverty is a complex phenomenon with multiple economic and social dimensions, and its concept varies from country to country, culture and time, but what is agreed upon is the inability to achieve the minimum standard of living. One of the most important strategies is improving access to sustainable livelihoods, entrepreneurship opportunities and productive resources, and making basic social services available and easy for all.
Small projects
After losing his father in a tragic car accident, Ehab Hazem found himself providing for his three brothers and his mother. While waiting for job opportunities that became scarce, he found no way but to start his own small project, which is selling electronic devices and mobile phones. He used his education in computers to make this project successful.
Economic studies indicate the importance of small projects of all kinds in reducing the poverty rate and supporting the local national economy at the same time. They reduce unemployment to some extent and provide more job opportunities for young people and graduates. They also sometimes improve the local competition that occurs between these small industries. They also develop the capabilities and skills of young people and give them sufficient experience to manage these projects successfully and soundly.
Earlier, Prime Minister Mohammed Shia Al-Sudani announced his encouragement and support for small projects, after an agreement was concluded between Iraq and Japan to support small and medium enterprises in the country, which would improve and develop national industries.
Global scourge
It is important to note that the scourge of poverty is not only a local problem, but a global one, as the United Nations indicated that its percentage increased significantly in 2020, especially when the Corona pandemic swept the world and caused the loss of many job opportunities, and unemployment increased significantly in different countries of the world.
Iraq launched its strategy to combat poverty in 2010, which aimed to reduce the rate of this scourge to 16 percent. Despite its difficulty, those in charge of it, the implementers and the partners were able to complete up to 50 percent of the activities of this strategy. However, the difficult circumstances, displacement and ISIS attacks led to a rise in the poverty rate again. However, government agencies have recently returned to applying and implementing important strategies to achieve the desired goal and reduce the poverty that has afflicted many. Among these strategies are social protection salaries and loans that support small projects and industries.
Important industries
There are many industries spread in different countries of the world, and they attract large numbers of workers, which reduces unemployment and provides various opportunities, including those known as small ones such as carpentry, blacksmithing and handicrafts. It is known that in all countries of the world there are various sources that support the local economy, and work to develop and grow it. Iraq is one of the countries that has always been distinguished and has a major role in various industries. It is noteworthy that these small sectors are likely to contribute to reducing the unemployment rate to some extent.
Recently, the Prime Minister directed to support small industries, especially since Iraq has a real opportunity to possess an advanced and economically successful industry, especially with the presence of distinguished human resources, continuous local need, and abundance of raw materials, according to Al-Sudani.
Academic and economic researcher Dr. Laith Ali points out that poverty is one of the most important problems facing human societies. Eradicating it is the first goal undertaken by the United Nations in sustainable development programs, and it constitutes an urgent priority.
Infrastructure
Academic Dr. Laith Ali believes that poverty is linked to many factors, in addition to income or resources, including hunger and malnutrition, as well as health and education services, access to water, transportation and infrastructure services. He explained that poverty is inversely proportional to the economy, so the more the economy grows, the less poverty will occur, and the slower the economy grows, the more the economy will grow.
Unemployment also contributes to increasing poverty rates, because increasing job opportunities in the agriculture, industry, trade and services sectors, as a result of economic growth, will contribute to reducing poverty because it means having a personal income that is sufficient for the individual, while inequality in income distribution contributes to increasing class differences in society, which in turn leads to an increase in the poverty rate as a result of this disparity. The competent authorities can reduce this real problem by following different strategies, including levels related to the economy such as developing industry and improving agricultural reality, providing basic services, infrastructure and social protection, but the most successful strategies are those that provide job opportunities that contribute to increasing individual income, through eliminating unemployment, and it is also possible to implement a set of ideas, including working on optimal investment of resources, in a way that achieves public benefit as well as activating and supporting the private sector and reducing individuals’ dependence on government jobs, and working to eliminate corruption rampant in all joints of the state, especially bribery, in addition to equality.
In income distribution in particular
For low-income classes, with taxes imposed in proportion to the citizen's income.
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