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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Will privatization save Iraq's economy or open the door to corruption?

    Rocky
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    Will privatization save Iraq's economy or open the door to corruption? Empty Will privatization save Iraq's economy or open the door to corruption?

    Post by Rocky Fri 27 Sep 2024, 6:52 am

    [size=38]Will privatization save Iraq's economy or open the door to corruption?[/size]


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    September 27, 2024[You must be registered and logged in to see this link.]
    Baghdad/Al-Masala: The government industrial sector in Iraq suffers from deep structural problems, as it faces functional slack and the cessation of production in a large number of factories, which has led to disguised unemployment.
    Statistics indicate that 104 out of 294 government factories are out of operation, with salaries continuing to be paid to about 66,000 employees without actual production.
    Such a situation constitutes a huge burden on the state’s operating budget, as the government is forced to pay billions of dinars without any productive return.
    The reasons for this deteriorating situation are many, starting from the destruction of facilities due to conflicts and bombing, passing through technological obsolescence that made these factories unable to compete, and reaching fierce competition from imported products. Among the most prominent industries that were affected: iron and steel, cars, textiles, and cement.
    Many experts believe that the solution lies in a public-private partnership to modernize factories and operate them more efficiently. This partnership relies on leveraging the expertise and resources of the private sector, while distributing the risks between the two parties. However, Prime Minister Mohammed Shia al-Sudani stressed that his government is not moving towards comprehensive privatization, but rather prefers to achieve a productive partnership with the private sector.
    But the question remains: Can privatization be the real solution to save the Iraqi industrial economy?
    Privatization is considered by some to be the best solution to overcome efficiency and productivity problems in government factories.
    Economists explain that privatization can bring life back to these facilities, by updating equipment and exploiting modern technology provided by the private sector.
    But the problem in Iraq is that implementing privatization requires radical political and administrative reforms, not just transferring ownership of factories to the private sector.
    On the other hand, there are concerns that privatization may be merely a means to enhance the influence of partisan and political forces, which seek to control these companies through fictitious or newly established companies. This may lead to further decline rather than reform, especially if transparent mechanisms are not followed to ensure competitiveness and integrity in privatization processes.
    In addition to potential political corruption, another problem facing privatization in Iraq is the unpreparedness of the labor market to accommodate this shift. Many analysts point out that the lack of a pension and social security system for private sector workers makes this sector unattractive to local workers.
    In contrast, citizens prefer government jobs that provide financial stability and guaranteed retirement rights, which increases dependence on the weak government sector.
    In addition, other experts point out that effective privatization requires a mature legal and economic environment that supports investment and fair competition. While Iraq still suffers from problems in the legal and regulatory infrastructure, which hinders the possibility of implementing privatization in a fair and effective manner.
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