Dr.. Kamal Al-Basri, professor harmful Sepahe - Iraqi Institute for Economic Reform

Dr.. Kamal Al-Basri, professor harmful Sepahe - Iraqi Institute for Economic Reform

1/13/16

It is known the existence of a positive role for the oil and democracy in achieving progress and prosperity, but they can be a source of negative material to retreat and misery when being abused, or when obscured by incentives the most appropriate use of good governance standards (transparent and efficient and work to the rule of law). Known that oil revenue earning easy money and the absence of transparency used for purposes far from economic feasibility, and democracy as a mechanism could use away from the content Incarnate social contract to turn into quotas. This article seeks to discuss the distorting democracy and oil use, and concludes that the misuse of oil wealth and democracy construed to distort the economic production and the failure of the democratic experiment structure. First we will discuss the implications of democracy, and secondly problematic oil.

The repercussions of democracy:
It is clear that Iraq has made remarkable progress in democratic practices for the Arab region, but that the practice of democracy are not accompanied by the application of the principles of applying the vocabulary of good governance, the social contract, which led to the weakness of the government's performance and the inability to provide the necessary services to citizens despite the availability of cash receipts oil. The resentment of citizens created an opportunity for political opponents of the government's failure to ride the wave and sometimes framed the framework for inefficiency and corruption, and at other times sectarian framed. Faced with this division and political chaos van directed the government to resolve the problem of political stability, political participation (quotas) solution does not lead to harmony, but is dedicated to further the political divide, and that the solution lies diligence to apply the vocabulary of good governance, a practice that is growing its role and integrates dynamically with the progress of the level of education and culture.

The importance of democracy does not come from it guarantee the right to political practice of the majority, but because it is the proper framework for the implementation of the contents of the "social contract", that the ruling majority respects the rights of all alike. Democracy does not provide a mechanism alone to achieve the physical and moral fruits of citizens without the adoption of transparency, efficiency and participation and listening to the opinions of others and take responsibility for policies and decisions taken and the rule of law. Yes, Iraq has made significant progress in the application of some of the referendum on the constitution of democratic practices and repeated elections at the level of the federal government and local governments in many of the practices of political freedom and individual liberty and the adoption of decentralization ... etc. But the practice of democracy are not accompanied by the fulfillment of the social contract inherent in the mechanism of democracy and good governance vocabulary. The lack of commitment to transparency in the various practices and their absence has put the government in charge of the subject of suspicion and accusation in front of members of the public and local and international organizations, and the lack of transparency does not encourage the creation of incentives to comply with the vocabulary of other good governance such as competence and the application of the law, and lack of transparency in the decision led to the stripping citizen of its role in the follow-up activities of the government and seek to rationalize and control, which led to the spread of the case mistrust and accusations that some of them may be considered malicious.

Examples of the weakness of transparency, "the federal budget," which is considered the most important political economic file, reaching transparency of the budget for the 2014 scale (4%), according to Transparency International budgets Organization Studies (IBP), that this weakness is due to the obligation to prepare and publish for the preparation and implementation of the budget documents timings according to international standards and stipulated by the Financial Administration Act explicitly. There is no doubt that who gets each year is a violation of the law by the Ministry of Finance. The budget is a way that is difficult for the citizen and the follow-up questioning the financial allocations vague as it does not indicate to specific projects does not know the economic viability and its relationship to national economic Balstratejah. The lack of transparency has led to excessive financial allocations at the expense of other aspects of a larger economic feasibility (as is the case in the continuation of inflation volume of wages and salaries allocations to the education sector allocations account or health and housing). Because of the lack of transparency it has become very difficult for citizens and civil society organizations to follow up on the efficient use of public money or the follow-up activities of the government, because the lack of accountability and previous censorship official and subsequent semi-official course gives the government official and a large area to act away from the standards of efficiency in the use of public money.

On the basis of the above class of Iraq's economic manners and one of the not capable governments to fulfill their duties, as the sequence of Iraq has reached, according to indicators of the World Bank on the application of standards of good governance even lower than his fellow Arab states (and even less of the Nigeria State sunken corruption!). Above factors have led to the weakness of the justice of the citizen confidence and the credibility of the government's measures, some politicians and rode the wave of failures in framing political and personal differences sectarian framed.

It is worth mentioning here that successive governments have sought to absorb the political differences to expand the scope of political participation (quotas), is no secret that the achievement of justice and political participation does not guarantee the development of efficient performance also showed the experience of Iraq, and as the results of political studies for a number of democratic countries, in which multi-national or sectarian states that the relative participation the government itself does not represent a stable political solution to the underlying contradictions, but when there is an evolution in the human development index, such as education and culture, which is also an important factor in speeding up the application of good governance, see the following source:

Stable Democracy and Good Governance in Divided Societies: Do power-sharing institutions work? Pippa Norris By ([You must be registered and logged in to see this link.])

The relative participation of the political blocs do not lead naturally to the democratization of seeking to impose a vocabulary of good governance, and the absence of these values, the values ​​do not have the various institutions of an effective role in the provision of public services, and it depends on the weakness of the non-public sector efficiency, but to include the local private sector and foreign.

The best example of the ineffectiveness of political participation alone in achieving political stability in the Arab world is the experience of Lebanon that day did not provide the desired stability. As in Sudan for the purpose of solving the problem of the bloody conflict in southern Sudan, which was the cause of many human tragedies, the Sudanese president, "Bashir" government in 2005 embarked signing of the agreement represents a political compromise embodied with the participation of political opponents of national minorities in governance, but the results of this review Sudan did not achieve the desired political stability. In the political literature is the experience of Sudan's challenge to the theory of "comparative governance participation" and alleging that this review represents the absorption of the momentum of the national conflict or sectarian, called the theory that political participation will be the guarantor of the framework for the application of the vocabulary of good administration of then lead to equitable human development for all and political stability. It emphasizes the political and economic literature that good governance is a critical factor in the progress and prosperity of the peoples, and on the basis of the above participation governance in the absence of good governance means chaos, and the fact there is no evidence that the relative participation inherently lead to building institutions of government embodied by the vocabulary of management and governance Rashid, but to achieve it depends on the development of education (raising the human development indicators), as happened in East Asian Nations (which has achieved economic miracle). It is known that these countries have made tremendous economic progress is not thanks to the broad political participation or by wealth but by an ambitious policy included education and the application of the principles of good governance.

Very briefly, the solution to the ongoing political crisis is limited to the selection of an independent technocratic government, and otherwise will continue appeals and personal doubts and disagreements that disturb citizens and fraternity and cast a shadow over the dark on the overall situation. Indeed, whatever the ruling political party credibility Vsaagaf political opponents hostile to its practices. The government has the characteristics required to achieve political stability are: to be a government of non-partisan enjoy as a team and enjoy the skills to manage the economy, society and security, and have a work program based on the basis of global experience (as an experiment Korea, Malaysia, and Singapore) and be approved by the House of Representatives professionals starting .

Here a question arises: Is that democracy represents an ambitious option was the current stage, or is that democracy is a necessary factor for development? Answer to say if we reviewed the successful experiences in development Ktjarb East Asian countries, we find that the democratic option in Iraq is at an advanced stage and reality (like pre-empt the time to agriculture in the autumn rather than spring). These countries have seen four stages in the development, initially Japan in 1950, then after that Korea, Taiwan, Singapore, and Honkounk 1960, and the third stage, Thailand, Andonossia, Malaysia, and the Philippines from 1975, and in the fourth stage of China 1980. We have adopted all these countries on the role of State which were not based mechanisms of democracy, but relied on the political leadership has the vision and the will of a clear and strong for change and all these countries adopted a convergent economic methodology included the following: the adoption of Education, and the dimensions of the political factor from interfering in economic management, and the adoption of production policy to support exports (For Alajnah currency ). In other words, the focus was on managing the economy and achieve economic well-being as a priority, and it seems that the prevailing conviction when these countries is that the atmosphere of democracy does not serve the stability and continuity of economic policy, but may slow down the process of economic reform. In other words, the desire to address the poverty, deprivation and raise living standards represent a priority for progress on democratic considerations, Japan and South Korea have begun economic manufacturing process under the atmosphere of military rule, Honkounk under colonial rule and Singapore under an individual judgment and Taiwan under martial law, and either Andonossia and Thailand was for them a democratic system contributed in slower economic progress, and finally China, despite the lack of democratic practices, the economic growth is enormous. He noted that East Asian countries sought to democratic choice (excluding China) when the foundation for economic development and to achieve an acceptable level of development, but had a negative impact on the economic growth rate option began.

From the above, we can say no wonder that the process of economic development in Iraq, the situation of democracy chaos affected, it can be said that the hopes of people achieved through the availability of good governance standards that ensure inherently strong foundation of the State of the rule of law and economic performance.

The problem of oil and its consequences:
Overall Oil basic material to promote the prosperity and progress, but there are a lot of facts which confirm that the source of the decline and misery, in this section we will see that Iraq DAI oil wealth, but the ill-used led to the loss of Iraq of its economy, and has become largely subsists on oil revenues alone, and it was after the drop in oil prices of less than $ 40 to become Iraq can not believe necessary for the reconstruction of public service projects and capital allocations can not pay the wages of the workers. The problematic oil comes from a lack of diligence on wealth for the purposes of future generations and that excessive use of the purposes of the present generations manner that does not add real value for economic development as does: raise the wages of workers to a higher level of productivity, and spending on projects have no economic feasibility, and the expansion of the subsidy policy economic, and spend a fortune on the doors of generations as cleaning roads and drainage sewer cleaning by cleaning companies brought in from outside Iraq.

This problematic characteristic of most of the oil-producing countries that lack the elements of good governance, and come the dilemma that the price per barrel is often higher than the production costs, this disparity between price and production costs spur governments to handle the proceeds of oil a wasteful manner compared whether the government revenues derived from For example, taxes, meaning that the government is dealing with one dollar or dinar differently based on whether or oil is derived from the tax. It was found that the studies Alaqsadah deducted from personal income tax on the dollar of course generates incentives towards rational use is wasteful in contrast to the case of the dollar derived from the sale of crude oil. This is increasingly extravagant when transparency is not available in government decisions (which is the dominant character in the most oil-producing countries) because the rulers find themselves in front of a large area for the disposal of public money without control and without accountability as is the case in most of the Gulf Arab states. For a clear lack of transparency by comparing the transparency of the general budget of the states index, which ranges from 0 to countries that lack of transparency and 100 countries that enjoy full transparency, rate index value (2009) for countries classified dictatorship of the non-oil 33.4% while their counterparts from oil 18.9% states, Currently the budget transparency index in Iraq and Saudi Arabia 4% is equal to 0%).

  The repercussions of the oil revenues that governments will resort to adopt a sterile economic policies in the effects represented by: an increase of salaries and wages away from labor productivity accounts, and expansion in the creation of employment for non-productive purposes resulting from them inflated prices, and pursue a policy of supporting random economic updated distortion in the structure of the economy, and orientation towards spending is essentially a product designed to connect citizen power. The political spending policies mainly includes grants and aid and open diplomatic and cultural circles of Foreign Affairs does not add real value to the economy and citizens. In addition to the above, the Petroleum Exporting Countries is usually its exchange rate relatively high, which contributes to raising export prices and the weakness of their competitiveness in the global market. The result of all the foregoing, the private sector in these countries enjoy the presence of a weak and marginal, because he does not enjoy support (as is the case in the public sector), which is concentrated in the areas of production non-real (commercial and service). The absence of the real role of the private sector means the absence of creativity and speed to adapt to the needs of the market, and that the uniqueness of the public sector production and the absence of private sector competition leads to the continued deterioration of the efficiency of the public sector production. Which requires government intervention and the protection of the public sector through financial support and policy of customs protection, and therefore, the government is working to protect the productivity of organizations inert on the citizen who finds unchanged forced to buy goods or services at a higher price and poor quality of the account.

  That this sacrifice as confirmed by world experience does not lead in the short-term nor long to improve the performance and efficiency of the public sector production, and that the absence of the role of the private sector prevents citizens to the cake and the staff hired for the government belonging to the orientations of the government, and undoubtedly it affect the autonomy of the individual from the government and then it affects the breadth of the work of independent civil society organizations. The continuation of governments in those contexts eventually lead to the division of citizens into different factions of the beneficiaries and others. Add to the above, because of the limited job opportunities that could be created by the public sector, the government is seeking to create employment through the strengthening of the role of the security power through increasing the number of employees of the police, army and take advantage of the cash surplus in the purchase of arms and military equipment. That encourages the growth of military capabilities to deal with internal and external differences militarily, and then pre-empt any signs of growth and development. On the other hand, the oil revenue dependence on the price of oil to the global market presents economies of those countries to the waves of the tide, which is reflected in the sharp fluctuations in oil Eradt. Finally, the oil revenues of the states usually benefit the cities over the countryside, and this is what causes the case of migration from the countryside to the city, no doubt that this migration is usually in a short period of time, resulting in severe bottlenecks due to inadequate public services in relation to the intensity of demand and to multiple social and economic problems. Not only does the impact of this situation on the level of services available in the city to the countryside than to double the contribution of the agricultural and livestock production and for changes in the fertility of the land and leading to massive losses. The truth is that what progress can we find him credibility in the Iraqi economy, especially during the era that followed the Republican government, no doubt that the effects of these policies and their nature has not radically changed so far because of the political pressure and that the list reflected the lack of political will.

In 1950 the Iraqi government embarked Royal Development Board Act Covenant The Council Law text starting on the allocation of oil revenues all for reconstruction projects, but that is downwards to the law (70%) of the oil revenues, that the rest goes to the public treasury for the conduct of the affairs of state. We've spent financial resources at the time to serve the economic development (for the present and future generations), but as much as things have changed radically in the era of the republic governments and we use oil revenues in reverse. Of glittering international experiences that should benefit from the experience of Norway, a young state for the production of oil so that the oil production began after 1969 (when oil production began in Iraq in 1927), but soon embarked on the establishment of the oil wealth returns Fund, which aims to ensure the rights of present and future generations , and under the law, which prohibits the establishment of the fund was the use of oil revenues directly, where to invest all oil revenues outside Norway in the profitability of the top companies. But the law allows the use of 4% from the proceeds of investments to enter the general budget revenues to spend on economically viable public enterprises. And the wisdom of the enactment of this Act is to protect the Norwegian economy from the negative effects (problematic oil) and thus Norway remained conservative on its economy diversified, which flourished gangbusters after the discovery of oil, currently the per capita share of the GDP rate in both Norway and Iraq per thousand is $ 97 and $ 6 respectively.

  What is happening in Iraq can not be justified by exceptional circumstances experienced by Iraq's current transitional phase, and we fear that this phase will continue for a longer period, as the continuation leads to poring deformed Iraqi economy, and the fact that the situation will continue as long as the political will of the Government subject to the consensus of the political blocs that do not have a clear vision of the new economic approach. To overcome the negative aspects inherent in the oil wealth first requires work on the application of the vocabulary of good governance, and secondly work to make the ownership of the oil wealth resources directly to the citizens by force (strongly Constitution) and already truncated after the necessary taxes to finance government projects. The application of the vocabulary of good governance: Requires deepening practices that disclosure and transparency in decision-making and policies, and in determining the long-term economic strategy, employing competencies within specific criteria. With regard to the ownership of oil resources to the citizens: this importance comes from the Lord as the embodiment of what the Constitution and represents a return to normal practice under which the government financed its activities in the production of public services through taxes. That the return of citizens pay for government programs and follow-up to create a high degree of responsibility of the government in the public interest. And it enhanced the role of this policy if it was the distribution of oil resources in accordance with the principle of good citizenship and social affiliation of the individual (ie excluded from governing the judiciary Pttolh on the public right or others).



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