Impediments to business dealings with all government institutions

Impediments to business dealings with all government institutions



Friday, March 29 / March 2013 11:05



Presented to the first business conference held in 03.09.2013.
The private sector is represented by businessmen axis process of economic development and social development in most countries of the world, due to its private sector of the advantages and great potential to qualify for playing a leading role in various economic and social fields, making it the center of the process of change and readjustment and restructuring adopted by many countries of the world, but we can say that the private sector has become today is a driving force for economic and trade wheel in the contemporary world and represents the active entity in the production processes and services through its role in the increase of production, investment and employment. Before talking about the obstacles slide businessmen representing the private sector in its dealings with government institutions to be a quick read to the concept of investment types and which concerns us is the national investment is the essence of the subject.
Concept and types of investment:
Investment is hiring money to get extra money and saving is a kind of passive investment through the allocation of capital for new production methods or develop productivity means list to get more goods and services.
The investment can be of two types:
1 - National Investment: which depends on national savings to the citizens of the state, as the most developed and developing countries develop fiscal and monetary policies to encourage such investments, and contains the pros on many economic and social reality and reflected benefits to the citizen though support national investment to Iraq was today less need for investments foreign.
2 - foreign investment: This is different from being a local represents the movement of capital from his home outside the country's borders, any host country for investment.
As well as investment can be divided into two parts:
A - direct investment: is this kind of investment in the commodity sector (agricultural Kalsnaaa and tourism and service) requires political stability and security which is characterized by long-term and strategic projects which include preferred.
B - indirect investment: The short term is being focused on the purchase of stocks and bonds and seeking a quick profit through speculation in stocks and bonds.
Some businessmen constraints in dealing with government institutions:
Ntsttia to sum up obstacles businessmen in dealing with government institutions, to:
First: (marginal and irregular in the labor market)
The marginal and irregular in the labor market is the result of wrong policies and mismanagement of the national economy and excessive centralization and totalitarian thought and the militarization of the economy and political oppression and internal strife and senseless wars in three decades in addition to the siege, had handcuffed Iraq بمعضلات large and can be summarized these dilemmas including the following:
- Mono Iraqi economy based on the oil sector and the fact that the only source of funding, which reaches its contribution to 93% of the state budget.
- The dominance of the public sector on the economy and all the activities and the low efficiency in the production process and paralyze a market economy mechanism, and to marginalize the role of the private sector.
- Growing unemployment and widespread poverty.
- Policy of isolationism from the world, led to the obsolescence of institutions and administrative system and a decline in knowledge and technology and the use of productivity of old patterns.
- The spread of financial and administrative corruption and lack of transparency and accountability in the management of state resources.
Second: (problematic Iraqi legislation related to the economy)
Weakness legislative laws on the Iraqi economy in general and the reflection of its impact on the business (laws in general and in particular the regulations and instructions governing the work of the ministries and non-compliance with the text of the Investment Law as a special law and investment system issued by the Council of Ministers and the shortage Legislative investment law that there is no text _ in case this law conflicts with another law be investment law is in place so that gives absolute authentic to the Investment Law)
Third: (bureaucratic and administrative indiscipline)
- Bureaucracy in government institutions in general and particularly commercial banks in terms of quickly Atostagib with business requirements and the absence of a culture of investment and its importance in the administrative form a strong constraint on general business.
- Lack of discipline and administrative complexities in the implementation of legal and that was to refrain from allocating land for the establishment of investment projects important and vital despite granting investment licenses bodies to establish investment projects.
VI: (poor human resources in government institutions)
And the absence of specialized competencies in most government institutions as a result of the quota system which has a negative impact on the country's investment actually.
The elements of successful deal between businessmen and government institutions:
To the success of the deal between businessmen and government institutions must adopt an integrated program to support businesses interested in:
First: To support the provision of basic services and infrastructure in the electricity sector as well as providing fuel and raw materials helps to produce goods at a lower price than achieve competition with foreign products.
Second: successful legislative measures
That governmental institutions in their dealings with the business based on a series of laws and regulations that govern the field of business that must be solid and successful legislation, clear and easy application which requires legislative reforms are:
- Support for the private sector to allocate a percentage of revenue to balance its investment in the state budget.
- Reconsider the Central Bank Act and the Banking Act
- Companies Act and review powers granted to companies by giving wider area in the investment shares many areas.
- Investment Law No. 13 of 2006 to reconsider a time and procedures required by the licenses, as well as providing the necessary facilities to build a genuine partnership between the public sector and the private sector in investment, infrastructure, add a clear clause in the event of a conflict of this law with any other law be the terms of this law is applicable to clarify that the state went from a centralized economy to a free market economy.
- Procedures Act No. 83 of 1969 (modified materials for commercial arbitration and that restrict arbitration mechanisms and make the courts and the guardian of the arbitration and to activate the role of commercial arbitration in disputes arising out of commercial contracts and investment.
- The development of labor law legislation that govern users in the private sector to give solid guarantees social security and the freedom to organize, so in line with international standards and is working on a stimulus to engage the private sector.
- Effective protection of private property rights to patents and trademarks
Third: the elimination of bureaucracy and ease of obtaining licenses
Must provide a suitable environment for the private sector to work in Iraq through attention to human resource development, training and spreading the culture of investment and the elimination of administrative corruption of the role played in the process of promotion of the private sector in Iraq
Proceedings of the national investment:
Authority was established under the National Investment Law No. (13) for the year 2006
Advantages law:
- Directed capital transferred to Iraq and convertible currency
- Trading in the Iraqi market for securities and membership in the joint-stock companies and mixed
- Insurance for insurance companies national and foreign
- Open an account Iraqi or foreign currency or both at the bank inside and outside Iraq
- Granting the right to enter and establish investor and exit to and from Iraq
- Investment land needed for the project or Musataha for more than fifty years, renewable
- Not to expropriation or nationalization of the investment project
- Convert salaries and compensation for workers in the investment project
- Exemption from fees or taxes for a period of ten years, subject to increase to fifteen years
The National Investment Commission the following actions:
- Single window in the National Investment Commission and bodies Investment provinces that provide services to facilitate the process of granting investment license from the application license and allocation of land and get tax breaks and facilitate the entry and exit and the establishment of investors and their staff. (Window Aluahdhha single point of contact for investors wishing to enter Iraq. It aims to facilitate the investment process by helping investors in obtaining permits simplified and hassle-free, and investment services. single window working through it to be the entrance to investments in all parts of Iraq
- Update investment map that displays the investment opportunities geographically distributed to the provinces and qualitatively by the production and service sectors.
- Investor's Guide, which provides the necessary information to facilitate the procedures for the entry of investors to the Republic of Iraq and to enjoy the benefits and facilities investment law and explains the investment environment and procedures for the registration of companies and began its work in Iraq.
- Amendment of the Investment Law No. 13 of 2006 so as to ensure ownership of the land to the national and Arab investors and foreigners for housing projects, under Law No. 2 for the year 2010 and amending Regulation No. 7, which regulates the rates of rent land invested in various sectors.
Despite all the efforts of the National Investment Commission, but the private sector steps in a career investment is still troubled and full of bumpy, which hampered the real role and hoped the private sector and its impact on the overall development process.





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