New York Times: the threat of financial crisis on Iraq is greater than Daash and Baghdad are considering by radical
Translation: Ahmed Alaa
In the Kurdistan region, where the economic crisis is greatest and perhaps the worst in Iraq, officials and fighters of the Kurdistan suffers from a lack of financial dues Exchange for months.
these scenes represent the image of the country with the costly war against militants Daash He faces at the same time caused by the collapse of oil prices, which constitutes 90% of the Iraqi government revenues economic disaster.
analysts and officials say the times through which Iraq now, is the most stricter in terms of the face of the economic crisis, but they insist that the war will not be greatly influenced by this crisis because of the help of foreign powers is determined to defeat the militants Daash.
the United States, for example, gave Iraq's new loans for the purchase of weapons, while intensified other states contributions to the country of weapons and ammunition.
in Iraq depends almost eight million people on salaries and government grants that perhaps will have to be reduced, not to mention the economic shock and the fear which they could lead to widespread social unrest and increase the displacement and sectarian animosities in the country.
Muwaffaq al-Rubaie, a parliamentary Iraqis and a former adviser to national security , he says, "eighteen months ago, he was organizing Daash an existential threat to Iraq, and I think we managed to contain it and pushed him back, but now the threat of financial bankruptcy is the main obstacle. I am worried that comes summer temperatures rise and be a shortage of electricity the main factor, in time there will be civil disobedience all over the country. "
In a fragmented country increasingly along ethnic and sectarian lines, widening the gap between the citizens and the political class, which is seen as a corrupt and ineffective, the employee's salary and pension remain the recent relationship between the citizen and the state.
Salman star 37-year-old employee at Kirkuk University says "cut salary represents a total destruction of the Iraqi people and can not cut our salaries because they are the main source of living here, and we have no other alternative," describing cut salary is the bullet that hit the Iraqi unity of Iraq state.
Ahmed al-Rubaie, a member of the Diyala provincial council, says that "farmers struggling to get benefits from the government, and we are afraid it is the government's inability to pay the salaries of millions of employees and this will lead to a social earthquake seriously the results. "
the Prime Minister Haider al-Abadi, announced late last year, salary cuts, causing an outbreak of street protests forced him to retreat from these statements at the moment.
in many ways, the decline in oil prices was born painful accounts between people , as it was a barrel of oil is sold at a price ranging between $ 90 to $ 100, and such a large price fueled in recent years monetary system a big exploited by the corrupt political system based on patronage, rather than investing in public services and the expansion of sources to bring money, but began the government increase the tunnels consumer, such as the proliferation of shopping centers in Baghdad, packed the capital in recent years.
Louay writer, a government adviser and founder of the Iraqi energy Institute, he says that "the country needs radical reforms, affecting all aspects of the economic system and social structure in Iraq."
If there are cuts painful in the budget, this means stop projects such as hospitals, schools, factories and soccer fields built.
the Ministry of Health, for its part, has proposed the imposition of fees for health care and an end to work free system health treatment established by the Baath Party in the seventies of the last century, where the economic growth in that period apogee strength but slowed dramatically later.
The author argues, that many of the radical changes under consideration by the government, it is essential to the tax system to address and study to reduce fuel rations monthly, such as sugar, tea, rice, cooking oil obtained by the citizen a month free of charge and food.
he says the appearance of Mohammed Saleh, economic adviser to Prime Minister sarcastically, that "everyone is looking for a free lunch, this has become a culture in Iraq."
culture of imposing taxes on everything in Iraq, it is impossible to achieve, or even create a tax system is trying to expand government revenues away from export oil. Fadel Yassin, 55, retired from the people of Baghdad, says, "I will not pay taxes, pay for what? State does not give us any services did not improve any sector or aspect of our lives, and when the State of the improvement and development of the country, then I'll pay."
Adviser Saleh, who recently returned from the World economic Forum Daڤos place in Switzerland, where he was accompanied by Prime Minister al-Abadi request financial assistance from the international community.
Iraq until now has $ 40 billion financial reserve, which economists say it will run out within 12 to 18 months, but the chancellor says Saleh the government has other options are working on such cooperation with banks, Deutsche and Morgan and Citigroup advisers who will provide in their sale of Iraqi bonds in global markets.
the IMF works with the government to address its budget by giving the government a part of the billions in loans.
However adviser Saleh said the government is trying to take certain measures is also preparing for the scenario of the worst which is how to address the decline in the continuous oil prices, especially that this period reminds Iraqis period of sanctions imposed on the country in the nineties of the last century, which devastated the economy.
Finance Minister Hoshyar Zebari told reporters that "the dramatic decline in the continuous oil price Unfortunately, "he said, adding that the country was dependent on nearly $ 8 billion a month in revenue from oil, as happened in the past month to $ 3 billion, at a time when the government should provide salaries to its employees amounting per month, about $ 4 billion.
he added "I am an honest man, if the situation is not good, you can say that's not good."