The reform of the economic structure and support the private sector

The reform of the economic structure and support the private sector

March 2nd, 2016

Dr . Mehdi al - Hafez

repeated global Alaamamat the fact that Iraq failed state and the other in the way of economic bumpy. This is due to the absence of effective and able to hold the process of economic reform policy. Highlights in this context the importance of supporting the private sector and reform the banking system to deal with the current situation and face the challenges as part of the New Economic Policy. There is an urgent need to address this dilemma , which should help to enable the private sector to play a positive role leading in national development as unanimous on that official documents as well as political and economic programs of most of the political forces and academia.

There are many seminars held to discuss this topic , issues, however , things began take shape in earnest more than the previous, deeper and inclusiveness toward.

I will address this issue in the light of two important United Nations. The first is from the World Bank and the second regional center of the United Nations in the Middle East.

First: two years ago, made ​​a deep study of the Development Program of the United Nations UNDP looking at the economic fallout from the so - called «Arab spring«. And concludes the call to move from « the political economy of the state rentier« to the new development model aiming for social justice, freedom and human dignity and the economy of the state , led by the private sector.

As was emphasized on the need to break the vicious circle of special systems prevailing in the Arab world, including Iraq and certified to comply with the state and enable them to act the affairs of society and the economy, creating up to a large and noticeable dominant state of mating «authority« and «wealth«. And the concomitant often bad practices in relation to the waste of public money, corruption, nepotism and creating uneven terrible in the living conditions of the people.

The great success in the political sphere and the birth of a new political authorities is not enough unless it is coupled with an economic shift properly safeguard the democratic gains and pushes society to further achievements, so being attention to creating a new type of social contract (social contract) responds to the developmental needs of the proposed The so - called «mutual accountability« between state and society. They revolve mainly around the reciprocal obligations between citizens on the one hand and the ruling authorities on the other.

Modern regimes are rising on the tax base of the system directly as a liability of the members of the community in exchange for a commitment by the authority in the provision of and respect for freedoms and foundations legitimacy to the regime and the devolution of power in a democracy. It

has become the subject interesting so that today occupies a large area of debate and discussion in the local and foreign seminars. The reason is not only the economic and social side , on the importance super, but also to the confusion and helplessness that characterized the curriculum development for Iraq as well as confusion blatant in the official economic vision and the increasing difficulties and challenges difficult.

Not surprisingly, raised this dilemma now , but that the continuing slowdown in processed turned into a burden heavy on the performance of the state as a whole clearly revealed the case of complete dependence on one supplier Rei exhibition burnout, which oil was not accessible to predict serious possibilities faced by this resource relegation terrible for oil prices as it is now under way. Oil is now the bread of life for the majority of citizens and economic sectors and state institutions and businessmen. This case is limited to exist in the world, but in a certain number of other resources meager rentier states.

In fact , it was a leading question is always, how can the case of the private sector in Iraq characterization, in terms of its role in the growth process and its position in the economic structure and its share of gross domestic product and other from the core of national development features. So that the performance of the private sector in these areas, is a crucial factor in the assessment of the economic status.

It can incorporate a number of properties here to confirm the hard character in national development.

1. It has become the private sector contractor ( the public sector of the state), like that of other contractors, local and foreign. It envisages any profit from the state (of oil revenues) in exchange for certain services performed on in accordance with the agreements and contracts with public institutions.

2. The analysis of the figures reveals the private sector that will continue in the activities of a quick profit and based on individual work. Which is characterized by intensive work and the lack of capital.

3 for sale . It operates the private sector affiliate sites and marginal now because of its dependence on government spending, limiting the phenomenon of competition against imported goods and services. This phenomenon is clearly noticeable in the Iraqi domestic market on a large scale.

4 for sale . The private sector and businessmen Iraqis face huge obstacles , both because of the bureaucracy of government agencies or the continuation of the laws and legislation old and obstructive. They need to be reviewed and radical reform, especially since the state has offered scope for reform that emphasis is being placed on the market economy and to provide practical programs so as stated in the project development program of the United Nations.

Second: Many years ago, I went «the Ministry of Finance« and «CBI «to request the World Bank to make full disclosure of the financial and monetary situation in Iraq. This was achieved and issued a very important report, it addresses this situation and calls for a set of recommendations and conclusions. There was discussion of these results in light of the official report issued by the «World Bank« and bears the signatures of the Minister of Finance and the Governor of the Central Bank under the title: Financial sector Review.

The importance of this report lies not only in the aspects of analytical deep axes prevailing in the Iraq situation, whether in the banking sector (government and private) nor in the presentation of the obstacles and dilemmas that stand in the face of any positive development, but also in the development of an important set of conclusions and recommendations for to overcome the crisis in and put the country on the gate of the desired progress.

One such notable conclusions, counting the conditions of the banking sector , the biggest gap in the case fiscal and monetary. As well as call for a re - structuring of bank «Rivers« and «rational« who Asthoman more than 90 percent of government deposits. An issue which is not new, but has been discussed several times at the level of the bodies responsible , starting from «Governing Council« ministries successive to the joint memorandum to the Ministry of Finance and Central Bank issued in 2006.

The spacing notable among the seven banks and private banks government banks that session exceeded the number and supervised the central bank calls for serious thinking and objective research.

Banks civil was and still is of limited relevance in terms of financial volume and daily functioning, but it represents a significant trend to support the private sector and provide the required air domestic and foreign private investment or freedom of competition and the development of promising to build a new economic experiment in Iraq , this principle , which is constantly repeated in the literature of the government and various economic bodies. This find that the report «World Bank« critical of this disparity in the banks care and calls for the support of private banks and provide a similar environment for both groups in terms of privileges and official censorship but also builds high hopes for the potential applicant role of domestic banks and enable them to effectively participate in the leadership of the national economy.

The trouble many of Iraq today without a doubt. But the desired setting priorities for subsequent progress. The most important priority is to address the security situation and the lack of stability and the follow - up to liberate the land and the restoration of national sovereignty over all Iraqi territory. As well as resolve the crisis of governance and enable the State to perform its due role in a democratic climate of sound and freedoms of one individual.

Deputy in the House of Representatives*