Iraqi economy crisis

Iraqi economy crisis

Sana Mustafa

2016 / 3 / 17

Introduction: This research aims to release the impact of structural imbalances and structural Iraqi economy and its impact on the industrial and agricultural productivity project management primarily, from a scientific point of view is based on the use of technology and modern methods in physical production and technical management, as well as the impact of the political and security situation and the lack of security, stability and existence and damaged infrastructure due to military operations and terrorism across the country and high unemployment rates to 22% in 2015 and the flight of national funds scientific competence capital out of the country. The increase of import for various products from abroad by a large margin (85%) with the instability in prices and rising external debt burden and mechanical shift from the public sector system to a market system by privatizing companies and public sector projects, all of this latest lot of confusion in the management of the national economy and there could be no economic and social development, promote Iraq to a standard of living well and Rvahe. The

importance of research: above show ideas and information contained importance of research and chosen for the advancement of the national economy of Iraq to meet the plans and programs of socio-economic development and methods of addressing the economic and financial crisis that has befallen the country. The

research problem: the economy suffers Iraqi National of being economical Rieia and one - sided and that it will offer to Tlkaat and imbalances in the strategic management of all sectors and the lack of coordination of them, due to many internal and external reasons. And especially since the beginning of the decline in oil prices in the world in mid - 2014 when the price per barrel has dropped from US $ 120 to $ 30 , and the subsequent decline in oil export earnings. This decline was accompanied by a chronic economic problems in the sectors of material production , such as industry and agriculture as well as the deterioration of municipal and health services in first class. Found this reflected in the commercial reserves of hard currency balance and then on the state budget for the year 2016 , which resulted in reduced or cut off funding for structural economic projects affecting their economic development and strengthened citizens. And even doubt the government 's ability to pay salaries and pensions of retirees in the coming months. Not to mention the rampant corruption in all government agencies with money laundering operations abroad , who carved all joints of the Iraqi state. Moreover, military operations to counter terrorist groups in the northern and western regions of the country and the purchase of arms from abroad at exorbitant prices through contract deals tainted by paying high commissions to those in charge in the corrupt state apparatus.

Hypotheses: The

first hypothesis: dependence on strategy (plans for 10 years ) economic plans and five - year suit the level of branches and key sectors of national economy of Iraq, and fit the social environment in order to achieve economic development goals-social goals. the

second hypothesis: that the information systems in economic institutions are the basis contributing to solve all economic problems through the decision - making governance and the elimination of overlapping functions between the various organizational units.

aim of the research: the research aims to shed light on the most important reasons for the economic and financial crisis that has befallen the Iraqi economy in the last ten years in terms of :

1. A statement identifying the real reasons that impede the development and the development of all sectors of the national economy of Iraq, depending on the scientific analysis determined by the methodology of this research.

2. Put forward practical solutions through long economic plans and medium term to ensure the achievement of a comprehensive economic development ongoing and continuous economic establishments by perceptions drawn to them.

Research Methodology: In order to achieve the desired objectives of this study and get to prove hypotheses or deny adopted in this research use deductive approach descriptive , which is based on economic statistics methods and trying to figure out quantitative relationship between these variables together.

first - the nature of the economic system of Iraq and the problem of the oil industry sector of the

Iraqi constitution did not specify the nature of the economic system has been stated in Article 25 that: « the state shall guarantee the reforming of the Iraqi economy in accordance with the economic principles and modern way that ensures complete investment of its resources, diversifying its sources and encouraging and developing the private sector »(the constitution). A reading of this article is clear to us that the Iraqi constitution did not specify the nature of the economic system and the methodology that is based on them. As a result, the economic policy of the country were vague since 2003 and is well known to the citizens. And all this because of the unstable political situation, so each treatment to any economic problem in the country is incomplete for lack of economic philosophy underlying the national economy.

The multiplicity of political problems and exacerbated due to sectarian quotas backward process, ministries have become divided and administered by political and sectarian arrogant loyalties and lack of professionalism scientific and efficiency, and this is what led to the absence of economic development , according to a deliberate economic plans, but in return has taken quick and not based on comprehensive scientific planning for all economic sectors , real - time solutions.

Although Iraq has the second largest reserves in the world after Saudi Arabia, with an estimated this estimated at 110 billion barrels , which amends about 11 percent of the total world reserves , and there are other estimates of the existence of 100 billion barrels last undiscovered in the Western Sahara region , and Iraq has huge natural gas reserves of around 115 trillion cubic feet as of incomes export oil up to US $ 102,000 million (1) , but the standard of living per capita is still low. According to official statistics , the rise in gross domestic product in 2014 to achieve an increase in the per capita income of up to six thousand dollars per capita per year (according to the Ministry of Planning and Development Cooperation expectations) (2), but the economist Bassem Jamil Anton said in a statement to Radio free Iraq that the per capita income during 2013 did not rise as a result of poor distribution of the money there is still 19 to 20 percent of the Iraqi population lives below the poverty line, which does not exceed the monthly average income of 70,000 dinars rate of two dollars per day (3). So how would the Iraqi people under the austerity policy of ethnic approved by the government in the current year 2016? . Moreover, the deteriorating security situation daily and political instability and a scarcity of jobs and weak investment among the reasons behind the stalemate capita income in place during the year 2016 and even decline because of high taxes and deductions from employees ' salaries and pensions of retirees. That is why the need for the legislation achieve justice in national wealth and investment of oil revenues to finance projects in the oil, agricultural and commercial sectors of the industry to eliminate unemployment and poverty reduction ratios distribution appear.

The main importance of the oil and gas industry in its contribution to the construction of Iraq , developmentally, it is a vital source for the operation of various energy sources and enters in many of petrochemical industries, as well as domestic consumption. One of the main problems faced by this vital sector are:

1. Lack of productivity of coordinating relations and cooperation between the oil sector and the rest of the branches of manufacturing.

2. Shortage of technical staff of technical, managerial and administrative skills.

3 for sale . Poor protection constructors oil industry system and the absence of qualified staff for it and because of it, which is exposed to sabotage oil installations and the bombing of the tanker pipes inside and outside Iraq of various terrorist organizations.

4 for sale . Migration of technical and engineering cadres specialized oil sector abroad because of the security situation and the weakness of salary and physical stimuli and system upgrade. .

5. The prevalence of the phenomenon of financial and administrative corruption and administrative bureaucracy in the extractive sector and manufacturing.

6. Low productivity as a result of the obsolescence of equipment and not taking the oil installations in a manner of good scientific planning, poor use of resources , human and material potentials available holidays, in addition to not taking full advantage of the technical achievements of science and technological development.

7. After eight years to put the draft Iraqi oil and gas law, still it ranges in place because of political differences between the federal government and the Kurdistan Regional Government. However , the two governments had passed away , despite the lack of approval of the draft law by the Iraqi parliament to enter into contracts with various international oil companies in order to be extracted and marketed abroad. However knowing that oil is a national treasure and may not be exploited for the benefit of the hand. That if we know that most of the oil fields that have undergone decades licenses are required fields have been explored and drilled by the previous regime and buried a timely manner to the high costs of production , including during the siege, and what existing companies acquired only companies know that the extraction cost is simple and the profits that can be obtained is high.

Second monetary and fiscal policy is

suffering Iraqi economy than inflation since the mid - seventies of the last century , when public sector workers ' salaries increased after the success of the nationalization of the oil industry process and get Iraq to massive oil revenues in 1973 and then in the eighties during the Iran-Iraq war and during the siege economic in the nineties. According to statistics of the Central Bank of Iraq, the rate of inflation in Iraq amounted to 500 percent. For this fall upon himself the task of reducing inflation to 20 percent annually and this can bring the purchasing power of about 21 trillion dinars (d. D), while the cost of central bank monetary operations amounted to 2 t. Dr.. This means that the revenue per dinar and one is 10 dinars (4).

The monetary policy of the most prominent efforts to achieve economic stability and stabilizing the exchange rate rates in excess of the national economy stronger and more effective to face the economic challenges of economic policies, and the Central Bank of Iraq has succeeded in achieving a reserve of cash foreign totaled $ 80 billion and 90 tonnes of gold. The installation of the Iraqi dinar exchange rate against the major currency dealing dollar is considered a must, and it was for auctions of foreign currency held by the Central Bank of Iraq played an important role in maintaining the appropriate level of the exchange rate and install it , and when it gets any pressure on exchange rates, the bank Central will tighten monetary policy and narrowed, including raising interest rates on deposits in Iraqi dinars. The Central Bank has expanded the list of available instruments of monetary policy and coverage of reserve required to include government deposits and the granting of facilities on deposits that mature in a short period in order to allow banks to manage the development of their liquidity more efficiently, and reduce liquidity risk (5).

The objectives of monetary policy to achieve economic growth and reduce unemployment and stabilize the prices of goods and services, the stability of exchange rates, and improve the balance of payments. And achieved these goals through a direct and indirect monetary policy instruments, which have been reaffirmed in 2014.

We have embarked on monetary policy, the establishment of an effective framework works towards strengthening confidence in Iraqi dinars, as it helps the confidence in the local currency to create a strong and deep conditions in the stability financial system, ie transfer of the impact of operational objectives for monetary policy to achieve the immediate objectives for the same policy because the power to address the dollarization, a measure of the effectiveness of monetary policy in providing effective signal to make the Iraqi dinar more powerful and that is usually reflected the stability of cash or low money circulation and stability of the speed dial function , or by the impact of exchange indices and interest rate variables positive actor in the stability of the cash demand mechanical moving cash at the same time, strengthening. Concerned with the affairs of the monetary policy of the country have noted that there is ambiguity in the understanding of the monetary policy of the Central Bank of Iraq , which continued to face them for the cases of hyperinflation and the deterioration of the Iraqi dinar exchange and through difficult economic and social aspects , which the country experienced in more than three decades of price signals, it is still carrying some circles responsibility faltering investment country programs and the ability to build development projects for the results of the successes of monetary policy (6).

the essence of any financial policy in the world on the basis of determining the financial resources of the state and aspects of its spending through the use of the general budget and the systems of tax, banking and insurance in order to achieve them. The primary goal of monetary policy is to reach the socio-economic development and the achievement of social justice in the national income and wealth distribution.

Nor is linked to the general budget plans in Iraq 's economic development-social, but the resources are distributed on the basis of items. Although the constitution and the law of state funds and public debt management, underline the need to follow the correct foundations for the way the preparation of the general budget in terms of resource allocation and oversight of implementation, and the need to link the budget development plan, and prepare statements required the use of funds, either through the preparation of final accounts, or by detecting cash flow, however , that all this is not bound by it, not by the executive or by parliament, despite the confirmation of Supreme Audit reports on it. The best proof of this is that the House of Representatives was unable to Agherarmizanah 2014 because of falling oil prices in the first half of it and this is what the impact on the budget for the year 2015 in which the price of a barrel of crude oil proved to US $ 56 and the export of approximately 3.3 m / b annually and achieves about 115 trillion dinars. As a result, the deficit by 25 trillion dinars (7).

The Arab autumn effect not only on the political side, but on the economic side also clearly reflected on the budget for the year 2016 which identified where the price of a barrel of oil at US $ 45 card and export 3.6 million b / d. As we have earmarked 113 trillion to cover the total expenditure , which includes 83 trillion dinars to the current expenditure and 30 trillion dinars for capital spending and this means that the budget deficit will be 29 trillion dinars. But in fact, the deficit will be larger than that because the price of a barrel fluctuates between US $ 34-36.

The oil imports, which constitute 92 to 95 percent of the imports of the general budget, and the rest from taxes, fees and profits of the public sector and the sale of state property of the main state financial sources Iraqi. General budget did not include other loans and grants from international aid and imports, it has not been disclosed until after receiving and spending. Oil resources of about $ 8 million in 2003 has risen to more than $ 94 billion in 2012. It went public budget numbers to high levels, reaching 80.5 billion dollars in 2011, rose to $ 100 billion in 2012, and to more than $ 118 billion a year 2013. the investment expenditure ratio of about 14 percent in the 2004 budget rose to 40 percent in the budget of 2013. the total state revenues from oil, duties and taxes, loans and grants received retrieved the money from international banks to more than $ 600 billion, a significant digits if compared to revenues of a lot of oil and non - oil -producing countries. But Iraq is still suffering from socio - economic problems, as a result of mismanagement of the funds. Despite the doubling of GDP figures is mainly due to developments in the wills of oil increases, the higher the Iraqi individual 's share of the $ 800 per year in 2003 to more than $ 4000 in 2012, we see a decline in the share of economic activities productivity Other (industry and agriculture), where it got to 1.5-3 percent, and unemployment remains high, with an estimated number of unemployed by 5 million unemployed, and poverty continues to be a high proportion of the population, and the deterioration of the situation for a class is a few of them, as the number threatened by starvation of about 2 million people or adjusts the rate of 6 percent of the population, and more than 12 percent of the population with an income of less than $ 2.5 a day. Iraq continues to suffer from significant problems in the municipal services and infrastructure, electricity and potable water, sanitation and housing, illiteracy , and others. Despite spending nearly $ 37 billion on the electricity sector, including 21 billion to invest in the production, transmission and distribution, but the Iraqis have not been able to get electricity continuously and production capacity available is still not more than 8700 MW of which about 4,500 were already present, despite repeated promises to solve this problem. So more than 25 percent of the population still earn less than 12 hours of electricity a day, and some of them do not get electricity final. So far , did not enter into the Ministry of Electricity plans processing needed economic sectors of electric power. With a mortality of children under five years , 37 percent of the age and reached the illiteracy rate of 23 percent of the population , or about 7.36 million humans (6).

All of this confirms the fiscal policy failed to achieve the goals of social - economic desired after the year 2003 due to ignoring the implementation of the plans drawn up by some devices government in collaboration with international institutions and the Iraqi expertise from outside the state institutions. All because of the absence of state institutions due to partisan conflicts, which categorized into about sectarian slogans and ethnic led to the quota system and the exclusion of the professional and the principle of equal opportunities for all state institutions, and did not take into consideration the supreme national interests and the interests of citizens.

III agricultural and industrial reality of

government experiments did not work in the seventies the last century in the establishment of collective farms (such as the pioneer farm in Essaouira, Wasit province), but suffered huge losses because it did not paint a balanced policies in terms of price controls for field crops , for example , as wheat, barley, rice , and even in the field of livestock; so that it displays the farmer or farm to crises. For example , there are seasons and situations where up farm profitability to a very high and unreasonable degree, so that he himself can not be accommodated and how to behave sudden profits coming to him, and the lack of ability to invest in the establishment of model farms and the development of his marital status, while the other seasons come from drought so it is exposed to significant losses force him to leave his land and flee to the city for its inability to pay off the debt incurred by him. The process of controlling prices and limiting profitability depends on the government and the followers of the policies of price reasonable and balanced agricultural products and interventions and the services provided, and this depends on proper planning by studying the data of the market situation and the extent of the need and produced quantities and qualities, in addition to controlling the agricultural and service input prices and the budget with outputs . The process of organizing and balancing the prices of agricultural products can be controlled by the government through various channels, pour in their work to serve the increase of agricultural production and to achieve justice in the distribution between the farmer and the consumer. We must encourage and support packaging operations of agricultural products to facilitate the commercialization and prevent it from being damaged process. The discreet agricultural policy is the prerogative of the government, because they are solely responsible for the agricultural development of the country operations. Due to the lack of sophisticated tax system at the present time, the draw solid agricultural policy process, to ensure diversity in the lucrative products, and ensure consumer needs and deliver justice to the farmer (8).

There are basic requirements for the advancement of the agricultural sector , namely:

a - the necessary infrastructure set up to facilitate agricultural crops transfer and animal products to the drainage markets in the cities and urban centers.

b - provide electricity to the villages and rural areas and to encourage and support the establishment of power stations run on solar energy and building mills air to generate electricity.

c - create modern houses decent to live in the modern peasants in terms of power and municipal services provision.

d - the establishment of health centers in rural areas and the provision of necessary medicines and health care for farmers and their families.

e - provide veterinary centers for animals and treatment of endemic diseases that are common in the Iraqi countryside.

this presents the Iraqi industrial sector to the destruction and disruption of public and private Mnciath during the economic blockade since 1992 as well as the US occupation of Iraq 2003 and the ouster of the authoritarian regime, and the subsequent destruction of the burning and looting of state institutions and government banks, factories and others. For these reasons many factories have stopped production. The factories that have been able resume its activity , it suffers from a lack of basic services, particularly electricity and production requirements and high production costs significantly, especially the transfer of wages of workers. In addition to the above, the opening of the Iraqi market for all types of goods without controls or tariffs or quality control and specifications, since the American occupation, has led to the suspension of several factories for the production of non - competitiveness and disposal of production. Knowing this, many industrial goods entering from Iraq 's poor quality and sold at low prices, and possibly below the cost of production in the countries of origin because of the dumping policy pursued by the countries of origin and aimed from behind to take control of the Iraqi market, and then the possibility of raising the prices of those goods in the After. And he demanded a lot of economists, politicians and businessmen face of this situation, but not be heard from government agencies. Which is surprising that some of the ministers and officials declare from time to time to double trade exchange between Iraq and neighboring countries such as Turkey and Iran, as if an increase in the import of goods represents a significant economic achievement , even if it is to destroy local production and increase the number of unemployed and wasting oil resources account the current consumer spending and depriving the country of investment and development opportunities (9).

It is noted observer of the Iraqi markets to goods from neighboring countries such as Iran (import from Iran , the value of US $ 16 million) and Turkey (import $ 14 million worth) and other countries fill the Iraqi market . For example , not limited to the various industrial goods come from Iran starting from cars, buses and electric home appliances through with rice , food, fruits, vegetables and even bricks and building materials. Although this would provide goods at low prices and in favor of the consumer , but it is on the other hand , it works to break down and the removal of national industries that are struggling to survive and compete with imported goods and keep their employees at a time has become the issue of job creation and reduce unemployment of the big challenges facing the country 's problem ; where he became a political and social problem, as well as being an economic problem.

a question arises constantly: is a matter of economic logic and national interest squandering oil revenues on imports of various commodities and the ongoing consumer spending and salaries to employees of state - of - staff and the police, the army and who multiply their numbers are continuously Since not consistent with the services and the business that they bring ( the phenomenon of aliens), and do not use that money for investment and industrial production , economic growth and employment idle?

this reflects the abnormal situation of agriculture and industry the absence of an appropriate strategy and development vision. That 's notes the absence of coordination among the various economic sectors, and among the various ministries: industry, commerce, industry, electricity, electricity and oil, monetary policy , fiscal policy ... etc. The various ministries and economic institutions operate independently and without coordination with each other because of the lack of all branches of the national economy comprehensive economic plans. That is why many of the negative economic phenomena that are working on the continuation of the economic situation is abnormal and perpetuate the waste and loss of real opportunities for development under the state of indifference to what is happening in the country will continue.

Applying the first hypothesis on what you stated above , we find that there is no placed economic Stratjah plans for ten years and not even plans a five - year is taken out and applied to the development of various sectors of the national economy.

the second hypothesis, the economic institutions in Iraq do not have sophisticated information systems relied upon in solving the problems facing the Iraqi economy and decision - making wise, but there are topical solutions taken quickly costing the Iraqi budget cash huge as well as there is no coherence and integration between administrative and production units on the one hand and the ministries concerned on the other hand , and this is what led to the creation of chaos in various Iraqi national economy management.

Conclusion it is

clear from the foregoing, it is not necessary to install the following matters:

1. Determine the nature and methodology of the Iraqi economic system , including the public and private sector and the mechanism of their development.

2. Adoption of economic diversification and the development of policy , industry and agriculture; to contribute to the absorption of unemployed labor and the exploitation of natural and human resources to serve economic and social development plans.

3 for sale . State control over the oil industry and the introduction of modern scientific achievements of technical and technological development in all its activities and operations of the production, management and marketing.

4 for sale . The use of various monetary policy tools to control inflation , and returns the Iraqi dinar exchange rate to a good level, as it was before the Iraq war - Iran (1 d. P. Equal to US $ 3.3), through to activate the monetary instruments of the Central Bank with increased activity the stock market and the banking sector. .

5. Study and analysis of the reality of the civil and government banks and the level of performance for banking services by the Central Bank of Iraq in the light of its activities for the year 2015 with a take serious decisions to merge small - sized banks with large banks for the development of the private banking sector.

6. Interest in the work of industrial and agricultural bank to contribute to the process of economic development of industry and agriculture by giving soft loans to finance small and medium enterprises and the Iraqi Central Bank oversees the doubling allocations to ten trillion dinars.

7. Reference to increasing educational opportunities and acquire different skills, to meet the requirements of the labor market and sustainable development plans.

8. Preservation of the environment from pollution because the ecological factor, it has become an important factor in prolonging human life, as long as that man is the most precious capital.

9. Infrastructure projects and industrial, agricultural , health and educational institutions destroyed by military operations against terrorism in the governorates of Anbar, Salahuddin, Diyala , Tamim and Nineveh reform while facilitating the return of displaced persons to their homes , liberated from terrorism.

10. The return of capital that had fled abroad, estimated at about US $ 1,000 billion to be invested in the reconstruction of areas affected by the military operations.

Margins and sources related research:

(1) Salem, d. Ali Abdul Hadi, a magazine Anbar University Economic and Administrative Sciences, Vol . 4 No. 9, p . 46 Year 2012.

(2) The Ministry of Planning and Development Cooperation, the Central Bureau of Statistics, Statistical Abstract of the year 2012.

(3) Saad Kamel, Radio Free Iraq, specialists: Iraq 's per capita income has not improved during 2013, 24. 12. 2013.

(4) Salem, d. Ali Abdul Hadi, Ibid p . 48.

(5) Union of Arab Banks, monetary policy in Iraq and stabilization applications.

(6) Suri, d. Majid, financial and monetary policy in Iraq, Al - Alam Al 25/04/2013

(7) Osman, Fadel Ali 0.2016 in the fall of Arab oil, early 2016.

[You must be registered and logged in to see this image.] Lillo, Dr. Samir Hassan, agriculture problems in Iraq .... when do you finish? Irak site - Business News, 1 0.1 .2012

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(9) Quraishi, d. Medhat, the plight of Iraqi industry, a network of Iraqi economists, 03/07/2011

(10) Alnasiri, Samir Abbas, an open letter to the Prime Minister, 02.17.2016). Network Iraqis economists.

(11) Dulaimi, Haider Ali, History for Iraq 's oil, Part III of the Baath regime in 1968 until the invasion of Iraq in 2003, the site of civilized dialogue, Issue: 3355, 4.5.2011.

(12) Union Arab banks, Iraq changed .. .. .. openness of the development, Journal of Union of Arab banks, Special Issue, June, June 2004, p . 20.

(13) Al - Quraishi, d. Medhat, current financial and economic crisis and the issue of the exchange rate of the dinar. Network Alaguensadaan Iraqis 08.02.2016.

(14) Fahmi, d. Raed Fahmi, "insights into the challenges of the current reality of the Iraqi economy , " published on Monday , July 6, 2015, the newspaper People 's Road.

(15) Mirza, d. Ali, the proposed 2014 budget - public spending and the use of the private sector in Iraq. Network Iraqis economists. Published on 08.02.2014. (16) Mirza, d. Ali, the follow - up: the exchange rate market in Iraq since the adoption of counterweight 2015. Network Iraqis economists. Published on 18.05.2015. According to official statistics, the rise in gross domestic product in 2014 to achieve an increase in the per capita income of up to six thousand dollars per capita per year (according to the Ministry of Planning and Development Cooperation expectations) (2), but the economist Bassem Jamil Anton said in a statement to Radio free Iraq that the per capita income during 2013 did not rise as a result of poor distribution of the money there is still 19 to 20 percent of the Iraqi population lives below the poverty line, which does not exceed the monthly average income of 70,000 dinars rate of two dollars per day (3). So how would the Iraqi people under the austerity policy of ethnic approved by the government in the current year 2016? . Moreover, the deteriorating security situation daily and political instability and a scarcity of jobs and weak investment among the reasons behind the stalemate capita income in place during the year 2016 and even decline because of high taxes and deductions from employees' salaries and pensions of retirees. That is why the need for the legislation achieve justice in national wealth and investment of oil revenues to finance projects in the oil, agricultural and commercial sectors of the industry to eliminate unemployment and poverty reduction ratios distribution appear. The main importance of the oil and gas industry in its contribution to the construction of Iraq , developmentally, it is a vital source for the operation of various energy sources and enters in many of petrochemical industries, as well as domestic consumption. One of the main problems faced by this vital sector are: 1. Lack of productivity of coordinating relations and cooperation between the oil sector and the rest of the branches of manufacturing. 2. Shortage of technical staff of technical, managerial and administrative skills. 3 for sale . Poor protection constructors oil industry system and the absence of qualified staff for it and because of it, which is exposed to sabotage oil installations and the bombing of the tanker pipes inside and outside Iraq of various terrorist organizations. 4 for sale . Migration of technical and engineering cadres specialized oil sector abroad because of the security situation and the weakness of salary and physical stimuli and system upgrade. . 5. The prevalence of the phenomenon of financial and administrative corruption and administrative bureaucracy in the extractive sector and manufacturing. 6. Low productivity as a result of the obsolescence of equipment and not taking the oil installations in a manner of good scientific planning, poor use of resources , human and material potentials available holidays, in addition to not taking full advantage of the technical achievements of science and technological development. 7. After eight years to put the draft Iraqi oil and gas law, still it ranges in place because of political differences between the federal government and the Kurdistan Regional Government. However , the two governments had passed away , despite the lack of approval of the draft law by the Iraqi parliament to enter into contracts with various international oil companies in order to be extracted and marketed abroad. However knowing that oil is a national treasure and may not be exploited for the benefit of the hand. That if we know that most of the oil fields that have undergone decades licenses are required fields have been explored and drilled by the previous regime and buried a timely manner to the high costs of production , including during the siege, and what existing companies acquired only companies know that the extraction cost is simple and the profits that can be obtained is high. Second monetary and fiscal policy is suffering Iraqi economy than inflation since the mid - seventies of the last century , when public sector workers ' salaries increased after the success of the nationalization of the oil industry process and get Iraq to massive oil revenues in 1973 and then in the eighties during the Iran-Iraq war and during the siege economic in the nineties. According to statistics of the Central Bank of Iraq, the rate of inflation in Iraq amounted to 500 percent. For this fall upon himself the task of reducing inflation to 20 percent annually and this can bring the purchasing power of about 21 trillion dinars (d. D), while the cost of central bank monetary operations amounted to 2 t. Dr.. This means that the revenue per dinar and one is 10 dinars (4). The monetary policy of the most prominent efforts to achieve economic stability and stabilizing the exchange rate rates in excess of the national economy stronger and more effective to face the economic challenges of economic policies, and the Central Bank of Iraq has succeeded in achieving a reserve of cash foreign totaled $ 80 billion and 90 tonnes of gold. The installation of the Iraqi dinar exchange rate against the major currency dealing dollar is considered a must, and it was for auctions of foreign currency held by the Central Bank of Iraq played an important role in maintaining the appropriate level of the exchange rate and install it , and when it gets any pressure on exchange rates, the bank Central will tighten monetary policy and narrowed, including raising interest rates on deposits in Iraqi dinars. The Central Bank has expanded the list of available instruments of monetary policy and coverage of reserve required to include government deposits and the granting of facilities on deposits that mature in a short period in order to allow banks to manage the development of their liquidity more efficiently, and reduce liquidity risk (5). The objectives of monetary policy to achieve economic growth and reduce unemployment and stabilize the prices of goods and services, the stability of exchange rates, and improve the balance of payments. And achieved these goals through a direct and indirect monetary policy instruments, which have been reaffirmed in 2014. We have embarked on monetary policy, the establishment of an effective framework works towards strengthening confidence in Iraqi dinars, as it helps the confidence in the local currency to create a strong and deep conditions in the stability financial system, ie transfer of the impact of operational objectives for monetary policy to achieve the immediate objectives for the same policy because the power to address the dollarization, a measure of the effectiveness of monetary policy in providing effective signal to make the Iraqi dinar more powerful and that is usually reflected the stability of cash or low money circulation and stability of the speed dial function , or by the impact of exchange indices and interest rate variables positive actor in the stability of the cash demand mechanical moving cash at the same time, strengthening. Concerned with the affairs of the monetary policy of the country have noted that there is ambiguity in the understanding of the monetary policy of the Central Bank of Iraq , which continued to face them for the cases of hyperinflation and the deterioration of the Iraqi dinar exchange and through difficult economic and social aspects , which the country experienced in more than three decades of price signals, it is still carrying some circles responsibility faltering investment country programs and the ability to build development projects for the results of the successes of monetary policy (6). the essence of any financial policy in the world on the basis of determining the financial resources of the state and aspects of its spending through the use of the general budget and the systems of tax, banking and insurance in order to achieve them. The primary goal of monetary policy is to reach the socio-economic development and the achievement of social justice in the national income and wealth distribution. Nor is linked to the general budget plans in Iraq 's economic development-social, but the resources are distributed on the basis of items. Although the constitution and the law of state funds and public debt management, underline the need to follow the correct foundations for the way the preparation of the general budget in terms of resource allocation and oversight of implementation, and the need to link the budget development plan, and prepare statements required the use of funds, either through the preparation of final accounts, or by detecting cash flow, however , that all this is not bound by it, not by the executive or by parliament, despite the confirmation of Supreme Audit reports on it. The best proof of this is that the House of Representatives was unable to Agherarmizanah 2014 because of falling oil prices in the first half of it and this is what the impact on the budget for the year 2015 in which the price of a barrel of crude oil proved to US $ 56 and the export of approximately 3.3 m / b annually and achieves about 115 trillion dinars. As a result, the deficit by 25 trillion dinars (7). The Arab autumn effect not only on the political side, but on the economic side also clearly reflected on the budget for the year 2016 which identified where the price of a barrel of oil at US $ 45 card and export 3.6 million b / d. As we have earmarked 113 trillion to cover the total expenditure , which includes 83 trillion dinars to the current expenditure and 30 trillion dinars for capital spending and this means that the budget deficit will be 29 trillion dinars. But in fact, the deficit will be larger than that because the price of a barrel fluctuates between US $ 34-36. The oil imports, which constitute 92 to 95 percent of the imports of the general budget, and the rest from taxes, fees and profits of the public sector and the sale of state property of the main state financial sources Iraqi. General budget did not include other loans and grants from international aid and imports, it has not been disclosed until after receiving and spending. Oil resources of about $ 8 million in 2003 has risen to more than $ 94 billion in 2012. It went public budget numbers to high levels, reaching 80.5 billion dollars in 2011, rose to $ 100 billion in 2012, and to more than $ 118 billion a year 2013. the investment expenditure ratio of about 14 percent in the 2004 budget rose to 40 percent in the budget of 2013. the total state revenues from oil, duties and taxes, loans and grants received retrieved the money from international banks to more than $ 600 billion, a significant digits if compared to revenues of a lot of oil and non - oil -producing countries. But Iraq is still suffering from socio - economic problems, as a result of mismanagement of the funds. Despite the doubling of GDP figures is mainly due to developments in the wills of oil increases, the higher the Iraqi individual 's share of the $ 800 per year in 2003 to more than $ 4000 in 2012, we see a decline in the share of economic activities productivity Other (industry and agriculture), where it got to 1.5-3 percent, and unemployment remains high, with an estimated number of unemployed by 5 million unemployed, and poverty continues to be a high proportion of the population, and the deterioration of the situation for a class is a few of them, as the number threatened by starvation of about 2 million people or adjusts the rate of 6 percent of the population, and more than 12 percent of the population with an income of less than $ 2.5 a day. Iraq continues to suffer from significant problems in the municipal services and infrastructure, electricity and potable water, sanitation and housing, illiteracy , and others. Despite spending nearly $ 37 billion on the electricity sector, including 21 billion to invest in the production, transmission and distribution, but the Iraqis have not been able to get electricity continuously and production capacity available is still not more than 8700 MW of which about 4,500 were already present, despite repeated promises to solve this problem. So more than 25 percent of the population still earn less than 12 hours of electricity a day, and some of them do not get electricity final. So far , did not enter into the Ministry of Electricity plans processing needed economic sectors of electric power. With a mortality of children under five years , 37 percent of the age and reached the illiteracy rate of 23 percent of the population , or about 7.36 million humans (6). All of this confirms the fiscal policy failed to achieve the goals of social - economic desired after the year 2003 due to ignoring the implementation of the plans drawn up by some devices government in collaboration with international institutions and the Iraqi expertise from outside the state institutions. All because of the absence of state institutions due to partisan conflicts, which categorized into about sectarian slogans and ethnic led to the quota system and the exclusion of the professional and the principle of equal opportunities for all state institutions, and did not take into consideration the supreme national interests and the interests of citizens. III agricultural and industrial reality of government experiments did not work in the seventies the last century in the establishment of collective farms (such as the pioneer farm in Essaouira, Wasit province), but suffered huge losses because it did not paint a balanced policies in terms of price controls for field crops , for example , as wheat, barley, rice , and even in the field of livestock; so that it displays the farmer or farm to crises. For example , there are seasons and situations where up farm profitability to a very high and unreasonable degree, so that he himself can not be accommodated and how to behave sudden profits coming to him, and the lack of ability to invest in the establishment of model farms and the development of his marital status, while the other seasons come from drought so it is exposed to significant losses force him to leave his land and flee to the city for its inability to pay off the debt incurred by him. The process of controlling prices and limiting profitability depends on the government and the followers of the policies of price reasonable and balanced agricultural products and interventions and the services provided, and this depends on proper planning by studying the data of the market situation and the extent of the need and produced quantities and qualities, in addition to controlling the agricultural and service input prices and the budget with outputs . The process of organizing and balancing the prices of agricultural products can be controlled by the government through various channels, pour in their work to serve the increase of agricultural production and to achieve justice in the distribution between the farmer and the consumer. We must encourage and support packaging operations of agricultural products to facilitate the commercialization and prevent it from being damaged process. The discreet agricultural policy is the prerogative of the government, because they are solely responsible for the agricultural development of the country operations. Due to the lack of sophisticated tax system at the present time, the draw solid agricultural policy process, to ensure diversity in the lucrative products, and ensure consumer needs and deliver justice to the farmer (8). There are basic requirements for the advancement of the agricultural sector , namely: a - the necessary infrastructure set up to facilitate agricultural crops transfer and animal products to the drainage markets in the cities and urban centers. b - provide electricity to the villages and rural areas and to encourage and support the establishment of power stations run on solar energy and building mills air to generate electricity. c - create modern houses decent to live in the modern peasants in terms of power and municipal services provision. d - the establishment of health centers in rural areas and the provision of necessary medicines and health care for farmers and their families. e - provide veterinary centers for animals and treatment of endemic diseases that are common in the Iraqi countryside. this presents the Iraqi industrial sector to the destruction and disruption of public and private Mnciath during the economic blockade since 1992 as well as the US occupation of Iraq 2003 and the ouster of the authoritarian regime, and the subsequent destruction of the burning and looting of state institutions and government banks, factories and others. For these reasons many factories have stopped production. 

The factories that have been able resume its activity , it suffers from a lack of basic services, particularly electricity and production requirements and high production costs significantly, especially the transfer of wages of workers. In addition to the above, the opening of the Iraqi market for all types of goods without controls or tariffs or quality control and specifications, since the American occupation, has led to the suspension of several factories for the production of non - competitiveness and disposal of production. Knowing this, many industrial goods entering from Iraq 's poor quality and sold at low prices, and possibly below the cost of production in the countries of origin because of the dumping policy pursued by the countries of origin and aimed from behind to take control of the Iraqi market, and then the possibility of raising the prices of those goods in the After. And he demanded a lot of economists, politicians and businessmen face of this situation, but not be heard from government agencies. Which is surprising that some of the ministers and officials declare from time to time to double trade exchange between Iraq and neighboring countries such as Turkey and Iran, as if an increase in the import of goods represents a significant economic achievement , even if it is to destroy local production and increase the number of unemployed and wasting oil resources account the current consumer spending and depriving the country of investment and development opportunities (9). It is noted observer of the Iraqi markets to goods from neighboring countries such as Iran (import from Iran , the value of US $ 16 million) and Turkey (import $ 14 million worth) and other countries fill the Iraqi market . For example , not limited to the various industrial goods come from Iran starting from cars, buses and electric home appliances through with rice , food, fruits, vegetables and even bricks and building materials. Although this would provide goods at low prices and in favor of the consumer , but it is on the other hand , it works to break down and the removal of national industries that are struggling to survive and compete with imported goods and keep their employees at a time has become the issue of job creation and reduce unemployment of the big challenges facing the country 's problem ; where he became a political and social problem, as well as being an economic problem. a question arises constantly: is a matter of economic logic and national interest squandering oil revenues on imports of various commodities and the ongoing consumer spending and salaries to employees of state - of - staff and the police, the army and who multiply their numbers are continuously Since not consistent with the services and the business that they bring ( the phenomenon of aliens), and do not use that money for investment and industrial production , economic growth and employment idle? this reflects the abnormal situation of agriculture and industry the absence of an appropriate strategy and development vision. That 's notes the absence of coordination among the various economic sectors, and among the various ministries: industry, commerce, industry, electricity, electricity and oil, monetary policy , fiscal policy ... etc. The various ministries and economic institutions operate independently and without coordination with each other because of the lack of all branches of the national economy comprehensive economic plans. That is why many of the negative economic phenomena that are working on the continuation of the economic situation is abnormal and perpetuate the waste and loss of real opportunities for development under the state of indifference to what is happening in the country will continue. Applying the first hypothesis on what you stated above , we find that there is no placed economic Stratjah plans for ten years and not even plans a five - year is taken out and applied to the development of various sectors of the national economy. the second hypothesis, the economic institutions in Iraq do not have sophisticated information systems relied upon in solving the problems facing the Iraqi economy and decision - making wise, but there are topical solutions taken quickly costing the Iraqi budget cash huge as well as there is no coherence and integration between administrative and production units on the one hand and the ministries concerned on the other hand , and this is what led to the creation of chaos in various Iraqi national economy management. Conclusion it is clear from the foregoing, it is not necessary to install the following matters: 1. Determine the nature and methodology of the Iraqi economic system , including the public and private sector and the mechanism of their development. 2. Adoption of economic diversification and the development of policy , industry and agriculture; to contribute to the absorption of unemployed labor and the exploitation of natural and human resources to serve economic and social development plans. 3 for sale . State control over the oil industry and the introduction of modern scientific achievements of technical and technological development in all its activities and operations of the production, management and marketing. 4 for sale . The use of various monetary policy tools to control inflation , and returns the Iraqi dinar exchange rate to a good level, as it was before the Iraq war - Iran (1 d. P. Equal to US $ 3.3), through to activate the monetary instruments of the Central Bank with increased activity the stock market and the banking sector. . 5. Study and analysis of the reality of the civil and government banks and the level of performance for banking services by the Central Bank of Iraq in the light of its activities for the year 2015 with a take serious decisions to merge small - sized banks with large banks for the development of the private banking sector. 6. Interest in the work of industrial and agricultural bank to contribute to the process of economic development of industry and agriculture by giving soft loans to finance small and medium enterprises and the Iraqi Central Bank oversees the doubling allocations to ten trillion dinars. 7. Reference to increasing educational opportunities and acquire different skills, to meet the requirements of the labor market and sustainable development plans. 8. Preservation of the environment from pollution because the ecological factor, it has become an important factor in prolonging human life, as long as that man is the most precious capital. 9. Infrastructure projects and industrial, agricultural , health and educational institutions destroyed by military operations against terrorism in the governorates of Anbar, Salahuddin, Diyala , Tamim and Nineveh reform while facilitating the return of displaced persons to their homes , liberated from terrorism. 10. The return of capital that had fled abroad, estimated at about US $ 1,000 billion to be invested in the reconstruction of areas affected by the military operations. Margins and sources related research: (1) Salem, d. Ali Abdul Hadi, a magazine Anbar University Economic and Administrative Sciences, Vol . 4 No. 9, p . 46 Year 2012. (2) The Ministry of Planning and Development Cooperation, the Central Bureau of Statistics, Statistical Abstract of the year 2012. (3) Saad Kamel, Radio Free Iraq, specialists: Iraq 's per capita income has not improved during 2013, 24. 12. 2013. (4) Salem, d. Ali Abdul Hadi, Ibid p . 48. (5) Union of Arab Banks, monetary policy in Iraq and stabilization applications. (6) Suri, d. Majid, financial and monetary policy in Iraq, Al - Alam Al 25/04/2013 (7) Osman, Fadel Ali 0.2016 in the fall of Arab oil, early 2016. [You must be registered and logged in to see this image.] Lillo, Dr. Samir Hassan, agriculture problems in Iraq .... when do you finish? Irak site - Business News, 1 0.1 .2012 [You must be registered and logged in to see this link.] (9) Quraishi, d. Medhat, the plight of Iraqi industry, a network of Iraqi economists, 03/07/2011 (10) Alnasiri, Samir Abbas, an open letter to the Prime Minister, 02.17.2016). Network Iraqis economists. (11) Dulaimi, Haider Ali, History for Iraq 's oil, Part III of the Baath regime in 1968 until the invasion of Iraq in 2003, the site of civilized dialogue, Issue: 3355, 4.5.2011. (12) Union Arab banks, Iraq changed .. .. .. openness of the development, Journal of Union of Arab banks, Special Issue, June, June 2004, p . 20. (13) Al - Quraishi, d. Medhat, current financial and economic crisis and the issue of the exchange rate of the dinar. Network Alaguensadaan Iraqis 08.02.2016. (14) Fahmi, d. Raed Fahmi, "insights into the challenges of the current reality of the Iraqi economy , " published on Monday , July 6, 2015, the newspaper People 's Road. (15) Mirza, d. Ali, the proposed 2014 budget - public spending and the use of the private sector in Iraq. Network Iraqis economists. Published on 08.02.2014. (16) Mirza, d. Ali, the follow - up: the exchange rate market in Iraq since the adoption of counterweight 2015. Network Iraqis economists. Published on 18.05.2015. III agricultural and industrial reality of government experiments did not work in the seventies of the last century in the establishment of collective farms (such as the pioneer farm in Essaouira, Wasit Province), but suffered huge losses because it did not paint a balanced policies in terms of price controls for field crops , for example , as wheat, barley, rice , and even in the field of wealth animal; so that it displays the farmer or farm to crises. For example , there are seasons and situations where up farm profitability to a very high and unreasonable degree, so that he himself can not be accommodated and how to behave sudden profits coming to him, and the lack of ability to invest in the establishment of model farms and the development of his marital status, while the other seasons come from drought so it is exposed to significant losses force him to leave his land and flee to the city for its inability to pay off the debt incurred by him. The process of controlling prices and limiting profitability depends on the government and the followers of the policies of price reasonable and balanced agricultural products and interventions and the services provided, and this depends on proper planning by studying the data of the market situation and the extent of the need and produced quantities and qualities, in addition to controlling the agricultural and service input prices and the budget with outputs . The process of organizing and balancing the prices of agricultural products can be controlled by the government through various channels, pour in their work to serve the increase of agricultural production and to achieve justice in the distribution between the farmer and the consumer. We must encourage and support packaging operations of agricultural products to facilitate the commercialization and prevent it from being damaged process. The discreet agricultural policy is the prerogative of the government, because they are solely responsible for the agricultural development of the country operations. Due to the lack of sophisticated tax system at the present time, the draw solid agricultural policy process, to ensure diversity in the lucrative products, and ensure consumer needs and deliver justice to the farmer (8). There are basic requirements for the advancement of the agricultural sector , namely: a - the necessary infrastructure set up to facilitate agricultural crops transfer and animal products to the drainage markets in the cities and urban centers. b - provide electricity to the villages and rural areas and to encourage and support the establishment of power stations run on solar energy and building mills air to generate electricity. c - create modern houses decent to live in the modern peasants in terms of power and municipal services provision. d - the establishment of health centers in rural areas and the provision of necessary medicines and health care for farmers and their families. e - provide veterinary centers for animals and treatment of endemic diseases that are common in the Iraqi countryside. this presents the Iraqi industrial sector to the destruction and disruption of public and private Mnciath during the economic blockade since 1992 as well as the US occupation of Iraq 2003 and the ouster of the authoritarian regime, and the subsequent destruction of the burning and looting of state institutions and government banks, factories and others. For these reasons many factories have stopped production. The factories that have been able resume its activity , it suffers from a lack of basic services, particularly electricity and production requirements and high production costs significantly, especially the transfer of wages of workers. In addition to the above, the opening of the Iraqi market for all types of goods without controls or tariffs or quality control and specifications, since the American occupation, has led to the suspension of several factories for the production of non - competitiveness and disposal of production. Knowing this, many industrial goods entering from Iraq 's poor quality and sold at low prices, and possibly below the cost of production in the countries of origin because of the dumping policy pursued by the countries of origin and aimed from behind to take control of the Iraqi market, and then the possibility of raising the prices of those goods in the After. And he demanded a lot of economists, politicians and businessmen face of this situation, but not be heard from government agencies. Which is surprising that some of the ministers and officials declare from time to time to double trade exchange between Iraq and neighboring countries such as Turkey and Iran, as if an increase in the import of goods represents a significant economic achievement , even if it is to destroy local production and increase the number of unemployed and wasting oil resources account the current consumer spending and depriving the country of investment and development opportunities (9). It is noted observer of the Iraqi markets to goods from neighboring countries such as Iran (import from Iran , the value of US $ 16 million) and Turkey (import $ 14 million worth) and other countries fill the Iraqi market . For example , not limited to the various industrial goods come from Iran starting from cars, buses and electric home appliances through with rice , food, fruits, vegetables and even bricks and building materials. Although this would provide goods at low prices and in favor of the consumer , but it is on the other hand , it works to break down and the removal of national industries that are struggling to survive and compete with imported goods and keep their employees at a time has become the issue of job creation and reduce unemployment of the big challenges facing the country 's problem ; where he became a political and social problem, as well as being an economic problem. a question arises constantly: is a matter of economic logic and national interest squandering oil revenues on imports of various commodities and the ongoing consumer spending and salaries to employees of state - of - staff and the police, the army and who multiply their numbers are continuously Since not consistent with the services and the business that they bring ( the phenomenon of aliens), and do not use that money for investment and industrial production , economic growth and employment idle? this reflects the abnormal situation of agriculture and industry the absence of an appropriate strategy and development vision. That 's notes the absence of coordination among the various economic sectors, and among the various ministries: industry, commerce, industry, electricity, electricity and oil, monetary policy , fiscal policy ... etc. The various ministries and economic institutions operate independently and without coordination with each other because of the lack of all branches of the national economy comprehensive economic plans. That is why many of the negative economic phenomena that are working on the continuation of the economic situation is abnormal and perpetuate the waste and loss of real opportunities for development under the state of indifference to what is happening in the country will continue. Applying the first hypothesis on what you stated above , we find that there is no placed economic Stratjah plans for ten years and not even plans a five - year is taken out and applied to the development of various sectors of the national economy. the second hypothesis, the economic institutions in Iraq do not have sophisticated information systems relied upon in solving the problems facing the Iraqi economy and decision - making wise, but there are topical solutions taken quickly costing the Iraqi budget cash huge as well as there is no coherence and integration between administrative and production units on the one hand and the ministries concerned on the other hand , and this is what led to the creation of chaos in various Iraqi national economy management. Conclusion it is clear from the foregoing, it is not necessary to install the following matters: 1. Determine the nature and methodology of the Iraqi economic system , including the public and private sector and the mechanism of their development. 2. Adoption of economic diversification and the development of policy , industry and agriculture; to contribute to the absorption of unemployed labor and the exploitation of natural and human resources to serve economic and social development plans. 3 for sale . State control over the oil industry and the introduction of modern scientific achievements of technical and technological development in all its activities and operations of the production, management and marketing. 4 for sale . The use of various monetary policy tools to control inflation , and returns the Iraqi dinar exchange rate to a good level, as it was before the Iraq war - Iran (1 d. P. Equal to US $ 3.3), through to activate the monetary instruments of the Central Bank with increased activity the stock market and the banking sector. . 5. Study and analysis of the reality of the civil and government banks and the level of performance for banking services by the Central Bank of Iraq in the light of its activities for the year 2015 with a take serious decisions to merge small - sized banks with large banks for the development of the private banking sector. 6. Interest in the work of industrial and agricultural bank to contribute to the process of economic development of industry and agriculture by giving soft loans to finance small and medium enterprises and the Iraqi Central Bank oversees the doubling allocations to ten trillion dinars. 7. Reference to increasing educational opportunities and acquire different skills, to meet the requirements of the labor market and sustainable development plans. 

8. Preservation of the environment from pollution because the ecological factor, it has become an important factor in prolonging human life, as long as that man is the most precious capital. 9. Infrastructure projects and industrial, agricultural , health and educational institutions destroyed by military operations against terrorism in the governorates of Anbar, Salahuddin, Diyala , Tamim and Nineveh reform while facilitating the return of displaced persons to their homes , liberated from terrorism. 10. The return of capital that had fled abroad, estimated at about US $ 1,000 billion to be invested in the reconstruction of areas affected by the military operations. Margins and sources related research: (1) Salem, d. Ali Abdul Hadi, a magazine Anbar University Economic and Administrative Sciences, Vol . 4 No. 9, p . 46 Year 2012. (2) The Ministry of Planning and Development Cooperation, the Central Bureau of Statistics, Statistical Abstract of the year 2012. (3) Saad Kamel, Radio Free Iraq, specialists: Iraq 's per capita income has not improved during 2013, 24. 12. 2013. (4) Salem, d. Ali Abdul Hadi, Ibid p . 48. (5) Union of Arab Banks, monetary policy in Iraq and stabilization applications. (6) Suri, d. Majid, financial and monetary policy in Iraq, Al - Alam Al 25/04/2013 (7) Osman, Fadel Ali 0.2016 in the fall of Arab oil, early 2016. [You must be registered and logged in to see this image.] Lillo, Dr. Samir Hassan, agriculture problems in Iraq .... when do you finish? Irak site - Business News, 1 0.1 .2012 [You must be registered and logged in to see this link.] (9) Quraishi, d. Medhat, the plight of Iraqi industry, a network of Iraqi economists, 03/07/2011 (10) Alnasiri, Samir Abbas, an open letter to the Prime Minister, 02.17.2016). Network Iraqis economists. (11) Dulaimi, Haider Ali, History for Iraq 's oil, Part III of the Baath regime in 1968 until the invasion of Iraq in 2003, the site of civilized dialogue, Issue: 3355, 4.5.2011. (12) Union Arab banks, Iraq changed .. .. .. openness of the development, Journal of Union of Arab banks, Special Issue, June, June 2004, p . 20. (13) Al - Quraishi, d. Medhat, current financial and economic crisis and the issue of the exchange rate of the dinar. Network Alaguensadaan Iraqis 08.02.2016. (14) Fahmi, d. Raed Fahmi, "insights into the challenges of the current reality of the Iraqi economy , " published on Monday , July 6, 2015, the newspaper People 's Road. (15) Mirza, d. Ali, the proposed 2014 budget - public spending and the use of the private sector in Iraq. Network Iraqis economists. Published on 08.02.2014. (16) Mirza, d. Ali, the follow - up: the exchange rate market in Iraq since the adoption of counterweight 2015. Network Iraqis economists. Published on 18.05.2015. III agricultural and industrial reality of government experiments did not work in the seventies of the last century in the establishment of collective farms (such as the pioneer farm in Essaouira, Wasit Province), but suffered huge losses because it did not paint a balanced policies in terms of price controls for field crops , for example , as wheat, barley, rice , and even in the field of wealth animal; so that it displays the farmer or farm to crises. For example , there are seasons and situations where up farm profitability to a very high and unreasonable degree, so that he himself can not be accommodated and how to behave sudden profits coming to him, and the lack of ability to invest in the establishment of model farms and the development of his marital status, while the other seasons come from drought so it is exposed to significant losses force him to leave his land and flee to the city for its inability to pay off the debt incurred by him. The process of controlling prices and limiting profitability depends on the government and the followers of the policies of price reasonable and balanced agricultural products and interventions and the services provided, and this depends on proper planning by studying the data of the market situation and the extent of the need and produced quantities and qualities, in addition to controlling the agricultural and service input prices and the budget with outputs . The process of organizing and balancing the prices of agricultural products can be controlled by the government through various channels, pour in their work to serve the increase of agricultural production and to achieve justice in the distribution between the farmer and the consumer. We must encourage and support packaging operations of agricultural products to facilitate the commercialization and prevent it from being damaged process. The discreet agricultural policy is the prerogative of the government, because they are solely responsible for the agricultural development of the country operations. Due to the lack of sophisticated tax system at the present time, the draw solid agricultural policy process, to ensure diversity in the lucrative products, and ensure consumer needs and deliver justice to the farmer (8). There are basic requirements for the advancement of the agricultural sector , namely: a - the necessary infrastructure set up to facilitate agricultural crops transfer and animal products to the drainage markets in the cities and urban centers. b - provide electricity to the villages and rural areas and to encourage and support the establishment of power stations run on solar energy and building mills air to generate electricity. c - create modern houses decent to live in the modern peasants in terms of power and municipal services provision. d - the establishment of health centers in rural areas and the provision of necessary medicines and health care for farmers and their families. e - provide veterinary centers for animals and treatment of endemic diseases that are common in the Iraqi countryside. this presents the Iraqi industrial sector to the destruction and disruption of public and private Mnciath during the economic blockade since 1992 as well as the US occupation of Iraq 2003 and the ouster of the authoritarian regime, and the subsequent destruction of the burning and looting of state institutions and government banks, factories and others. For these reasons many factories have stopped production. The factories that have been able resume its activity , it suffers from a lack of basic services, particularly electricity and production requirements and high production costs significantly, especially the transfer of wages of workers. In addition to the above, the opening of the Iraqi market for all types of goods without controls or tariffs or quality control and specifications, since the American occupation, has led to the suspension of several factories for the production of non - competitiveness and disposal of production. Knowing this, many industrial goods entering from Iraq 's poor quality and sold at low prices, and possibly below the cost of production in the countries of origin because of the dumping policy pursued by the countries of origin and aimed from behind to take control of the Iraqi market, and then the possibility of raising the prices of those goods in the After. And he demanded a lot of economists, politicians and businessmen face of this situation, but not be heard from government agencies. Which is surprising that some of the ministers and officials declare from time to time to double trade exchange between Iraq and neighboring countries such as Turkey and Iran, as if an increase in the import of goods represents a significant economic achievement , even if it is to destroy local production and increase the number of unemployed and wasting oil resources account the current consumer spending and depriving the country of investment and development opportunities (9). It is noted observer of the Iraqi markets to goods from neighboring countries such as Iran (import from Iran , the value of US $ 16 million) and Turkey (import $ 14 million worth) and other countries fill the Iraqi market . For example , not limited to the various industrial goods come from Iran starting from cars, buses and electric home appliances through with rice , food, fruits, vegetables and even bricks and building materials. Although this would provide goods at low prices and in favor of the consumer , but it is on the other hand , it works to break down and the removal of national industries that are struggling to survive and compete with imported goods and keep their employees at a time has become the issue of job creation and reduce unemployment of the big challenges facing the country 's problem ; where he became a political and social problem, as well as being an economic problem. a question arises constantly: is a matter of economic logic and national interest squandering oil revenues on imports of various commodities and the ongoing consumer spending and salaries to employees of state - of - staff and the police, the army and who multiply their numbers are continuously Since not consistent with the services and the business that they bring ( the phenomenon of aliens), and do not use that money for investment and industrial production , economic growth and employment idle? this reflects the abnormal situation of agriculture and industry the absence of an appropriate strategy and development vision. That 's notes the absence of coordination among the various economic sectors, and among the various ministries: industry, commerce, industry, electricity, electricity and oil, monetary policy , fiscal policy ... etc. The various ministries and economic institutions operate independently and without coordination with each other because of the lack of all branches of the national economy comprehensive economic plans. That is why many of the negative economic phenomena that are working on the continuation of the economic situation is abnormal and perpetuate the waste and loss of real opportunities for development under the state of indifference to what is happening in the country will continue. Applying the first hypothesis on what you stated above , we find that there is no placed economic Stratjah plans for ten years and not even plans a five - year is taken out and applied to the development of various sectors of the national economy. the second hypothesis, the economic institutions in Iraq do not have sophisticated information systems relied upon in solving the problems facing the Iraqi economy and decision - making wise, but there are topical solutions taken quickly costing the Iraqi budget cash huge as well as there is no coherence and integration between administrative and production units on the one hand and the ministries concerned on the other hand , and this is what led to the creation of chaos in various Iraqi national economy management. Conclusion it is clear from the foregoing, it is not necessary to install the following matters: 1. Determine the nature and methodology of the Iraqi economic system , including the public and private sector and the mechanism of their development. 2. Adoption of economic diversification and the development of policy , industry and agriculture; to contribute to the absorption of unemployed labor and the exploitation of natural and human resources to serve economic and social development plans. 3 for sale . State control over the oil industry and the introduction of modern scientific achievements of technical and technological development in all its activities and operations of the production, management and marketing. 4 for sale . The use of various monetary policy tools to control inflation , and returns the Iraqi dinar exchange rate to a good level, as it was before the Iraq war - Iran (1 d. P. Equal to US $ 3.3), through to activate the monetary instruments of the Central Bank with increased activity the stock market and the banking sector. . 5. Study and analysis of the reality of the civil and government banks and the level of performance for banking services by the Central Bank of Iraq in the light of its activities for the year 2015 with a take serious decisions to merge small - sized banks with large banks for the development of the private banking sector. 6. Interest in the work of industrial and agricultural bank to contribute to the process of economic development of industry and agriculture by giving soft loans to finance small and medium enterprises and the Iraqi Central Bank oversees the doubling allocations to ten trillion dinars. 7. Reference to increasing educational opportunities and acquire different skills, to meet the requirements of the labor market and sustainable development plans. 8. Preservation of the environment from pollution because the ecological factor, it has become an important factor in prolonging human life, as long as that man is the most precious capital. 9. Infrastructure projects and industrial, agricultural , health and educational institutions destroyed by military operations against terrorism in the governorates of Anbar, Salahuddin, Diyala , Tamim and Nineveh reform while facilitating the return of displaced persons to their homes , liberated from terrorism. 10. The return of capital that had fled abroad, estimated at about US $ 1,000 billion to be invested in the reconstruction of areas affected by the military operations. Margins and sources related research: (1) Salem, d. Ali Abdul Hadi, a magazine Anbar University Economic and Administrative Sciences, Vol . 4 No. 9, p . 46 Year 2012. (2) The Ministry of Planning and Development Cooperation, the Central Bureau of Statistics, Statistical Abstract of the year 2012. (3) Saad Kamel, Radio Free Iraq, specialists: Iraq 's per capita income has not improved during 2013, 24. 12. 2013. (4) Salem, d. Ali Abdul Hadi, Ibid p . 48. (5) Union of Arab Banks, monetary policy in Iraq and stabilization applications. (6) Suri, d. Majid, financial and monetary policy in Iraq, Al - Alam Al 25/04/2013 (7) Osman, Fadel Ali 0.2016 in the fall of Arab oil, early 2016. [You must be registered and logged in to see this image.] Lillo, Dr. Samir Hassan, agriculture problems in Iraq .... when do you finish? Irak site - Business News, 1 0.1 .2012 [You must be registered and logged in to see this link.] (9) Quraishi, d. Medhat, the plight of Iraqi industry, a network of Iraqi economists, 03/07/2011 (10) Alnasiri, Samir Abbas, an open letter to the Prime Minister, 02.17.2016). Network Iraqis economists. (11) Dulaimi, Haider Ali, History for Iraq 's oil, Part III of the Baath regime in 1968 until the invasion of Iraq in 2003, the site of civilized dialogue, Issue: 3355, 4.5.2011. (12) Union Arab banks, Iraq changed .. .. .. openness of the development, Journal of Union of Arab banks, Special Issue, June, June 2004, p . 20. (13) Al - Quraishi, d. Medhat, current financial and economic crisis and the issue of the exchange rate of the dinar. Network Alaguensadaan Iraqis 08.02.2016. (14) Fahmi, d. Raed Fahmi, "insights into the challenges of the current reality of the Iraqi economy , " published on Monday , July 6, 2015, the newspaper People 's Road. (15) Mirza, d. Ali, the proposed 2014 budget - public spending and the use of the private sector in Iraq. Network Iraqis economists. Published on 08.02.2014. (16) Mirza, d. Ali, the follow - up: the exchange rate market in Iraq since the adoption of counterweight 2015. Network Iraqis economists. Published on 18.05.2015.