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The private sector is affected by the Dutch disease and rentier economy
7/16/2016 0:00
[rtl]The absence of correlation between wage and productivity devote weak competitiveness
BAGHDAD - Imad emirate
said economist academic d. Ahmed Omar Narrator: that Iraq, since the fifties of the last century, fell into the trap rentier seemed manifestations gradually become clear when using oil revenues to non - development of the productive sectors during the previous and the current covenants varying degrees.
The narrator in an interview with «morning» helped the effect of expanding the use ofrevenues oil on the spread of corruption, and has increased the country 's dependence on the middle class of employees who have a majority not to administrative efficiency, which dispelled all attempts to promote the economic reality in Iraq. rentier state can be defined rentier state as those that rely on most exports and financing of the general budget on export oil and gas , petroleum products and petrochemicals, and the state owns or controls where most of the oil revenues, in addition to that , they are economic manifestations , including the emergence of symptoms of Dutch disease , which began in 1959 as a result of the export of the State of the Netherlands natural gas. and knows Dutch disease as an economic phenomenon that occurs in the State what is the result ofcertain economic developments consequent rise in its currency value, and then theinternational competitiveness dropped her, or resources where the shift from theproduction of goods that were produced and issued by the State traditionally towards other sectors. He continued the narrator as a result of the flow of foreign currency from the export of gas taken currency Dutch to appreciate against other currencies make thegoods the Dutch more expensive in foreign markets, and thus weakened their competitiveness has contributed to the obstruction of non - oil exports , especially industrial inability to compete in foreign markets. slowdown in growth , adding that this has led to the emergence of an economic system characterized by unilateralism in obtaining foreign currencies, and in such an economy spread practices discourage hard work and slow growth and stagnant economic activity because of the lack ofcompetitiveness to promote non - oil exports , what might be called the curse of therentier supplier, pointing out that the slowdown in industrial and agricultural activity, as aresult of lack of competitiveness in the markets Foreign Affairs , will lead to increased income inequality through the low - income rate in the sector of goods and services traded , compared with average income in the sector of goods and services to local markets. internal activities as a result of increased incomes from foreign currency influx escalated internal activities in the construction, transportation , or the so - called activities It is traded, what led to increased wage rates which are reflected in the other activities, and as a result has increased the cost of production of goods in the export manufacturing sector, as shares in the low competitiveness abroad. pace of changenarrator pointed out that the interaction between the economic and social organization led to a system of government can through control of the community and determine thepace of change through social terms, indicating that rents shares granting job opportunities for increasing numbers of workers in the state, which was characterized bymostly non - efficiency in the administration as a result of the absence of the link between wages and productivity and humility incentives and extended this phenomenon to the rest parts of the economy. and d. Ahmed Rawi, the inflated number of employees has increased the size of that part of the middle class under the control of the state, which prevented claim this layer of their rights, so we find that the state control on themiddle class led to interactive relationship contributed to the absence of civil society institutions and weaken the private sector in rentier state.[/rtl]
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