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The weakness of the infrastructure investment lowers rates
9/20/2016 0:00
[rtl]BAGHDAD / Imad emirate
proved AFESD Iraqi economy experience the domestic savings to accommodate theinvestments needed to achieve the target in the real production sector growth rates, may not be production enough to achieve this goal, especially when it collides development effort to allocate resources in the budget to finance current consumption, lack ofinvestment , which hampers increasing the ability of the economy to provide theelements of self - growth.
In this regard , the economic academic d said. Awad Fadhil Ismail: It may be difficult tosay that whenever Turn savings rate of increase indicates that the increase allocated to the accumulation of physical capital resources and thus increasing the ability of theeconomy to bring about a change in the construction of national production, confirming that the decline in production capacities reflecting reduced the effectiveness of domestic investment , adding Ismail interview »morning», said the low rates of investment in theproductive sectors in Iraq always come because of the weakness of the infrastructure such as transport and communications, telecommunications, the lack of technical staffs skilled and lack of know - how in the field of organization, management and misuse of scarce resources Almtahh.wachar that the expected result of lower investment efficiency is high evident in production costs hurt toward paying local prices to rise and increased inflationary pressures and weak export capacity due to lower competitive position of local products in the international markets.
He said Ismail that the economic system based now account for its bundle of contradictions between theory and practice, and gaining this contradictions president dimension to the tasks required for the development of the supply side and diversification, pointing out that the current consumption depletes most of the fruits of theoil boom , which provides funding for the development process as signs of a severe deficiency between the various production activities.
He argued: that the decline in the efficiency of investment rates are leading to thedwindling power of relics diffusivity of investment spending in the overall development ofproduction, as well as the development of the Iraqi economy, which is witnessing animbalance and a clear pattern, you will not receive the attention enough to tame the local potentials as quickly as possible to accelerate growth, indicating the importance ofexploiting the cost of opportunity borne by the national economy and employment to achieve the optimum utilization of the early to display the available financial Aloverat.
he concluded Ismail saying: to get out of trouble to bow to dysfunctional development ofproduction and a subsidiary of the oil sector is not to wrestle revenue about figures but will remain dependent to a large extent the viability supported by economic policy makers of the will to solve these contradictions, stressing that resources available to the country of abundance, but their misuse has led to greatly complicate the economic landscape in general.[/rtl]
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