Institutionalizing economic reform in Iraq 10/15

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Institutionalizing economic reform in Iraq

10/15/2015


A guarantee for the success of the economic reforms of the Government of Abadi

Dr.. Haitham cream flap

Future Center for Strategic Studies


Citizen does not want written reforms on paper or logos or theses theory, every government comes to power in Iraq, raising the slogan of economic reform and carry economic programs, like a magic wand that will achieve the dream of prosperity for the Iraqi people, which is beset by crises from everywhere (electricity crisis, water crisis, education crisis, a housing crisis, health crisis, the environment crisis, a political crisis, a security crisis, a financial crisis and the crisis of poverty, unemployment, hunger, migration and displacement ... etc).

All previous governments in Iraq after 2003 came good economic reforms programs (both in the government of Iyad Allawi, Jaafari or Ao Nuri al-Maliki), and wonder why they have not achieved tangible results or they were not the level of ambition?

We believe the reason that they have not framed in true institutionalization of active and influential in the conduct of the state administration and the economy, does not mean Palmossh buildings or institutions or companies and offices, but institutionalization and by institutional school is defined as "the game" rules ie they are laws and regulations and instructions, programs and policies control behavior within the power system and the Department of State, and without institutional We will be in front of undisciplined behavior by the power elites, Developed countries feature formats institutional active and influential of any officer of the behavior of those in charge of the State Administration of all political, economic, financial, trade and services joints .. etc., can not then be any official to be away from oversight and accountability and punishment that Badr default or failure in the performance of his duties or released him defiant behavior intentional.

Some might say we have in Iraq, institutional, say yes, but they are not effective in the behavior of those in charge of the state administration and the economy, any power elites inside Iraq understand the above institutional, in the sense they are immune from accountability and punishment in other words, it is above the law, effective and influential Valmossh is the other face the force of law, judges, without which it will not succeed in any attempt to reform Iraq.

Here we will try to shed light on three axes:

I: Overview of the package of reforms to the prime minister Haider al-Abadi.

First / reforms of Prime Minister Haider al-Abadi package ...

Reform package presented by Prime Minister Haider al-Abadi and approved by the Council of Ministers unanimously on 9 August 2015, and ratified by Parliament on 11 of the same month, were not new one but had previously announced in his government (20,142,018), and can be summed up the following axes:


1. administrative reform axis

Which focused on the adoption of a broad approach to institutional reform and to accelerate the completion of the program of administrative reform includes (reduce the number of protections for all state officials, including the three presidencies, ministers, MPs and special grades and general managers, governors and members of the provincial councils and their grades, and are converted surplus to the ministries of defense, interior and continue identifying other privileges for officials including (cars and housing), as well as the abolition of the posts of Vice President and the Prime Minister as well as reducing its ministries and agencies to raise the efficiency of government action and the reduction of expenses and the elimination of disparities in salaries through reform of salaries and allowances system and the abolition of the special provisions.

2. Financial Reform axis:

It aims to address the deficit in the general budget of the reform of the structure of expenditures and income through the state:

A. Treatment of fiscal evasion with respect to both income tax and broadening the tax base and prevent corruption and reduce the burden on the self-employed.

(B) the application of the customs tariff fair at all border crossings and ports, including the Kurdistan region and the use of international companies discreet in this area to prevent corruption and promote national product and preventing the dumping of the Iraqi market.

C reduce the upper limit of pensions for officials.

3. economic reform axis:

The activation of the movement of investment and stimulate the private sector through the provision of credit to the industrial, agricultural and housing sector to sector, amounting to 5 trillion dinars, as well as support for small businesses with loans amounting trillion dinars in order to run the unemployed, as well as interest in the private sector and the payment of dues owed by the government, and also Cancel All exceptions to the Implementing Regulations of government contracts with the exception of armament contracts in the Ministry of Defense currently as well as activating the business strategies prepared by state institutions, all of which, as well as the rehabilitation of state-owned industries and the gradual shift towards the private sector and ensure an enabling environment for the advancement in the field of trade, finance, laws and legislation.

4. axis Services:

It focuses on upgrading the service and living conditions for the Iraqi people, and to address the foundation primarily the electricity crisis and the provision of infrastructure (transport and communications) and the adoption of effective community-based surveillance program to detect decline or failure in the delivery of public services in order to negligent accounting and corrupt.

5. axis of the fight against corruption:

And it focuses on the establishment of the Council (anti-corruption) under the chairmanship of Prime Minister and activating principle (Where did you get this), and activating the role of the judiciary and the opening of the previous files of corruption and prosecuting corrupt, and set a time limit to resolve all corruption issues, as well as activating the role of the regulatory institutions, namely, (body of national integrity, Office of Financial Supervision, and the offices of the Inspector General), and the formulation of a program monitoring and evaluation of government performance and integration of roles.

6. There is also a strategic priority for the government program came within the reformist prime minister Haider al-Abadi represented by:

a. Address the problem of displacement and migration.

B. Increasing oil and gas production and to improve financial sustainability.

T. The requirements of the advancement of human development (education, health, environmental sustainability, activating the role of civil society organizations, promote the role of women and increase the efficiency of social security) services.

W. Attract foreign investment and diversify sources of income away from oil in light of the erosion of prices.

C. Restructuring some state-owned enterprises, he said Haider al-Abadi "We want these companies to be more efficient and effective in the Iraqi economy, and the government has no intention to get rid of workers in these companies."

Second / Makanzmat Reform: A Vision in standards

As long as calls for reform have escalated in Iraq since years ago but did not succeed and why it was turned off their engines, and we point out here if we want to achieve comprehensive reform and its success has to be its engines perpetuate continuity and here we define the following:

1. The principle of good faith by all political actors in the Iraqi arena and adopted the reform ideology and practice in its service to the Iraqi people and the initiative of its own to adopt reforms and move away from the unfair competition and try some of them thwart the government and the forfeiture of reform is the only option to stay in power instead of forcing them to leave Iraq, the Iraqi people under the pressure of demonstrations.

2. The Iraqi government must adopt the merit system when filling leadership positions, away from sectarianism and party quotas, what can strengthen the judicial system in the fight against corruption.

3. must continue the momentum of the protests and supported by good reference, because that eased the brunt real reform will not be achieved in Iraq will be the last bubble as bubbles.

4. The availability of regional and international support for reforms Iraq, particularly from international financial institutions, international and regional banks and the IMF and the World Bank to provide funding for the success of reforms, as well as specialized in drawing reform policies and agencies and how they are implemented and the use of international experts in this field, Iraq needs to appropriate economic support at this stage to help in the success of the economic reform processes.

Third / creation of a body of economic transformation (guarantee of successful economic transformation in Iraq)

We suggest the government's establishment of the Ministry of economic transformation after they have been integrating both (the National Commission to encourage foreign investment and the Department of Foreign Investment in the Ministry of Planning, the Department of Foreign Affairs in the Ministry of Commerce, and the Department of Economic Relations at the Ministry of Foreign Affairs, and the privatization frozen in the Council of Ministers), and that are linked a special relationship with the Central Bank and Ministry of Finance and the Ministry of Commerce and the Iraqi market for securities, and in that the objectives of:

Reducing its administrative system by merging ministries and all bodies above and thus pressure for administrative positions and get rid of the privileges and the consequent pressure for expenses significantly while maintaining the specialized economy, trade and investment cadres and money only on the least developed leadership of staff and recycling the rest of the staff to the branches to be established for The Ministry of economic transformation or the Ministry of Economy and each according to its competence.

The unification of the source of economic decision-making region of only one instead of multiple points of economic decision-making.
Ensure greater efficiency in the management of the Iraqi economy through the adoption of economic thought a sound based on the uncontrolled market economy framework institutionalized in the interests of everyone and guarantee social justice at the same time, and this is what Iraq needs in light of the economic reform period can not remain dependent on the state as the patron god work, and it is responsible for carrying all economic problems and is concerned with economic development must be the withdrawal of the state to exercise their roles as in developed countries, namely:

a. Defense and external and internal security.

B. Legislation and law enforcement.

T. Control and supervision of the functioning of a market economy and to provide institutional frameworks guarantor of social justice that does not leave any market economy works without controls.

And it is that public body or the ministry of the pillars of the Iraqi state and the condition of the existence and continuity, and is working on two aspects:

I: external cares Foreign attention to every economic reform with international economic institutions programs of economic relations (the International Monetary Fund, the World Bank, World Trade Organization), as well as with regional and international financial institutions, and conduct large-scale training operations concerning the application of economic reform programs and the introduction of ad hoc expert shift and economic reform.

Second: The internal foreign and national investment, the private sector and public internal financial affairs and trade affairs, as well as the adoption of privatization and file management on all sectors and to serve the economic reform and the advancement of the Iraqi economy.

Here we emphasize the three things very important to support the ministry or the proposed economic transformation body:

1. The establishment of the Supreme Economic Court:

Is that the task of the court for the success of the work of the economic transition in Iraq, Vtad economic institutionalization of specialized regulate economic behavior for all those in charge of managing economic, financial, trade and investment affairs inside Iraq or conflict resolution and the resolution of issues that arise with external parties deal with Iraq, and this type of an existing courts in developed countries and is one of improving the competitiveness of the economy at the global level factors, and we propose to include specialized judges economic and commercial law, international economic law and the law of companies exclusively though Iraq now suffers from a lack of specialized economic law cadres, also call for the establishment of specialized academic numbers economists judges or open a branch within the Higher Judiciary Institute to prepare its cadres and knowledge of economic matters and international economic relations, investment and financial matters and international economic law, including WTO law and international investment contracts and other specialized economic contracts.

2. Create financial Court:

Suggested activating the work of the existing financial services Court with the Central Bank of Iraq and the expansion of its work, or other establishment of a specialized only financial and accounting matters to internal and external level, also has the task of reviewing all financial and administrative corruption, whether corruption toast authority (the President, Prime Minister, members of the Board Ministers, heads of provincial councils, provincial council members, and all members of the House of Representatives and the Directors General in the Ministries of State and its institutions), as well as bureaucratic corruption (staff without the degree of general manager), and that are integrated circuits of the Inspector General, and the departments of Financial Supervision, and the Integrity Commission) to be under the responsibility of that court, and that's where the feminine government to work pressure and also positions and privileges and reduce the circle of responsibility instead of dispersion and Atralha.

3. re-examine all the legislation and laws:

The relevant Iraqi economy and adjusted to serve the economic reform in Iraq exclusively and legislation of new laws call it economic transformation laws to fit with international laws, especially the World Trade laws and tax evasion cross-border and the laws of the international financial institutions and laws, electronic, international settlements and foreign investment laws and the laws of financial markets and corporate laws Trade Organization foreign and other laws without which it can not be for Iraq to achieve the expeditious transition to a market economy and can be used international agencies and organizations specializing in this field.

Accordingly, the Ministry or the body economic transformation completed basic of Palmassatah, which includes elements (rules of the game), a sound economic thought and economic legislation, trade and investment, financial, tax, laws and customs ... etc), and programs and general economic policies and guidelines and instructions and all these things will be an officer of the behavior of economic players within the Iraqi economy or external actors, whether governments or companies or the business community or organizations, investment and financing, and international institutions.

As well as the other corner of the Supreme Economic Court, and the last corner is the financial court, all of that would be a real guarantee for the success of economic reforms in Iraq, and here we have the senior managers of economic reform framework institutional officer for the behavior of those in charge of managing the Iraqi economy and an officer for the movement of the three economic interactions (trade, investment and finance ).

* Future Center for Strategic Studies



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