Editorial: What of the Iraqi economy’s market economy under the tent?
Iyad Aljassani
Posted 02/10/2012 12:26 PM
1 – How Iraq entered the world of the market economy?
I find it important to start to know the reader market economy before entering to talk about our topic. Not difficult today on each of using a computer to go to the free encyclopedia Wikipedia to find: the market economy or free market economy is the capitalist economy or economic system whose economic liberalism essential component in it, and the idea of a free economy is not state intervention in economic activities and leave the market adjusts itself.
And liberalism depends mainly on the idea of individual freedom, and to find out the idea of a free economy or a market economy in a positive way the definition is that an individual is born free, thus the freedom to make any economic activity.
The definition of a market economy negatively, it means that the state should not make any economic activity can an individual or group of individuals to do. This economy based on private ownership of the means of production and individual initiative, and is subject to the interaction of supply and demand and free competition and liberalization of prices within the market and depends mainly on the private property of individuals, institutions and capital. However, the market economy does not mean in any way the absence of the public sector and the state’s role in the organization of economic life. It is useful to refer to the theories of Adam Smith in this regard.
As for the foundations upon which the economy of Iraq Everyone knows perfectly well that our economy is an economy is a product except largesse by the nature of the presence of the oil wealth depleted over time under its territory and which produce 95 percent of state revenues that depend on them overall budget fully. And the fear that the supply of oil someday through the Strait of Hormuz, which is exposed to the threat to close it all the time in the light of the next war in the Gulf region. We have seen how select Israeli Prime Minister Netanyahu a date to launch this war against Iran in the next spring through delivering his speech at the UN General Assembly last month.
The war took place, what will the Iraqis then? But here I want to cut short and remind the reader how Iraq was taken and thrown in the maze of a free economy or a market economy by force without any motive or the will of the national forces. We knew how occupied by U.S. forces of Iraq and entered Baghdad on 9 April 2003 and toppled Saddam Hussein and how he became the fate of Iraq in the hands of the Administrative Governor Paul Bremer U.S. diplomat expert not only in the economy but in terrorism and little experience in building a modern state and known for Bremer he studied History at Yale University and business administration at Harvard such as former President George W. Bush himself, who made him enjoys his trust and admiration when he decided his choice to assume the presidency of the Coalition Provisional Authority in Iraq.
Hence became Bremer faces the toughest task in history . since Bremer took office as governor in Iraq and administrative faced great difficulties in the management of reconstruction work on the Japanese model or German in a country where the despot is everything in the Saddam Hussein era. Aspiration Bremer work faster and make quick decisions without regard to their practical application. He also expressed his desire to turn Iraq into a free market economy, starting with the sale of property Aldo him those decisions that were serious and fateful determined without a national government.
Because the Interim Governing Council which was formed to appoint 25 of the Iraqi figures and under the command of Bremer full became a council walking Barchadath and decisions when subjected its members to pressure the signing of the interim constitution despite reservations by them upon, because it stated that the laws and regulations, orders and directives issued by the Coalition Provisional Authority , will remain in effect, including Bremer’s decision No. 39, which is of the Iraqi constitution old even open the door to foreign investment in all sectors in Iraq to have 100 percent ownership of Iraqi companies, except companies operating in the natural resources sector any oil, as well as the treatment of foreign firms an equal footing with local Iraqi companies and give them the right to take profits, out of Iraq with allowing foreign banks to enter Iraq and ownership of local banks also 100 percent to open the way for the privatization of the Iraqi economy. In this way, the public sector was liquidated economic system was changed in Iraq, which was the property of the state of the capitalist system to a market economy.
That the reasons under which took Paul Bremer decisions to change the Iraqi economy is influenced by the most prominent who promoted this concept, but is Philip Bobbitt of neoconservatives, who said: “The nation-state Nation State will drift from its place in the twenty-first century to be replaced by what he called the state of the market Market State which he says they state borders and political system, like the nation-state, but will move the Msioulyat essential government to the private sector.
Is that the principles of market economy achieved benefit of the people of Iraq? Will able Governments multi since leaving Bremer and after the withdrawal of U.S. forces became capable to act wealth of the country or is it left to companies and foreign organizations the freedom to work and act wealth Iraq without allowing these governments be directed wealth to support the industry and reconstruction and helping the poor? It is understood that the Ministry of Industry, Ministry of Ibrahim al-Jaafari previously started in business privatization of eight companies from the public sector companies and sold. We do not know the fate solution out and who seized. said Iraqi Minister of Industry at the time that the country needs to build a new state affects the change all joints of life, including the economy.
everyone knew exactly how devastated the economy in Iraq and what has been privatized has become looting and locations of corruption., who keep a record of looting in the Integrity Committee in the Iraqi parliament in corruption cases in the rest of the provinces ستصيبه shock from the horror of what recorded robberies and failed projects at the time of the market economy in Iraq. has exited the Iraqi draft constitution, carrying Article 110, which states : “that the government and federal governments producing regions and provinces together will draw up the necessary strategic policies to develop oil and gas wealth to achieve the greatest benefit for the Iraqi people, relying latest techniques of market principles and encouraging investment.”