Asia compete Monetary Fund and the World Bank

8/6/2015 0:00

Dr. Mohammed Ali Hakim
Since the founding of the IMF and the World Bank during the meetings of the Bretton Woods Bretton Woods, which took place in July 1944 in the state of New Hampshire US and in the beautiful village of Bretton Woods, which lies on the edge of the White Mountain, who invited him more than 178 financial figure of 44 State of Iraq was one of the two Arab countries along with Egypt, Lebanon was also invited as an observer.

Has been chosen as the representative of Iraq scheduled for the Third Committee, which discussed the issue of recognition of the international monetary mechanism traded currencies and markets, banks account Committee approved the installation of the Iraqi dinar as one of the international currency alongside the US dollar and the Pound Sterling and other currencies.

Iraq has had since independence and recognition by the nations of the world as an independent state and entering the League of Nations in 03/10/1932, a race to participate in international forums that have adopted international financial regulations and laws, as well as international politics, particularly the establishment of the Arab League and the United Nations and the Organization.

We find Iraq today absent after the passage of 71 years from the events of the founding of Mali international fund is very important for Iraq, namely (ADB investment in infrastructure), which is one of the most important Asian and international financial and monetary groups and joined by more than 57 Asian countries and non-Asian after rounds of negotiations lasting more than two years, which is based in China.

The idea of ​​creating the Asian Bank: China led the idea and the initiative to establish the bank in 2013, and I discussed with Asian countries about the mechanisms of action, nature and membership to be announced in 2014, namely in October 2014. The idea has evolved as a reaction against stresses and the intransigence of the United States US and Western countries and its refusal of the international financial system reform and expand the participation of developing countries in the decision-making process in the International Monetary Fund and the World Bank, especially as the global financial crisis, I imbalance structurally significant in the two bodies, as well as the conditions of arbitrary expensive imposed on developing countries when requesting access to that support and funding for development projects and those related to infrastructure, as reports published in 2010 indicate that Asian countries need to 8 trillion dollars of infrastructure investment to sustain the growth of its economy compared to the increase in the proportion of the population for the period of 2010-2020 projects.

The main objectives and the broad lines which it is based ADB investment in infrastructure is as follows:

First, work to strengthen and promote sustainable development and improve the atmosphere and favorable conditions for investment in infrastructure to Asian countries.

Second, support regional cooperation and global partnership and work to overcome the challenges facing Asian countries in bilateral and multilateral.

Third, investment in Asia support in the public and private sectors, including investment in basic infrastructure for economic growth.

Fourth, the use of human capacity available for development in Asian countries for the implementation of medium and large-scale projects to support human and economic development.

Fifth, urged private companies to participate in the financing of such investment projects as well as new funding from the Asian Bank.

Sixth: The percentage of the vote in the Asian Bank calculated on the percentage of fiscal and monetary participation in it (the actual contribution) with the addition of the proportion of votes to the founding countries of the Bank.

The terms of membership in the Asian Bank, had participated in the negotiations, a large number of Asian and non-Asian countries, which took place in Singapore in 2014, and signed the 21 countries of the Convention establishing the Bank and with financial principle of 100 billion US dollars, and countries that have signed the Bank Agreement (China, Bangladesh, Brunei, Cambodia, Kazakhstan, Kuwait, Laos, Malaysia, Myanmar, Mongolia, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam and signed Indonesia late), as China India invited to join the Asian countries the organization of the Bank.

At a time when the United States stood against the idea of ​​creating ADB being a competitor of the World Bank and the IMF, which are controlled by and have a strong influence in issuing decisions in them, and tried to prevent some friendly and Western countries such as Germany, Britain, France, Italy, Australia, New Zealand and South Korea joining the bank, but All these countries joined the Bank relatively high financial contributions.

In 29.06.2015 it signed 50 countries out of 57 on the Charter of the establishment, and promised her Foundation states the right to vote and at different rates depending on the size of their financial contributions in the bank in addition to a fixed percentage of an institution nations.

Iraq's position on the Asian Bank: Iraq has happened, especially after 2003 on the preferential treatment of the Bank and the International Monetary Fund, and that Iraq is these institutions friends to him and deal with them transparently and continue ongoing basis, as that those fiscal institutions experts who would provide economic, financial and technical advice to Iraq, and there are meetings continuing at the highest level with them, which resulted in providing support for Iraq during the past 12 years.

The question that arises now, is that Iraq was not involved or join the ADB to invest in the infrastructure of his commitment not to destabilize the relationship with the two international institutions (World Bank and IMF)? Is it really that Iraq's participation in the establishment of Bank of Asia, as Asian countries, overthrow that relationship that the United States sponsored aspects of being an influential country? Especially that America is not encouraging countries to establish this rival Bank of the Bank and the IMF?

The truth is that despite this, the European and Asian countries friendly to the United States of America joined the founding members of the bank in order to Atvutea investment and financing opportunities in Asian countries, which are really need to the development of its infrastructure and invest huge financial sources will certainly benefit those countries and its specialized agencies.

The other question that can be asked, Is it possible for Iraq in this chapter between the political, financial and economic aspects of its relations with time, especially with the two institutions Bank and the IMF and the United States?

The answer may be difficult especially that Iraq is going through a fierce war against terrorism and America is leading the international coalition against him.

Perhaps another question that arises is whether the balance between these aspects is not in the interest of Iraq at the present time in order to join the Bank of Asia, despite its importance referred to in the above.

In conclusion, we believe that there is ample time for the experts of the Ministry of Finance and the Central Bank of Iraq National Investment Commission to study the benefits in the short and long term with regard to joining the ADB to invest in infrastructure, especially as the opportunity to participate in the formulation of financial and administrative structure of the Bank and the signing of the bank agreement as a Foundation may obsolete.

Permanent Representative of Iraq to the United Nations in New York