Iraqi sectoral diversity and investment law

8/27/2015 0:00

Dr. Acer Yassin *
Iraqi economy is in the consequences of wrong policies of the past to years ago that should be addressed in accordance with the procedures being able to mobilize domestic resources to finance economic activity and employ them properly by lifting the total investment ratio to GDP in order to achieve rapid desired growth through the achievement of real accumulation of capital and of the actual investment productive and in order to achieve a shift in the structure of production in the various sectors and the nature of forward and backward linkages with each other to get out of the dominance of the oil sector on the overall composition of GDP and a large marginalization of the rest of the economy.

The promotion of other sectors capabilities is preliminary, requires employment accumulation of productive capital towards the establishment of a balanced base of infrastructure and the use of investment in the establishment of new facilities, particularly in the provision of energy resources suitable to be used in production processes balanced costs with those provided in the countries at the neighborhood, which could not be done without the active participation of the sector Special in the implementation of such projects, which requires institutional framework encouraging him through the provision of banking institutions be able to offer loans at favorable interest rates.

To activate the role of the private sector in the diversification of the economic sectors through its contribution to move the domestic demand, which in turn can only come from by improving the business climate, which is an obstacle to Iraqi and foreign investors are ready for war uncalculated consequences in Iraq under the fragile legal framework to a large extent, despite the presence of a large amount of legal frameworks that investment laws and regulations govern, but they are not a homogenous package you need to simplify and agree with each other to guide the investor on the right track, which can protect the economic interests on the grounds that legal reform is based basis for any institutional reform
following the state.

The work on the general structural reform of the legal frameworks to encourage the private sector access to the strengths of the Iraqi economy and moved in the right direction and took her to diversify gross domestic sources, all of that requires the activation of strict government measures to combat financial and administrative corruption that afflict most of the state institutions, which holds the shoulders of the investor additional burdens added to the burdens of security risks.

This concerns as well as using a rational mechanism of taxation to direct investments selectively towards sectors that contribute directly to economic diversification and return a step back toward import substitution gradually industries and in line with the treatment of waste that took place in foreign currency during the past years to buy imports requirements could have been produced or assembled locally as much much less than the cost, including breeds consecutive episodes of the production chains of intermediate goods and complementary.

That there is a fine line between centrally directed government policies guiding policies, and on the government to develop policies to enable them to find space for its policies guiding without prejudice to the free-market mechanisms and freedom of movement of capital and employed in order to achieve profitability for the owner, which Try legislator Iraqi Investment Law No. (13) of 2006 finding into him through the Article (4-V) and I left to the Investment Authority in the development of strategic national public investment policy and identifies the most important sectors and by which determine the different development zones franchising stipulated in the law of investment.

Consequently, we find that there is a preference for grants for specific projects under the national development needs and areas most in need of development without this hindrance be in front of the desire of the private sector in contributing to projects of his choice but to grant additional benefits to projects that wants them and is consistent with the needs of the economy
of Iraq.

Although From long years that have passed since the legislation Iraqi investment law and the completion of many organized his instructions and amend the law twice, but we find based on the implementation of this law ignores one of the most important objectives desired from this law, which is directing investments to achieve a variety of development and out of the influence of sector extractive dominant Iraqi economy, which has proven unable to meet the requirements of sustainable development and achieve the desired diversity to achieve an acceptable amount of stability and the ability to internal maneuvering to avoid sharp fluctuations in GDP data.