Mahdi: "Import substitution" economic growth and absorb unemployment
Thursday Sept 24 2015

Dr. Adel Abdul Mahdi,

One of the solutions pursued by a lot of third world countries to develop their economies and enliven them, is a policy of "import substitution" .. This policy is based on the principle that instead of importing goods from abroad, it is better to open a production line to it by the manufacturer within the home. There is no doubt there is some criticism of this policy, as some say that this policy will remain subject to the manufacturer of the countries that maintain "professional secrecy" Know how her own countries. This remained true that the knowledge of economic reality and the reality that a recipient is not transmitted to the reality of entrepreneur can benefit from the experience of others to develop expertise, not to continue in dependency or her absolute reliable.

It managed a lot of Asian countries and in Latin America investment this policy. This is Iran, which has set up production lines of major car companies, for example, about half a century ago, today became the state clog internal need but are exporting its own production. Only the adoption of this model assembling and manufacturing plants in the importing country, and the parent companies to export the important parts of the car to the country which manufactures other parts of the car, and is thus compiled according to the agreement, according to the parent company specifications. The benefits of this process is the mother of the companies they contend for their growing markets for its competitors, and its benefits for the importing country that provides the same amount of great import, and develops from its industry and its markets, and raise the level of expertise and technologies, and opens the door wide to the areas of employment.

In Iraq, we face today a financial crisis due to falling oil prices, and weak investment and the possibility of building new projects .. This is a good opportunity to take advantage of this policy, but may be an opportunity to correct our economy paths. Iraq is an important market targeted by large companies, and the country relies on imports is almost entirely in various fields .. and what is available from the money in the budget barely enough to fill the most important operational needs .. From here comes the importance of adopting a policy of "import substitution", as one of the policies (besides policies other), to cope with the crisis but to move and the launch of the development process, and absorb large numbers of workers who do not find today is a function room.

In 1978 he visited China, which was then a semi-closed countries, considering itself a poor country, "a triple world". I visited one of the small-sized industrial complexes. The complex features a pot for smelting iron from waste, and next to a workshop for making molds and spare parts different (Toranji) .. Besides, there were workshops for the manufacture of some small industries. I visited the workshop offset printing machines and small size. The workshop consists of a set of concerns or "Garages" open to all on the patio workshop .. In each operator was allocated a small size to print "any wealthy" A3 or "any Offset immediately after the" A4, famous brands as "German Alhaadalbrk, or the" IB have to one "The US, and other international brands. On each machine, "Offset", the engineers and workers are printing and stands are printing and record observations of the benefits and disadvantages of the machine in which they work on them. At issued the workshop there was a special player mission design new Chinese machine .. The engineers and workers from all concerns they meet every day to provide a summary of their experiences .. listened to architects workshop "offset" under design, which, upon completion, will be put on the market, after the benefit of all international experiences.

Accordingly, we say, to make the financial crisis, a way to repair our condition not to despair and the search for prosthesis solutions for consumer does not build a base for growth and development .. The lack of progress does not mean the decline, but also the appearance of all lesions poverty, corruption, ignorance and social diseases and various forms of conflict and dependence. Ended (15)