An international center: Iraq's economy struggling due to central policy

On: Tuesday 2/7/2012 8:25

□ Beirut / range
description of the status of "Carnegie" International Research of the Iraqi economy in a recent report Palmtakbt and turbulent.
The report said that "until now, has not taken economic measures necessary to strengthen the political agreements, such as the application of policies, decentralization of administrative order to address the negative impacts created by the system Saddam Hussein's economic in the provinces, as well as enliven the economy dead in troubled areas. "

The report also pointed out that "for four decades, has pursued Iraqi governments economic policies based on the strategy of the central administration exclusive, leading to the impoverishment of the rest areas for the benefit of Baghdad."
The report that the National Development Plan for the years 2010-2014, indicate that a comprehensive analysis of the reality of the Iraqi economy on the overall level reveals significant disparities between the capital and the rest of the country (schools, health care, unemployment and development).
He pointed out that the previous regime deliberately through the nationalization of banks and the wholesale trade to make the transfer of systematic profit trade and investment funds from the provinces to the capital, adding that since that Iraq had imported most of the non-agricultural products has been able to central government, an inventory of commercial profits in the capital, depriving areas of an important source of investment could have been saved in the provinces.
The report considered that "the current government to learn the disparity between the capital and the regions and the need to de-centralized economic management," he it recognizes that it must broadcast activity in the economy.
and went on to say that "progress has been made ​​primarily to some extent on the paper along with the launch of a free market economy and the abolition of control of the public sector on the economy, the text of the 2005 constitution on the distribution of oil revenues, which constitute 96% of revenues government to the provinces according to population, and government involvement in the planning of oil and gas resources in the country and management.
"Although the Constitution set the terms of reference in policy, but it is still necessary to clarify the mechanism of implementation and management."
and stressed that the Constitution clearly states the goal of the transfer of power to the structures of government subsidiary, but budgets operational currently subject to the control of the central government continues to fund management services passes through the ministries concerned. "
According to the "Carnegie", the "oriented negative taken by policy appears in the changes between the plans of national development first and second. where crossed Plan first National Development (2005-2007) a large number of development needs and agreed that the central economic poses the problem, promoting the establishment of five centers of development in the areas to determine investment priorities and oversee the implementation of budgets at the provincial level, but the five centers yet to be formed despite the approval of the Council of Ministers on the plan. "
The Second National Plan (2010-2014) shall be allocated, according to the International Institute, additional funds (12.5 billion U.S. dollars) to address the disparities between regions, but they dropped the idea of establishing centers for development and assigned responsibilities to the provincial councils that lack the technical skills and management to carry out the tasks of an investment.
said that "in order to enable each region to deal with their problems in a comprehensive manner, it shall determine the development priorities and is their conformity with the investment strategy. Therefore, it is necessary to establish development centers, which provided first national development plan to be set up in the territories.