Financial sector reform requires economic liberalization

11/21/2015 0:00

Qusay al-Jabri: public sector institutions behind the disruption of budget loss

BAGHDAD - Imad emirate
aims of structural adjustment to the treatment of permanent economic imbalances programs and the most profound in the economy in the medium term and Ataiwal.olaadhhiklth and rehabilitation to make market forces play a role in the economy through liberalization of internal and external economic transactions of restrictions imposed on it and remove distortions in Alasar.vdila for providing institutional and legal frameworks necessary to achieve this. These programs are also called the policies of supply management which secured the national economy at a certain level of aggregate demand.

Within this economic-oriented academic D.gosai Jabri said in an interview for »Sabah»: The central bank specializing structural adjustment to address economic imbalances programs and sponsored.

In the opinion Jabri that reason the external debt of developing countries due to a combination of external factors, a global recession and deteriorating terms of trade, interest rates and protectionism of industrialized nations and finally the financial crisis.

And that when studying the deficit in the economy of developing countries, whereupon the two institutions - the International Monetary Fund and the World Bank - of neglecting these external factors as reasons important and influential contribute directly or indirectly to the events of the imbalance and make procedures focused in the development of targeted solutions for the delivery of the economy in the case of the State concerned to balance the issues of the World Bank sees it lies in the framework of the air conditioning which includes the transfer of public property to the private sector.

He d. Jabri that the idea of specialized based on the grounds that the private sector more efficient reallocation of resources from the public sector, and the loss of public sector institutions in many developing countries is the main reason for the imbalance budgets. And ongoing assistance to be provided to producers cause distortions in prices and poor distribution of resources and the deterioration of the domestic production of goods subsidized in terms of quality.

He said Jabri: to ensure specialist success of the process has to be to provide the legal framework by the state to ensure the rights of individuals and the success of the process of transition to market mechanisms, pointing that the success of a market economy is not only based on monetary stability, but requires stable legal situation, Valt_khassah ultimately the decisions and transactions between individuals, and then the legal protection of rights and recognition.

He noted Jabri that the liberalization of foreign trade policies aimed at promoting exports from the These economies face amount of the deficit in the foreign exchange and export earnings is fundamental and objective to meet the deficit in the balance of payments.

He hinted that the structural changes, which includes vocabulary foreign trade liberalization lead to the removal of distortions occurring in the relative relations domestic prices to optimize the allocation of resources leading to efficiency productivity.

Jabri concluded by saying: that the reform of the financial sector is a key part of the liberalization of the economy, adding that this sector plays a key role in increasing national savings and ensure the allocation of capital efficiency and direct to end control over interest rates and credit and encourage fiscal and monetary competition especially with regard to foreign investment, as well as the need to update and change the legal and regulatory structures of the financial industry. And the liberalization of factor prices and product support and liberalization of wage stagnation restrictions.