Small and medium enterprises, a major role in economic growth

Diaa Mohsen

Sunday , February 28, 2016

Many economists knows what small and medium-sized projects of importance to maximize the total output of the country, as a step towards the achievement of sustainable development which, since it limits the widespread unemployment in the youth and graduates category, and the owners of technical and professional character; that have the ability to establish productive projects in the agricultural and housing sectors and tourism, as well as trade and health, and when the financial structure of this powerful project, will be able to help people to cope with the crisis; and attributed to shocks for these sectors could play a major role in addressing the financing gap in Iraq, but groups of operational and regulatory obstacles, hinder growth and Tnumeith.mund beginning of the financial crisis in Iraq, the government is trying to apply a series of political reforms, and one of the actions that can be carried out by the government, we find that encouraging the economy through the expansion of loans to the owners of these projects, stands in the forefront, because of their role to expand and revitalize the local economy, moving away as possible from the indiscriminate importation of goods, do not resist for a long time, because the poor quality of imported item, compared to what is produced by these projects; if egg-shell her work after supported by survey index use of financial services in adults of Iraqis, It found that 11% of them has an account at a government financial institution, and is a low rate compared to the prevailing average for the same segment in the Middle East countries, which is 70%, in addition to the presence of a large gap between Iraqi personnel borrowers, where we find that borrowing from the government sector does not exceed 4% , compared with 65% borrow from non-government banks, and this is a return to the complexity of the procedures in government banks, and a weak cadre which it operates, compared with its counterpart banks Alohlih.iena financial system in Iraq of a large retardation, according to data of the World Bank, and with regard to small projects the medium, the financing of these projects represents only 0.25% of total loans outstanding, to approximately 100 thousand project, a very low percentage, hardly represent anything in the GDP of the country, and the claim borrowers guarantees kind sometimes led to the reluctance of many individuals, all knock on the doors of government banks and borrowing Mnha.kadd was the pattern of economic growth, which is based on the investment of oil wealth role in the decline of economic performance, and the inability to achieve advanced levels of economic growth, and that the transitional phase experienced by the country, due to its transformation from a centralized system to a market economy, has led to economic instability and thus exacerbate Batalh.kadd was trade liberalization after 2003, a negative impact on the private sector, for its inability to compete with goods imported from East Asian countries and China, which is cheap compared to the same manufactured goods inside Iraq, in addition to that administrative corruption has squandered a lot of money in non-economic feasibility of projects, and did not absorb the unemployed, in addition to the country's reconstruction process, not conducted properly, all of this was the reason for the reluctance of small businesses from engaging in activities in the Iraqi economy . The Iraqi workforce characteristics, is the height of youth rates which, in addition to they maintained to teach academic relatively high, but what lacks is the financial viability, in addition to the laws that protect the projects set up by, from here, the government action to protect them, through legislation laws imposing taxes on imported goods that have a counterpart in Iraq, in addition to the exemption of raw materials involved in these projects from taxes, and facilitate government a loan procedures, on the condition that there will be a feasibility study on the introduction of the owners of these projects, nor harm if the state Bank entered as a partner in these projects, to benefit from its expertise in how to assess their work and improve product quality.