Lack of investment in the private sector initiative

4/4/2016 0:00

Mohammed Abdul-Zahra al-Hindawi
The private sector has not been able in Iraq to get the right opportunity to be a key partner in the development process in all its dimensions and joints, Over the past or even the past decades, this sector began shrunken but Prone on itself did not make clear steps in the economic landscape.


It is certain that this contraction causes that Aathmlha private sector alone and that it incurs parts of it, and perhaps at the forefront of these reasons, the acquisition of public sector or government of all the details of the scene and did not leave moiety or incoming only grabbed Boukaotha.

Partnership with the private sector

In the presence of a single resource is oil, and in the pre-stage in 2003, the government engaged the private sector in the profit and this is why a lot of capital to escape outside Iraq to invest in other countries as well as industrial production fell for the sector which reflected about a clear growth economic, which fell significantly during that period, and this decline naturally led to poor operating level and high rates of unemployment and increasing poverty rates as a result disrupt economic resources investments and resort to cash reserves and exposure dinar to a state of instability and decline in value until it reached one dollar to (3) thousands of dinars, or maybe more.

Monitoring and Analysis

And continued deflation in the private sector for the post in 2003 because it was not proactive and only the task of the observer and analyst and critic of the policies of the government, which ignored it and did not give him the right opportunity, even when the economic crisis hit Iraq in the second half of 2014 as a result of the rapid collapse in oil prices by about unexpectedly the private sector has not lifted a finger, and this was the case my estimation represents a golden opportunity for the sector to fill the void resulting from the confusion of the public sector and the inability to sustain the investment Tread movement in the country was the result of this free budget for the years 2015 and 2016 the confusion of any new investment projects as well as the emergence of severe problem was not the government's ability to fund ongoing investment projects estimated at more than 6 thousand project distributed among the investment program of the federal ministries and the program of development of regions and the recovery of the marshes and the petro-dollar.

Exploit opportunities

As a result of the failure by the private sector to exploit this window of opportunity, the government has resorted to look for financiers or investors to finance these projects, especially which has seen rates of advanced achievement exceeded the 60 percent, so this opportunity is not invested by other private sector.

Central Bank Initiative

And we kept his hopes hanging better financial situation for the government to get after it on the backside of which we have heard and seen the great Alastbashar by the concerned private sector initiative of the central bank included lending to the sectors of housing, industry and agriculture more than 6 trillion dinars, while the information refers to the departure of more than $ 250 billion out of the border in recent years, namely the heads of Iraqi funds belonging to Iraqi businessmen preferred to invest in other countries instead of Iraq, and can be had for the big money to do do if initiated by the owners to exploit the opportunity and engage strongly in the financing of the stalled projects or even to initiate new projects, yes security and political conditions in the country are suffering from a chronic case of spasm and this would always creates concern among investors.

Security and stability

But there are a number of provinces to enjoy the stability of security and clearly it is possible to utilize them as he did a lot of foreign companies from Korea, China, Japan, Britain and many other countries, and in return also on the government to take a number of measures and steps to reassure the private sector and reduce the migration of capital to abroad, such as the development of laws regulating investment and seek not to place any restrictions that restrict private investment trends and hit the systems of corruption and bureaucracy strongly because it is one of the main reasons the expulsion of investment and the need to resort to the style of the single window in dealing with investors to reduce friction between the investor and the relevant staff because the friction means more corruption, and should work on the development of the banking sector and give it a wider space in the financial landscape, which is dominated by government banks by acquiring 90 percent of the deposits is what made the private sector banks unable to meet the practical requirements of the investment that was born the reluctance of investors, and that the many of these banks have a banking operation is not only the name because it is a «shops» for buying and selling the currency and benefit from the central bank auction and here it would take recourse to the process of integration between the banks to be available with financial portfolios to enable them to influence the investment landscape instead of the loss and fragmentation of their money without to have a clear impact in the economic life, and thus as the directions of both sides of the equation, the government and the private sector we can talk about a real partnership between the two based on the initiative of the private care sector and provide the necessary environment by the government.