Identification of the Iraqi economy Options PART II
Identification of the Iraqi economy Options
Part II 2-4
Faris Al Salman al - Rubaie *
and challenges of globalization
pose challenges capitalist globalization and control of major transnational corporations and stagnant global economic whole atmosphere appropriate to have the big companies younger competitors and lead globalization to the control of a handful of major companies on the global economy and the international production of commodity.
The thought of globalization It provides for the globalization of national policies and mechanisms of policy - making. National economic, social, cultural and technological policies have been under the authority of the state, is now under the influence of international organizations and agencies or major multinational private companies and financial dominant, so that the people of that country became under the influence of these organizations and companies, which led to the erosion of national and national security and national sovereignty, and led to restrict the ability of governments and peoples in the selection policies of all kinds.
It is well known that the economy of the components of the market are:
1 - liberated labor force
2 - supply mechanism and demand
3 - growth tool
has been observed that the global industrial product began to control demand through governed by supply and thus become price does not caused by supply and demand interaction.
The market blindly mechanism, market economy increases the disparity Login, with the rich getting richer and the increasingly poor poorer, and leads the market economy to increase the gap between supply and growing demand, so the income redistribution is not only a social issue but an economic issue, market economy is characterized by a lot of monopoly and inequality of income and increased ferocity of the market economy through mergers or takeover of one over the other, which led to the monopoly and price controls, which closed generally neo - initiators economists market.
true that the market provides jobs but they threaten the stability of jobs permanent through capitalism sessions characterized by an abundance of supply and weak demand and deflation or recession, and this leads to borrowed competition , which in turn pay to reduce production costs and reduce workers ' wages to the fullest extent, and this leads to reduced employment opportunities and reducing wage increases and cuts in social benefits.
It can be summarized Staff of globalization by:
First: Bretton Woods «Bretton Woods»
Second : the World Bank
Third: the World Bank Fund
Fourth: international trade Organization
Fifth : other organizations such as the Group of seven and other
First , put the market on the interest of the community
Second: put the profit on wages
Third: giving priority to low - cheap item cost and quality (such as fast food lousy) a high quality item cost.
this record put pressure on the countries that apply the social market economy.
downsides of globalization are spreading the temporary work system versus high unemployment, productivity high and to reduce social services, as well as stagnation of wages and rising unemployment.
one of the aspects of globalization to reduce income taxes on big companies and banks at a time when growing profits, and of course there is an economic surplus growing but there is a sustained reduction in social services and in the subject of social development to consider the narrow utilitarian market, liberals are demanding the liquidation of the state 's role and supporting the private sector and the liquidation of the mixed sector and the public in order to turn it into a market economy.
the globalization suit developed countries where lives dominant on the global economy, since these countries the ability to monitor national policies, as well as control of international institutions , the practices of the global system, has emerged as the focus of supports globalization , a The World Bank and the international Monetary Fund and the World trade Organization against the decline of the role of influential international organizations like the United Nations and its agencies.
has resulted in the establishment of the World trade Organization to caving in developing countries with the obligations imposed by the Organization; namely that the policy - making will be transferred from the national framework to imposed externally framework and are weakening the role of parliaments national.
globalization has formed a large gap accelerated growth between developed countries and developing other, and between rich and poor people in the world, and in the analysis of the trade and development report «TDR 97» entrenched this gap, which has increased the injustice it appeared as
1 - the growing phenomenon injustice in salaries in the North and the South, as well as a decline in industrial employment of unskilled workers.
2 - the higher capital gains compared with employment earnings.
3 - the emergence of new sources of income from land and bonds as a result of financial liberalization and the rapid rise in debt.
4 - the decline of the benefits of liberalization Price in the agricultural sector , however , traders instead of farmers.
this is what we are seeing now (in 2016) of the bankruptcy of the peasants in France despite the fact that the ruling party is the Socialist party !!.
the lack of justice has led to national income concentration , however , a few people within the stagnant investment, rising unemployment and low wages « the United Nations Conference on trade and development 1997 Chapter 6), and the prevalence of injustice pattern hindered investment and slower growth through the separation of the financial aspects of the international trade and investment because of the speed of financial liberalization, restrictions on currency policies, which led to higher interest rates, prompting investors to focus a high merchandise trade, as well as the speed of the movement of capital across continents in order to achieve quick gains weaker long - term investment in new productive assets and operations of the joint restructuring led to layoffs and lower wages, which led to uncertainty in jobs and income « the United Nations Conference on trade and development 1997 Chapter 6 ».
The countries of the South have not reaped any benefits from globalization, developing states are basically economically weak because of the small size of its economy and the weakness of social infrastructures, because they were essentially colonies or exited from the wars and become more vulnerable as a result of lower export prices , along with the debt and the burden of the debt crisis service , also it led to the technological gap between the North and the South «technological development in the information and communications».
while the regular Nordic countries within their countries, and this makes them able to identify business globalization agenda, as characterized by its employees with advancing scientific cadres can deal with the international financial resources, as well as the existence of a huge amount of academics , private and parastatal companies concerned with social and technological problems as well as help to gather information, policy and strategies.
as these countries characterized by the existence of professional unions Organization blocks stressful and has influence in government circles, as well as the existence of institutions and mechanisms to coordinate their policies , such as the European Commission and the Organization for cooperation economic development and others, in contrast, developing countries do not possess any of these
the trade liberalization if applied to developing countries will lead to adverse business cycle and the balance of payments deficit and put Mali is a stable, debt and economic stagnation.
financial liberalization has led developing countries to fall in front of enormous international funds , which manipulated the economy of developing countries through short - term investments that drain the economy and lead to speculative flows, and the exit of the capital and profit taking led to a sharp consumption currency and as a result doubled the burden of external debt, and when it ran out of foreign currency reserves in the mid - nineties in Indonesia Korea and Thailand resorted to these countries to the international Monetary Fund to guaranteed loans, here lost its national sovereignty.
Perhaps the United Nations Conference on trade and development (UNCTAD) is the first to warn of financial liberalization and the flow of capital in order to short, medium and volatile investment and because of its social and economic effects. * chairman of the Baghdad economic Forum