The private sector is 4 percent of the fixed capital 6-15
The private sector is 4 percent of the fixed capital
BAGHDAD - Imad Emirate
Said economist D.gosai Jabri that reduce the confusion of economic policy will be through fiscal policy and monetary policy coordination and expand Hadtehma in order to prevent the country's economic imbalances between the producer and the importer.
It is known as a monetary policy actions and measures undertaken by the central bank of any country in the world through exchange controls to achieve the goals of economic policy group.
The work is part of monetary authorities traditionally under different manifestations of economic policy to achieve high growth rates - full use - stability of the currency rate - the balance of the balance of payments.
As for fiscal policy lies its content, in that they use or regulation used by the state or the government in directing economic programs that include revenue or expenses, according to the goals set by the philosophy and system of government based on the judgment.
He noted in an interview with Al-Jabri »Sabah« the necessity of the absence of a defect in one of the two policies will reflect on the fact that the state budget and found to the problem of support and increase spending and failure to diversify funding sources.
Jabri said the salaries and wages account for a large proportion of the general budget and all these weakening factors do not give positive indications towards building a development policy, they also lead to a reduction allocated to programs for the reconstruction of financial resources, explaining that it maximizes things worse with a double in the provision of services, stressing the importance of increasing the investment budget for its role in achieving an increase in production allocations and therefore will impact on the size of the GDP of the country.
He continued that we find on the other side of monetary policy as the central bank follow deflation policy by raising interest rates, which led to deprive the private sector to enjoy banking facilities at a price appropriate interest, as well as the weakest bank loan, which led to a move away from the small and medium enterprises.
Jabri explained that the decline in the professionalism of state institutions and the low level of human capacity two big challenges facing the reform and development policies and leads to a lack of continuity of individuals in state institutions with the modern concepts of management and planning, project management and construction budgets and control over performance and thus leads to thwart efforts to build a successful economic policies, it also leads to depletion as well as the financial capacity of the state in the procedures and policies are useless to society.
Jabri He pointed out that the challenges facing the policy of economic reform vision loss and economic programs of all those in charge of the economic file of Iraq, and therefore, the deficiencies in the vision of the requirements of society and building economic priorities, led to a loss of credibility in front of public opinion and thus foiled the efforts that try to specialists and economists call them and work out economic reform and building laws of the market, which led to a lot of confusion and chaos and economic collapse of all the productive sectors of the economy.
The jobs problem
He said al-Jabri said Iraq's industry enjoys deterioration clear Nowadays, the majority of factories and industrial workshops paralyzed they swim against Ttiaralmistord foreign sweeping, and without electrical power, which represents the first factor in the continuation of production, as well as the escalation of wages due to inflation caused by higher fuel prices and the increased cost of transportation requirements and other basic cycle, workers looking for a ready-made government jobs that provide future pension but the question remains how long?.
He said al-Jabri, on the other hand, the imported goods are supported within the scope of their production within their countries and there are facilities when exporting, numerous advantages may not Iraqi industry present their betterment rival within the current circumstances, without government support, but the opposite is true, so is Iraq's large consumer market for all kinds of goods and products food, etc., and is the role of the private sector is importing these products from the Arab and regional markets without thinking about how to provide internally.
Jabri concluded by saying: that the private sector for Aashm only about 4 per cent of the fixed capital formation, and this shows the depth of that exists today in the Iraqi economy flaw, which requires a significant investment and to encourage widespread private sector balance this equation, and to restore things to their tracks and nature.
He said the most prominent foreign investment in Iraq obstacles can be summarized in three first axis is the ownership allocated for investment and its ownership ministerial territory, as well as the intersection of some of the decisions and powers with investment 13 Act of 2006, as well as the lack of adequate protection for the money foreign and local investors.
Jabri called for a resolution of the intersections plaguing economic laws as the work is now distasteful regimes and previous laws while new laws aimed at promoting economic reality has not been applied as it should yet.