Foreign investment, stimulate the local labor market

07/26/2016 20:12

Baghdad . Imad emirate

stressed economist Jaber Al- Omran on the importance of foreign direct investment to achieve growth in the economies of many countries, particularly in the growth of certain sectors of many countries, as is the case for oil -producing Arab countries.

He said in an interview for »Sabah» that public investments and investment private foreign longer the most important pillars of economic growth, as it leads to increased country energy production as it is effective means to change the national structure of the economy for the benefit of the structural imbalances which the amendments, the greater the volume of foreign investment is increasing with the rate of economic growth by increasing value - added production and operation of power working.

he noted that domestic investment encourages foreign investment for involvement by creating new investment opportunities for local companies and increase the host country 's exports and this has a positive impact on domestic savings and domestic investment.

between Imran existence of controversy about the importance and usefulness of foreign investment in the construction of the Iraqi economy and achieve economic development , with some views opposition to invest as happens negative effects, relying on his role in the depletion of the wealth of the country, pointing to the existence of support for this investment, especially direct investment due to its role in the creation of technology, capital , organizational and marketing skills as well as the expansion of foreign trade, create jobs and accelerate economic development and integration into global markets .

he said, the Ministry of planning in Iraq , has estimated the need for the necessary reconstruction of investments during the period 2006.2010 to $ 187 billion and domestic financing possible proportion equivalent to 42 percent , or $ 78 billion, hence the foreign sources required (foreign investment, loans and grants) of 58 percent , or the equivalent of $ 108 billion and it 's the absence of financing sources of foreign Van reconstruction efforts require at least 20 years, and this Maeetm expressed divide the investment which is the difference between the necessary investment allocations for reconstruction and the investment allocations locally it also is a very tough and clear conditions Iraq 's current.

Omran added that the problem that has plagued Iraq lies in the weakness of capital accumulation, due to the low level of entry in Iraq and rising consumption ratio can be difficult to create the accumulation and capital formation necessary to carry out the required investment, as well as that there is a phenomenon of national money outflows due to a sense of their owners Ban Foreign banks are safer than national banks on the one hand and on the other hand , instability and lack of attractive investment opportunities.

he said there are in Iraq investment gap can work on filling through investment opportunities, which could lead to increased production capacity , which is an active ingredient in economic growth and over increase the added value, productivity and the creation of additional jobs in the local labor market and the development of technical and organizational skills.

He concluded by saying: it is necessary to emphasize that foreign investment does not mean relying on national labor 100 percent if it were not national labor eligible, and this requires attention to vocational education and elevate it and that the goal must be to enable Iraq to be able to provide the same consumer products and essential industry instead of importing them in hard currency, and it must be the investment climate appropriate to provide to attract foreign investment and create a competitive environment by continuing to review the crippling laws in order to lure foreign investors Iraq and make a competitor to many countries made ​​important strides in this area, it must be the technical capacity of the national investment bodies and benefit from the construction of technical expertise and the experience of other countries in this field.