Privatization shortest way to achieve economic development

8/13/2016 0:00

Make it successful requires convince the public

BAGHDAD - Imad Emirate

All countries in the world is seeking to develop their economies by adopting developmental pathways include several methods, including privatization, which should be supervised by the government entirely for the evaluation of projects to ensure the wide participation of savers and contribute to creating a favorable investment climate.

In this regard, a leading academic economist Dr. Abdul Karim Jaber Hnjar of the Faculty of Administration and Economics at the University of Qadisiyah: that there are three key elements for the success of the privatization process is the need to support and convince the public it must be associated with this support cooperation them to work, according to the mechanics of the free market regulator is spontaneous, and the commitment of the government out and work to achieve them in a responsible manner.

Methods of privatization

He pointed Hnjar in an interview with «morning» to multiple methods of privatization, the mismatch Maitdmn enterprise restructuring and turn on the government-owned joint stock and sell shares to the private sector companies, indicating that this technique depends when the administration is not efficient, as well as the style of auction sale, which is used in projects small, along with another method is by organizing sector by editing the sector concerned (monopoly of the public sector), explaining that liberation be the establishment of a regulatory institution to monitor regulatory matters, and no privatization based on the transfer of administration for large projects when the state is unable to finance shall give the right to build and manage the project given for 15 to 30 years, and have won the state an annual fee to be construed after the end of the period to the government.

He pointed to the important role of the government in completing the privatization and the development and evaluation of projects initially and restructuring events and legislative changes required, and then marketing projects and doing all the negotiations for such a deal.

He pointed out the need to have the announcement of the privatization process is clear and evident to the public, and that is not selling or mediation of influential and involved small savers to be for the common people, and the importance of coupling a comprehensive privatization reforms is creating a favorable investment climate.

He Hnjar that the main reasons that some countries called for the adoption of privatization is the fact that the international financial institutions (IMF and World Bank) pressure on countries that failed to achieve economic development after aggravating debt, along with the collapse of the socialist concepts after the collapse of the system of communist states at the time, the transformation of the economies most of its countries to a market economy, as well as attempting to poor countries to get rid of non-performing projects on the one hand and on the other hand trying to rich countries to increase their profits and to open markets and expand the property and loaded the economic problems of mismanagement of the economy by the public sector, these factors pushed the countries to the attention of privatization as a way to address that suffering from economic problems.

Production incentive

Economic academic and concluded by saying: No longer the only economic and financial motivation that push these countries to pursue privatization, but the political factor of highlights of trying to eliminate political slogans through this approach and the dimensions of the influence of politicians on the economy, add to that the social motivation of greater personal freedom and finding the incentive to produce and overcome the negatives and the elimination of favoritism, and today you find many of the countries of the privatization programs and the means to eliminate the problems after
The public sector's inability to solve them, was the transformation of the private sector and its means to achieve economic development.