Financial liberalization promotes developing economies
Financial liberalization promotes developing economies

43 Show Last update: Tuesday, August 30, 2016 - 9:49

BAGHDAD - Imad emirate raised the issue of financial liberalization interest in the majority of countries in the world and developing countries in particular, to the financial sector of the importance of the economic process with respect to its evolution and to achieve growth rates, has been proven by experiments that you can not achieve economic reform and overcome the negatives immune to what pursued by countries of reforms affect the financial policies, and the financial liberalization contributes to the transfer of capital to poor countries to achieve development in various sectors.

Within this axis, the economic academic Dr. Abdul Karim Jaber Hnjar said of the Faculty of Administration and Economics at the University of Qadisiyah: The financial sector a significant contributor in raising economic efficiency and stability, noting that the majority of reforms and the restructuring of economic activities involving the allocation of funds (capital resources and savings and investments) and directed towards the optimal use and this is not, unless the financial sector was not on the level of efficiency and the ability to accommodate changes.

Economic Power

He Hnjar in an interview for »Sabah» that the financial sector is used as a stimulating and important for growth through the collection and Firat various changing economic power means and distributed among the competing requests for funding, adding that growth in any period depends on the share devoted to investment of national income.

Monetary Policy

He Hnjar there are levels of financial liberalization, including local, which aims to achieve control using monetary policy instruments, rather than the mechanisms that hindered, while the second level is the aim of financial liberalization in which operations to adopt exchange variable is determined according to the market mechanism, and contributes to the movement of capital between markets.

Balance of Paqyments

He pointed out that the balance of payments plays a role in the financial liberalization and the speed of movement of capital, under a fixed exchange rate, the rapid monetary expansion leads to the deficit in the balance of payments and inflation due to winning states are forced to add a restriction on the procedure. He concluded Hnjar saying: that financial liberalization processes, and under conventional economic theory, represent a flow of capital from rich countries towards poor countries over their investments by more than the level of savings, so we can say it was investigating a large benefit to the economies of developing countries due to the employment of capital in service and productivity projects contribute to addressing economic problems gradually down to the developmental levels relative to escalate over time.