Involving the private sector in the management of the Iraqi economy boosts resources
3 hours ago

Samir Alnasiri

Economist and banking expert

All initial indications point in the preparation of the budget for 2017 that the non-oil revenues will be at a higher rate compared to what has been allocated in previous years. This means that the government is planning to start the transition from [...]

All initial indications point in the preparation of the budget for 2017 that the non-oil revenues will be at a higher rate compared to what has been allocated in previous years. This means that the government is planning to start the transition from a rentier economy to a productive, diversified resources, and reduce dependence on oil from 95 percent to 85 percent ratio in 2017 of the total revenue.

In order to do so there must be a clear role and program decree for private sector involvement in the management of the economy. This comes through the rebuilding of the institutional structure of the private sector in the legislative and motivational and procedural aspects and consistent and matches the axis (III) of the government program (to encourage the shift to the private sector) and implementation phases of development for year strategy (2014-2030) launched by the government in February 2015 that actually start these programs immediately prepare mechanisms to involve the national private sector in economic decision-making in accordance with the overall look to stimulate in all production sectors, including mainly in agriculture, industry and construction (housing and construction), energy, services, tourism, and the government and representations adopt special programs and contributions and operating procedures calculated sector and supported financially and legally, and to be in 2017 is already in the private sector.

In order to achieve this the government must take the first place the establishment of a Higher Council for the private sector made up of representatives of the private sector and the government assume management and supervision, audit and evaluation of programs and policies designed for the manufacture of decisions required to achieve the central economic targets in partnership and cooperation between the private and public sectors.

So I see that the stage and experience experienced by economically Iraq since the (2003-2016) need to be analytical and pause and evaluation dedicated to building the national economy, according to a look a new strategy for the transition to a market economy, according to the program prepared by the government and approved by the Iraqi Council of Representatives included six themes notably economic hub, which emphasizes the need to apply the important stages in the construction of a strategy to develop the economy and to support and develop the private sector to take its role in contributing to the construction of the new economy and diversify its resources for the budget without relying on oil by a large margin.

For the purpose of discussing and studying the economic reality that Iraq is going through must stand logical, scientific and economic analysis on the most prominent themes that require solutions in order to build a proper introductions to move to the mechanisms of the market economy prompt. This requires for the purpose of implementation of private sector development strategy of the government and the private all banking and industrial, agricultural and service fields to participate and cooperate in the implementation of development trends that achieve interim, medium and long-term objectives and strategy sector.

This means engaging the private sector a greater role in economic decision-making and lead the market through the following:

1. contribute to the improvement of the business environment in Iraq and providing encouraging investment climate to attract domestic and foreign capital and encourage the achievement of partnerships between the public and private sector.

2. Contribute to the creation of a new legislative environment based on the terms of reference to Article 25 of the Permanent Constitution and the laws and strategies for economic reform and private sector development so as to ensure its activation and its leadership of the market in the future.

3. sustain and activating the partnership, dialogue and cooperation between the private sector and government.

4. contribute to the policies, mechanisms and strategies and participate in the follow-up implementation of the resolution of the transition to phases chronologically programmed to a market economy status.

5. work to provide additional sources of financing of the general budget of the State of the adoption of the development and diversification of resources towards raising the proportion of other resources in the non-oil GDP.

6. To encourage the creation and development of micro, small and medium enterprises in order to achieve comprehensive and sustainable, including the formation of specialized institutions for the purpose of development.

7. cooperation in ensuring the implementation of the central plans in the provision of infrastructure to encourage private sector development in industry, commerce, agriculture, tourism and mineral resources, energy, and services.

8. activating the role of specialized banks and private banks to provide soft loans to the private sector and the national as well as finding solutions to the problems of taxes and accrued interest resulting from the owners of the stalled production projects and the development of short and medium-term fiscal policy solutions.

9. coordination and cooperation with the ministries of Finance and statistical and institutions involved in the construction of the base and statistical financial information and ensure transparency.

10. actively participate with the government in the implementation of the restructuring of public companies and facilitate partnerships with the private sector measures.

11. to contribute to ensuring the quality of local products and services and imported standards.

12. cooperate and contribute with relevant institutions in the rehabilitation and training specialized in the private sector and human resources.

13. encourage private banks to invest in economic projects so as to enhance the proportion of its contribution to GDP and to accelerate the legislative amendments to achieve this goal