Calls for support structures to develop Iraqi investment shifts

Fri, 23 Sep 2016 09:43:55

The experience of the development of the Iraqi economy to absorb domestic savings investments required to achieve the target growth rate in real production sector, may not be sufficient to achieve this objective production especially when encountering the development effort of resource allocation in the State budget to finance current consumption, lack of investment which impede the growing ability of the economy to provide self-growth.

In this regard, he said economic academic Awad Fadel Ismail "may be difficult to argue that the savings rate has tended to increase this rate increasing resources devoted to the accumulation of physical capital and then growing ability of the economy to bring about a change in national production building, asserting that low production capacities reflecting the low effectiveness of domestic investment, Ismail during a press followed," low rates of investment in the productive sectors in Iraq always come because of weak structures such as transportation and communication and lack of skilled technical staffs and limited Expertise in the area of management and administration and misuse of scarce available resources. He pointed out that the expected result of low efficiency of investment is a clear rise in production costs hurt towards paying domestic prices and exacerbate inflationary pressures and weak export capacity due to reduced the competitive position of local products in the international market.

Ismail noted that the existing economic system accounted for by a bundle of contradictions between theory and practice, these contradictions in the dimension tasks required to develop and diversify the supply side, pointing out that current consumption drains most of the fruits of the oil boom that provides funding for the development process as seriously flawed point between different production activities.

He argued that the declining investment and efficiency lead to diminishing the power of diffuse impacts investment spending in total production, as well as the pattern of development of the Iraqi economy, which is experiencing a clear imbalance, will not deliver sufficient attention to tame domestic potential available as quickly as possible to accelerate growth, indicating the importance of exploiting the opportunity cost incurred by national economy and employ them in achieving optimal utilization and available supply of early alofrat.

He concluded that was Ismail out of a jam acquiescence to lopsided development and oil sector lies not in wrestle revenue about numbers but will remain subject to the large economic policy makers supported the will to resolve these contradictions, stressing that the resources available to the country is abundant but ill use often led to economic scene complexity in General.

The Economist said Mazen return to backward status not set up structures of life and work and investment, and that it represents the rules underlying the overall economic activities.

Speaking for explaining (the news) that these structures should be provided by government departments, water, fuel, electricity, roads and bridges. At the same time the private sector in these sectors suffer from a range of barriers in the absence of transparency in the financial management of some government departments and financial institutions regulatory reports this negligence as well as weak technical and administrative level to employees of these departments

Noting that the Government is unable to provide funding to upgrade all sectors of structures to be parallel with the developments in the region with water and electricity sectors experiencing widespread wastage behaviors when citizens and lack clear roles of private businesses and foreign investment.

He drew back to that this agenda is a set of facts that demonstrate the broad desire among this sector at all levels participate effectively manage and develop and maintain various types of master infrastructure sectors, as he wished to find Capricorn in privatized in its strategic planning and in more formal roles in different facilities.

Stressing that structures play a key role in enhancing the quality of life of individuals and institutions in any country of the world, both those Government or civil or private institutions, adding that upgrading structures vital for economic and social transformation as a master built distinctive efficiency is one of the most important elements of the attracting investment and development of the economy and its development, which has a direct impact on the competitiveness of companies and at the level of public services, as well as to satisfy the basic needs of the people and their welfare.

But by saying that overall development process must be accompanied by parallel anchor structure services aimed at improving the living conditions of citizens through the provision of material and social services and the drivers of development projects for income-generating production or support investment especially since most Governments and peoples aspire to economic development in accordance with their own interpretations and the economic and social conditions of its