Economic reform in Iraq (5-5)

9/27/2016 0:00

Adnan al - Janabi *

General observations about the production and marketing of oil:

First , Iraq has the largest reserves of crude oil , traditional in the world.
Second , production costs in Iraq are the lowest in the world.

And based on the facts above, in the interest of Iraq , crude oil prices are globally moderate to limit from entering rivals such as oil more expensive (heavy oil and oil from deep shale and oil) and from alternative and renewable sources. Also in Iraq 's interest to encourage an increase in demand for oil on the back of moderating prices.

Based on these postulates, Iraq needs to be based on the acceleration policy to increase production to compensate for low prices and not vice versa. The increase in production requires based marketing strategy to:

( a) multiple export routes that have a surplus of private and investment cost in different pathways are relatively low - lying to maneuver.
( B ) follow the marketing strategy relies interfering with the markets, especially in Asia, and build mutual interests with common markets such as investments in the liquidation and distribution in those markets.

Second , electricity

interfere in the field of electricity several different activities sometimes intersecting, the sector managed disproportionately with the Constitution and the powers granted to the regions and provinces. We must when talking about reform in the electricity sector that includes the administrative structure of the sector.

It is useful to transform the Ministry of Electricity to the general supervisory body and striped and the Organization of electricity across the country, without the body itself be executing any of the following operational activities:

-1 electricity production.
- 2 electricity transmission.
-3 distribution and collection.
4. The fuel electricity.

1 - Electricity production:
it is necessary to study the conversion of all production units to companies (private or public or mixed) operate according to market principles and competition. It will be an important resource in this transition to the Treasury through the sale of some production units to the private sector.

And taken advantage of these resources to finance investments in the energy transfer. It must immediately planning to produce 30 thousand megawatts by the year (2020), and work on the circulation of the combined cycle (Combined Cycle), and the use of gas style cushions for fuel to produce electricity.

2 - transmission:

prefer to stay transport networks based public company funded centrally managed and supervised public Authority for Electricity.

4 - and Codalkahraba:

prefer the provision of gas to the cost of production of all power plants. I also prefer to bear the budget (Ministry of Finance) , the cost of imported fuel and the cost of the purchase of petroleum products from local producers, electricity is also can not be smuggled smuggled oil products subsidized. The electricity support, whether deliberate pricing, it could be one of the most forms of support justice.

To support the benefits of the national economy by giving local producers (industry, agriculture, services) feature internal and external competition. The support will be caused by a fuel saving cost of production.

Supplement (3) and the Ministry of Commerce

First: the gradient in the ration card in the first phase of transition from distribution in kind of the components of the card to the cash payment smart card, and unite the smart card for all families in collaboration with the Ministry of Interior and the Ministry of Displacement and Migration Independent Commission for the elections, and the formation of a unified information base with the national identity and access to open a bank account for each adult citizen. And have it all within universal basic income program , which should make up for all types of government support (UBI).

Second , continue to support the purchase of wheat and rice from citizens. And cooperation with the Ministry of Agriculture to end support for agricultural inputs (fertilizers, tractors, combine harvesters ... etc.) and stay on the support of modern irrigation techniques (sprinkler and drip and greenhouses). The input support tainted by a lot of corruption , while supporting the output ( the prices of wheat and rice) is less prone to corruption and focus on actual production. It can farm compensate for carrying input cost increase of prices of the receipt of production.

Thirdly , to continue supporting the flour for bakeries to provide bread cheap system solves the distribution in kind of flour shop.

Fourth , with regard to companies and the Ministry of Altjarh.enbga liquidation of trading and sales companies , such as supermarkets Company and the automotive trade, re structural and other companies toward liquidating or transferring to the private sector. The conversion work grain trading company to the strategic management of inventories and receiving crops of wheat and rice, and flour processing bakeries subsidized.

Fifth , should shift to the legal registration of companies reporting a book documenting when reverse no more. And turning circle to circle the documentation and follow - up does not complicate management and extortion. It should be recording a new company does not require more hours, rather than months and years. We should launch the freedom of naming companies wishes of the owners that the names do not match. Suffice it to a character difference in the name is acceptable as a name, and the launch of the freedom of the labels in foreign languages. It can accomplish all of this electronic application form.

Annex (4) to solve the housing crisis ,

Iraq needs more than (200,000) new housing units to meet the needs of natural growth of the population if we assume that the average family size in the future five people. During the past twenty years , the number of housing units being added each year is a tenth of that figure. It also is a small percentage of housing units in the countryside and even in inappropriate cities for housing , such as mud houses and houses of shanty towns. In addition, about a quarter of homes that are uninhabitable at its inception are now developing is not suitable due to obsolescence and expire facilities , health and electrical Tosissatha ... etc.

Appreciates better housing studies shortage of housing units in Iraq , now more than a million and a half units. Some estimated two million and a half million housing units, especially if we take into Alaattabarma devastated by wars and annual increases in population and aging is a small number of residential units.

This means that any program to bridge the housing gap must be built to provide half a million housing units per year, for five years. If we know that the Land Bank and the Housing Fund financed each about ten thousand housing units at best it will be clear that this type of housing finance is not practical and is not serious. The government housing projects can not cover more than 10 percent of these needs at best. Note that successive governments have failed to provide any serious number of residential units.

The construction of 500,000 housing units per year require investments of at least $ 25 billion . This is equivalent to the budgets of big states. Nor can any country whatever resources that provided from the general budget on the expense of public money, the state may provide housing for some of the staff , such as physicians near hospitals, and teachers near their universities and housing - related workers in remote areas.

It is no interest be distributed housing projects to the ministries and local administrations, initiate each project is limited to employees or to low - income people, because this pluralism be random and expensive.

subsidized housing

should enact a law the General organization for housing capital roundabout least a billion and a half billion dollars. And be in the management of the Fund to represent the province and the provinces and the secretariat of Baghdad by the population in, and financed by the central federal government budget, organization and empowers the authority to allocate land for housing projects.

While the state funded infrastructure of residential areas selected and overseeing its implementation and to cover the benefits of subsidized housing loans, through the detailed arrangements with banks wishing to participate in the housing projects.

The Foundation undertakes to cover the benefits of credit spreads, insurance coverage operations on the risk of default and accidents. Any institution that guarantees the loans and assume its benefits.

And bears the state (federal government and the regions and provinces) infrastructure cost of roads, streams and connecting electricity, schools and clinics ... etc. These services provided by the state anyway.

* Deputy Economic Researcher