Population growth necessitates the establishment of Iraq's sovereign wealth fund

3/20/2017 0:00

BAGHDAD / Mustafa al-Hashemi
There is no doubt that the population growth in the country by about 3 percent a year requires the continued provision of services and the sustainability of the financial allocations from the sovereign fund for Iraq which would achieve stable future for future generations.

And "sovereign wealth fund" significant economic and financial experience that Iraq needs being waged is the best way to provide internationally recognized investment for future generations, especially as the circumstances require speed up the study of this experience and apply them in line with the reality that the country is going through.

Economic researcher and saw a sign that Iraq just need to speed up the establishment of the sovereign fund savings because this investment will be for future generations rather than the current generation.

Fund for the sovereign is to provide for the future of the country and often have a government and in the form of bonds and investments in real estate companies or banks, it is likely that this investment variations are outside the country 's borders and in particular the advanced capitalist countries if the country "fund owner" of developing countries.

Adel said in an interview with "morning" that the country 's economy Rei and unilateral funding, because of the circumstances witnessed by it need the money you contribute to the sustainability of funding for infrastructure projects through the sovereign fund , which plays a pivotal role in limiting the fallout from the decline in oil prices on the budget.

He believed that Iraq 's possession of such a fund would rule out the need for him to external borrowing and support of donor countries and international monetary institutions.

It is well known that the number of Iraq 's population is growing by about 2.6 percent a year , it means the need to increase the provision of services and increase their allocations amounts in proportion to the size of population growth over time, and here show the importance of these sovereign funds which are investment funds (investment portfolios).

The economic and academic d. Essam Mahouelle said in an interview earlier "morning" that the fund is important and necessary for Iraq and most importantly the need for managed by experts and some official agencies and foreign financial Kozara, and the Office of Financial Supervision, the central bank.

And it saw Mahouelle a number of obstacles facing the establishment of this fund, which is represented by select who will manage the fund and choose the vocabulary of securities and investments, as well as ensuring the independence of the fund and not to prejudice the money that is being invested or in direct them to some foreign investment in exchange for kickbacks.

He concluded by saying: Not all states require such funds because some economies characterized by vitality and Othob and the rush of innovation and production continuously, making it unnecessary for such funds, but this does not mean that the those states with excessive including achieve wealth , where it has a variety of methods in prop up their economies for the future.

The first of Kuwait 's sovereign wealth fund began experiment in 1953 -hsp Alansichaelubedia-.