Samir Alnasiri Economic and banking adviser

The role of the private sector in the management of the national economy


Economy News / Baghdad ...

All incoming indicators in the budget for the year 2017 indicate that the non-oil revenues will be at a higher rate compared to what has been allocated for previous years. This means that the government is planning to start the transition from a rentier economy to production, diversification of 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 to involve the private sector in the management of the economy. This comes through the rebuilding of the institutional structure of the private sector in the legislative, motivational and procedural aspects in line and matches the axis (III) of the government program (to encourage the shift to the private sector) and the implementation phases of its development for years strategy (2014-2030) launched by the government in February 2015 that actually start these programs immediately establish mechanisms for the involvement of the national private sector in the economic decision-making in accordance with the overall view of the stimulation in all production sectors, including mainly in agriculture, industry and construction (housing and construction), energy, services and tourism, and adopt the government and the representations sector Special programs and contributions and operating procedures calculated and supported financially and legally, and to be in 2017 is actually 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 is composed of representatives of the private sector and the government assume management and supervision, audit and evaluation of programs and policies designed to industry decisions required to achieve the central economic objectives in partnership and cooperation between the private and public sectors.

So I see that the stage and experience experienced by economically Iraq since (2003-2016) need to be analytical pause and evaluation sincere in order to build the national economy, according to look at 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 axis, which emphasizes the need to implement important stages towards building a strategy for the development of the economy and support the development of the private sector to take its role in contributing to the construction of the new economy and diversify its resources to balance without relying largely on the oil.

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 requires finding solutions in order to build proper introductions to move to the mechanisms of the market economy prompt. Requires for the purpose of implementing the private sector development strategy of the government and the private all banking, industrial, agricultural and service fields of participation and cooperation in the application of development trends that achieve progress, medium and long goals and strategy sector. This means the involvement of the private sector a greater role in economic decision-making and leadership of the market industry through the following:

1. Contribute to the improvement of the business environment in Iraq and the provision of encouraging investment climate to attract national 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 its terms of reference to Article 25 of the Permanent Constitution, strategies and laws on economic reform and the development of the private sector to ensure its activation and leadership of the market in the future.

3. Sustain and activate the partnership, dialogue and cooperation between the government and the private sector.

4. Contribute to policies, mechanisms and strategies and participation in the implementation of the follow-up to resolve the transition to the programmed stages of time-to-market economy status.

5. Work on the provision of additional sources of financing of the general budget of the State to adopt 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 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 and develop the private sector in industry, trade, 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 financial and statistical institutions involved in building a statistical base and 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 procedures.

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

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

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