Economic reform aims to make expenditures in harmony with revenue

10/28/2015 0:00

Baghdad Imad Emirate
Said economist d. Qusay al-Jabri that he could look at economic reform as a package of policies that work to make local expenses consistent with the available resources, and through finding a consensus between the financial, monetary and trade policies and exchange rate to ensure a holistic request fits and composition of the offer Total.

He said in his speech for »Sabah»: that it requires the adoption of measures stimulate sectors of goods and services as well as the adoption of policies aimed at improving efficiency in the use of resources by removing distortions in prices and promote competition and ease of control
Administrative.

And then restore fiscal balance internally and externally, and to reduce inflationary pressures, removal and strengthen the balance of payments and to restore Alantmaiah merit that measures to ensure the sustainable growth to reduce unemployment require as well as economic stability and reforms aimed at improving the allocation of resources and raise efficiency in the medium and long term policies.

Jabri and hinted at the possibility of classification reform programs in terms of economic nature to economic and macroeconomic partial reforms, either in terms of policies are classified into demand-side policies and other supply-side, and in terms of the length of time they are classified as short-term policies and other long-Term.

He argued: but is common in economic circles these programs are classified into two packages installation programs or economic stability, referring to the internal factor for government action on Reform within the state and creating a state intended to stabilize the economy
the National .

He pointed out that structural adjustment programs point to achieve external balance in terms of impact on exchange rates and deteriorating terms of trade Commercial.

So we should focus on term economic stabilization and structural adjustment policies addressed by the Fund and the World Bank.

Jabri and between these programs is the responsibility of the design and preparation and follow-up rests with the International Monetary Fund and be of jurisdiction where the fund is interested in the ideas of economic stabilization and procedures in developing countries, the occurrence of these ideas in the context of functional tasks.

The design of these programs depends on the neo-classical theory of the balance of payments, which are based on the link between debt accumulation and problems of pluralism necessary in the structure of the economy to adjust the balance of payments and public budget analysis. Adding that it contributes to the preservation of the local currency value of degradation, and to this end are relying on control in aggregate demand (investment and consumption) is working to reduce it and make it balanced, with gross domestic product to reach the economic stability in the short term.

Jabri concluded by saying: that the economic stabilization program known as a package of measures aimed at removing the imbalance between the total domestic supply and domestic demand policies. And the consequent disruption of the balance of payments deficit and the rise in the general level of prices where those policies seeking to induce a state of reconciling the needs and available resources and reduce the pressure on domestic price levels.

And between it includes a range of measures contribute to address the multiple economic imbalances such as the deficit in the balance of payments and budget deficits and the deterioration of the national currency and inflation value, by reducing aggregate demand and make it balanced, with gross domestic product (supply and demand balance) and called these policies or actions the policies of demand management It is concerned with the management of domestic demand so that it corresponds with the gross domestic product and resource flows from the outside .

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