Alnasiri: proposes roadmap for economic and fiscal reform is essential and comprehensive

2016/05/09 | 13:10

(Encyclopedia of the Day News | Iraq News ) - Economy News special economist said Smiralnasiri: since 2003 until the present time the Iraqi economy suffered so much from the economic planning and poor strategies and dispersion of policies and chaos and confusion loss in the management of the affairs of the economy and various sectors , which led to the weakness of their contribution GDP has been focusing on oil as the main supplier of economic resources which form up to 56-60 of the GDP and 93 of the total budget revenues.

So it was the Iraqi economy is a man who is one and the other lame and which contributed to the aggravation of his problems is the abuse of public money management and financial and administrative corruption and the marginalization and the dimensions of the national economic cadres technocrats for actors economic institutions manage Moreover, foreign economic conditions, including instability in oil prices and the rise and decline and the inability of governments Previous to establish a sovereign fund government reserves when oil prices were rising Almnth just like any other oil-producing countries.

It confounded the economic process in Iraq and the increased complexity is the lack of clear and specific objectives and strategies fiscal and monetary policy, which led to lack of control over fixed and balanced rates to the price of the Iraqi dinar exchange rate against foreign currencies in addition to that some of the monetary policy applications Kmzad selling daily currency, although he contributed to maintaining a balance exchange rate at Achtlalh but it needs to rethink the mechanisms and style and find alternatives that guarantee not to use it as a means by weak people and speculators all these reasons, combined with the lack of security and stability and the war on terrorism and theft of public money and not the corrupt accounting and the inability of the competent authorities for recovery smuggled the stolen money, which brought the country to the current economic and financial crisis afflicting the economy, so that the economy is currently undergoing pre-recession and economic collapse.

All this indicates specifically in 13 years we do not have an economic approach and clear Is our economy, socialist or capitalist Does what the Article 25 of the Constitution, which calls for a market economy and private sector support in place or not. Is strategies amounting to 16 sectoral strategy in agriculture, industry and services, education, energy applied or parked on the shelves then we need to plan new and the foundations for the construction of the national economy depends scientific analysis and accurate diagnosis, vocational and professional to manage the economy.

Considering the invitation of the Prime Minister to form a government Bratknuaqrat of experts and specialists and professionals Patriots I actually one of the demands of the Iraqi people, I think that if he really was the formation of this government, one of the first duties is to chart a new national economic approach to overcome the economic and our financial crisis and realize the true welfare of the community in accordance with policies proposed the following: - First: to review and evaluate and re-structural and institutional system of the economy to build according to the following: - a. The establishment of Economic Council is linked to the Council of Ministers and the wide participation of government experts and private sector professionals, specialists and technocrats The strategic planning of the economy and determine the operational policies and follow-up and monitor the implementation and issued by law committed by the ministries and all institutions and sectors of the state and its decisions are binding force after Cabinet approval.

B. The Economic Council to re-examine the revenue and expenditures and Aladzvi 2016 budget after taking into consideration the developments in the world oil prices and changes in the global economy and the conditions of objectivity and subjectivity surrounding Iraq and make the necessary adjustments to the budget, logical and make it realistic application and the issuance of an extension during her one month to form a new government t. The Economic Council's review and evaluation of the economic activities of the organizations began to Iraq's central bank and economic ministries and departments belonging to them in light of new strategic and economic plans and make the necessary changes in the leadership cadres of these institutions and strengthen existing cadres by relying on scientific customization and scientific competence and Previous Personal integrity and national independence and the failure to adopt starters quotas or the so-called balance or compromise and work so after two months after the Council of Ministers of authentication on their function, Deputy Minister and Advisor to the Director General of the Chamber of Deputies are much higher degree of independent bodies.

W. National Provident Fund establishment and linked the Ministry of Finance and be imports of all non-oil imports and is not included in the budget and record all additional imports due to improved oil prices or subsidies and international aid or UN aid or respond to the Fund from the austerity measures and reduce government spending in all its forms.

C. The establishment of the Supreme Commission for imports and investment, linked to the Council of Ministers and the form of the cadres and experts technocrats in import affairs and investment contracts of various terms of reference and the Commission shall prepare a curriculum import of the Ministries of State and the private sector in the light of the allocations earmarked actual and the need to encourage national industry and to encourage the owners of the national capital to carry out investment projects in Iraq that pulls all the powers of Messrs own import and signing contracts minister and given to this body.

H. Stop the import of all materials, consumer goods and entertainment this year and only asset, including in markets within the country.

X. Promote and encourage national goods and adjust the process of imports of goods and apply similar controls of quality control in accordance with the specification and the Iraqi customs tariff and the support of the certificate of origin.

Dr. Re-considered tax policy and customs duties thoroughly as in line with the new economic approach.

Y. Establish a reconstruction National Council of experts and technocrats, specialists and take the process of reconstruction of the cities affected by the war with Daash gangs, infrastructure and master in Baghdad and the provinces in accordance with the central plan for reconstruction approved by the Council of Ministers issued a law approved by the House of Representatives and thus withdraw all contractual authority for reconstruction projects of provincial and limit the customizations Council exclusively above.

T. The establishment of the Public Service Board assumes coordination with the Ministry of Planning and the Ministry of Higher Education and Scientific Research for the appointment of graduates of Iraqi university students at public functions centrally and distributed according to the needs of ministries and departments and institutions of the government, according to decide the vacant degrees in the state budget.

Second: - re-review and evaluation of the financial and monetary policies applications despite the CBI initiative to develop and launch Asttrajith for the years 2016-2020, which included primary and secondary targets to achieve financial stability and development of the banking system, according to the mechanics and points of new jobs but the piece does not prevent from the central bank as priorities also comes 1. the Central Bank and Ministry of Finance analyzed the financial position of the current banks and is expected to 2016 and determine the actual need for liquidity to sustain cash trading in the Iraqi market and stimulate the economic cycle in all fields and to develop a proactive plan to prevent the bankruptcy and the collapse of some banks and sustain the banking wheel under the current circumstances and the use of mechanisms and tools for new applications monetary policy.

2. The current bank financing mired with a lot of failures and constraints and in order to increase the credit product and financing from banks and activate their contribution to various aspects of investment and reconstruction and advancing the process of development and trigger economic cycle in Iraq, the structure we see as an essential step Avenue is activated expand the financing of small and medium-sized private enterprises as an objective social and economic a special priority and urgency and be the Iraqi Central Bank supervisory role and oversight effective in that it takes to develop initiatives and activating and expanding and doubling the allocations to 10 trillion dinars.

3. Amendment of banking legislation in Iraq, which regulates the banking work for the advancement of reality banking and in particular the Central Bank Law No. 56 of 2004 and the Banking Act No. 94 of 2004 and the law of company registration number 21 for the year 1997 and the law of Iraq Stock Exchange No. 74 for the year 2004 and to activate Money Laundering Law and the law of the new investment.

4. issuing SME law-sized and micro to help create new jobs and to reduce poverty and destitution and contribute to the economic and social development plans and to reduce high unemployment, which exceeded 28 percentage and the issuance of the Deposit Insurance Act, the credit guarantee and loans and the establishment of professional companies to do so.

5. activating the role of state banks and 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 accumulated tax benefits resulting from the stalled project for the owners of production solutions.

6. Develop short- and medium-term fiscal policy based proactive monitoring, review and evaluation that is continuous coordination between fiscal and monetary policies and the development of operational mechanisms in this area.

7. reconsider the instructions and implementing regulations and guidance on application of monetary policy and the development of a proactive regulatory system for accurate monitoring of implementation, particularly with regard to foreign exchange auctions currency overseen by the Central Bank of Iraq and the development of new mechanisms with respect to the external transfer and documentary credits and study the possibility of leaving the foreign currency auctions and find an alternative them to take control of the Iraqi dinar exchange rate against foreign currencies.

8. secure the legal and technical requirements for twinning widespread among government banks and private banks on the one hand and between the international banks on the other hand, in order to develop the banking and modernization of the payments system and the regulation of the financial and monetary trading processes according to the latest applied modern electronic banking systems in the world.

9. Review and evaluate and re-classification of banks according to the performance and efficiency of the activity approved the adoption of the international standards that the standards we do the review and evaluation accredited international neutral accounting institutions and under the supervision of the Central Bank of Iraq.

10. The Central Bank is preparing an analytical study to review the reality of banks in the light of the financial results for 2015 and to take critical decisions Bhikltha and integrating small-sized banks and weak activity with large and discreet banks with a view to the development of the private banking sector.

Set to be the foundations of banking mergers and means to address the problems and constraints of working with the banking sector and move it from the role of banking to the developmental role.

Samir Abbas Alnasiri economist


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