Economic and financial crisis in Iraq and curriculum reform for 2017

2016/10/08 | 17:30

Writer / Samir Alnasiri

First topic: the case of the Iraqi economy

Most countries, especially developing countries, Iraq, and one of them based curricula and its economic thought and ideology that believes in the political system is based on the economic, human and natural resources, infrastructure, structural and master available to the economy and strategic objectives to be achieved for the welfare of society and secure the basic needs of the people, which made him feel that his regime political works from a bulk of his service and to build their future, but in the light of the political, security and economic conditions currently experienced by our country and in particular Mayaanih economic reality of the turbulent financial crisis that began affecting influential and clear the obstruction of the implementation of the government's plans and the private sector to contribute to economic development as the crisis causes the current and its aftermath and future because of the sudden drop in oil prices in the global market, the main supplier for Iraq economically, which constitutes around 60% of GDP and 95% of its annual revenue in the general budget is clear and the failure to create and poor economic planning and lack of coordination between the financial and political cash and the continuing shortfall of new economic resources another year to the public budgets because of the lack of cash to keep the precautions to lack the presence of a sovereign fund, similar to other oil countries added to this confusion economic vision in-depth backgrounds and rent-seeking by the Iraqi economy and the migration of the national capital to the outside because of the subjectivity and objectivity conditions above.

That which concerns us here is the new Iraqi economy and what it what are the levels of development and underdevelopment in key rings and what are the implications for sustainable development? What are the main economic indicators for the past thirteen years?

What are the prospects for the coming years at the structural level of construction for the economy and the level of economic thought, which frames the pace toward economic systems that are consistent with the political and social reality in Iraq at this juncture, do we work according to the rules of the mechanisms of central economic or according to the market economy mechanisms, is our economy in terms of targets, mechanisms and results socialist or capitalist is it a mixture of this and that? , Are the foundations and visions hybrid or clear-cut ?? What is the role of the private sector in the economy and in all of this?

Many questions posed by the economic reality during the period after the (2003) until the present time, which led to the result of structural imbalances and the structure of the economy making experts and researchers involved in economic affairs in front of a loss in determining the paths of the Iraqi economy and to any approved is going and more importantly, the confusion is clear in all sectors of the economy, despite the fact that all of these agricultural, industrial, oil, finance, construction and reconstruction services have painted strategies and initiatives sectors but the reality of the situation confirms cheesed important never got over the years and most recently the launch of private sector development strategy for the years (2014 2030) and Stratjah Central Bank, despite the efforts that have been made comes the reason why so many considerations and complexities of planning and legislative and executive which has had its impact on the infrastructure and technical and structural economy.

All this led to blurry vision and Alrai and ideas put forward for the management of the Iraqi economy, is what is installed in the Iraqi constitution in Article 25 of it enough because we say that the economic Our approach is moving towards a sound about the mechanics of the market economy Is there a transparent and credible data and information issued by the relevant authorities and economic construction in the public and private sectors and to achieve the planned successive governments, is that this approach is actually in line with the conditions that prevailed in the country, do we need to lay the foundations and contexts and laws that serve to rebuild the economy according to a new insight based mobilize resources of the state and the private sector in various activities in the draw a roadmap and a phased strategy to build introductions transition to a market economy so that the private sector take the main role in the lack of support from the government, but the legal and regulatory Bmekdarada'm and assume the private sector role in supporting government programs with money and expertise to take the leadership role in the market.

So economic Mahoualemnahj who must establish him what are the concepts, principles and foundations and construction requirements of this approach and what are the plans, programs and lines of communication and cooperation between the government and the private sector in the implementation of the philosophy timetable and clear features of all those programmed strategy and runs from the central specific goal also (how to begin and how to build our economy National and who build and how to build supporting infrastructure, and which in the end led Are Hoalqtaa public or private sector and how to reach a common vision for their administration (.

In order to achieve this we propose the following:

Drawing a road map on the progress and strategic level to paraphrase - the new economic approach to Iraq, which depends mechanisms of transition to a market economy.

Activation of the decisions reached by the committees experienced the problem in the Council of Ministers in 2015 for each economic sector holds the implementation of the Roadmap for each economic sector is subject to the implementation of these decisions for follow-up, monitoring and evaluation.



Formation of a joint legal committee to rewrite and modify and the issuance of new laws that serve the implementation of the road map that is approving a legislative all environmental laws that regulate and manage the new Iraqi economy Bmenhjh.



A review of all unions, associations and organizations bummer law or run internal systems and the introduction of an independent body for the private sector planning and executive leadership to serve the private sector of the market in the future.

The Mqtrahatna constitute a logical steps and realistic to build a new economic methodology to build introductions transition to a market economy has already been passed by states lived the same transitional circumstances and able to achieve economic advancement aspired such as Malaysia and Singapore, and also Germany and Japan after World War II were based on these countries in shaping economic Asttrajyatea conformable to thought and ideology of its political system to the piece requires benefit from the experiences of these countries and the success stories achieved by departing from a purely Iraqi experience is consistent with everything Iraqis Samimi in consciousness and culture Savior and bright future and the work that we see through the eyes of optimistic and work according to the principle (disagree in politics and unites the economy) because the people Ataathakq for the well-being and happiness and a prosperous future without a solid national economy and contributes to building the foundations of everyone that this construction is available in Iraq, the availability of natural resources, water resources, human resources, a foundation of real investment.



The second topic: the methodology of economic and financial reform for 2017

Since 2003 and up to the present time the Iraqi economy suffered so much from the loss of economic planning and poor strategies and dispersion of policies in the administration of the economy and various sectors, which led to the weakness of its contribution to the GDP has been focusing on oil as the main supplier of the general budget of the state so it was the Iraqi economy is a man and one 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 active economic institutions manage Moreover, foreign economic conditions, including instability in oil prices and the rise and decline and the effects of the global economic recession and falling Alnamwalaguetsada in most rates Countries of the world.

All of these reasons, combined with the lack of security and stability and the war on terror, which brought the country to the current economic and financial crisis afflicting the economy, so that the economy is currently going through a critical stage.

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 of technocrats (technocrats) of experts and specialists and professionals Patriots They 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 achieve real prosperity community according to the following proposed policies: -



First: To review and evaluate and re-structural and institutional system of the economy building

According to the following: -

Establishment (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.



The Economic Council to re-examine the revenue and expenditures and Aladzvi 2016 budget.

The initial indications of the budget in 2017 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 after put Ray in and listen to the observations of experts and specialists is the State government before Rsalha to the House of Representatives.



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 cabinet approval on who the function, Deputy Minister and Advisor to the Director General of the Chamber of Deputies are much higher degree (independent bodies) with the knowledge that a number of these cadres have proved their competence by getting them to the responsibility of acting.



Establishment (National Provident Fund) and is linked to the Ministry of Finance and be a net importer 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.



Establishment (the supreme body of the import and investment) and attached to the Council of Ministers and form of 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 to withdraw all the powers of Messrs own import and signing contracts minister and given to this body.



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



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.




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




Establishment (reconstruction National Council) of experts and technocrats, specialists and take the process of reconstruction of the cities affected by the war with Daesh 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 the provincial councils and limit the customizations exclusively council above.




Establishment (General Service Board) shall coordinate 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



Although the CBI initiative to develop and launch Stratjith for the years 2016-2020, which included major goals and subsidiary to achieve financial stability and development of the banking system, according to the mechanics and points of new job but does not prevent the piece from the central bank as priorities as follows:




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 new mechanisms and tools applications monetary policy.




The current bank financing structure 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 see as an essential step Avenue is activated expand the financing of small and medium-sized private enterprises as an objective social and economic is a particular priority the 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.




Amendment 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 Law No. (94) for the year 2004 and the law of company registration number 21 for the year 1997 and the law of Iraq Stock Exchange No. 74 of 2004 and the activation code money laundering and the law of the new investment.




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 percent and the issuance of the Deposit Insurance Act, the credit guarantee and loans and the establishment of professional companies to do so.




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 taxes and accrued interest resulting from the stalled project for the owners of production solutions.




The development of 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.




Revise the instructions and implementing regulations and guidance on application of monetary policy and the development of a proactive regulatory system for accurate monitoring and implementation, in particular with regard to foreign exchange and currency auctions supervised by the Central Bank of Iraq and the development of new mechanisms with respect to the external transfer and documentary credits




Securing 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 payments and update and organize financial and monetary circulation processes system according to the latest applied modern electronic banking systems in the world.




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




The Central Bank is preparing an analytical study to review the reality of banks in the light of the financial results for 2015 and up to 30.6.2016 and take crucial decisions Bhikltha and merging small size and weak activity of banks with large and discreet banks with a view to the development of the private banking sector to be a banking merger specific rules and methods to address the problems and constraints of working with the banking sector and move it from the role of banking to the developmental role.

The third research: the role of the private sector in achieving the systematic economic reform for 2017



All initial indications pointed to the preparation of the budget for 2017 that the non-oil revenues will be at a higher rate compared to what has been allocated for the years preceding and this means that the government is planning to start the transition from a rentier economy to a productive and diversify resources and reduce dependence on oil from 95 percentage to 85% in 2017, of the total revenue to be achieved because there must be a clear role and program decree for private sector involvement in the management of the economy comes through rebuilding Moasse structure of the private sector in the legislative and motivational and procedural aspects and consistent and in conformity with the false axis (III) of the government program (to encourage the shift private) sector and the implementation phases of the development of year strategy (2014-2030) launched by the government in February 2015 to actually start these programs immediately prepare mechanisms to involve the national private sector in economic decision-making in accordance with the comprehensive theory to stimulate the productive sectors. all of them, mainly in agriculture, industry and construction (Housing and Construction) and energy services and that the government and the representative offices of the private sector to adopt programs and contributions and operating procedures calculated and supported financially and legally and to be in 2017 is really the year of the private sector for the purpose of achieving this has to be to take over the government for the first place, the founding of a higher Council for the private sector made up of representatives of the private sector and the government The management and supervision, audit and evaluation of programs and policies designed for the manufacture of decisions required to achieve the economic targets centralization partnership and cooperation between the private and public sectors so I see that the stage and experience experienced by economically Iraq since the (2003-2016) amounting to thirteen years need to be analytical and pause and evaluation faithful to build the national economy, according to a look a new strategy to move to a market economy, according to the program prepared by the government and approved by the Iraqi Council of Representatives included six themes notably the economic hub, which emphasizes the need to apply phase mission towards building a strategy for the development of the economy and to support and develop the private sector to take its role in contributing to the new construction economy and diversify its resources for the budget without relying largely on the oil, and 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 and treatments in the first phase until 2017 and the second phase of the (2018-2022) the third phase of the strategy until 2030, which will be the private sector where market leadership, in order to build a proper introductions to move to the mechanisms of the market economy's prompt, and requires for the purpose of implementation of this strategy by the government and the private all banking and industrial, agricultural and service fields to participate and cooperate in the implementation of development trends that achieve interim goals, strategy and sector the medium and long-referred to in the above.

This means engaging the private sector a greater role in economic decision-making and lead the market through the following:



Contribute to the improvement of the business environment in Iraq and providing encouraging investment climate to attract domestic and foreign capital and encourage the achievement of partnerships between the public and private sector.




Contribute to the creation of new legislative environment based on the terms of reference to Article 25 of the Permanent Constitution and the laws and strategies for economic reform and private sector development so as to ensure its activation and its leadership of the market in the future.




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




Contributing to the policies, mechanisms and strategies and participate in the follow-up implementation mode to resolve the transition stages programmed in time to a market economy.




Work to provide additional sources of financing of the general budget of the State of the adoption of the development and diversification of resources towards raising the proportion of other resources in the non-oil GDP.




To encourage the creation and development of micro, small and medium enterprises Pmaahakq comprehensive and sustainable, including the formation of specialized institutions for the purpose of development.




Cooperation in ensuring the implementation of the central plans in the provision of infrastructure to encourage private sector development in industry, commerce, agriculture, tourism and mineral resources, energy, and services.



Activating the role of specialized banks and private banks to provide soft loans to the national private sector, as well as finding solutions to the problems of accumulated tax benefits resulting from the owners of the stalled production projects and the development of short and medium-term fiscal policy solutions.




Coordination and cooperation with the ministries of Finance and statistical and institutions involved in the construction of the base and statistical financial information and ensure transparency.




Actively participate with the government in the implementation of the restructuring of public companies and facilitate partnerships with the private sector measures.




Contributing to the quality assurance standards for local products and services and imported.




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




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

Samir Alnasiri / expert banker and a member of the Forum of Baghdad Economic Advisory Council


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