Foreign investment flows are key to economic development

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Foreign investment flows are key to economic development

Post  Admin on Tue Aug 15, 2017 11:33 am

15/8/2017 1:06 am

Baghdad / Emad Al-Amara

There is no doubt that the foreign capital moves according to the parameters of the general stability of the countries besides the laws that involve the transfer of money and profits to the parent country of the company or the direct investor, and on this basis the country needs to accelerate foreign investment flows to push it to grow, which requires - according to specialists - increase Opening up to foreign and domestic investments by creating the legal ground for establishing an attractive investment environment in Iraq.

The Economist Abdul-Karim Jaber Shangar explained to "Sabah" that the country sought to establish an appropriate investment environment in attempts to overcome the difficulties of entering foreign investment to its economic sectors.

He pointed out that the unstable country is not encouraged to enter the investment due to the various risks to the direct investor such as the confiscation of investments or exposure to various attacks, which may create loss of life for workers.

He pointed out that the economic determinants are linked to the appropriate monetary, financial and accounting policies in the host countries, in addition to the size of the market supported by the relative abundance of natural resources necessary for the establishment of foreign direct investment, stressing that the banking system is the basis for the success of the entry of foreign direct investment, The independence of the monetary authorities from the legislative and executive authorities, the foundations of a banking system to enter the foreign investment of Iraq.

He called for the establishment and development of infrastructure, which is considered an important part of the productive capacity directed to production or providing services to increase the capacity of the state production such as machinery, equipment, construction and paving roads, bridges, airports, public utilities and buildings, and increased competitiveness with the radical shifts in economic and political relations is the main factor in Attracting investments.

Investor Rayan Al-Oussi pointed out that there are many factors that affect the psychology of the local and foreign investor and thus determine his behavior, the most important of which is the tension, as well as the excessive confidence and its influence in acting.

He explained that the tension represents the imbalance between one's perception of what is required in a particular situation and its ability to meet those demands, indicating that the investor faces events seen as threatening to lose, moreover there can be behavioral or cognitive pressures, so the emotional reactions Generate a catalytic energy to meet and identify the problem.

He stressed that economic pressures can raise behavioral reactions to the investor, reflecting the low skills of coping and dealing with the situation, and in the end, the pressure reduces the confidence of investors to succeed in their future work.

The academic economist d. "Iraq had no experience in opening up to foreign investments," said Ahmed Omar al-Rawi, "where the policies and ideologies adopted before 2003 were open to foreign investment. The country is ruled by external forces."

Al-Sabah told Al-Sabah that in view of this, the laws adopted at the time did not permit any foreign investment activity. He stressed that Iraq today is in dire need of investments in all its forms, especially after the changes that took place in the country and the repercussions of the emergence of the terrorist " .

He added that the decline in financial resources due to the decline in oil prices in recent years and the high costs of military operations to free the various areas of terrorism, have paralyzed the national economy in all sectors.

The narrator stressed the need to speed up the hard work to attract investments and activate the legal and institutional frameworks to provide the necessary facilities for the arrival of foreign investment.

He pointed out that the important question posed today and more than a decade after the issuance of the investment law, is really Iraq has achieved the investment environment to attract foreign investment? What are the conditions for attracting investment? Because Iraq today is in dire need of foreign investment to reconstruct the areas liberated from terrorism and revitalize the national economy.

Al-Rawi said that the advantages and disadvantages of openness to foreign investment are based on two interests that are mutually beneficial to the investor and the interest of the host country for investment. Therefore, if foreign investment is not organized in a manner that preserves the social and economic interests of the country, this investment will be in favor of international capital.


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