Ration card ... argumentative people

2012-11-13 10:11:09

Ration card ... argumentative people A.. D. Jawad Kadhim al-Bakri
Babylon University / Faculty of Management and Economics

Was the first appearance of the so-called (ration card) in 1991 when America imposed the cover of the United Nations economic embargo on Iraq, which is the longest in history, after the establishment of the regime of Saddam invaded Kuwait,

The pulled this procedure millions of Iraqis from starvation uncertain, and under this card by the competent authorities to distribute basic food commodities to the citizen through agents food scattered in all governorates of Iraq at subsidized prices barely Atoizi (5%) of the prices of those goods in the food market globally.

After the occupation of Iraq in 2003 by the United States and lift the economic blockade, it seemed at first glance that the reason for the existence of the ration card may negated and it was time to cancel, and already appeared votes from within the government in 2004 to cancel the ration card, but prevented it, at the time the government request advice from a specialist economists Iraqis eventually concluded that any government trying to prejudice the ration cards before the economic stability of the situation in Iraq will open the gates of hell.

In 2009 and under uncles No. 1646 06.02.2009 issued by the Ministry of Commerce decision was made ​​to withhold the ration card to the families that monthly increases entry (1,500,000) Iraqi dinars, and is not a suitable mechanism for the implementation of this resolution to all individuals, Vtm applied to state employees only, as there are traders, businessmen and factory owners and the owners of capital and others, did not apply the resolution them due to poor potential government to find a suitable mechanism to see such layers within the borders of the state, and only the Ministry of Commerce approached the chambers of commerce and associations Men Business and professional associations to provide the names of covered, and the ministry itself know that some circles that follow the government ministry did not provide the names of covered employees.

Been exceeded this proposal until today, when surprise Iraqi citizen decision cancel the ration card, which has become part of the system thinking daily shrouded in anxiety about the future, he said government spokesman said the Cabinet decided to replace the ration card amounts of cash distributed to covered system mentioned by (15 ) thousand dinars per capita increase the amount of (3.000) dinars per capita value of vocabulary, referring to the controls bound to the pricing of flour to ensure that no price manipulation from the first of March 2013,

He explained that the approval to increase the allocations of cash to the ration card come to support the citizen and the basket of food and being able to buy its vocabulary from the local market, and that the decision was to eliminate cases of corruption and manipulation that accompanies the distribution of ration card, and lack of access to fully and regularly to the citizens, and in the light of those remarks rose prices of a basket of food distributed in the ration card (20%) in the Iraqi market, Vkis rice price was (48.000) dinars rose to (60%) dinars in just two days.

Let's discuss topic from the point of economic exchange away from the harbingers of politics, although we believe it was the engine the most important in making such a decision for propaganda purposes and will prove the coming days this game passed by some political blocs to gain the trust of Iraqi voters and to improve its image in the memory electoral those distorted image thanks to rely foreign agendas, and it seems that Mr. Maliki's government deceived the game this time.

In the economy there are many types of support offered by the government for members of the community, including price support manifested in Iraq subject ration card, support is price represents in-kind support, not cash, with the benefit of the consumer who buys goods subsidized only, which is to get the right amount of goods greater than the amount that could be obtained by the consumer in the absence of price support, and it is expected that the ratio (savings from price support / total income%) high for the poor consumer and low for the consumer rich.

, The government can determine the maximum enjoyed by every family of price support determine how much of the commodity supported that can get them every family, but in this case has to be the distribution of goods using cards that represent permission to buy give the state to individuals, the state estimated amount found Item then try to distribute among consumers by identifying certain amount for each of them, or may specify a certain amount of background material distributed equally to members of the community, and uses this method widely in food shortages to prevent rising prices.

And there are conditions to be met to ensure the priority of monetary support from price support, and can be represented as follows: -

The first condition: If the consumer is rational or does not have full knowledge of what the market, it may take advantage of the increase in cash income arising from the monetary support in purchasing a commodity check his level of saturation less than the situation in the light of price support, Consumers irrational may use increase in cash income to buy goods such as narcotic materials harmful or to spend to buy non-essential goods, while linking the necessary support to goods could push the poor consumer to buy them so as to benefit from the support.

The second condition: if the supply of goods limited the granting of cash subsidy to the consumer may result in a rise in the prices of these commodities including accommodate all of the increase in cash income (money), and remains real income (goods) constant.

As such, it provides a kind of support to maintain low levels of prices allowing members of the general low-income citizens to get their additional relatively affordable.

The reduction in cost of living for consumers in general and the people with limited income private, so the State bears the difference resulting from the reduced prices necessities, means taking the state part of the cost of economic growth for the community, so some of them criticized this kind of support under the pretext of the difficulty of determining the true beneficiary of it and / or is the trend towards ever support an economic Pure, which aims to develop the productive apparatus or to steer it in a particular destination,

Not that the proponents of this kind of support they see some possibility to avoid allegations of not knowing the true beneficiary of the support through the identification of the source of this funding support through categorical distribution of income or wealth tax, in this case we have used the assistance for two purposes: - lower prices. - The redistribution of national income.

In addition to identifying the source of funding and goods depends mainly on government planning and goal of fiscal policy, and despite the criticism of this kind of support it is applied in most countries of the world, depending determine beneficiary of the ideology of the state, and in general there are two methods to rationalize consumption of subsidized goods, namely: -
First: that the government would distribute subsidized goods evenly between individuals through the card system.

Second: to leave the government of freedom for individuals to buy subsidized goods put up with the same amount that was distributed cards on the market.

It remains the success of a two approaches above factor is very important if not controlled could walk to the economic situation of low-income people into extreme poverty, which is controlled by the competent authorities to offer basic food commodities in the local market, which has been canceled distributed manner cards, and here we wonder, do you possible in light of the instability that characterized the country today, and the inability of the competent organs for combating financial and administrative corruption that competent authorities can control the market prices?
The answer is definitely no, Iraq today is follow the market economy, which recognizes the state should not interfere in economic activity, in addition to applying recipes IMF imposed on Iraq after the reduction of Iraq's debt, and after that the student Iraq more debt from international institutions, was compelled to apply those actions which one of the most important paragraphs raise government subsidies and raise the prices of government services provided to citizens, such as fuel and energy prices, communications, etc..

We conclude from the above that approach leave freedom for individuals to purchase goods supported the market instead of being distributed card better, as bring them the level of satisfaction is higher, but the previous analysis neglects important point is that in a society does not have the fairness of income distribution may be individuals rich can get large quantities of goods subsidized at the expense of shortage quantities obtained by poor individuals with limited income if you were to commodities subsidized to be bought and sold in the free market, not to mention that the percentage (23%) of Iraqi citizens living below the poverty line, in addition to high rates of unemployment (33% ), according to the Ministry of Planning in 2012,


Therefore, the alternative cash that could be provided by the government to the citizen for the ration card items whatever high the sponsor Bakdmh market as a result of high rates of inflation that would accompany cancel the ration card and increase the money supply resulting from the distribution of cash allowance.

Accordingly we can say that the government bears a central responsibility is to provide the basic needs subsidized depending on priorities towards meeting basic human needs for community members, contribute to the increase rational government actions that become more a trend towards the general public from other people and collective interests, through the development of Faculty of long-term strategies are superior to any demands short-sighted on the part of the capitalists for profit, or social groups accused of narrow interests.

It is a mistake to look at the ration card as a burden on the budget to be rid of it, it stems from the look neglected the negative social effects that result from the reduction, فالبطاقة depends on the components of social groups poor, and cancel or reduce its vocabulary lead to social tensions and the loss of security psychological and social which we desperately need to indigenize the citizen and can be accompanied by other costs, it is important to take into account the social consequences of the reduction, and that does not resort to the adoption of quick steps to repeal without alternatives rational unavailable for the foreseeable future, and should be abandoned idea obsession basis to maintain (macroeconomic balances) without stress self in the search for the social consequences of those decisions, and a summary of what should be emphasized in this area, avoid decisions relying accounts office does not take into account societal problems, and the accompanying abolition of the ration card of the repercussions negative expensive, it has to be gradual in dealing with this issue.

Proposed solutions

Beginning of the world today is in a crisis food, as the world awoke recently, the sound of the alarm bell loud when prices rose rice (30%) in just one day, after they had doubled in less than two months from $ 380 a tonne last January to $ 760 per tonne at the end of last March, and is in fact a very bad news for Asia, in particular, being considered staple food rice for almost (2.5) billion people.

The global food crisis that rears its head, are threatening to raise disturbances and unrest, may extend across most of Asia, so that we can now add the food crisis to the list of crises familiar facing the world such as terrorism, corruption and failed states, global warming, and the urgent need to do the world Western, which long dominated the affairs of the world, that accommodation political space and increasing economic and strategic emerging powers, such as China, India, Russia and Brazil.

And saw Cameroon, a country located in Central Africa unrest that has killed tens, and echoed a greater economist Cameroon dictum (the man hungry angry man), it's like a popular, world leaders Aauh well and put it at the top of a map of the economic planning while struggling peoples poor increase in food prices which rose more and more as a result of high oil prices to a record, climate change and speculative transactions in local markets and futures exchanges, and caused anger caused by rising food and fuel prices in the violent unrest broke out in various parts of the world during the past six months.

Here there is a need to increase government intervention in economic activity to overcome those crises and maintaining satisfy the reasonable limit of the basic needs of a citizen of essential food commodities through a set of the most important of which are the following programs: -

• maintain the ration card system and overcome the state of debugging biggest errors that may affect the community and the government killed, as it is unreasonable fight against financial corruption in the Ministry of Commerce to cancel profiteers (23%) of Iraqis.

• the development of state trading companies mission to import basic foodstuffs to balance supply and demand of those materials to keep their prices depending on the schedules of monthly consumer prices.

• Do not rely on the private sector placed the provision of basic materials with a direct prejudice the lives of Iraqi citizens, as the private sector, as it is known, looking for material gain, while the government sector takes into consideration the social utility. • If you cancel the ration card is actually because of financial corruption in the Ministry of Commerce, and the government's inability to deal with the issue, it is possible to create a competent authority to provide and distribute the ration card items belonging to the Council of Ministers directly.

• it is not possible under the current circumstances through which Iraq that the government can control the market prices through government decisions, but it can only through trade policies specific, such as reducing taxes on food imports, and the introduction of exchange rate particularly for suppliers of food be less than the prevailing exchange rate, in order to ensure discounted prices of basic foodstuffs, that this procedure is a complement to the work of the government and is not a substitute for it.

So cancel the ration card is pushed to locomotive create crises in Iraq ... but not a whole crises they all deserved challenge the security of the people and the law of retaining some dignity .. it is a cover poor Iraq ... and you have to look for solutions strict restore prestige to livelihood of the people and deserve justice and dignity, which is adorned with the election programs.


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