"IMF" sets off alarm bells

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"IMF" sets off alarm bells

Post  Admin on Thu Feb 27, 2014 10:23 am

Adel Abdul-Mahdi - 02/27/2014

Says Mr. (Carlo Sdraljevic) official in the Iraqi file, the fund said that "there is a crisis Binyanih.

 Fiscal policy seriously and rely increasingly on oil revenues."

And asserts that " a disturbing trend for the low price in recent years .. especially that Iraq will depend in its budget to 93% of the oil resources " .. He says, " There is concern another is that the tendency of spending is tightly controlled . And frequently them .. and the government when they do not find the money necessary , the matter will end by taking money from the investment , which is a negative long-term

  This is as long warned him , that required the heart of the equation of oil rentier .. and leave policies that proved its failure for decades .. monopolizing the country's resources , and the destruction of the rest of the sectors , and to devote the behavioral and the philosophy of " easy money " , and disable the role of the people and the society and the economy Ahli .. and we have repeatedly said the crisis is not a crisis, decisions , policies and reactions remained within the framework of the circuit rentier , but Binyanih crisis intensified over the decades has made the country dependent only on the positive trade balance provided by oil exports , to live off the country - in return - on imports .

 What is needed is the heart of the equation .. and put the wealth , however, the Iraqi people, funded by the state , a state of the citizen and not a state official .. to start the real sectors of public and private .. agricultural , industrial, commercial and service sectors , tourism and investment , etc. .. In order to achieve the growth rates appropriate , not through the oil wealth only , but mainly non-oil sectors of the public and private sectors .. and domestic and foreign investment , and turning first to the balance of payments , not only the trade balance .

  The estimated " IMF " The current budget deficit is estimated at 0.7% of gross national product in the last year .. It was the first real deficit since 2010, after a surplus of 4.1% in 2012.

 And that oil prices will see a tendency to decline in the coming years .. In an earlier report criticized the " IMF " Iraq's economic policy as " bad planning and implementation of the budget , and the wide outside the exchange , and investment rates and low-lying , and serious gaps in financial reporting ."

  He said ( Sdraljevic ) that " Iraq must preserve the independence of the central bank of the government's policies .. and stay independent management of bank reserves for Administration Treasury funds ( DFI ) .. retention of the independence of the central bank is very important .. they guarantee the stability of the exchange rate , which in turn is considered an important pillar of the Iraqi economy . "



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