Identification of the Iraqi economy Options

6/6/2016 0:00

Faris Al Salman al-Rubaie * 3-4
The social market economy is the solution
The social market economy, economic system takes into account the interests of social groups through investment and economic surplus for investment expansion and economic growth as well as to meet the national security requirements of the strategy of social services allocations and provides basic services, such as, and free education and other social groups of poor and working health insurance.
It is important to determine the social market economy theory of details according to the market mechanism and social development and meet the needs of the community and work to prosper spiritually and culturally, as must the strategies and policies designed to serve as a model nationally purely because each country has its own equation between the individual profit in the market and re income distribution in society.
This means that the geo-political and human and natural resources and the structure of society and production specialization as well as the values ​​of intellectual, social, security and defense needs are determined by the context of the national model of the theory.
That the best response to globalization is not a centralized state control of the economy, but economic theory of social liberalism takes into account the market economy and the recent challenges to be built on the basis of a national social development ensures the balance of the relationship between profits and wages and live up production away from the greed of the free market economy.
While we find that the social market economy theory of price mechanisms in global markets does not eliminate, but the investigator determines the economic surplus to go to development, and this is an issue purely national, state are determined by the percentage of the economic surplus to finance economic development and financing for development
Social .
No doubt that the social market system achieved a welfare state in Germany by achieving high economic surplus and collection of progressive taxation and the sharing of industry, agriculture and services and the profits of the total surplus of the economic process between employers and workers as well as social spending.
The social market economy, the goals are:
1 - access to high rates of economic growth for the operation of labor
2 - effective social care
3 - achieving social welfare that the most important pillars of the success of the economy and social market is the performance of the tax duties and the reform of the private and public sectors and effective investment in all sectors based on the integration of their roles in development, as well as activating the private and public investment and the subscriber, as well as providing investment climate through administrative and judicial system reform and the adoption of legislation.
And it highlights the challenges here for the social market economy in Iraq, including:
-1 Demographic growth accelerated
-2 Worsening of unemployment as a result of wrong economic policies precedent
3 - weak technical capabilities of human resources
4 - Low oil prices, which in turn produced a deficit in the general budget.
5. spread of financial and administrative corruption
6 - financial burdens to secure the return of displaced persons and reconstruction of devastated cities
7 - the collapse of the agricultural sector and its impact on food security
8 - flopping in pharmacological security policies
9 - the failure of the national industry and weak export
10. defense and security challenges it poses and the burden on the economy.
In a bid to cope with the financial shortfall in funding social development must:
1. rational use of resources and raise the effectiveness of doubling revenues
2. increase productivity in order to increase the economic surplus

* ECONOMIC head of Baghdad's forum


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