The role of the private sector in the management of the national economy

Samir Nusairi
Economic and banking consultant

All indicators in the budget for 2017 indicate that non-oil revenues will be higher than those allocated for previous years. This means that the government plans to start moving from the rent-to-productive economy, diversifying resources and reducing oil dependence from 95 percent to 85 percent in 2017 of total revenues. In order to achieve this, there must be a clear role and a decree to involve the private sector in the management of the economy. This comes through the reconstruction of the institutional structure of the private sector in the legislative, motivational and procedural aspects, in line with the third pillar of the government program (encouraging privatization of the private sector) and the stages of implementing its strategy for the years 2014-2030, launched by the government in February 2015 To start these programs immediately by developing mechanisms to involve the private sector in the national economic decision-making in accordance with a comprehensive vision to stimulate the productive sectors, including mainly in agriculture, industry and construction (housing and reconstruction), energy, services and tourism, and adopt the government and representatives of the sector Programs, contributions and operational measures calculated and supported materially and legally, and the year 2017 is indeed the year of the private sector.
 
In order to achieve this, the government must first establish a higher council for the private sector consisting of representatives of the private sector and the government to manage, oversee, review and evaluate the programs and policies set for the decision-making industry to achieve the central economic goals through partnership and cooperation between the private and public sectors.
 
Therefore, I believe that the stage and experience that Iraq has been living economically since (2003-2016) needs an analytical and evaluative pause to build its national economy according to a new strategic vision to move to a market economy according to a program prepared by the government and ratified by the Iraqi Council of Representatives. The economic axis, which emphasizes the need to implement important stages towards building a strategy for the development of the economy and support and development of the private sector to take its role in contributing to the new construction of the economy and diversify its resources to the budget without relying heavily on oil.
 
For the purpose of discussing and studying the economic reality that Iraq is going through, it is necessary to stand up with the logical, scientific and economic analysis on the most important axes that require finding solutions in order to build the sound premises to move to the mechanisms of a successful market economy. For the purpose of implementing the private sector development strategy, the Government and the private sector in all its banking, industrial, agricultural and service sectors need to participate and cooperate in implementing the development strategy in the directions that achieve the intermediate, medium and long term goals. This means engaging the private sector with a greater role in economic decision-making and market leadership through:
 
1 - Contribute to improve the business environment in Iraq and provide an encouraging investment climate to attract national and foreign capital and encourage the achievement of partnerships between the public and private sectors.

2. Contribute to the creation of a new legislative environment based on reference to article 25 of the permanent constitution and strategies and laws concerning economic reform and development of the private sector in order to ensure its activation and leadership of the market in the future.

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

4 - Contribute to the development of policies, mechanisms and strategies and participate in the follow - up of their implementation to resolve the transition to stages programmed time to market economy.

5 - Work to provide additional sources of funding for the state budget by adopting the development and diversification of resources towards increasing the proportion of resources other than oil in GDP.

6 - To encourage the establishment and development of micro, small and medium enterprises to achieve comprehensive and sustainable development, including the formation of specialized institutions for this purpose.

7. Cooperate in ensuring the implementation of central plans in providing infrastructure to encourage and develop the private sector in industry, trade, agriculture, tourism, mineral wealth, energy and services.

8 - Activate 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 taxes and accrued interest of the owners of projects suspended production and the development of short and medium - term financial policy.

Coordination and cooperation with the ministries and financial and statistical institutions involved in building a financial and statistical information base and ensuring transparency.

10. To participate actively with the government in the implementation of procedures to restructure public companies and facilitate partnerships with the private sector.

11. Contribute to ensure quality standards for local and imported products and services.

12. Cooperate and contribute with the relevant institutions in the rehabilitation and training of specialized human resources in the private sector.

13. Encourage private banks to invest in economic projects to enhance their contribution to GDP and to speed up legislative amendments to achieve this goal


Mm

Content Link
Http://economy-news.net/content.php?id=6987