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Iraq executes projects Order forward and pave the way for privatization
16/04 09:52
Iraq suffers from a liquidity crisis Malle given the decline in resources resulting from low oil prices by more than US $ 50 a barrel, and high military spending to meet the "Daash" war, prompting the Baghdad government to adopt a policy of austerity clicking on incoming expenses in the current year budget of $ 102 billion dollars and carry a deficit of about $ 21.4 billion, which is 94% dependent on oil exports.
Having resorted government recently to issue bonds Kazyna $ 12 billion to pay dues foreign oil companies for 2014, faced the problem of financing the implementation of some projects necessary to serve the citizens, whether to borrow the money necessary authorizations or contracting with companies to implement them in a "deferred payment", has authorized the Council of Ministers to the relevant ministries and institutions of the State concerned, negotiating with contractors and companies executing projects ceiling no higher than two billion dollars, with the priority placed in coordination with the ministries of planning and money to provide the necessary funds by way of "postpaid" or any other means available to borrow in coordination with the Ministry or the concerned party.
Previously, the global companies that have declared their willingness to implement strategic projects in a "deferred payment", but did not get in a timely manner to government approval, resorted to the direct payment that caused Ba_i_ra financial and administrative corruption and delay in the operational phases.
Hence Leary concerned sector investment that the payment term will stimulate companies to work and the implementation of projects in accordance with the specifications agreed upon and set time is up.
It seems that step, "postpaid" will pave the way towards the implementation of economic reform, according to the strategy launched by the Prime Minister Haider al-Abadi for the years 2015 - 2030, designed to stimulate the private sector, starting with the development of the banking sector, which is expected to be paid an active role in financing the implementation of projects and diversify sources of income . The strategy includes four axes Home:
First, determine the private sector companies and the nature of their work and projects that can be implemented, and the services and products offered by the internal and external markets.
Second, improve the business environment, which centered on the laws, regulations and instructions obsolete and procedures that hinder the development of the private sector.
Third, the implementation of the development of small and medium companies through the expansion of industrial areas and the current program to improve its services, and the opening of new industrial zones to enable all companies to work after the provision of soft loans to them, and training programs, consulting and feasibility studies required.
Fourth: the formation of the Council for the development of the private sector, to oversee the implementation of the strategy, and reports to the Council of Ministers.
The Iraqi private sector is now 1.8% of GDP, a very small percentage, and targeting strategy to increase to 18% over the next ten years.
If the President Abadi aims of his plan to develop the private sector, while keeping control of the public sector on the joints basic of Iraq's economy me, it at the same time faces multiple calls for the adoption of privatization and the transition to a market economy, has been considered and Iraqi Minister of Planning and Cooperation former Mehdi al-Hafez said allocation subject worthwhile from the standpoint of economic reform and national development in general, especially at a time when Iraq is going through difficult economic conditions.
And take Hafiz Ali of the public sector in Iraq "monopoly important joints economic infrastructure in most sectors and activities of service, which is not a new phenomenon but has gripped Iraq since a long time, as some studies report that the public sector includes more than four million employees and users, a high percentage compared to the size of the population for many countries, as well as it contradicts the terms of the financial cost to the national investment needs. "
And called for "a lesson customization options in the context of national development, put my convertible from a program of public property to private large number of institutions, and the implementation of measures, including the creation of economic environment in support of private property under the terms and requirements of the utility National wan, and the creation of a comprehensive data bank would help understand the realities and complexities of the national economy, especially in the areas of tax and subsidies Financial and its consequences on interest public, and to develop training programs and the provision of specialized in-dimensional technical problem customization, any provision of qualified persons and familiar techniques and methods for transfers of private property. "
It seems that raising the issue of privatization in Iraq and divert public economy to a market economy, is not new, it goes back to the year 2003, when issued, Paul Bremer, the American who was appointed by the US government for the management of occupied Iraq, Order No. 39, which proceeded to privatize public sector companies, and since time until today held several conferences and seminars, and workshops have seen the work of multiple and varied, but it did not lead to results, he and executive steps, and stayed in the framework of the speech on paper.
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16/04 09:52
Iraq suffers from a liquidity crisis Malle given the decline in resources resulting from low oil prices by more than US $ 50 a barrel, and high military spending to meet the "Daash" war, prompting the Baghdad government to adopt a policy of austerity clicking on incoming expenses in the current year budget of $ 102 billion dollars and carry a deficit of about $ 21.4 billion, which is 94% dependent on oil exports.
Having resorted government recently to issue bonds Kazyna $ 12 billion to pay dues foreign oil companies for 2014, faced the problem of financing the implementation of some projects necessary to serve the citizens, whether to borrow the money necessary authorizations or contracting with companies to implement them in a "deferred payment", has authorized the Council of Ministers to the relevant ministries and institutions of the State concerned, negotiating with contractors and companies executing projects ceiling no higher than two billion dollars, with the priority placed in coordination with the ministries of planning and money to provide the necessary funds by way of "postpaid" or any other means available to borrow in coordination with the Ministry or the concerned party.
Previously, the global companies that have declared their willingness to implement strategic projects in a "deferred payment", but did not get in a timely manner to government approval, resorted to the direct payment that caused Ba_i_ra financial and administrative corruption and delay in the operational phases.
Hence Leary concerned sector investment that the payment term will stimulate companies to work and the implementation of projects in accordance with the specifications agreed upon and set time is up.
It seems that step, "postpaid" will pave the way towards the implementation of economic reform, according to the strategy launched by the Prime Minister Haider al-Abadi for the years 2015 - 2030, designed to stimulate the private sector, starting with the development of the banking sector, which is expected to be paid an active role in financing the implementation of projects and diversify sources of income . The strategy includes four axes Home:
First, determine the private sector companies and the nature of their work and projects that can be implemented, and the services and products offered by the internal and external markets.
Second, improve the business environment, which centered on the laws, regulations and instructions obsolete and procedures that hinder the development of the private sector.
Third, the implementation of the development of small and medium companies through the expansion of industrial areas and the current program to improve its services, and the opening of new industrial zones to enable all companies to work after the provision of soft loans to them, and training programs, consulting and feasibility studies required.
Fourth: the formation of the Council for the development of the private sector, to oversee the implementation of the strategy, and reports to the Council of Ministers.
The Iraqi private sector is now 1.8% of GDP, a very small percentage, and targeting strategy to increase to 18% over the next ten years.
If the President Abadi aims of his plan to develop the private sector, while keeping control of the public sector on the joints basic of Iraq's economy me, it at the same time faces multiple calls for the adoption of privatization and the transition to a market economy, has been considered and Iraqi Minister of Planning and Cooperation former Mehdi al-Hafez said allocation subject worthwhile from the standpoint of economic reform and national development in general, especially at a time when Iraq is going through difficult economic conditions.
And take Hafiz Ali of the public sector in Iraq "monopoly important joints economic infrastructure in most sectors and activities of service, which is not a new phenomenon but has gripped Iraq since a long time, as some studies report that the public sector includes more than four million employees and users, a high percentage compared to the size of the population for many countries, as well as it contradicts the terms of the financial cost to the national investment needs. "
And called for "a lesson customization options in the context of national development, put my convertible from a program of public property to private large number of institutions, and the implementation of measures, including the creation of economic environment in support of private property under the terms and requirements of the utility National wan, and the creation of a comprehensive data bank would help understand the realities and complexities of the national economy, especially in the areas of tax and subsidies Financial and its consequences on interest public, and to develop training programs and the provision of specialized in-dimensional technical problem customization, any provision of qualified persons and familiar techniques and methods for transfers of private property. "
It seems that raising the issue of privatization in Iraq and divert public economy to a market economy, is not new, it goes back to the year 2003, when issued, Paul Bremer, the American who was appointed by the US government for the management of occupied Iraq, Order No. 39, which proceeded to privatize public sector companies, and since time until today held several conferences and seminars, and workshops have seen the work of multiple and varied, but it did not lead to results, he and executive steps, and stayed in the framework of the speech on paper.
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