04/10/2015 (00:01 pm)
Baghdad
A number of experts and academics Iraqis detailed memorandum to the Prime Minister Haider al-Abadi for the reform of the economic situation in the country, confirmed that it had prepared in consultation with a number of senior economists and technicians Iraq in order to lift the national economy of the rentier trap heavy reliance on the oil sector in the financing of the state budget and overall economic activity.
Experts and students, according to the memorandum, which took over the "long" a copy of which redirect State Activity and the private sector to stimulate the housing sector urban growth, education, health and development on an urgent basis, as well as emphasis on reconstruction and rehabilitation of the liberated areas of Daash in order to resettle the displaced there, also included proposals to develop the sector Agricultural and address water scarcity depending on drip irrigation techniques, calling to activate the Iraqi diplomatic role in maintaining the water rights of Iraq.
The experts made proposals included three sections, the first activation of the non-oil sector can stimulate the production and generating productive jobs in promising sectors of reduced need for foreign exchange and import, and the second included the oil and gas sector, which they said was injury international ban a lot of degradation, while ensuring Part III demands and proposals other detailed addressed to the government.
Experts stressed that the reform of government departments, development and the fight against corruption are essential conditions for economic advancement and success of future proposals, policies and strategies listed in the note.
Note details:
(The first Door) :
Activation of the non-oil sector can stimulate the production and generating productive jobs in promising sectors of reduced need for foreign exchange and import
Iraq suffers from a few economic problems is the most important drop in oil prices and revenues from the state, which threatens serious problems of the balance of payments and the exchange rate of the dinar also if serious economic measures are not taken urgently within the agreed timeframe. This note will not enter the details of some of the figures are alarming deterioration of the financial situation she is known, without a doubt, the pillars of the government as some international organizations.
We have resulted in dwindling revenue is little public budget deficit in 2015, as the 2016 budget indicators to some extent the deployment of which refers to the worsening of the large gap between revenue and public expenditure and to the possibility of entering the country Bmdioniat large and very high interest rates Stkpl the future of the national economy. The recovery in oil prices is a clear evidence does not justify any slack endeavors to diversify the economy and repair the damaged mechanisms as that of these directories to be and that is pushing for the rationalization of public spending programs if they want to play for our country again.
Sag has led to a state with corruption to weaken the effectiveness of the economic and service performance at a time when Aldoaash lawful wide provinces of Nineveh, Anbar, some of Salahuddin and took control of the most important Anciabat the Euphrates River to threaten the sustainability of agricultural activities in the Middle Euphrates and the south. Military and Saralanvaq and things to displaced people and martyrs, widows, orphans and disabled war is draining financial resources and youth task at a time when spending money on salaries and pension and privileges of politicians and senior staff productivity and low resources.
The economic path for the country Mozuma a long time ago, will race rates and government consumption expenditure, is Tbaziri, through more than three decades led to the reversal development performance. Infrastructure has deteriorated and destroyed Ohunt and technical capacity to manage the economy and the state and its facilities as a result of extensive migration of professionals from doctors, engineers and scientists.
On the other hand, it is pumping very tempos rise to the growth of the population large numbers of job seekers state will not be able to provide enough of them in the future in light of the financial Haunted menu. The post-2003 has witnessed the largest recruitment is the product that distorted the labor market structure and depleted oil resources to finance the weak, if not negative yield economically and Khaddmaa.
As a result of population growth it has exacerbated overcrowding in cities and housing that was one of the important impact rising urban land prices and housing rents and the values of real estate problems. And to the extent that quite a few, this is due to the increasing index residential unit per population.
This in crisis situations, with youth unemployment rampant, justifying the importance of focusing on alternative policies to create enough jobs in production and service fields Syndrome (and fast) outside employment, which exacerbated the disguised unemployment in the state scale.
With the housing crisis rampant, there are still potential and promising to provide a lot of productive jobs if the State has prepared a prudent strategy to provide an increasing number of housing units built within human settlements eligible. And these settlements would have to be designed to also provide the most important services such as water, sewage, electricity, and transportation, educational and health services, not to mention the space required for the sport, toys, entertainment and shopping. Focus on them and will generate significant employment opportunities, which will not have to spend Mstelzma high import requirements in necessarily if coupled with spending went there a companion proposal to activate the lending and to provide active support of specialized banks for the growth of the construction industry. This will lead to reduced demand growth (non-Almdharbati) on the dollar, which tends to display a growing scarcity with the deterioration of state revenues. And by increasing the real value-added locally within the construction industry, also feasible to grow jobs by attracting researchers on the work productivity of rampant unemployment allowance. .
For facilitate the financing of housing required from the pan researchers citizens for shelter, there is an urgent need to facilitate long-term financing and for at least (25-30) years of guaranteed housing that will be built to be a reasonable interest rate and lending extends to include pan researchers citizens for housing prices.
On the other hand, despite the anticipated water crisis, there is a potential for increasing employment and production in agriculture by stimulating investment in drip irrigation in particular. So, it will have to be the subject of drip irrigation more attention from the Ministry of Agriculture agencies and banks and government initiatives concerned with the development of this sector generator of jobs and tributary of production.
For the purpose of sustainable agriculture and revive initiatives, we demand the government to give water problems with neighboring countries importance they deserve within our diplomacy, which were not effective in this vital area of the functions of the balance of interests of the country.
There are additional proposals multiple of what we have presented above are included in Part III below, and the goal of many of which promote work towards the rationalization of public spending on the one hand and to go strategically, but urgently, towards a focused investment programs aimed at reducing unemployment and poverty rates significantly also seeks to convert some of the workers currently in the country about the activities and business development in charge of productive employment outside the scope.
And when the country was suffering from the pressures of very rapid population growth, beware of the worsening scarcity of water and financial resources, not to mention the pervasive unemployment, and especially the ones that promote youth unemployment trend toward large-Immigration Given the utter failure to keep pace with the growing demand for jobs.
So we ask the government to pay heed to the serious long-term problems through the implementation of effective programs for organizing prisoners.
These proposals and demands of government calls for economic reform many areas and is not limited to the macroscopic features of the required policies. Our demands exceed the latter to intervene in the reform and strengthening of the features of a number of sectoral and spatial policies as well.
The most important of these policies required in real time the need to create a development model that works and unsustainable within a geographical spots of the most secure country and we propose here to focus on the provinces of Basra, Maysan and Dhi Qar, because of the relative security and geographical convergence. What is required here is that the development model desired there becomes a role model for other less stable parts of the country and thus begin the first steps, "the spread of the successful example of development" within reconstruction programs.
And until very recently when the financial resources are plentiful (which is no longer the case), the reconstruction programs had been stalled and stalled and became known that corruption, nepotism and quotas and the marginalization of Iraqi competencies at home and abroad had been missed opportunities for development will not return. If the government does not now moving towards the development, operation and reconstruction and the fight against poverty, the country and its development path will remain Mazomanie retardation and sentenced to indeterminate.
Conditions will require reform of the state transparent frankness with his work will enable citizens, including in the light of available resources and priorities. And it would have to be also determine the responsibilities of what happened from wasting development opportunities was not justified and is therefore no longer acceptable at all !!
Reform conditions would require the abolition of political, sectarian and ethnic quotas in the allocation of responsibilities the state and fight corruption effectively and to return to the Iraqi competencies which are all the tasks required of Mr. Prime Minister, in order not to frustrate the trends in support of the development and evolution and diversification of change in the economic structure of the country.
(Part II): the oil and gas sector
Hit the international embargo this sector a lot of degradation. And re-developments of the post-2003 investment activity to crude oil branch and transferred to ports while did not get to develop refining capacity and energies associated natural gas processing sufficient attention. The Aldaashah attack on the Baiji refinery and has withdrawn from the actual refining the country's largest and most important refineries amounting capacity of 310 thousand barrels per day, without offset Basra refinery expansion is 22%, which has refining capacity of the country, which resorted to increasing import of oil derivatives.
It came oil licensing rounds in the excessive ambitions to increase production and exports. And as it turns out from the collapse of the recent oil prices, the glut of oil supply as a result of the development of new technologies for the drilling and extraction of shale oil and increase the supply of sustainable energy alternatives have led all of us to price pressure on traditional oils, including the Iraqi oil which will increase competition between exporting countries on the stakes in the energy markets and driven to provide price rebates for imported diameters.
In the province of Kurdistan, headed the government for the use of contracts to participate was mostly with small companies and Bklv high. The look territory prevailing similar to the prevailed among the federal government that the oil is halal first problems, a view which proved to developments in oil prices nullity since late 2014. Since the coordination and integration in the oil policies between the center and the region are weak, it has reinforced the pressure on world oil prices and lost Both parties amounts and promising result of this competition.
In light of the increasing need to fund the budgets of Iraq and the region, it becomes a talking today about changing the terms of the contract with the oil companies and in favor of Iraq's elusive unless I checked the Ministry of Oil and Ministry of Natural Resources their policies productive and export, in a coordinated manner, towards the preservation of oil and gas reservoirs of the rapid attrition.
In the natural gas sector, Iraq was burned in 2014 nearly half of the total production of natural gas is no longer justified nor acceptable (by OPEC) figures.
From here we demand the governments of center and the region not to compete and to coordinate in order to serve the interests of all Iraqis in maintaining the oil wealth of the rapid attrition and low prices and the burning of natural gas. We also call Baklnh production and export programs and review for the purpose of contributing to the pressure to increase world prices after the change display modes of non-conventional oils, which may not be far off in time now. We also call on not to enter tours licenses or contracts for new post nor the expansion of oil production in Kurdistan of Iraq in order to strengthen the tendency to diversify the Iraqi economy as a whole.
We call on the Oil Ministry to speed up programs and projects associated with the use of natural gas from fields in the south, both to generate electricity or as raw materials in the petrochemical industry and fertilizer industry. We call on the ministry that a time perspective to be included in the reduction of gas flaring rates down to stop the burning in Iraq together economic and environmental reasons.
We also demand to re-establish the national oil company to take over the management and implementation of oil production operations, either directly or in cooperation with oil companies within the framework of service contracts to keep the oil ministry responsible for relations with OPEC and the sectors of refining and distribution of local as well as on public policy in the sector and coordination with the electricity sector to provide him with energy sources and coordination between the region and the oil-producing provinces.
We also demand an investigation and accounting of corruption in the case of the oil sector in the event that other state institutions.
For refining problems and a lack of supply, we call on the Ministry of Oil to study potential alternatives and the technical and capital and operating costs for the involvement of the Iraqi private sector to invest in the establishment of distillation units and a small mobile Skid Units near production fields.
Finally, as a result of the problems faced by the country during the recent period, we demand to study the possibility of the establishment of the Ministry of Energy to include the petroleum industry and electricity industry within a common organizational structure.
Signatories
* Dr. Fadel Abbas Mahdi - formerly director of economic analysis at / United Nations Economic Commission for Western Asia and the international adviser in development planning / Secretariat of the United Nations (formerly)
* Dr. Maytham and coffee - a university professor in Economic Sciences
* Dr. Hashim Ali / international economic expert
* Dr. Mohammed Saeed Alaill - economic resident in Austria
* Prof. Kazem Habib - economist and writer
* a. Dr.. Abdul Salam Idrisi - economic and retired / San Diego / California
* Dr. Zaid pill - IT expert
* Dr. Jassim Mohammed Ali - economic and retired university professor
* Dr. Saad Fathallah - economist and university professor
* Dr. Qasim Hamoudi Aekeche - Consultant Engineer (Power)
* Fouad Al-Kazemi / oil expert and retired
Hamid Alkfayy - economic Vshfy
* Dr. Obeidi successful - economic and Tax Expert
* Successful Hassan Mahmoud - consumption
* Dr. Medhat al-Quraishi - economist and university professor / expert Industrial former UN
* Dr. Sadiq Aynati - Consultant / Engineer sustainable urban development
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