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Center Links: Awaqa Iraqi economy .. of the center and the region
22/10/2015 12:08 AM
Iraqi state is still suffering from economic crises burdened budget and burden on the citizen and the economic situation in the country in general , Which is of course the crisis exceeded the size of the security and military threat simply because they affect the lives of Iraqi citizens and the strength and sources of livelihood.
And can not separate the economic crisis experienced by Iraq these days due the security situation and the operations against al "Daash" where the latter reigns on oil facilities and the cities of the whole, but there are also of the view that the crisis is not only an extension of the security crisis, but that there are several factors have contributed to this reality painful, and, for example, but not limited to mention the administrative and financial corruption factor, government neglect and chronic for some sectors, and here point out that the reality of the Iraqi economy needs emergency treatment and establish a regulatory economic legislation, and the development of alternatives to face the threat of economic collapse.
The central government has stressed more than once that the economic and financial side of the priorities of the executive and legislative bodies that are being focused on reforms in the file, and stressed that the provision of essential services to the Iraqi citizen is located within the basic obligations that state institutions seeking to implement them.
In fact it seems that the Iraqi government began to touch the seriousness of the current economic situation, therefore we see it began to confront the situation through successive finance minister for international institutions such as the IMF and World Bank visits, as well as to communicate with the major countries to get financial support to the treasury, was the latest of these tours to meet with the Minister of Finance Hoshyar Zebari, with US ambassador to Iraq, Stuart Jones, and the Ambassador of Kuwait in Baghdad Ghassan Al-Zawawi and discussed with them the possibility of support, and resulted in this broad moves to postpone the State of Kuwait appointment pay war reparations for another year which contributes to ease the burden on Iraq and its budget and give it a chance to sort things budget for the next year.
As well as we point out the participation of Iraq in recent meetings of the Fund and the World Bank in the capital of Peru (Lima) and the efforts and contacts the Ministry of Finance in cooperation with international financial institutions to support the economic and financial situation of Iraq to cover the budget deficit.
We all honesty to pay tribute to these efforts by the Government Abadi, in the face of difficult economic situation and the fight against corruption by government Abadi seriously began to walk by, something we're seeing the reaction of a positive response to these reforms, which are waiting for more of them because of the long history of corruption, which nest in every corner of the state Iraqi, and we support these steps to be correct in the beginning of the way out of the dark tunnel, which weighed on the Iraqi state in general.
After a year in office, Prime Minister Haider al-Abadi has taken steps with a view to a political system that is shared by influential and affiliates of certain parties to reform.
Those who increase the deficit in the fiscal budget for next year because of falling oil prices is what is of concern to experts who are skeptical about the government's ability to cope with the deficit. Parliamentarians say the government should reduce the operating budget with an estimated operating budget for 2016 B83 trillion Iraqi dinars, and the investment budget of 30 trillion dinars, and must reduce the budget of all the provinces and departments and institutions, which amounted to 43 trillion dinars.
Other crisis looming over the joints of the economy of Iraq is a crisis in oil prices which is which is a detailed crisis, Iraq As is known to all Rei country with distinction and its dependence on oil as a principal source of the budget is the reason for its crises, and today we are seeing a continued decline in oil prices to below the the 50 dollars per barrel, which is arrange on the 2016 budget further reduced on a discretionary basis for the price of oil could reach the average price of up to $ 40 a barrel and the rate of export an estimated 3.6 million barrels per day.
The other problem, which experts feared is resorting to central bank reserves to meet the shortfall and to cover the investment projects where data indicate that the hard currency reserves in the Central Bank became up to $ 60 billion after it was at about $ 70 billion this year.
As for the banking sector in Iraq have we stand with him in a previous article who we are where the most important joints of the imbalance in the structure of banks are civil in Iraq are weak and unable to face the reality in Iraq and became its role is limited to switch currencies and convert them rather than do normal turn, and stripped the banks of real role in worthwhile investment and to contribute to get the economy moving and Development, and come back here to say that the central bank issuing the demands of the legislation governing the banking business and the order of the reality of private banks to keep pace with events and economic reality in Iraq.
The recently launched some warnings from the Economic Commission warns of the bankruptcy of most of the private banks in Baghdad as a result of the financial crisis and confusion regulations and laws.
The economic reality in the region
For a period very close to the Kurdistan region of Iraq is described as Nozj economic and political stability, especially with the presence in the volatile region by armed conflict, the region has arrived in urban and economic boom led some to see that economic and political model unique in the region.
After a year and a half after the entry Daash region and with the entry of the province in clashes against the organization of and the subsequent consequences for the stability of the region led to the migration of capital and foreign and local investors out of the region and resulted in economic stagnation and instability in the region, and because of differences ongoing with the central government on the financial dues and salaries and the accumulation of debt on the Government of the Territory. This decline actually remarkably especially with the emergence of sharp political differences within the region in the pyramid of power on how to elect the President of the region.
However, this was not the only reason for the decline in investments and deterioration of the tourism sector, The fall in oil prices in the region was one of the reasons that contributed to this decline and recession experienced by the region.
Other factors that have contributed to this reality rampant corruption which requires the provincial government respond to and control to clean the region of corrupt yen trading interests of the country and citizens for their interests .nahik for the absence of economic and random planning the economic reality that produced a state of prosperity artificial non-certified on the basis of rules economic scientifically incorrect.
Finally, along the lines of the central government Kurdistan region of Iraq needs fixing economic policy and create legislation regulating the economy and various sectors, as well as the fight against corruption and the corrupt, flute internal differences as well as convergence with the central government to be able to both sides of the face of the crisis faced by Iraq with all its components.
Amer Omran
Links Research and Strategic Studies Center
[You must be registered and logged in to see this link.]
22/10/2015 12:08 AM
Iraqi state is still suffering from economic crises burdened budget and burden on the citizen and the economic situation in the country in general , Which is of course the crisis exceeded the size of the security and military threat simply because they affect the lives of Iraqi citizens and the strength and sources of livelihood.
And can not separate the economic crisis experienced by Iraq these days due the security situation and the operations against al "Daash" where the latter reigns on oil facilities and the cities of the whole, but there are also of the view that the crisis is not only an extension of the security crisis, but that there are several factors have contributed to this reality painful, and, for example, but not limited to mention the administrative and financial corruption factor, government neglect and chronic for some sectors, and here point out that the reality of the Iraqi economy needs emergency treatment and establish a regulatory economic legislation, and the development of alternatives to face the threat of economic collapse.
The central government has stressed more than once that the economic and financial side of the priorities of the executive and legislative bodies that are being focused on reforms in the file, and stressed that the provision of essential services to the Iraqi citizen is located within the basic obligations that state institutions seeking to implement them.
In fact it seems that the Iraqi government began to touch the seriousness of the current economic situation, therefore we see it began to confront the situation through successive finance minister for international institutions such as the IMF and World Bank visits, as well as to communicate with the major countries to get financial support to the treasury, was the latest of these tours to meet with the Minister of Finance Hoshyar Zebari, with US ambassador to Iraq, Stuart Jones, and the Ambassador of Kuwait in Baghdad Ghassan Al-Zawawi and discussed with them the possibility of support, and resulted in this broad moves to postpone the State of Kuwait appointment pay war reparations for another year which contributes to ease the burden on Iraq and its budget and give it a chance to sort things budget for the next year.
As well as we point out the participation of Iraq in recent meetings of the Fund and the World Bank in the capital of Peru (Lima) and the efforts and contacts the Ministry of Finance in cooperation with international financial institutions to support the economic and financial situation of Iraq to cover the budget deficit.
We all honesty to pay tribute to these efforts by the Government Abadi, in the face of difficult economic situation and the fight against corruption by government Abadi seriously began to walk by, something we're seeing the reaction of a positive response to these reforms, which are waiting for more of them because of the long history of corruption, which nest in every corner of the state Iraqi, and we support these steps to be correct in the beginning of the way out of the dark tunnel, which weighed on the Iraqi state in general.
After a year in office, Prime Minister Haider al-Abadi has taken steps with a view to a political system that is shared by influential and affiliates of certain parties to reform.
Those who increase the deficit in the fiscal budget for next year because of falling oil prices is what is of concern to experts who are skeptical about the government's ability to cope with the deficit. Parliamentarians say the government should reduce the operating budget with an estimated operating budget for 2016 B83 trillion Iraqi dinars, and the investment budget of 30 trillion dinars, and must reduce the budget of all the provinces and departments and institutions, which amounted to 43 trillion dinars.
Other crisis looming over the joints of the economy of Iraq is a crisis in oil prices which is which is a detailed crisis, Iraq As is known to all Rei country with distinction and its dependence on oil as a principal source of the budget is the reason for its crises, and today we are seeing a continued decline in oil prices to below the the 50 dollars per barrel, which is arrange on the 2016 budget further reduced on a discretionary basis for the price of oil could reach the average price of up to $ 40 a barrel and the rate of export an estimated 3.6 million barrels per day.
The other problem, which experts feared is resorting to central bank reserves to meet the shortfall and to cover the investment projects where data indicate that the hard currency reserves in the Central Bank became up to $ 60 billion after it was at about $ 70 billion this year.
As for the banking sector in Iraq have we stand with him in a previous article who we are where the most important joints of the imbalance in the structure of banks are civil in Iraq are weak and unable to face the reality in Iraq and became its role is limited to switch currencies and convert them rather than do normal turn, and stripped the banks of real role in worthwhile investment and to contribute to get the economy moving and Development, and come back here to say that the central bank issuing the demands of the legislation governing the banking business and the order of the reality of private banks to keep pace with events and economic reality in Iraq.
The recently launched some warnings from the Economic Commission warns of the bankruptcy of most of the private banks in Baghdad as a result of the financial crisis and confusion regulations and laws.
The economic reality in the region
For a period very close to the Kurdistan region of Iraq is described as Nozj economic and political stability, especially with the presence in the volatile region by armed conflict, the region has arrived in urban and economic boom led some to see that economic and political model unique in the region.
After a year and a half after the entry Daash region and with the entry of the province in clashes against the organization of and the subsequent consequences for the stability of the region led to the migration of capital and foreign and local investors out of the region and resulted in economic stagnation and instability in the region, and because of differences ongoing with the central government on the financial dues and salaries and the accumulation of debt on the Government of the Territory. This decline actually remarkably especially with the emergence of sharp political differences within the region in the pyramid of power on how to elect the President of the region.
However, this was not the only reason for the decline in investments and deterioration of the tourism sector, The fall in oil prices in the region was one of the reasons that contributed to this decline and recession experienced by the region.
Other factors that have contributed to this reality rampant corruption which requires the provincial government respond to and control to clean the region of corrupt yen trading interests of the country and citizens for their interests .nahik for the absence of economic and random planning the economic reality that produced a state of prosperity artificial non-certified on the basis of rules economic scientifically incorrect.
Finally, along the lines of the central government Kurdistan region of Iraq needs fixing economic policy and create legislation regulating the economy and various sectors, as well as the fight against corruption and the corrupt, flute internal differences as well as convergence with the central government to be able to both sides of the face of the crisis faced by Iraq with all its components.
Amer Omran
Links Research and Strategic Studies Center
[You must be registered and logged in to see this link.]
