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Academic: the market mechanism as a way of adoption of economic
8/11/2015 0:00
BAGHDAD - Imad Emirate
encourages intellectual background adopted by the government in economic policy and of financial activity and embodied in the project the previous budgets, private economic activity.
This philosophy enshrined in the Iraqi constitution, in Article 25, which states: (The State shall ensure the reform of the Iraqi economy on a modern basis and to ensure full investment of its resources, diversifying its sources and encouraging the private sector and development) which is based on narrowing the field to the economic activity of the state, as a prelude to join the system of the world economy imposed by international institutions (the International Monetary Fund, World Bank and WTO) and guidance.
Academic d. Imad al-Ani said that Iraq currently faces conditions that do not allow him to work on this approach only after it is economic and social reform process and even political, and then the appropriate approach to join the international economic system, noting that as a result we note that there is a significant distortion in the government budgets for Iraq, because despite what was approved by the Constitution and announced by the government following the philosophy of free market economy and the adoption of market mechanism economist as a method, but that is what we observe in the budget otherwise
completely.
He pointed out that the budget reflects the extent of government intervention in the economy, particularly as indicated by the operational expenditure figures and specifically paragraph salaries and wages, and thus there are great challenges of economic, social and political general budget and make this the image that we see control.
He said al-Ani, saying: What Iraq still suffers from the lack of reasons for security and stability are allowed to develop realistic and ambitious development and reconstruction programs, in the circumstances of the lack of strategic development and clear The glitch security significantly, where the focus is on the security aspects, in particular social aspects, including the guarantee entry to citizens, pointing out that this situation has seen high unemployment rates accompanied by economic and social effects makes it imperative for the government addressed through fiscal policy, specifically overhead.
He pointed to accompany it is policy efficient operation, as the only sector that works is the public sector, although it suffers a lot of obstacles, including the private sector depends on the work almost entirely, as it is still suffering from serious problems will require increased public spending on infrastructure and basic support that sector and the provision of appropriate to the environment, pointing out that he was accompanied by high levels of poverty and poor performance of government services and the inability to provide the necessary environment for the extension of economic and social reform policy and this is a major challenge facing the government.
Ani said: «reform of the public finance sector, a process that requires the study of the financial activity of the state conditions of income and expenditure, in particular the extreme weakness in tax revenue resulting from the failure of the tax system, mismanagement and the large number of exemptions. Offset by the case of widespread excessive public spending, which is evident by tracking the financial activity of the Iraqi government.
Concluded Ani to say that these things are the root cause of the growing fiscal deficit is added to that a defect in the structure of revenues, since oil is the source of these revenues president and which is linked to the international market makes revenue prone to instability due to fluctuations in world oil prices and fluctuations in the production and export capacity of Iraq's oil.
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