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Signs of recovery from Dutch disease
Economical 03/14/2024
Abdel-Zahra Muhammad Al-Hindawi
Are we really infected with the Dutch disease? ..
Ok, how did the infection spread to us?
What are the symptoms of this disease?
Is it a viral or bacterial disease?
Is it organic or psychological?
Is it considered a chronic disease for which there is no hope of treatment?
And why was it given this name?
Did the infection come from Amsterdam, for example? Why was it not named after another country?
The Dutch disease is a description of the relationship between the prosperity of economic development, in light of the abundance of natural resources such as oil.
This abundance is offset by a sharp decline in the contribution of the agricultural and industrial sectors to the formation of the gross domestic product.
The absence of this balance may raise the value of the national currency, and
this matter leads to... A clear imbalance in the balance of exports and imports.
For perspective, the situation of countries suffering from Dutch disease is somewhat similar to the situation of a worker with a good daily wage, who, through this wage, can provide for his life’s requirements in a decent manner, without thinking about saving part of his income, or seeking to invest it in a sustainable project, and therefore
As soon as this worker loses the opportunity to work,
his conditions will be destabilized, and
he will be unable to secure the requirements of life!
As for why the disease bears the name of the Netherlands?
This story goes back to the fifties of the last century, when the Dutch discovered natural gas in 1959.
The Netherlands was affected by this discovery, which brought it a lot of money.
It created a state of relaxation and “intoxication,” and
therefore there is no need to For industry and agriculture,
the money is sufficient to buy anything people need, in light of the rentier economy.
We in Iraq were perhaps afflicted with the Dutch disease more severely than the Netherlands itself.
Oil played a round with us until the disease became so severe that everyone demanded their share of the oil (salaries, food, medicine, housing, water, electricity, services). Etc., etc.)
Investment was absent, the
private sector was absent,
industry disappeared, and
agriculture vanished.
Who is the one who plants or manufactures when everything is available?!!!
Even if oil prices collapsed, disaster struck, and calamity descended!!
This happened time and time again, in light of the country’s availability of capabilities and capabilities that are not insignificant, and are even envied by other peoples!!
Is there hope for recovery from the Dutch disease?
Yes, hope is great and close, and the
recovery process depends on the patient’s commitment and the doctor’s instructions and instructions.
I might even go further than that to say that signs of recovery from the disease have actually begun to appear in the body of the Iraqi economy.
Projects such as The
large Al-Faw port, the
giant development road,
industrial zones,
residential cities,
roads,
policies to support agriculture, the
localization of pharmaceutical industries, the
growth of the cement industry, and the
trend towards the petrochemical industry,
are all clear signs of recovery,
reinforced by the presence of great demand and an
unbridled desire by major international companies., to invest in Iraq, and
these desires became clear during the Prime Minister’s recent visit to the Netherlands and Germany, as
companies from both countries and other countries showed a high level of interest and are seeking to win an investment opportunity, from those opportunities that will be generated by the development road, the Baghdad metro, and other projects,
They are well aware that the investment environment in Iraq is still pristine.
There is no doubt that all of these transformations will lead to the
achievement of solid economic diversification, the
liberation of the economy from the yoke of oil slavery, and
every human being will feel that he forms a link in sound construction,
far from absolute dependence on (his share of oil)!!
https://alsabaah.iq/93482-.html
Economical 03/14/2024
Abdel-Zahra Muhammad Al-Hindawi
Are we really infected with the Dutch disease? ..
Ok, how did the infection spread to us?
What are the symptoms of this disease?
Is it a viral or bacterial disease?
Is it organic or psychological?
Is it considered a chronic disease for which there is no hope of treatment?
And why was it given this name?
Did the infection come from Amsterdam, for example? Why was it not named after another country?
The Dutch disease is a description of the relationship between the prosperity of economic development, in light of the abundance of natural resources such as oil.
This abundance is offset by a sharp decline in the contribution of the agricultural and industrial sectors to the formation of the gross domestic product.
The absence of this balance may raise the value of the national currency, and
this matter leads to... A clear imbalance in the balance of exports and imports.
For perspective, the situation of countries suffering from Dutch disease is somewhat similar to the situation of a worker with a good daily wage, who, through this wage, can provide for his life’s requirements in a decent manner, without thinking about saving part of his income, or seeking to invest it in a sustainable project, and therefore
As soon as this worker loses the opportunity to work,
his conditions will be destabilized, and
he will be unable to secure the requirements of life!
As for why the disease bears the name of the Netherlands?
This story goes back to the fifties of the last century, when the Dutch discovered natural gas in 1959.
The Netherlands was affected by this discovery, which brought it a lot of money.
It created a state of relaxation and “intoxication,” and
therefore there is no need to For industry and agriculture,
the money is sufficient to buy anything people need, in light of the rentier economy.
We in Iraq were perhaps afflicted with the Dutch disease more severely than the Netherlands itself.
Oil played a round with us until the disease became so severe that everyone demanded their share of the oil (salaries, food, medicine, housing, water, electricity, services). Etc., etc.)
Investment was absent, the
private sector was absent,
industry disappeared, and
agriculture vanished.
Who is the one who plants or manufactures when everything is available?!!!
Even if oil prices collapsed, disaster struck, and calamity descended!!
This happened time and time again, in light of the country’s availability of capabilities and capabilities that are not insignificant, and are even envied by other peoples!!
Is there hope for recovery from the Dutch disease?
Yes, hope is great and close, and the
recovery process depends on the patient’s commitment and the doctor’s instructions and instructions.
I might even go further than that to say that signs of recovery from the disease have actually begun to appear in the body of the Iraqi economy.
Projects such as The
large Al-Faw port, the
giant development road,
industrial zones,
residential cities,
roads,
policies to support agriculture, the
localization of pharmaceutical industries, the
growth of the cement industry, and the
trend towards the petrochemical industry,
are all clear signs of recovery,
reinforced by the presence of great demand and an
unbridled desire by major international companies., to invest in Iraq, and
these desires became clear during the Prime Minister’s recent visit to the Netherlands and Germany, as
companies from both countries and other countries showed a high level of interest and are seeking to win an investment opportunity, from those opportunities that will be generated by the development road, the Baghdad metro, and other projects,
They are well aware that the investment environment in Iraq is still pristine.
There is no doubt that all of these transformations will lead to the
achievement of solid economic diversification, the
liberation of the economy from the yoke of oil slavery, and
every human being will feel that he forms a link in sound construction,
far from absolute dependence on (his share of oil)!!
https://alsabaah.iq/93482-.html
