Development and stability occur with sustainable economic development
Saturday 04/14/2012 7:35
Hamid Kifai: Many countries have developed and are now producing heavy industry and precision instruments without having to have the support of natural sources. Japan, for example a country based on the industry and the most important source is available to have a creative human resources invested in the state over the decades
She came to fruition after a while and created a solid economy from none other than the presence of an educated class and national identity and a cohesive design to occupy a prominent place among the nations of the world. Many countries envy, or believe with Japan, South Korea, Taiwan, Singapore and Brazil on the economic performance that has been achieved through the development of industrial projects, large and able to compete in Europe and America.
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Yes, there is a need for capital to build a dynamic economy developed and based on supply and demand, but the money Almsthsal through borrowing of money is the best available from natural sources, which is given in many cases, without controls or standards of economic thought. Some oil-producing countries spent billions of dollars on failed projects terms of developing agriculture in the desert or the creation of industries do not have a real need or are unable to compete internationally. Many entrepreneurs borrow even with the money they have because they want to make sure of the feasibility of their projects with the approval of the banks for funding and seek to partner with other institutions capable of Rphihm studies and ongoing guidance and evaluation. The banks have provided financial support, it means that it is feasible and that it will succeed and this gives them credibility at the same time global and increases the confidence of the markets. No problem with any successful project in the payment of the benefits of the loans that it needs, because successful projects able to finance itself and is considered the payment of interest is normal no harm when it is part of the cost of production a profit greater than the value of the cost.
some countries tried to develop alternative industries for imports, thinking they will be able to create a robust economy through import substitution locally made products. But the result is that these projects have failed because they did not come primarily through the development of the auto industry and the accumulation of experiences, but to stimulate political will, if not of manufacture, save money Almsthsal of oil revenues.
Alsnaat alternative import failed because it relied on the import of spare parts from abroad and assembled within the country and bringing in foreign experts to assist in the collection, marketing, and the involvement of the national labor force is skilled and expert in the compilation and preparation. It is in fact not merely as being more than self-deception through perception that the country Doe making a car or a machine called a name and a national establishes that trick in the hearts of the citizens.
damages resulting from those industries controlled failure is mainly a lot, for example, the high cost of production because of its reliance on imports and the inability of locally produced products to compete with the world. Has led these actions by some governments to take protectionist measures increased insult to injury and created from these local products a burden on the national economy.
In addition, the cause of these industries and the aggregate increase in the balance of imports has broken the balance of trade of the country that produce them and caused the reduction rate of its currency and raise the prices of other imports on which they depend for their industry and eventually inflation and imbalance in the economy needs to be efforts and other funds to fix it. As a result, these national industries fabricated through the waste of money and effort to become a burden on the country and the governments are forced later to get rid of them one way or another in order to limit its losses.
there is a need because you have the state the areas of real investment and ways of thought to spend the money derived from the proceeds of natural resources such as oil, because spending on expansion government agencies without there being any need for them will not come on a long-term interest rate, but it will create a consumer society Talaa is unstable and this record oil-producing countries failed because we have not contributed to the oil wealth to build a robust economy, unable to continue after the end of oil or diminishing global importance. I realize some of the leaders of the rentier states that they need to focus on other areas for the development of the economy.
What we see today from urban development in Dubai for example is an investment in the future, which will play an important role of Dubai as it has become a commercial center, service and the different countries of the world. International companies started to open offices in Dubai, the Arab media and foreign are also taken from the Dubai-based and platform have, conferences and international meetings are held in Dubai because of its strategic geographical location between East and West, it has the infrastructure required by modern hotels and ways of transport and other infrastructure, airports giant markets large and the rooms modern and sophisticated communications and security of a disciplined and treated civilized refined.
Rulers of the Emirates and Dubai in particular realized the potential of their country and its potential economic realism and invested in and encouraged them to the world because their plans, though ambitious, but realistic and well thought out and beneficial to everyone. Iraq can be turned to the potential and prospects of economic realism and develops and freedom from the past decade and the quagmire into which you put it past regimes which still governs the thinking of many decision-makers now.