Global development center: infrastructure funds doomed to waste and corruption
Friday 21/09/2012 06:34 am
Baghdad / term follow-up : revealed the International Center for Development Studies that the law of the infrastructure in Iraq is contributing to increasing the burdens of the Iraqi economy debilitating debt and benefits without any safeguards to protect the rights of the Iraqi people development.
Center, which take from London-based confirmed in the study singled out the "Arab Net" on the ability of the Iraqi economy on reconstruction of infrastructure in Iraq through Proceeds from oil revenues, or provide an environment to attract foreign investment, but corruption and red tape have made Iraq free country any services in the field of infrastructure.
and although the size of the Iraqi budget for the year 2012 up to more than $ 100 billion, but the Iraqi government - and, according to the center - seems incapable of securing the amount of $ 36.5 billion, which means a decrease by approximately 2.5 million housing units The country's lack of nearly 6 thousand schools, in addition to the road network primitive in some cities and the deterioration of vital sectors such as health, agriculture, industry and tourism.
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explained Global Center for Development Studies Act infrastructure made by the Iraqi government is an attempt to legislate the law allows them to borrow large sums of money will be doomed unless financial and administrative corruption, which may cause the waste of more than $ 250 billion is surplus Iraqi budgets in the absence of the final accounts since 2003.
expressed Center astonishment from the inability of Iraq (oil) to finance infrastructure projects, while the ratios achievement reached in some Iraqi provinces to be 6% with a rounded amounts not disbursed amounting to roughly $ 45 billion. Centre questioned the fate of the loans granted by the International Monetary Fund (IMF) to the Iraqi government, the latest of which was $ 3.7 billion, and why not use this money for the service projects in a time when increased the defense budget by 24% for the year 2011.
And while arrived hard currency reserves in the Central Bank of Iraq to $ 67 billion, the same bank may exchange from the World Bank loan approximately $ 1.7 billion under the pretext of supporting the Iraqi dinar to cover fluctuations in oil prices.
between the International Center for Development Studies, the draft law infrastructure enveloped much of mystery, especially since it did not show the interest rate on projects payment on credit, on the grounds that it commensurate with the size of each project.
According to the center, this indicates that these amounts which was estimated at 36.5 billion dollars, and that the Iraqi government announced its need it lacks scrutiny and transparency. Does not include provisions of the law that shortened the ten points presented in two pages of the Council of Representatives of Iraq any guarantees offered by foreign companies in the event of non-compliance deadlines set for completion or its criteria, which may cause a waste of time and money.
stressed Global Center for Development Studies to bet the Iraqi government on oil as the sole source of revenue to cover the costs of projects payment on credit is risky major because it depends on oil prices, which could see a decline in the future is reflected in the ability of Iraq to pay, especially since Iraq is seeking to increase its production to six million barrels in 2017 and under the global trend to reduce oil prices.
criticized Center Do not include any discretionary accounts law to the size of the financial benefits for service projects in question, which refers to the size of the projects is not accurate and improvisational manner not only aims to maximize the wealth of some of the beneficiaries and the exploitation of the suffering of the Iraqi people. While some articles in the law refers to the equitable distribution of projects scheduled for completion but that the center is a concern that raises this law a new crisis between Iraqi provinces because it did not specify the criteria that are based on which the selection of projects.
finally called the International Center for Development Studies to bother the Iraqi government bills more serious and the benefit of the Iraqi economy as oil and gas law, which will contribute, if approved, increase the volume of foreign investments and improve services file bad in a country considered one of the richest countries in the world in oil and gas.