Economic performance in the development of Iraq did not materialize and the time lost a lot from him
26/08/2014 (00:01 pm) Mohammad Reza Sinan Shabibi
In the economy we face an economic problem at the individual level and at the community level. The problem is that these multiple needs, and resources for these needs is limited.
Because resources are limited, we must choose needs that must be saturation. Iraq must satisfy the needs of social and economic but many resources, whether financial or human negatively affected by war and the siege and the loss of opportunities for growth .
oadh that Iraq has become a facing problem to choose among the needs which are in fact represent economic objectives in different sectors at home and abroad.
The circumstances of evolution and the big problems worked to narrow the choices I greet you find it difficult to identify these choices, and that should satisfy the needs of the shortest time possible because of missed opportunities on the individual and the Iraqi society.
This means that the time is considered an important economic variable, and therefore is reduced to a primary goal.
On this basis, the economy should grow at a rapid pace and the Iraqi depending on Mayati:
- To be efficiency in the allocation of resources, high production, using the methods of the market in determining that except for projects that carry a social nature, where government plays an important role in this area. Also, the state played an important role in the early stages of growth as a driving force for the development process.
- That are characterized by savings and investment rates, including a rise of foreign investment and until it is activated it must be realized that the country's high degree of economic and social stability and political.
- The states that want to enjoy rapid growth must be to have a high flexibility in receiving and conditioning of new technology and cutting-edge.
These characteristics must be available in order to achieve a time of rapid economic growth, which is faster. These characteristics require the development of an enabling environment in order to proceed, and what the most important characteristic of this environment is to provide economic and political stability.
In terms of the economic environment, it is playing by the monetary policy and the central bank an important role on the grounds that his main goal, and the first is to achieve economic stability based on the achievement of price stability and financial stability, which is essential for financial intermediation and creating a stable environment in this area.
It is clear that the reasons for the failure of the Iraqi economy is its inability to implement projects of national development plans and the predominance of ideological frameworks and the impact on the formulation and implementation of plans.
It was one of the most important reasons for the low total production in general, and the conditions of war and the siege was one of the main reasons to be in Iraq's external debt at the beginning of the eighties of the last century and the impact on the future development of the country.
We have focused the previous administration of the Bank and the Ministry of Finance to address the debt to achieve economic stability. Although the treatment of debt in its character developmentally except that the main objective of this treatment is to relieve the burden on the balance of payments.
In this area has been an agreement in the Paris Club debt (by Finance Minister Adel Abdul-Mahdi), which paved the way for contract agreements with the International Monetary Fund.
The Iraqi debt, which was presented to the Paris Club amounted to 120 billion dollars in January of 2004 the club has decided to drop the 80% of them. This is the highest percentage obtained by the city-state middle-income countries such as Iraq.
The reduction ratio or high projection this grant for low-income developing countries.
On the other hand, the stages of cancellation may were in line on the whole with the various programs of the IMF, Valelghae first was 30% at the signing of the Paris Club agreement in November 2004 and the abolition of the second, which reached 30% also was in the January 23, 2005 when an agreement was signed SBA with the Fund.
The abolition of the third and final which amounted to 20% has coincided with the Convention to prepare the second with the Fund in November 2008, and so there is a close correlation between the Convention on the International Monetary Fund and the Paris Club agreements, success in the negotiations with the Fund requires to be negotiating very well in the Paris Club.
With regard to the characteristics of the Fund's programs, which began in September of 2004 and the Convention on the standby credit expired in 2011, they have contributed to the lifting of restrictions on trade and payments as they focused on the stability of the exchange rate did not allow multiple exchange rates.
In order to stabilize the exchange rate policy, the key is that the interview take place every demand for foreign currency in the case of insufficient foreign currency reserves, and if were not enough foreign currency, the dinar exchange rate will fall.
Although the central bank has achieved great success in the stability of the exchange rate which is the main goal, but the rest of the sectors of the economy did not benefit from the stability, provided by the Bank and this product is not a problem for the central bank, but the problem is the susceptibility of investment in the private sector.
The banks that received the foreign currency were not active enough in lending. But used the funds in the deposit abroad where adequate security is not available at home.
The central bank has succeeded in the process of providing foreign currency but the economy as a whole has been unable to invest these positive achievements due to the difficulty of economic decision-making and the reluctance to implement the projects.
This delays both in decision-making or implementation led to the obstruction of development, which in turn led to the loss of time for the community and the complexity of the development process and increase their costs and on this we can say that at the time succeeded in the financial sector, the real sector has not received similar success.
Thus, compared to the relative success in the financial sector, the efficiency in the implementation of projects on the physical level was limited only to the loss of Iraq also resulted from wars and economic blockade, it is added to the instability and security collapses after 2003.
The time which resulted in lost productivity to be on the low level of the economy in general, the world is adopting new methods of Iraq was not able to keep up.
Even after 2003, we lost more than ten years have not been achieved, especially where real development because of political instability. Thus, we passed the time became the cost of reconstruction and development, which is the biggest missed opportunities in the development of many of Iraq.
When it is clear to us that the time is limited, the productivity and efficiency gains very great importance to achieve our goals of social and economic. You may clear to us that the time available indefinitely, but when compared to the goals we want to attain it, it certainly remains limited.
The lag in the implementation of development projects and increases the time that we need, which is contributing to the slowdown in growth rates.
It is important to accommodate the importance of time, particularly as the previous period has been lost in terms of economic and productivity, and we now need to greater efforts and higher efficiency.