Iraqi sovereign fund to provide for the future

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Iraqi sovereign fund to provide for the future

 

 

8/25/2016 0:00    BAGHDAD Mustafa al - Hashimi  said economist: The «Fund sovereign» large economic and financial experience of Iraq needs to be fought by being considered the best way globally accredited to provide investment for future generations, especially as the circumstances require speed up thestudy of this experience and apply them in line with the reality , which is going through the country , especially and he has seen a rise in population by about 3 percent a year would require increased services and financial allocations over time.  he said academic economist , Dr. Essam Mahouelle that Iraq is in dire need to establish a sovereign wealth fund as soon as possible because such investment savings will be for future generations rather than the current generation.  the Fund 's sovereign - according to Mahouelle - a provision for the future of thecountry and often have a government and in the form of bonds and investments in real estate companies or banks, it is likely that this investment variations are outside thecountry 's borders and in the advanced capitalist countries , especially if the country «fund owner» of developing countries .  He Mahouelle in an interview with «morning» reflected the need for Iraq to this fund day -to -last, especially as the country Rei and unilateral financing the economy, because of the circumstances witnessed by the decline in oil prices and the war on «Daesh» terrorist and ask for it from the sustainability of funding.  He noted that if Iraq had a sovereign fund to have resorted to external borrowing and request support from donor countries and global institutions in cash, explaining theimportance of the existence of this fund, under the current circumstances, because it will Kmsdh against fluctuations in crude oil prices and to reduce its impact on the budget of the country.  he said if we know that Iraq 's population is growing by about 2.6 percent a year , it means the need to increase the provision of services and increase their allocations amounts in proportion to the size of population growth over time, and here show theimportance of these sovereign funds which are investment funds (investment portfolios).Among Mahouelle that there are a number of obstacles facing the establishment of this fund, at least for the time being, which is represented by select who will manage the fund and choose the vocabulary of securities and investments, as well as ensuring theindependence of the fund and not to prejudice the money that is being invested or in direct them to some foreign investment in exchange for kickbacks.  He stressed the economic academic that is important and necessary fund for Iraq and most importantly the need to run by foreigners and Arabs (and some Iraqi official bodies finance and foreign Kozara, and the Office of financial supervision, the central bank), but the options remain when foreign and Arab parties selected and that politics does not interfere in the these options because it is experienced.  He concluded Mahouelle his speech by saying not all states require such funds because some countries economies and as characterized by its vibrant and Othob and the rush of innovation and production continuously, making it unnecessary for such funds, but this does not mean that the those states with excessive including achieve wealth , where it has a variety of methods to support their economies for the future. it is  noteworthy that Kuwait is the first sovereign wealth fund began in 1953 , according to the experience of Alanscalubedia.