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Iraq, August 15, 2017 

On August 1, 2017, the Executive Board of the International Monetary Fund (IMF) concluded the 2017 Article IV consultation with Iraq.

Iraq is facing a double shock arising from the conflict with ISIS and the plunge in oil prices.

In 2016, real GDP increased by 11 percent owing to a 25 percent increase in oil production, which was little affected by the conflict with ISIS. This year, economic activity is expected to remain muted due to a 1.5 percent contraction in oil production owing to the OPEC + agreement to reduce oil production and only a modest recovery of the non-oil sector.

The decline in oil prices has driven the decline of Iraq’s international reserves from $54 billion at end-2015 to $45 billion at end-2016. Fiscal pressures are ongoing, with the government deficit increasing from 12 percent of GDP in 2015 to 14 percent in 2016 despite the ongoing fiscal consolidation, due to weaker oil prices and rising humanitarian and security spending.

The authorities have appropriately maintained the exchange rate peg. The simplification of documentation requirements implemented by the Central Bank of Iraq led to a decline in the parallel market spread to 6 percent in June 2017.

Medium-term growth prospects are positive. Growth will be driven by the projected moderate increase in oil production and the rebound in non-oil growth supported by the expected improvement in security and implementation of structural reform. Risks remain very high, however, arising primarily from volatile security, political tensions, and poor policy implementation.

The Fund is supporting Iraq through a three-year Stand-By Arrangement in the amount of SDR 3.831 million ($5.380 billion), equivalent to 230 percent of quota.

businessnews

http://iraqdailyjournal.com/story-z15759629

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CNN. Broadcasting With World Confidence While Wearing Only Clown Makeup !

 

 

 

(by walkingstick)

The government and the central bank restore the world's confidence in the Iraqi economy

August 16, 2017

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Iraq is currently experiencing an economic crisis and large and difficult challenges, which are due to the control of the terrorist "Da'ash" organization on vast areas; and the low oil prices globally, which affected its budget for the years 2017-2017, reaching a current year about 95 billion dollars and a deficit of about 20.5 billion dollars , Damaging the non-oil economy by destroying infrastructure and assets, disrupting trade, deteriorating investor confidence, the external sector and medium-term growth potential. 

In order to meet all the political and economic challenges experienced by Iraq, the Central Bank has taken a number of measures to correct the financial situation and finance, while continuing to adhere to the system of linking the exchange rate, while the Iraqi government at the same time and after the end of the war against "Daash," towards planning and economic development , Contributing to a qualitative shift in the Iraqi economy.

The governor of the Central Bank, Ali al-Alaq, said that an international group to monitor the movement of funds confirms the confidence of the world in Iraq financially, and intends to pull Iraq out of the gray list to Al-Bayda, adding that the bank is working to activate the Office of anti-money laundering and grant the powers of the administrative and financial portfolios and full independence, To coordinate with international organizations, and the Financial Action Task Force, an intergovernmental body to study money laundering techniques and trends, to develop policies to combat it, and to finance terrorism locally and internationally. 

Al-Alak pointed out that this step, which would increase the world's confidence in Iraq financially and economically, was the result of reforms carried out by the Iraqi government and central bank, which contributed to reducing the fiscal deficit gap. 

The issuance of the Central Bank of Iraq, the currency of the category of 50 thousand Iraqi dinars, a successful step in strengthening the performance of the Iraqi dinar, without affecting the exchange rate against the US dollar, carrying a security mark sophisticated and high protection such as transparent window and Mark Spark, which defies currency counterfeiting. 

He stressed that "the issuance of high categories of good performance of the Iraqi dinar and reduced dependence on the dollar in large transactions, as the performance of large transactions in Iraqi dinar, and there is no policy to raise the value of the dollar against the Iraqi dinar, noting that" the central bank has a foreign currency is double the currency Local market ", which is reassuring. 

In order to implement best practices, the Central Bank of Iraq cooperated with Talal Abu-Ghazaleh Organization for International Professional Services (TAG-Org), which developed a plan to train and develop the Bank's human resources in the field of information technology. Implementation of the global IT standards. 

The general approach of the Central Bank is to develop banking services, introduce new banking products and electronic payment systems, based on advanced technologies to meet the challenges facing the banking sector, and establish an advanced monitoring system for all electronic banking and services,

Iraq's reserves of foreign currency will reach 62 billion dollars in 2018, he said, adding that there is no risk of a drop of reserves to 49 billion dollars. "The currency reserves, according to international standards, should be enough," he said. For six months as an international demand or measure, stressing that the reserves of hard currency in Iraq enough to pay debt and take into account the geographical diversification and enough to the need of the domestic market of goods and services and economic and social requirements and pay the salaries of retirees abroad and for the purposes of treatment and study and travel and religious tourism. 

"The International Monetary Fund in a study: there are Arab countries exceed their reserves real spending, including Iraq, Saudi Arabia, Algeria, Lebanon, Kuwait and Bahrain, and this is evidence of the stability of Iraq's reserves of hard currency." 

The IMF expected that Iraq's reserves in 2018 will reach 62 billion dollars and then rise to 91 billion dollars in 2020 as a result of improving the conditions of the Iraqi economy and its exports of oil and its derivatives and the supply of electricity imported to some provinces, exporting gas and encouraging tourism and industry, . 

He also stressed that Iraq has exceeded the biggest financial challenges faced in the past year, noting that he also managed to maintain an acceptable level of cash reserves, noting that "the Central Bank and despite the decline in dollar imports from the sale of crude oil to 70% managed to maintain At an acceptable level of cash reserves estimated at a total of 49 billion dollars in hard currency and gold. "

In spite of all the critical conditions that plague the country, the Iraqi government, headed by Haider al-Abadi, and the Governor of the Central Bank, succeeded in developing a clear economic plan in the current year to cope with economic crises, in cooperation with the International Monetary Fund, and indicators of recovery of the Iraqi economy began to appear After the relative rise in oil prices globally; after the implementation of the OPEC agreement to reduce production and reduce supply in the world oil market. 

In light of the correct monetary policy, followed by the Central Bank of Iraq in the development of new mechanisms and applications consistent with the strategy for the years of "2016 2020", with the program of economic and financial reform, which was agreed with the International Monetary Fund and in particular for the first and second review between the Iraqi delegation and a delegation The World Bank in Washington, which reflected the high value of the Iraqi dinar.

 Iraq's monetary policy has begun to establish a framework to strengthen confidence in the Iraqi dinar, which helps to create strong and deep conditions for the stability of the financial system, ie to transfer the impact of the operational objectives of monetary policy to the immediate goals of the policy itself. Cash is used to provide an effective signal to make the Iraqi dinar more attractive, which is usually reflected in the stability of the monetary demand function, or the decline in the speed of circulation and stability of the money. The cash at the same time. The gradual decrease in the phenomenon of inflation has positive effects on the policy of the Central Bank of Iraq in strengthening the exchange rate of the Iraqi dinar, which has had a strong impact on the stability of the prices of tradable goods, which at the same time referred to the annual inflation expressed, For consumer prices. The International Monetary Fund said that the activity of the Iraqi economy will remain limited this year, due to the reduction of oil production, by 1.5% under the agreement with OPEC, and the modest recovery of the non-oil sector.

The real growth of Iraq's gross domestic product (GDP) reached 11% last year, supported by a large increase in oil production, which benefited from previous oil investments. It was agreed on the willingness of credit with Iraq, which led to correcting the balance of public finances and balance of external status, Public finances, while protecting social spending. 

The sharp drop in oil prices caused Iraq's total international reserves to fall from $ 53.7 billion at the end of 2015 to a comfortable level of $ 46.5 billion at the end of December 2016.

Here we come to the conclusion: The policy adopted by the Central Bank of Iraq as the first official as stated in its law (56 for the year 2004) on supervision and monitoring of the banking system and its conduct according to its means in the applications of monetary policy and impact on the macroeconomic on the basis that the financial and monetary adviser to the government To the main tasks in maintaining the exchange rate of the Iraqi dinar, against foreign currencies and build a foreign cash reserve and reduce inflation, all this requires the support of the government and study and analysis of the reality of the Iraqi economy rent which depends on a single resource basis is oil, which is about (54 - 60%) of the Domestic product output, and needs to be coordination between the fiscal and monetary policies and different economic policies, according to the new building of the economy "market economy" to reach the central objectives set out in addition to the organization of work in the legislation of economic laws governing the development process. 

One of the challenges facing the banking sector in Iraq is finding executive means to implement the government program in the banking sector, setting time limits, developing a monitoring and evaluation program, and enhancing the role of proactive measures to reduce money laundering and smuggling. Suffer some private sector banks because of the current conditions until they exceed after the improvement of the financial situation of the country, and the stability of world oil prices. 

And the means to implement what is stated in the government program, the preparation of programs and policies for continuous cooperation between government and private banks with uniformity of treatment of the parties, and the development of criteria for the classification and evaluation of banks in the light of financial indicators and measuring the efficiency of their performance and role in economic development, and support and activate and develop the initiative of the Central Bank of Iraq, 5) Iraqi dinars trillions for specialized banks (housing, agricultural, 

And to contribute to the economic and social development plans. The main objective of the Central Bank of Iraq is to implement the government program in the right manner, especially in the context of promoting privatization of the private sector and paragraph (d) of it, Which sets the general tracks and mechanisms for the development of banking, which is definitely need to make great efforts from government agencies with the relationship with the government sector and private to overcome the challenges and obstacles to reform and development of the Iraqi banking sector, and propose the foundations and strategies P To build the introductions and features of the transition from banking to the developmental role through the treatment of all mistakes and failures in the economic construction during the coming years, along with chart the paths of success and achievement of goals. 

The Central Bank of Iraq (CBE) is an independent organization committed by the government to manage key financial functions such as the issuance of the state currency and the governorate. And to contribute to the regulation of the amount of money supply, and follow-up all the operations of commercial banks, and defines the Central Bank as the National Bank of States, and contribute to the provision of a range of banking and financial services to the Government of States Which followed her, and is interested in following up the commercial banking system, and the implementation of government fiscal and monetary policies, is also interested in development of financial plans of the state government, and contributes to its implementation, and controls the funds within the economic sector. 

The central bank is a monetary institution that follows public ownership. It is managed by the governments of the countries and supervised by establishing a set of laws that define their duties and objectives. The central bank is at the forefront of the banking system because it has a supervisory power over commercial banks. Profit, but depends on the existence of the public interests of the state, and the central bank has the ability to convert assets of real nature or fixed, such as real estate to cash assets. 

The central bank is the financial institution that monopolizes the process of issuing money. It has a strong relationship with commercial banks. It has different methods and authority to influence the activities and activities of these banks. This contributes to the achievement of the economic policy of the state. It has an independent management of monetary policy. 

Many economic experts called for the independence of the Central Bank from the legal, financial and administrative point of view, with a certain degree of correlation between it and the state. The role of the state is very important in building a strategy for the development of small and medium enterprises. The role of the private sector is weak, to a large extent. The sector can not be promoted without a plan to develop this sector and to build clear and declared mechanisms in which the private sector is active so that it can be transformed from a small subsidiary of the government sector into a Senior Partner, Then to a leader in investment and construction operations

 

http://rawabetcenter.com/archives/50329

 

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Thanks Thug . You Rock ! . I like this sentence as well ! ...."In light of the correct monetary policy, followed by the Central Bank of Iraq in the development of new mechanisms and applications consistent with the strategy for the years of "2016 2020", with the program of economic and financial reform, which was agreed with the International Monetary Fund and in particular for the first and second review between the Iraqi delegation and a delegation The World Bank in Washington, which reflected the high value of the Iraqi dinar."

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The article was a great read DinarThug which I will re read again to clarify if clearly in my head.. As I have just read it my first reaction is that it's a 6 steps forward in many areas.. Hold in that area and a sit back and wait in another area.. It's like they are continually trying to prove they are capable of holding their own... JMO..

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Effective economy

   
 

 
 

19/8/2017 12:00 am 
 
Ahmed Sumaidaie, the 
adoption of effective remedies is one of the necessities of the stage that requires the creation of an effective and promising economy based on the wealth available. As it is necessary to develop an economic platform that includes a realistic treatment of previous errors, most notably the stabilization of the identity of the Iraqi economy and work on it, and address the projects lagging service, from the reality that it reached and set a time limit for its operation. 
The reality requires real investment and work to reduce the role of the state gradually and assign the task to the private sector and support to activate its role in the management of the country economically in the long term, and work to develop a precise plan aimed at the recruitment of fair competencies and the use of international expertise in that,
There is a necessity imposed by the fact is the continuity of development projects through loans for reasons of the most important ability of Iraq to pay for the existence of many resources, and fighting unemployment resulting from the suspension of development projects, and there are experiences of countries resorted to borrowing and was able to do its economy in a successful way in countries that do not have the ingredients of Iraq does not have Of resources compared to Iraq. 
Here we have to activate the issue of loans in the country and its adoption in the activation of development projects and service lagging whether local or foreign loans, especially that the investment law No. 13 of 2010 and its amendments and support the Iraqi investor soft loans to operate the local workforce and the size of the loan obtained.
If we started the housing sector, the housing project loans were not economically viable because they were given individually need to cost, although the amount of up to 35 million Iraqi dinars often reach the beneficiary often, and if these investments in housing projects, the economic feasibility was better than Through the production of integrated residential units and services necessary as well as maintain the basic design of the city, and reduce corruption in projects. 
Thus, we must work in different directions to know what is required by the current and future stage in order to create an effective national economy capable of promoting all sectors of service and productivity.
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CNN. Broadcasting Step 1 - Give Ur Anemic Currency Some Value Like Ur Gulf Neighbors !

 

 

 

Financial Strengthening of Iraq: Vision for the years 2018-2020

Crude oil imports dominate the order and movement of three major balances in the national economy: the current account of the balance of payments (the so-called balance of payments balance, which accounts for 98 percent of total foreign exchange flows). As well as the federal budget as the oil revenues represent at least 92 percent of the total annual revenue of the public budget.

 The final balance is the contribution of the oil sector to the GDP components, which range from 46 to 50 percent of the composition of that output. While the non-oil revenues in the general budget estimates for the year 2017 amounted to 8 trillion dinars, of which (5.7 trillion dinars is the tax revenue, including: (4) trillions dinars direct taxes on property income and (1.7) trillion dinars taxes Such as customs and others.) * If we exclude the oil resource from the three scales mentioned above, the country will go to a tripartite deficit complex difficult to dismantle in the short term because of the lack of diversity in the sources of national income. 

Consequently, modern public finance of producer and exporter countries has created a benchmark for measuring the actual deficit inherent in the financial structure of highly leveraged economies called non-oil primary  balance- NOPB, ie the non-oil balance that expresses the amount

* Note that other non-oil revenues did not exceed 2.4 trillion dinars represent capital revenues (on the sale of state property, such as land and real estate) and conversion income (such as mobile phone license fees and exchange rate differences and recoveries 
 and others). 

The total tax revenues are not more than 2 percent of GDP according to the statistics of 2016 and the income and property tax (direct taxes) is half the  

percentage. In sum, total non-oil revenues in all cases did not exceed 5 percent of GDP, which is close to 8 percent of total actual budget revenues.

(Negative) if all public expenditures were subtracted from non-oil revenues (expenditures incurred on the oil sector should be deducted from total expenditure as well as debt services because they relate to the obligations of previous financial years). Thus, the non-oil main balance in 2017 will be about (72) trillion dinars. The deficit or negative sign is a sign that non-oil revenues account for only 5 percent of the country's gross domestic product, while oil revenues account for 46 to 5 percent of Iraq's GDP. This has made the oil revenues increase by 9-10 times the non-oil revenues in the general budget, which means that the country is dependent on its public expenditure on oil revenues.

The lack of non-oil resources in the composition of the budget has become a serious financial threat because of the construction of the federal budget on the constants of spending is difficult to dismantle, especially salaries, wages and pensions and salaries of workers in state-owned enterprises (the unemployed 

 ). As all salaries, wages and pensions are accounted for 50 percent of the total expenditure ceiling of the country's budget, which is covered by oil revenues exclusively or through internal and external borrowing, especially during the years of the previous oil recession 
 . 
Therefore, there is no choice for Iraq's fiscal policy, but one option is to enhance financial resources in the short and medium term and to diversify the economy and national income through long-term development programs (Iraq 2030). 

Therefore, the need to maximize the resources of the general non-oil budget needs to be aware of the following economic factors:
First: - Iraq is one of the high countries in government spending relative to gross domestic product by about 46 percent, which requires reducing this ratio in favor of the market economy and the role of the private sector in economic activity and the formation of aggregate demand. 

Second: The country's financial indicators still show Iraq's dependence on oil revenues or expansion to cover public expenditure, which is unsecured resource, which requires a radical new financial reform in the composition of public revenues. 
Third: - The opportunity to address unnecessary government expenses and expenses from support and extension to non-eligible and ended with the tax evasion equipment accumulated income and wealth far from the scope of public finances and social and economic goals.

Fourth: The burdens of the war on terrorism and the reconstruction of the regions of Iraq and the development of all areas of Iraq require a financial program is hardened and not intended to serve the direction of financial resources towards stability and development and address the manifestations of  waste. 

2 - Features fiscal consolidation in Iraq 

 2018 - 2020 Fiscal consolidation 
that in front of fiscal policy for Iraq today to look for opportunities binoculars resources of non - oil that make the principal balance is Alnafty- scale NOPD 

objective of strengthening the financial adjustments required to control overhead and control and to maximize the revenue of non - oil level The following should be noted: 

a. In order to maintain the non-oil main balance ( NOPD) 
in the short term (at the level of one fiscal year) and then to take the decline in the medium term,

Fiscal consolidation
Which represents the set of policies adopted by the state at the national level or at the level of provinces and regions in order to seek to reduce the fiscal deficit and the accumulation of public debt balance. In other words, work to reduce the deficit or reduce the increase in debt through restructuring expenses and reduce as much as possible and maximize non-oil revenues. Which is to make the non-oil main NOPD decline at a steady rate over the next three years from the current status of (- 72) trillion dinars 2017 to - (42) trillion dinars in 2020, assuming that the ceiling is stable at about (100 - 107) . And that the rate of change in the main non-oil balance in the direction of reduction or reduction should be about 70 percent. Which means that non-oil revenues will be significantly improved, including taxes, fees, and various transformational capital revenues during the years 2018-2020.

B - Method of adaptation or financial reinforcement 
 2018-2020 
There are practical steps to be adopted starting from the financial year 2018 and as follows: 
First: the establishment of an account on behalf of the Public Debt Compensation Fund, to deposit any increase resulting from the improvement of oil prices above the target rate in the federal budget Is used to make up for any internal or external debts planned during the fiscal year or extinguish previous debts depending on the situation to be committed to the current prices estimated in the supplementary budget for 2017 of 44.4 dollars per barrel of oil exported during the period 2018-2020. Public Debt Revenue Capitalism from the sale of land and real estate and state revenue and manufacturing promise from aspects of the financing of the fund account  above. 

Second: The adoption and expansion of outsourcing system at the level of customs outsourcing

Through contracting with international companies in order to ensure the efficiency of inspection and collection and customs clearance, which maximizes the sovereign resources of the  state. 

 Lead to lower import costs and eliminate systemic and other corruption as well as maximizing public resources. 

Third: The outsourcing system 's reliance on the tax system for units of small taxpayers  Outsourcing 
 by granting licenses to companies civil outstandingly to open the collection of a tax that ports depends broken tax system Flat Rate for small taxpayers to ensure the achievement and raise its efficiency and stay away from diligence and corruption, I do not mind the outsourcing outlets civil to assume collection For various other collections such as fees, municipal fees and 
 others.

Fourth: Expansion of the system of partnership with the private sector in the distribution of electric power to be the year 2018 Finance is the starting point to cover all regions of the country. And included in the provisions of the Budget Act of 2018. Fifth: Legislation the sales tax law by calculating the tax on the final value of the service, and to take the decisions and financial regulations gradual in order to avoid the complexity of the tax system for sales tax. For example, food, building materials, etc. are exempted in the first stage. 

Sixth: Improve the management of collection of fees (non-sovereign) and wages approved in accordance with Article 24 of the Federal Budget Law for the year 2017, on the establishment of a clear and transparent accounting system shows the movements of income and expenditure and disbursements at all spending units and provide the Ministry of Finance movement and calculation of the account  monthly. 

Seventh: To develop the fuel subsidy system and limit it to poor consumption classes through social welfare programs. 
The state-owned and fuel-producing state companies will maintain a cost accounting system that will demonstrate the actual costs of production and avoid the "free ride" aspects of unrealistic profit collection due to the unrealistic pricing of refined crude oil and marketed internally.

 

http://www.rudaw.net/Arabic

 

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  • yota691 changed the title to Financial Strengthening Of Iraq: Vision For The Years 2018-2020 !

CNN. Broadcasting What Sounds Like HCL Language In The Highlights !

 

 

Financial Reform of Iraq for the years 2018-2020

Dr. Mohamed Saleh published on the network of Iraqi economists a paper entitled "Financial Strengthening of Iraq: Vision for the years 2018-2020". As usual, our Galilee professor puts before us his academic weight and practical experience as the most important economic adviser to the government. (I)

Do not argue with Dr. about the description of the bug in the economy "rentier".

"The burden of the war on terror and the burden of reconstruction requires an aggressive fiscal program to rebalance the economy and the fiscal balance" of the treasury.

However, Dr. Saleh's proposals in the "Adaptation and Financial Consolidation Approach 2018-2020" need to be reconsidered because most economists in the rentier countries fall in the wrong call to balance by increasing the share of non-oil resources in national income

. In Iraq, for example, all the attempts made since 1961 to date have only deepened the rentier dependence in an inevitable spiral out of them because of the nature of the rentier states.

Salvation is to Ekman in re - raking all the treatise on the subject, has not left the door only ways economists, and the whole is lost in a mirage illusion in front of the dynamics of the rentier state , which makes it imperative to deepen the rentier dependence which private him not to demolish the foundation upon which the rentier economy of the four components of :

1 - the main income of the economy Of oil exports.
2. The value added and local labor do not constitute a small percentage of the total value of oil exports.
3 - Oil revenues come from abroad.
4. The rent income goes to the government. So what is the solution?

The solution is to overthrow the state rent equation and turn it into a state that is charged with giving oil income to the citizens with a universal basic income, and financing the state budget through a tax imposed on citizens. In terms of the medium, Article "111" of the Constitution states that oil and gas belongs to the Iraqi people, and this is an appropriate entry to overthrow the equation of the rentee state.

In practice, it is possible to start the 2018 budget by the following steps:

First: Collect the following paragraphs and convert them into a comprehensive and equal cash balance to all resident citizens on the basis of the record of the families of the ration card:

1 - Sale of crude oil to domestic consumption at the external market price, - $ 8 per barrel.

2 - Suspension of allocations ration card and social guarantees and converted to the share of comprehensive basic income.

3 - Remove electricity allocations from the budget starting in 2018 and pay the electricity sector for self-financing "with the provision of gas at cost."

Second: Freezing oil allocations for subsequent budgets "2019 and beyond:. At the price and quantity of 2018 and the conversion of each increase in price and production to the reserve fund "Sadiq Fund" and the development of comprehensive primary income "UBI". And linking it in the future with oil revenues outside the budget.

 

Sources 1 "Dr. Mazhar Mohammed Saleh http://www.iraqieconomists.net/8/2017 " 2 "Adnan al-Janabi Salvation from the state rent - Iraqi studies 2016.

 

http://www.alsabaah.iq/Article.....?ID=143109

 

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Financial Reform of Iraq / 2017
 
 

Financial Reform of Iraq: 

Vision for the years 2018-2020 

Dr. Mohamed Saleh published on the Iraqi economists' network a paper titled "Financial Strengthening of Iraq: A Vision for the years 2018-2020" .1 As usual, our Galilee professor puts before us the high academic burden and practical experience as the most important economic adviser to the government. 

There is no dispute with the doctor about the description of the problem, in the economy of "extreme rent." If we add to the low oil prices, the possibility of continuing decline, increasing internal and external debt and the need to cover them in the foreseeable future, "the burdens of the war on terrorism and the burden of reconstruction ... Requires a rigid financial program to rebalance the economy and the fiscal balance of the Treasury 

However, Dr. Saleh's proposals in the "approach of adjustment and financial consolidation 2018-2020" fall in the same mistake and the lost mirage in which most economists in the rentier countries are in the call for balance by increasing the share of non-oil resources in national income. For example, In 1961 until today, it only served to deepen the rentier dependence in an inevitable spiral, out of which, because of the nature of the "rent" state. 

The salvation lies not in the reinterpretation of all the writing on the subject, there is only a door and its economic methods, and all lost in the mirage of illusion to the dynamics of the state rent that necessitates deepening the dependence of rent, which is loyal to Mina, only to demolish the basis on which the economy depends on the four components: 

1-   The main income of the economy from oil exports. 
2-   The value added and local labor are not a small percentage of the total value of oil exports. 
3. Oil revenues come from abroad. 
4-   The rent income goes to the government. 

In the Iraqi House of Representatives (the Democratic), the deputies race to add burdens on the budget of their regions or what they represent in the interests of factional and regional. (The government) to compete in the looting of rent money through the financial and administrative corruption rampant in all rent countries, which peaked in Iraq.Which believes that Iraq is an anomalous situation, Libya is seen as Gaddafi, Nigeria, Angola and Venezuela. 

So what is the solution? 

The solution is to overthrow the state rent equation and turn it into a state that is charged with giving oil income to citizens with universal basic income, and financing the state budget through a tax imposed on citizens. In terms of principle, article (111) of the Constitution states that oil and gas belongs to the Iraqi people, and this is an appropriate entrance to overthrow the equation of the rentee state. 

In this sense, the populist auctions in the load of the budget burdens of parliamentary auctions, and executive corruption turn to the keenness to reduce the budget and accountability of the executive authority in terms of (tax without representation and control) (no tax without representation). 

In practice, the 2018 budget can be started with the following steps: 

First: Collect the following paragraphs and convert them into a comprehensive and equal cash balance to all residents of the citizens on the basis of the families' record of the ration card: 

1-   Selling crude oil to domestic consumption at the external market price, after a certain discount (5-8 dollars per barrel). 
2-   Stop ration card allocations, social guarantees and transfer them to the share of comprehensive basic income. 
3-   Remove electricity allocations from the budget starting in 2018 and pay the electricity sector for self-financing (with the provision of gas at cost). 

Second: the freezing of oil allocations for the subsequent budgets (2019 and beyond) at the price and quantity of 2018, and the conversion of each increase in price and production to the reserve fund generation (sovereign fund) and the development of universal primary income (UBI) and linking it in the future with oil revenues outside the budget. 


"1" - Dr. Mazhar Mohammed Saleh - www.iraqieconomists.net/8//2017 . 
Adnan Al - Janabi - Salvation from the Renting State - Iraqi Studies. 



Adnan Al Janabi 
6/8/2017 
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  • yota691 changed the title to Positive signs of Ebadi's economic initiative

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