Privatization .. and the specificity of the Iraqi economy 3-3

[yota691]

Privatization .. and the specificity of the Iraqi economy 1-3

21/6/2018 12:00 am  Mohammed Turki al - Qaisi has  seen the world in general after World War II , resulting from losses incurred as a result of the war economic transformations, which have emerged effects after a quarter of a century on the passage, at the same time that the capitalist economy has seen a recovery not because of the established systems as far beyond the destruction and direct impact that solution In Europe as a result of the war. Where countries needed to restructure their economy to solve the debt problems and raise the efficiency of the operation and allocation of resources for the rapid reconstruction of privatization; which led to the transfer of ownership of major projects of countries after the budget was unable to cover losses and promote them again, and Britain and France have been successful in this the field.  Privatization is a contemporary concept that entered the economic dictionary for the first time in 1983 during Margaret Thatcher's tenure as prime minister after privatizing public companies such as water, electricity and railways and privatizing them.  The general concept of privatization is the transfer of economic activity in whole or in part from the authority of the government to the authority of the private sector, or the policy of transfer of public ownership and its private sector, where these sectors are transferred from the state to individuals, whether local or foreign, so that the role of the state in legislation and control And the supervision of the market, which is a means to reach the application of mechanisms of the free market and the capitalist system partially or completely.  In the modern concept, the state has concerns based on security, defense and top strategic policies, which are more important than securing the services that private firms can do by competing in the market to promote them and high efficiency. Privatization is a package of integrated policies based on the principle of competition among large companies to reach the service of a larger number of consumers; the more companies competing in the same specialization, the better the consumer in the attempt to attract these companies to more consumers. With government control and consumer protection laws, the private system becomes more effective in serving the consumer, easing the burden on governments that suffer from economic crises, unstable economy, unstable resources or sometimes inflation, and the difficulty of achieving the economic balance by balancing its growing expenditures with imports And in some cases the failure of the economy to keep pace with modern technology as a result of mismanagement and lack of economic expertise with the existence of wealth faced with waste and waste, so when some developing countries begin privatization, subject to the conditions of the World Bank, which takes on the policy Structural adjustment through a package of economic policies such as lifting government subsidies on consumer goods, devaluing the currency, reducing government spending, liberalizing goods and services, lifting foreign exchange controls and ending the customs protection enjoyed by local industries, and reducing financial support to State institutions that depend on the state budget; this is  The process of transformation in the economic system can not be successful from one to the other if there are no long-term policies that oversee the process of transition from them:  1. The state should gradually withdraw from some economic activities and allow private initiatives and encourage private investment by providing the appropriate atmosphere, In terms of legislation, laws or the appropriate security climate for the transformation process.  2 - Revitalizing the internal market by encouraging small investors and creating a balance between large foreign invested companies and local companies already existing in the local market and supporting them to cope with the development of the economic arena.  3. Setting determinants for the elimination of disguised unemployment, low research and development, low savings and domestic investment. 4 - The process of transformation needs to be prepared for the citizen to receive each stage of privatization through the process of promoting communication communication aimed at the citizen with a view to attracting certain responses and appropriate impact so that the citizen to deal with the situation positively, especially that the process has several parties (consumer, foreign investor , Local investor, companies, banks, parliamentary and legislative councils, etc.). Therefore, the potential for misunderstanding and distortion will be the subject of promotion. Therefore, the state must provide a general preparation for what affects the lives of   citizens.  Therefore, privatization is a set of integrated policies that must be consistent with the orientations of economic structural reforms by providing an appropriate economic climate with supportive mechanisms so that privatization can bear fruit.

[navira]

Bump this up a notch

[Reez]

💐Devaluing & lifting foreign exchange control😘👉support privatisation

So it should mean in other words revalue the currency. Devalue could mean delete three zero been executed. From 1190 to 3.20usd hehe☺️😘

 

Overall we have another economists article on the same page & interests. All for one & one for RV💰😎

 

Go new monetary policy
Go delete three zero
Go IMF Article VIII currency

Edited June 21, 2018 by Reez

[bostonangler]

3 minutes ago, Reez said:

All for one & one of RV💰😎

 

Good one... I'm in.

 

B/A

[Big_J]

GM YOTA AND DV.

[Officiallytook]

Why's this all the way down here 

[DinarThug]

Privatization .. and the specificity of the Iraqi economy 2-3

23/6/2018 12:00 am 

 

Mohammed Turki Al-Qaisi 

In the first part, we referred to the policies required for the privatization of state projects and that in a closer look at the importance of privatization in the Iraqi economy and its role in the process of long-term advancement, it is not a policy that is rejected but needs to study and develop appropriate plans to contain the collapse of the Iraqi economy. 

The objectives of privatization in all developing countries, including Iraq, can be summed up by raising the efficiency of the performance of institutions through redistribution of roles between the public and private sectors and reducing the role of the state in economic life. 

And financial objectives are to reduce the burden borne by the general budget of support for the economic establishments losing and the sale or lease of these projects will lead to the completion of part of the budget deficit. 

As well as the establishment and development of efficient domestic financial markets to encourage domestic and foreign investment, as well as the alleviation of external debt burdens, the promotion of economic efficiency through competition and the emergence of economic growth. 

The reasons for the privatization of Iraq include domestic and external justifications and pretexts and the latter is the external pressures exerted by the United States of America because one of its motives to enter Iraq is the privatization of the Iraqi economy, in addition to the pressure exerted by the international economic institutions on Iraq, especially after granting Iraq a loan starting from 82 million These institutions, as well as banks and commercial banks, often link their assistance to the extent to which the state implements privatization programs. 

The internal rationales revolve around the economic dimensions of privatization. The existing public companies have not made a profitable profit as a source of income for the state, but have become a tool to drain the state budget. 

The conditions required of Iraq to implement them are the conditions of the International Monetary Fund, which in turn is working to achieve efficient management of the overall demand and increase the supply is: 

I. Adoption of measures to eliminate the balance of payments deficit: 
• Reducing the value of national labor. 
• Cancellation of foreign exchange controls. 
• Pursuing a free market for foreign exchange. 
• Cancellation of competitive trade agreements. 
• Freeing import from private sector restrictions. 

II. Adoption of anti-inflation measures, including: 
• Pressure on public spending, raising taxes, raising prices, canceling advertisements and supporting the state. 
• Increase in credit and debit rates. 
• Set high limits for bank credit allowed to the government. 
• Increasing energy prices. 

III. Adoption of measures to encourage private foreign investment, including: 
• Giving tax advantages to foreign and domestic private capital activity. 
• Ensure free transfer of profits for foreign projects abroad. 
• Ensure that private enterprises are not expropriated. 
• Narrowing the role of the public sector. 
• Amend the laws of companies and develop local capital markets. 

What privatization and how to reduce the negative? 

Privatization means the transfer of ownership from the public sector to the private sector, a process consisting of interrelated steps that must be applied in a chronological order that begins with: 

1. Classification of institutions according to their financial performance and structure of the market (monopolistic or competitive) and arrange their categories: excellent, medium, weak. 
2. Restructuring of the institutions expected to be privatized and the surrounding environment: legislation, administration, employment, investments, sources of finance and others. 
3. Evaluation of the institutions supposed to be privatized, guided by financial analysis. 
4. Transfer of ownership in different ways such as auctions, auctions and sales through the stock market. 
5. Transfer of ownership can be wholly or partly 
Through Arab experiences in the field of privatization, some conditions have been formulated for caution: 
1. The privatization of privatized projects shall be the responsibility of the private sector and without any governmental guarantees. 
2. These projects shall be implemented, operated and managed in accordance with the technical specifications set by the Government. 
3. The Government shall determine the maximum tariff to be paid by the consumer. 
4. The company should be chosen through an open tender called the largest number of national companies, then Arabic, and finally foreign. 
5. The company being selected shall be a public joint stock company, offering at least 40% of its shares for public subscription. 
6. Encourage Arab and foreign participation in these projects to benefit from funding, expertise, technical and administrative ... etc. 
7. The companies that establish for this purpose shall treat the tax companies as national companies, even if their shares are contributed by Arab and foreign individuals. 
8. The Company shall grant the incentives provided for in the local laws. 
9. Establish more than one company to provide a service to create competition and to allow stakeholders to compare performance and efficiency. 
10. The Government and its banks should not grant loans to these projects, or even without interest or grace periods.

link

[yota691]

Privatization .. and the specificity of the Iraqi economy 2-3

23/6/2018 12:00 am  Mohammed Turki al - Qaisi  in the first part we pointed to the policies needed to conduct privatization in state projects and that in a closer look at the importance of the privatization of the Iraqi economy and its role in the process of promoting the long - term it is not rejected the policy but they need to study and develop appropriate plans to contain the collapse witnessed by the Iraqi economy.   The objectives of privatization in all developing countries, including Iraq, can be summed up by raising the efficiency of the performance of institutions through redistribution of roles between the public and private sectors and reducing the role of the state in economic life.  And financial objectives are to reduce the burden borne by the general budget of support for the economic establishments losing and the sale or lease of these projects will lead to the completion of part of the budget deficit. As well as the establishment and development of efficient domestic financial markets to encourage domestic and foreign investment, as well as the alleviation of external debt burdens, the promotion of economic efficiency through competition and the emergence of economic growth.  The reasons for the privatization of Iraq include domestic and external justifications and pretexts and the latter is the external pressures exerted by the United States of America because one of its motives to enter Iraq is the privatization of the Iraqi economy, in addition to the pressure exerted by the international economic institutions on Iraq, especially after granting Iraq a loan starting from 82 million These institutions, as well as banks and commercial banks, often link their assistance to the extent to which the state implements privatization programs.  The internal rationales revolve around the economic dimensions of privatization. The existing public companies have not made a profitable profit as a source of income for the state, but have become a tool to drain the state budget. The conditions required of Iraq to implement them are the conditions of the International Monetary Fund, which in turn works to achieve efficient management of the total demand and increase the supply is: First - the adoption of measures to eliminate the deficit in the balance of payments: • Reduced the value of national labor. • Cancellation of foreign exchange controls. • Pursuing a free market for foreign exchange. • Cancellation of competitive trade agreements. • Freeing import from private sector restrictions. 2. Adopting anti-inflation measures, including: • Pressure on public spending, raising taxes, raising prices, canceling advertisements and supporting the state. • Increase in credit and debit rates. • Set high limits for bank credit allowed to the government. • Increasing energy prices. III. Adoption of measures to encourage private foreign investment, including:  • Giving tax advantages to foreign and domestic private capital activity.  • Ensure free transfer of profits for foreign projects abroad.  • Ensure that private enterprises are not expropriated.  • Narrowing the role of the public sector.  • Amend the laws of companies and develop local capital markets. What privatization and how to reduce the negative? Privatization refers to the transfer of ownership from the public sector to the private sector, a process consisting of interrelated steps that must be applied in a chronological order that starts with: 1. Classification of institutions according to their financial performance and structure of the market (monopolistic or competitive) and the order of categories: excellent, medium, weak. 2. Restructuring of the institutions expected to be privatized and the surrounding environment: legislation, administration, employment, investments, sources of finance and others. 3. Evaluation of the institutions supposed to be privatized, guided by financial analysis.  4. Transfer of ownership in different ways such as auctions, auctions and sales through the stock market.  5. The transfer of ownership may be wholly or partly  and through Arab experience in the field of privatization, some conditions have been formulated for the sake of caution:  1. The financing of privatized projects should be the responsibility of the private sector and without any governmental guarantees.  2. These projects shall be implemented, operated and managed in accordance with the technical specifications set by the Government.  3. The Government shall determine the maximum tariff to be paid by the consumer.  4. The company should be chosen through an open tender called the largest number of national companies, then Arabic, and finally foreign.  5. The company being selected shall be a public joint stock company, offering at least 40% of its shares for public subscription. 6. Encourage Arab and foreign participation in these projects to benefit from funding, expertise, technical and administrative ... etc.  7. The companies that establish for this purpose shall treat the tax companies as national companies, even if their shares are contributed by Arab and foreign individuals.  8. The Company shall grant the incentives provided for in the local laws.  9. Establish more than one company to provide a service to create competition and to allow stakeholders to compare performance and efficiency.  10. The Government and its banks should not grant loans to these projects, or even without interest or grace periods.

[yota691]

Privatization .. and the specificity of the Iraqi economy 3-3

30/6/2018 12:00 am  Mohammed Turki al - Qaisi  in the first and second parts we reviewed the concept of privatization as a process supportive of the Iraqi economy and abandon the progressive state for its role in the management of these projects and give the role of the head of the private sector to exercise its economic construction, but the process of privatization of the oil sector would be fraught with legal difficulties, a socio - political, economic lead to a significant decline in Reconstruction of Iraq.  Expanding production capacity  Privatization criteria raise the problem that it allows the facilitation of foreign investment in the Iraqi economy, and this method of privatization does not guarantee the need for Iraq to large amounts of foreign investment, especially that adds and expands its production capacity and not the imaginary investment portrayed by the occupation, The local owner of a foreign owner without changing the level of GDP.  That foreign capital is in a position to bypass local capital in the ownership of government projects, which in turn stimulates the flight of Iraqi capital abroad and create an obstacle to the Iraqi economy. What about the oil sector? In the past, during and after 2003, there were mounting voices inside and outside the Bush administration defending the privatization of the Iraqi oil sector. These allegations are based on the need to restructure and privatize the oil sector, claiming that national oil companies have failed widely. Moreover, privatization of the Iraqi oil sector will be used as a tool to weaken or Crashing permanently. The most likely consideration is that privatization will encourage foreign investment towards the Iraqi economy and this claim is false as long as this flow is not restricted to public or private property. A cadre of Iraqi specialists The Iraqi experience in the era of the Iraqi Oil Company and its subsidiaries was not positive, that the continuing failure forced the government in 1961 to issue Law No. 80 inventory operations of the Iraqi Oil Company and the establishment of the first structure of nationalization procedures in 1972. It is true that the Iraqi National Oil Company helped to form cadre Of Iraqi specialists in the fields of the oil industry all quickly compared to the international level. There are other considerations against privatization based on the strong interrelationship between the oil sector and the political evolution of the country since the beginning of the Iraqi political system in 1921, so the sudden rupture of this historical relationship will lead to the creation of all forms of tension and instability of Iraq.

[ChuckFinley]

Thanks Yota, good read.