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Al-Attar Proposes A 3-axis Plan To Revitalize The Iraqi Economy !


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Thanks 🤡 great article.!   "Thus, monetary policy has moved away from the devaluation of the dinar and financing the government deficit with a low-value purchasing power dinar and a negative re

The more miserable things are in Iraq, the more likelier they are to revalue their currency -low oil prices mean income there is drying up -the world doesn't want to give them a loan -A

Which Leads To Me-Valuation !       Go Power Naps Go Sleeping Apps Go Hammock Boy !          

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Dollar exchange rates are back to normal levels


Sunday, April 19, 2020


alsabaah-35069.jpg

 

Baghdad / Mustafa al-Hashemi

 
The dollar price indices in all governorates of Iraq returned to their normal levels after they recorded a noticeable rise a few weeks ago, confusing the market at the time.
A member of the Baghdad Economic Forum, Jassem Al-Aradi, said, "There is a group of reasons that led to the rise in the price of the dollar, along with another group that caused the price of the dollar to fall very close to the normal levels it had before the curfew due to corona."


Normal rates 

The past few weeks have witnessed the rise in the exchange rate of the $ 100 currency to 126,000 dinars, while prices have fallen considerably to reach, yesterday, Sunday, close to their normal rates at 122,500 dinars per hundred dollars after they were before the current conditions 121,000 dinars per hundred dollars.
 
Economic activities
Al-Aradi added in an interview with "Al-Sabah" that "the reasons that led to the rise in the exchange rate of the dollar came as a result of the drop in oil prices, accompanied by the effect of the Corona virus and curfews, which caused the suspension of most economic activities, in addition to the temporary stoppage of the currency selling window in the central bank." ".
And, "As for the most important reasons that led to the decline in the exchange rate, it is represented by the re-establishment of the central bank by the single window."
 
Market conditions
He stressed that "the rise in the exchange rate of the dollar was temporary and corrected, and this is not the first time that the exchange rate of the dollar has increased in Iraq because of speculators exploiting the conditions of the Iraqi market," noting that this is a temporary situation and can always be controlled.
 Al-Aradi pointed out that "monetary policies, if they deal with sound and correct mechanisms, can control the financial market, and this is only done in cooperation with private banks through consultation with them on the general policy of markets and the need for cooperation and coordination to pay the damage of the high price of the dollar to citizens."
 
private sector
He explained, "The dollar is purchased for private and governmental banks during daily sessions to buy and sell foreign currencies held by the central bank to finance merchants from the private sector or for tourism and study outside the country, but when this does not happen at the banks, it records a clear violation and a clear violation of the instructions of the central bank." .

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From reading different comments in various threads, I think there are several doctors at Dinar Vets...perhaps a few psychiatrists as well.  However I maintain this is the sort of nuthouse where it is very hard to tell, who is a patient, who is a doctor.....me I'm just a patient patient.:jester::surgeon:........:peace:

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Parliamentary finance proposes solutions that will dispense with external borrowing and clarify the reality of compulsory savings


image.jpeg.1a340069d86971662dd6406f920988c4.jpeg

 

The Finance Committee announced in the House of Representatives, on Sunday, the existence of internal options away from external borrowing, while revealing the fact that there is a trend to go to save the salaries of employees

The head of the Finance Committee, Haitham Al-Jubouri, said, according to the official agency, that "there are solutions that can be dispensed with which foreign loans can be dispensed to bypass the stage of low oil prices." At the banks

He pointed out that "there are continuous meetings to find out the amount of money and take decision", stressing that "the preference is to go toward internal borrowing, as it is considered government money

Al-Jubouri stressed the necessity of "not affecting the cash liquidity available to banks, especially since the economic movement in the country depends on it

The Chairman of the Finance Committee ruled out "putting forward the compulsory savings proposal for employee salaries.

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Parliamentary Finance announces the existence of a government proposal that includes compulsory savings for employees


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19th April, 2020

 

Member of the Parliamentary Finance Committee Jamal Kujer confirmed, on Sunday, one of the proposals to solve the economic crisis in the country is to resort to the compulsory saving of employees, while clarifying the details of this proposal

Cougar said, "The general situation of Iraq and the region is going through a severe economic crisis, and the Iraqi state is different from three quarters of the world, considering that it faces complex crises, amounting to five crises together, which makes the economic situation very difficult," noting that "the state does not have Many alternative solutions, because maximizing resources is not an easy process in record time, which makes the country in front of limited options, including resorting to bank reserves and borrowing from Iraqi banks

Cougar added that "the other option is to fight corruption and this is difficult, because it needs a strong government." He pointed out that "the third option is to issue some decisions, among them, for example, to abolish the customs exemption that applies to some Iraqi ports, or to transfer the management of border ports." To destinations that you can control, as the counter-terrorism agency

He continued, "One of the methods that were discussed but did not become a decision is to resort to compulsory savings, but the point of disagreement in this option is who will be included in the savings." We set a financial ceiling for those who are included in the savings, for example for those whose salary reaches two or two and a half and a half dinars per month, either from their salary of 500 or more or less and has many family obligations and rental fees, it is not possible to apply compulsory savings to them because either he will be 

neglected in his job or resort to To corruption.

 

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Parliamentary finance admits that it is difficult to
secure employee salaries


11982.jpg
 

 

19th April, 2020

 

The Iraqi authorities agreed to consider the crises surrounding the country as a state of emergency that requires the use of all means to cross it with minimal losses, in the hope that conditions will change in the coming year

The Parliamentary Finance Committee approved the force majeure case and suggested that the government financial system use the central bank reserves to secure the salaries of state employees and retirees until the end of this year

She stressed that these exceptional circumstances require the suspension of all allocations and allowances for employees and projects and any additional disbursement budgets for ministries and government institutions

Iraq suffers from massive inflation in public sector employees, as governments fled crises over the past 17 years to employment to calm protests and popular discontent in light of the fact that the state is the only source of employment opportunities due to paralysis of the economy

Observers say that there are millions of employees, who do not have a job site, and that governments have doubled the numbers of employees in suspended institutions since 2003

The Iraqi government pays about 7 million salaries in a country whose population ranges between 36 to 40 million, as there is no official population census, which is the highest percentage of government salaries in the world

And Iraq currently reaps little revenue from oil exports due to unfair contracts with international oil companies, which give it up to $ 21 for the production of each barrel

Sherwan Mirza, a member of the Finance Committee in Parliament, said that "securing the salaries of state employees until the end of this year without loans from the current government or which will be formed, is very difficult" in light of the current oil prices

He acknowledged that there is no solution but to rely on the central bank reserves to secure salaries until the end of December 2020. He emphasized that this would be "according to regulations determined by the Council of Ministers, including insurance of salaries only, without any additional allocations or projects or the disbursement of any other funds to the ministries

Official figures indicate that Iraq’s financial reserves with the Central Bank fell to 63 billion dollars at the end of February, and they are barely sufficient to cover the expected budget deficit during the current year, if oil prices continue to their current levels

The Charter of Al-Hamidi, a member of the Economic Committee in Parliament, believes that "the government is able to secure the salaries of all employees, including contracts and the daily wages for April and May" in light of the current oil prices

But she indicated that the government may face a problem in securing the salaries of employees during the month of June if the global oil prices continue to fall and collapse

She added that the government is looking for alternatives to secure employee salaries and may resort to internal borrowing from government and private banks, in light of the absence of government plans for external borrowing at the present time

The Labor and Social Affairs Parliamentary Committee revealed this week about cases of stopping the salaries of contract employees and daily wages in some governorates. And the government demanded payment.  Severe pessimism prevails in official, economic and popular circles due to the almost complete dependence of the economy on oil revenues and the inflation of the salary and operational budget line

Criticism of the Iraqi government has escalated because of its agreement to reduce more than a million barrels in oil production under the agreement concluded recently in the framework of the OPEC + coalition and the participation of other producers. Critics say Baghdad was supposed to demand an exemption from cuts due to its exceptional and compelling circumstances

And the credit rating agency Fitch announced Thursday that the Iraq rating was fixed at the "B-negative" level, but it modified the outlook from stable to negative. The agency said in a report that political risks remain a major constraint on the classification of Iraq, in addition to the economic repercussions of the outbreak of the Corona virus

Iraq obtained the lowest rank among all the countries ranked by the agency, in the World Bank's Composite Management Index, which reflects the extent of corruption, government inefficiency and weak institutions, along with insecurity and political instability

Fitch expects that the external finance of Iraq will deteriorate sharply, with the current account deficit rising to 16 percent of GDP in the current year and about 6 percent next year. The country’s foreign reserves, including gold, were likely to drop to $ 25 billion by the end of 2021, a decrease of more than $ 40 billion over two years

Fitch stated that the classification of Iraq was affected by the risks associated with the continuing tensions between the United States and Iran, large-scale protests and a decline in government effectiveness but she pointed out that the stabilization of the Iraq classification is due to the current high level of international reserves for Iraq, and low debt service obligations and international financial support

Government, parliament and central bank officials are busy searching for ways to increase non-oil resources to cope with the epidemic, which has caused oil prices to collapse. The caretaker head, Adel Abdel-Mahdi, and Parliament Speaker Mohamed al-Halbousi held a meeting with the central bank governor, ministers, and other officials to find solutions to the stifling crisis

But analysts rule out any solutions to increasing revenues due to the paralysis of the economy, the repercussions of the epidemic and the rise in popular discontent, which opposes any tax or austerity measures

The meeting reiterated slogans that emphasize "the necessity of maximizing state resources, reducing dependence on oil, protecting the weaker social classes and achieving societal, food and drug security" without providing details on how to achieve this

Iraq depends almost entirely on oil export revenues to finance the budget. Its total debt is estimated at 139 billion dollars

Iraq is the second largest producer in OPEC after Saudi Arabia, and produces about 4.5 million barrels per day, about 3.5 million barrels per day go for export, and has agreed to reduce production by about 1.06 million barrels per day under the global agreement to reduce production

The Iraqi government announced on Thursday that it had discussed with the International Monetary Fund to stop repayment of the debt owed by the country, amounting to about 10 billion dollars during the current year

"There is no response at the present time, and there are no claims for payment," said Alaa Globe Al-Fahad, spokesman for the Information Office in the Council of Ministers

He added that "the economy of Iraq is unstable because it depends on oil by 95 percent, and that the other five percent cannot be collected now due to the lack of taxes, fees and others

He pointed out that "the Iraqi move does not include the International Monetary Fund only, but rather stopping deduction of Kuwait's debts and Arab League dues

 

Edited by DinarThug
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Iraq Securities donates 25 million dinars to support people with limited income
 
Iraq Securities donates 25 million dinars to support people with limited income

 
Iraq Stock Exchange
 
 April 19, 2020 07:13 PM
 
 

Direct: The Iraq Stock Exchange announced its donation of 25 million dinars to support families with low incomes in Iraq.  

The market stated in a statement received by the Iraqi News Agency (INA) today, Sunday, that "the Iraq Stock Exchange donated an amount of 25 billion dinars to the social solidarity account in the Central Bank of Iraq as a contribution to supporting families with low incomes."

It is noteworthy that the Iraqi Minister of Trade suggested increasing the per capita supply in the month of Ramadan, as part of measures to confront the repercussions of the emerging corona virus, "Covid 19".

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21 hours ago, horsesoldier said:

Really I hope I'm wrong on this - - - I'm leaning heavily towards " business as usual " . . . for God's sake just once I wish these fools would prove me wrong.

 

I hate to admit it, once this didn’t RV in March 2020, I’ve always said this year was lost! The only thing that is different is this Coronavirus, so I giving it a little more time! I do have sinking feeling about this deal! I guess we are a one day at a time! I’m like you, deep down I really believe it’s business as usual. I sure hope I’m wrong! I’m staying till the bitter end!🤠

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35 minutes ago, Artitech said:

I hate to admit it, once this didn’t RV in March 2020, I’ve always said this year was lost! The only thing that is different is this Coronavirus, so I giving it a little more time! I do have sinking feeling about this deal! I guess we are a one day at a time! I’m like you, deep down I really believe it’s business as usual. I sure hope I’m wrong! I’m staying till the bitter end!🤠

Agree...this coro/navira is costing a lot of money loss

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On 4/18/2020 at 3:43 PM, DinarThug said:

CNN. Broadcasting While Hooking Up A Team Of Camels To A 3 Axis Wagon To Get The Iraqi Economy Going !


 

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Al-Attar proposes a 3-axis plan to revitalize the Iraqi economy

 

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18th April, 2020


Propose a member of the Council of the Iraqi Economic Ghadir Attar, Saturday, plan of a three - pronged economic to reduce the adoption of Iraq's oil revenues as a result of fluctuations price constant."

Said Attar, in a statement received / scales News / copy of it, "the Iraqi government must follow new steps to cope with the economic crisis in order to have a country of diverse economic sources to help him in general economic crises of emergency stand."

Said Attar, that "the first step to reduce oil fuel prices to 50%, assuming if the price of a barrel to $ 20, and even if prices rose in the best conditions will not it exceeds $ 60, and it does not help if the government sells oil abroad at a lower price than it sells to its citizens."

He pointed out that "the second step is to support system" rel="">support farmers with agricultural equipment, fertilizers, pesticides and seeds, because there are developed countries whose economy is based on this wealth, such as the Netherlands, Denmark, Switzerland, New Zealand and others." Al-Attar pointed out that "the third step is to support system" rel="">support the national industries, qualify the stalled factories, and support system" rel="">support the private sector companies."

 

I know one axis is R....Another axis is V...….what is the third axis?????

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On 4/18/2020 at 1:43 PM, DinarThug said:

Al-Attar proposes a 3-axis plan to revitalize the Iraqi economy

 

2 hours ago, TexasMike1958 said:

I know one axis is R....Another axis is V...….what is the third axis?????

 

Us Running Our Axis Off To The Bank ! :o 

 

image.gif.9813061c7ba01c0fd25174f39c6be0d2.gif

 

Next Question ...

 

:D  :D  :D 

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Kurdistan region declares its commitment to the OPEC + agreement to reduce oil production


20272.jpg
 


19th April, 2020

 

The Kurdistan Region said on Sunday that it is committed to its share of the OPEC + agreement to cut oil production in order to support prices and contain oversupply, the official Iraqi News Agency reported

This comes after a meeting between officials from the regional government and the Ministry of Oil in Baghdad, where the Kurdistan government agreed to submit monthly reports on crude production to the ministry

The Organization of the Petroleum Exporting Countries and other oil producers agreed on April 12 to an unprecedented cut of 9.7 million barrels per day from May

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I’m Calling It A Night - But I Just Saw This Elsewhere If Somebody’s Motivated Enough To Check It Out Before I Return Tomorrow ...

 

 

Please go to the CBI website and find "General Price Index of Iraq stock exchange and look at the graph. It just had a huge spike up.

 

:D  :D  :D 

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6 hours ago, navira said:

Agree...this coro/navira is costing a lot of money loss

 

If they get push back from IMF and WB about giving them no more funding and the CV19 they will be forced to do something. 

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12 hours ago, DinarThug said:

Parliamentary finance admits that it is difficult to

secure employee salaries

  19th April, 2020

 

 

The Parliamentary Finance Committee approved the force majeure case and suggested that the government financial system use the central bank reserves to secure the salaries of state employees and retirees until the end of this year

 

 

 

 

 

He acknowledged that there is no solution but to rely on the central bank reserves to secure salaries until the end of December 2020. He emphasized that this would be "according to regulations determined by the Council of Ministers, including insurance of salaries only, without any additional allocations or projects or the disbursement of any other funds to the ministries

Official figures indicate that Iraq’s financial reserves with the Central Bank fell to 63 billion dollars at the end of February, and they are barely sufficient to cover the expected budget deficit during the current year, if oil prices continue to their current levels

 

 

 

 

 

 

 

 

 

 

 

 

It's a crying shame that these crooks won't stop until they've spent every dime of the CBI reserves. They have no clue what's going to happen when that pot of money is gone. I'm hoping the World Bank an the IMF sticks to their guns an don't lend them any more money. You would think the lenders would at least require the Iraq government to have a functional government an some kind of recovery plan before they give them another welfare check...

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5 hours ago, DinarThug said:

I’m Calling It A Night - But I Just Saw This Elsewhere If Somebody’s Motivated Enough To Check It Out Before I Return Tomorrow ...

 

 

Please go to the CBI website and find "General Price Index of Iraq stock exchange and look at the graph. It just had a huge spike up.

 

:D  :D  :D 

 

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The more miserable things are in Iraq, the more likelier they are to revalue their currency

-low oil prices mean income there is drying up

-the world doesn't want to give them a loan

-America is watching the CBI

-Neighboring Iran is getting hurt by Covid

 

Trump has known for years how dirty and crooked the Iraq leaders are. Why did he do nothing? Answer: Why fight when you can let time itself defeat your enemy?...and don't think for a moment, those crooks in Iraq are your friends...Time pushed new things onto the world, such as the collapse of the oil prices. This is hurting Iraq and Iran, far more than world sanctions against them. This solves lots of problems.

 

It means America doesn't need a direct military confrontation with an enemy...like Iran. A war you don't fight is the cheapest war. Low prices are a war against both Iran and Iraq. Low oil prices are destroying Iran especially, forcing them eventually out of Iraq. Low oil prices are the unseen army that is killing Iran.

 

I find it curious that the American government is paying more attention to what the CBI is doing, lately. This is not just a coincidence, along side low oil prices and Covid....so: Why is the American government paying more attention to the CBI...now... when the whole Iraq financial structure have been corrupt for so long? Was Trump negligent in not doing enough about this before? No....he was patient. He let the situation turn around, in favor of America. The situation has turned in our favor. Once your enemies are at their weakest, you start to have leverage over them. Iraq and Iran is a lot weaker than they both were a year ago.

 

So, while high oil prices are what is generally good for Iraq, sometimes a cold boot in the rear is what they need...low oil prices ARE that boot.:butt-kicking:

 

It's all about timing, it's all about how does the overall situation look like. The overall situation is getting better and better for us, each day. Yes, low oil prices hurt American producers. But they hurt the middle east much much much harder, because their overall economies are much weaker than America and much much more reliant on oil...:bananacamel::violin: ...plays sorrowful tune

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4 hours ago, Rochester said:

The more miserable things are in Iraq, the more likelier they are to revalue their currency

-low oil prices mean income there is drying up

-the world doesn't want to give them a loan

-America is watching the CBI

-Neighboring Iran is getting hurt by Covid

 

Trump has known for years how dirty and crooked the Iraq leaders are. Why did he do nothing? Answer: Why fight when you can let time itself defeat your enemy?...and don't think for a moment, those crooks in Iraq are your friends...Time pushed new things onto the world, such as the collapse of the oil prices. This is hurting Iraq and Iran, far more than world sanctions against them. This solves lots of problems.

 

It means America doesn't need a direct military confrontation with an enemy...like Iran. A war you don't fight is the cheapest war. Low prices are a war against both Iran and Iraq. Low oil prices are destroying Iran especially, forcing them eventually out of Iraq. Low oil prices are the unseen army that is killing Iran.

 

I find it curious that the American government is paying more attention to what the CBI is doing, lately. This is not just a coincidence, along side low oil prices and Covid....so: Why is the American government paying more attention to the CBI...now... when the whole Iraq financial structure have been corrupt for so long? Was Trump negligent in not doing enough about this before? No....he was patient. He let the situation turn around, in favor of America. The situation has turned in our favor. Once your enemies are at their weakest, you start to have leverage over them. Iraq and Iran is a lot weaker than they both were a year ago.

 

So, while high oil prices are what is generally good for Iraq, sometimes a cold boot in the rear is what they need...low oil prices ARE that boot.:butt-kicking:

 

It's all about timing, it's all about how does the overall situation look like. The overall situation is getting better and better for us, each day. Yes, low oil prices hurt American producers. But they hurt the middle east much much much harder, because their overall economies are much weaker than America and much much more reliant on oil...:bananacamel::violin: ...plays sorrowful tune

Thanks Rochester...I like the way you and others think out of the box...it make sense how you explain the real situation...you made my day !! No other option Iraq.. RV 1:1 to start ... ;)

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The Secretariat of the Council of Ministers denies any change to the system of employee salaries

 

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17:37 - 04/20/2020
 
 

On Monday, the General Secretariat of the Council of Ministers denied that any change was made to the system of employee salaries.

The secretariat said, in a statement received / information / that "the circulating statements regarding changing the current salary system, or the trend towards compulsory saving, or reducing the salaries of employees without validity."

And revealed the Parliamentary Finance Committee, earlier in the day, Monday, several proposals and scenarios in the House of Representatives to secure the salaries of employees after the arrival of the budget, noting that one of them is saving 25% of their salaries spent at a later time.

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Dr.. Mazhar Muhammad Salih *: The National Development Fund for Iraq: a renewed perspective and a promising future


04/20/2020


Mudher-image-new-2.jpg


The balance of government economy has undoubtedly entered a clear deficit due to the deterioration of growth rates in its dominant rentier sector, starting from the second half of this year until the second half of next year to drag the private economy into a point that is more stagnant due to the interlocking between the rentier and private sectors and the dominance of government activity On components of GDP estimated at least 63% ؜.

 

With the degree of growth in the annual growth rates of the Iraqi population estimated at 2.6% (without discipline) and the growth in the country's gross domestic product (due to the global economic recession) and the other is estimated at (negative 4.5% annually), the total stagnation will inevitably affect the economy The entire country and causes a decrease in the per capita share of the gross domestic product, which we currently estimate at no less than one thousand dollars annually per capita. At the same time, the economic balance in the private sector still represents the side of potential strength and the financial capabilities of (savings and liquid or semi-liquid funds) remain high, but they are stagnant in value equivalent to nearly half of the oil revenues lost in the year 2020 in Iraq.

 

In light of the decline in the total financing leverage in the national economy due to the global economic recession and the pandemic, there is no way for economic policy makers in Iraq except to start the compulsory and strategic solutions possible together to gradually restructure the national economy and according to fixed participatory goals that draw its operating lines immediately, and begin its first step from the term Short and medium to reach optimal solutions for the long term, that is to fold the rentier page of the economy, which will remain the main economic killer of our economy (unilateral)

 

The question that exists in the renaissance of the national economy starts from the financial leverage currently available to the country and is how to move the private sector surpluses through a smooth and guaranteed financing mechanism and with tools that include the highest degree of certainties so that they can be mobilized as risk-free financial resources and guarantees that possess the power of sovereign guarantees at the same time.

 

How to mobilize the accumulated surpluses of the Iraqi private sector currently and not moving in the income cycle and strive to recycle them within the national economy requires a condition of the necessary condition, which is the condition that the borrowing recycling aims to surplus that direct these financial resources outside the public budget and exclusively towards the activities of the private sector. Here, the priority of investment will appear in a dual option towards highly operational production fields, achieving high added value in the national income at the same time, such as the housing and agricultural sectors, and some important possible crafts and industrial activities. And that the above-mentioned necessity condition requires the availability of two parallel and supporting main factors to run the national program for financing development.

 

The first factor is how to maintain the purchasing power of money borrowed from the people and protect them by employing them with debt instruments and guarding them from potential price fluctuations (inflation) by issuing a indexed bond to be the origin of the bond as a debt instrument defined by fixed-value assets, whether by choosing a foreign currency, gold, or other Of stable value assets with balanced annual interest. The second factor is the adoption of a fund geared to sustainable financial leverages to finance productive private sector activities that are targeted by those funds borrowed from individuals and is the National Development Fund for Iraq.

Here, the financing priority is given to investment activities that target, as mentioned, the use of labor intensive production factors and at the same time maximize added value in the formation of gross domestic product. Another condition will be the responsibility of the state, which is a sufficient condition for its job to be limited this time towards operating the National Development Fund for Iraq in partnership with the private sector in terms of capital and property rights. This participatory relationship will take two complementary directions as well. The first is that the state provides the loan guarantee as a leverage and protects it from any exposure or loss until the due date and the other direction is to provide the necessary security to maintain the purchasing power of the loan’s principal and its returns to the due date as well. The function of development financial policy here is to preserve the purchasing power of the loan and its proceeds from issuance to amortization and to prepare the necessary deliberative climate in adopting the secondary market to take bonds and liquidate them by their holders when necessary.

 

And as it relates to the fund’s capital and property rights, which will be based on joint ownership between the state and the private sector, it will receive a serious contribution from some international financial institutions that support and support private sector activities when establishing as equities capital, such as the International Finance Corporation. And some of the contributions of European Union organizations and funds, including the acceptance of the indirect contribution to the fund by accepting the principle of exchanging the imported equipment and equipment from a European, European or other origin for the benefit of the recipients of the fund in the Iraqi private sector.

 

Finally, the establishment of the National Development Fund for Iraq will form the core nucleus of macroeconomic restructuring toward gradual financing from various sources, whether from the oil revenue rent itself, and with a share of the oil export revenues committed to it or any future raw materials from the returns of phosphate, sulfur, silicon, and other economic activities. Iraq’s raw materials, stapled economy (the future, not the distant) and its promise as capital shares invested by granting soft loans from the Development Fund directed to finance the activities of the private sector, being the main operator of development and the advancement of the national economy and the antidote to upcoming rentier developments. The establishment of the National Development Fund as a path to diversify the national and harmonious economy and the private sector development strategy currently adopted (without wide implementation) comes to raise the contribution of civil activity to the gross domestic product from its current low reality in the composition of the gross domestic product of 37% to become 50% or more during the next five years.

 

This transformation will represent the basic task and economic approach of a post-oil Iraq, and it will be the responsibility of the national planning and public financial bodies and the private sector council to move immediately towards a common strategy to structure and diversify the national economy and gradually eliminate its rentier aspects. The project, in its entirety, promised an ideological shift to build the basics of recasting the national economy from its central rentier features to the central social market responsible for diversifying productive activity. This is accompanied by a legislative system that establishes a strong pace to establish the necessary legal infrastructure for such a pattern of productive market economies promising to compete with them.

 

Finally, to the extent that the state contributes to protecting the national economy and proceeding with the belief of renewable development perspective, the social market pattern as an economic option comes to protect the labor market and the Iraqi working class and producers from the scourge of unemployment and waste of their human energies as well as providing a national economy with truly sustainable development and leaving the rentier of the unilateral economy through comprehensive diversification And with competitive market tools and social principles.

(*) Researcher, economist, and financial advisor to the Iraqi government

Copyright reserved for the Iraqi Economist Network. Republishing is permitted provided the source is indicated. April 20, 2020

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Dr. Mazhar Muhammad Salih - National Development Fund for Iraq - a renewed perspective and a promising future. - Editing 3

 
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