Private sector and building the national economy

[6ly410]

Private sector and building the national economy

Tuesday 14 July 2020

https://alsabaah.iq/27667

 

 

Baghdad / Imad of the emirate

 

The call to encourage the private sector is one of the first policies required to be adopted to contribute to building the national economy, because of the need for local capital and not to rely entirely on oil imports, which sometimes do not meet Iraq's financial allocations to achieve economic growth.
Academic Dr. Ahmed Al-Rawi emphasized, "The imperative of private sector participation in the construction process, after the state has dominated all economic activities. To achieve this, the necessary legislative and institutional frameworks must be issued to encourage and attract private national investments, especially fleeing national funds, so investment law No. 13 is considered For the year 2006 and its amendments, an essential step in creating the appropriate investment climate so that investment can be encouraged to achieve economic reform through a greater role for the private sector.

He continued, "Since Iraq was not prepared to receive private investment, especially foreign ones, it must undertake a series of economic and legal policies that help in creating an investment environment that encourages the national investor and gives full confidence to ensure his rights through a number of measures, the most important of which is the need for a national framework of laws The charters that form the ground for attracting investments, with an institutional framework in place to receive and encourage the movement of investments in Iraq and provide all the support required to develop investments. "

 

Investment activities

"Reforms must be made in policies and procedures regarding investment activities due to the multiplicity of investment departments in state ministries that often intersect with their policies towards encouraging investment, reviving national capital markets and increasing awareness of the importance of investing in securities with the aim of encouraging private savings and converting them into meaningful investments in sectors," he added. Productivity, development and qualification of the banking sector to be compatible with the movement of investment and dealing with international financial institutions, as government banks are still the dominant banking capital in Iraq, and government banks account for 90 percent of banking activity. 

 

Private activity

"The private activity in Iraq has faced obstacles in the forefront of which are the problem of financing and allocating resources, as well as the inadequacy of the investment climate, which created a lack of confidence in the creation of large national investments with the dominance of the public sector on the main economic activities, in addition to the economic policies that were adopted were directed to support the effort The military. "

The narrator said: "The options were limited in obtaining financing through public financial and banking institutions and across the Iraq Stock Exchange for the difficult conditions set by those banks, which often prevents the private sector from being able to meet them, as well as the weakness of non-banking institutions."

 

Bank financing

He stated, "It is known that a good financial and banking sector provides an appropriate environment for savers and investors and encourages the growth of investment opportunities and helps to develop organized work in private economic institutions, which facilitates monitoring the performance of their departments and encourages institutional development to openness and transparency in corporate management, but the banking system despite the importance Its institutions, however, it was not able to create an enabling environment to revitalize the private sector due to the restrictions and procedures followed in the activity of these financial institutions, as they follow the state and its policies.

 

Edited July 14, 2020 by 6ly410