The digital economy is the future of Iraq

[6ly410]

 

08/17/2020

 

 

The digital economy is the future of Iraq

http://alhaqeqah.com/2940808.html

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Ambiguity and uncertainty still dominate the present and future of Iraq, due to the turmoil that prevails in the country in light of the inability to get rid of the previous crises that still accompany it, and its exposure to recent events with negative effects on all social and economic sectors.

The collapse of oil prices, which is the most important export and financial sector for the state, caused a significant decrease in budget revenues, and depleted the fiscal surplus of Iraq that accumulated until 2018. The Covid-19 pandemic was not merciful to any economy in the world. They have greatly increased the painful economic landscape in Iraq, and caused a decline in the main revenues of the country, including transport, trade, banking and religious tourism. According to the World Bank's Iraq Economic Monitor, these industries represent nearly half of the country's non-oil economy. The Iraqi people have been permanently desperate due to the continuing stifling crisis of the Covid-19 virus, which coincided with the pre-existing problems, amid mounting discontent with the continued provision of services through rampant corruption and the inability to form a new government.

To make matters worse, the problem of cash flow in Iraq is wreaking havoc on the public and private sectors. The resources that the state relies on to provide salaries and pensions to its employees, retirees, and their dependents are drying up. The provision of pensions depends largely on the oil industry, which suffers from low crude prices, which have been affected the most after the Covid-19 virus. Besides 4 million government employees, there are 3 million people who receive pensions, and more than a million benefit from the social welfare program, and this is why the Iraqi government faces Acute shortage of liquidity. This harms the Iraqi people, continues to harm them, and fuels more negative reactions from citizens towards the current government's plans for structural reform.

 

The digital economy could be the lifeblood that Iraq needs

 

The political scene in Iraq is fraught with dangers and challenges due to the political division, the conflicting opinions between leaders and members of parliament, and the ideological polarization of the various political parties. Introducing new financial reforms, let alone implementing them, is difficult under normal circumstances. The only bright side of the COVID-19 pandemic is that it is a common, agreed-upon enemy that can act as a catalyst for reform in all private and public sectors. Reform could be in the form of using digital networks and existing infrastructure to introduce development related to the digital economy.

 

A digital economy, if properly implemented and managed, can be the beginning of the financial and economic lifeline of the Iraqi people. And there, hope lies. Investing in digital infrastructure deployment creates immediate opportunities to increase employment rates, boost trade, economic diversification, increase internet penetration accompanied by higher private sector productivity, and improve facilitation of service delivery not only to the Iraqi people but to refugees and host communities.  

 

Digital financial services are the core of the digital economy. A robust integrated cashless payment system is the first and most important pillar of the digital economy. The good news continues to circulate of the birth of the digital economy, as the Iraqi government has publicly pledged its support for the cashless economy. Indeed, many other countries that suffer from similar financial conditions to Iraq have taken decisive steps in this direction, and they are being monitored for implementation. In governments, technology is often used successfully when processing information directly and monitoring problems.

 

 

To this end, Iraq has set ambitious goals to strengthen important digital platforms and increase activity through credit and debit card ownership, cashless transactions, mobile financial transactions, and electronic payments. For Iraq, the important digital platforms that must be implemented immediately include: an e-government platform that facilitates administrative processes and reduces barriers to progress while eliminating bureaucratic administrative corruption and launching an online business registration platform while providing online payment services. Iraq now ranks 172nd out of 190 countries in the Doing Business 2020 ranking, and 154th in the business start-up ranking. Building these foundations as part of an integrated e-commerce system could revitalize the economic engines of small and medium-sized private sector enterprises. It also boosts trade, creates jobs, and instills confidence and hope for better days to come.

 

Application of digital identities and biometric systems

 

Digital ID systems enable Iraqis to exercise their rights and access services. It also helps the nation realize the transformative potential of robust and responsible comprehensive digital identity systems. This extension of the digital economy brings tangible benefits across a range of areas, such as financial inclusion, health services, social protection for the poorest and most vulnerable, and the empowerment of women and girls.

 

The areas that have the greatest potential to achieve the goals of financial inclusion are the private sector led by diversity and government reform to enhance the participation of the private sector in selected productive sectors, which could subsequently enhance Iraq's integration into the digital economy. Transforming Iraq into a resilient and inclusive digital economy will require comprehensive economic reforms and long-term development priorities. Among these measures are ensuring access to high-speed internet at affordable prices, enabling widespread adoption of cashless payments, providing government assistance digitally, and improving access to data. Raising the skills of Iraqi youth with technological knowledge, and expanding the integrated system for digital entrepreneurship, will also lead to an effective digital economy.

 

The good news here is that Iraq is well on its way to achieving these goals. The path Iraq is now taking is bright, although today it still looks frightening.

 

Writer / Bahaa Abdel Hadi

Founder and CEO of the International Smart Cards Company, Key Card

 

Edited August 21, 2020 by 6ly410

[screwball]

Hmmmm...flogs...about time to make **** happen 

Edited August 21, 2020 by screwball