Dr.. Zuhair Al-Hassani to Al-Sabah: Meeting challenges requires an economic rescue

[yota691]

Dr.. Zuhair Al-Hassani to Al-Sabah: Meeting challenges requires an economic rescue

Wednesday 16th September 2020 70

 

  Baghdad: Shukran Al-Fatlawi

A member of the Board of Trustees of the Iraqi Institute for Economic Reform, the economic expert, Dr. Zahir Al-Hasani, presented a set of solutions and proposals to address the challenges faced by the economic system and the chronic problems that accumulated for 17 years, during which huge sums were wasted during the financial abundance that was not employed to build a country with a modern, stable economic development system On the basis of the United Nations Program for Sustainable Development for the year 2030.

Al-Hasani reviewed the most prominent economic problems related to oil wealth, indicating that "the drop in its prices from $ 100 a barrel in 2010 to $ 25, due to the price war between the producing countries, and the sweeping of the Corona pandemic of the global economy and the economic and social lockdown, which led to the halting of factories, economic movement and oil marketing." .

He stressed that "this requires facing challenges by implementing a rescue operation for economic structures on the one hand, and financial and administrative functional performance on the other hand, by analyzing the causes of economic failure and searching for radical solutions, not surface treatments."

 

Structural structuralism

Al-Hasani identified "the factors that imposed these economic conditions on Iraq as being summed up by structural structural factors, functional and administrative factors," explaining that "the first is a result of the lack of good governance, which led to the waste of public money and the failure to direct spending to economic development, while the other resulted from the Allocating half of the general budget to the capital budget, not the investment budget, including salaries and subsidies, and allocating the remainder to the operational budget. 

"Mismanagement has led to poor management of economic projects, including 9,000 economic projects that are lagging at a cost of 660 million dollars, and the lack of implementation of electronic governance has also caused a lack of transparency and poor performance," he added.

 

Radical reforms

Al-Husseini explained the necessary solutions to the root problems of the economic and administrative system, and addressing the economic structural factors, (the lack of identity of the national economy and the failure of both the public and private sectors to rebuild the economy and restore the economic cycle to achieve a circular flow of income) as requiring the elimination of rent resulting from the establishment of the national economy Oil dollar. "

He pointed out that "the general budget resources are based entirely on oil revenues, which makes them vulnerable to the fluctuations of the crude market and to the chronic financial deficit due to the collapse of prices, with the need for the state to build development projects and find non-oil resources for public spending." 

 

The dominance of the comprador

Al-Hassani touched on the subject of privatization, saying: "The national economy is based on the hegemony of the public sector, which has not proven efficient in rebuilding, especially in the management of public companies that have become a burden on the Ministry of Finance and are charged with the salaries of huge numbers of unproductive surplus labor, which prevents profitability. In this department. "

Al-Hassani called for the necessity of rehabilitating these companies through the privatization of these companies, and added, "But two things are taken against this privatization, one of which is that the private sector today is a non-productive sector, most of which consists of" comprador merchants "seeking a quick profit by importing everything and not producing anything. It means selling them at the price of scrap, and the second of them is the rush of non-professional economic committees to buy these companies at a low price. "

It is noteworthy that the term "comprador" means the bourgeois class that soon allied with foreign capital in order to achieve its interests and to seize the national market.

Al-Hassani said, "Private sector investments from traders are real estate investments abroad and do not carry any national productive investment culture. They are" Comprador merchants "and not producers.

 

self management

Al-Hassani continued: "One of the solutions related to privatization is selling the shares of companies to workers to manage them by them, explaining that there is no possibility for these workers in this administration due to their financial and administrative competence," noting that "this policy rarely succeeded in Eastern European countries, while it succeeded under The system of self-management under the supervision of the socialist state of Yugoslavia. "

Al-Husseini stressed that "the best factor in Iraq is (privatization in partnership) between the public and private productive sectors, whether national or foreign, and the concerted efforts of efficient private management, government supervision and control, and bearing production risks in an integrated manner in this partnership, as it is a catalyst for quality and profitability. 

And he continued, "The Ministry of Industry has succeeded in concluding a partnership for ten of its public companies in this field, and the partnership with French Lafarge in the cement industry with an Iraqi private sector is a great success in this partnership."

He stressed: "The need for the Council of Ministers to expedite the request to the concerned ministries to offer their companies as investment opportunities in partnership with the productive private sector in order to rehabilitate these public companies, solve the problem of surplus labor in them, and maximize non-oil resources."

[screwball]

10 hours ago, yota691 said:

rebuild the economy and restore the economic cycle to achieve a circular flow of income) as requiring the elimination of rent resulting from the establishment of the national economy Oil dollar. "

Says it all....how o your restore the economic cycle?

[Longtimelurker]

How Screwball? Don't leave us hanging!!

[screwball]

The velocity of money is the frequency at which one unit of currency is used to purchase domestically- produced goods and services within a given time period. In other words, it is the number of times one dollar is spent to buy goods and services per unit of time.

[screwball]

How do you generate money velocity? What needs to happen?

[screwball]

E money? Electronic money? Ebanking?