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Privatization achieves financial stability and the private sector does

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Privatization achieves financial stability and the private sector does

25/4/2018 12:00 am

Is one of the fundamentals of economic reform for the current phase

Baghdad / Emad Al-Amara

Privatization in the current stage is one of the most effective fundamentals in the process of economic reform, based on the philosophy of a market economy that includes the deficit in some governmental institutions to achieve the optimal exploitation of resources and the equitable distribution.

This calls for the private sector to take an active role in economic activity.

The right to intervene in cases where there is any defect that may lead to economic damage.

Financial Markets

Abdul-Sattar Abdul-Jabbar Musa, the academic economist, explained the role of privatization in the economic process in Iraq.

"The various methods of economic privatization can be summed up in three ways:

First, full or partial financing of economic projects from the public sector to the private sector, Public stock during the financial markets, indicating that this method requires the existence of relatively sophisticated financial markets to ensure the success of this method

The second way is that "the sale of the economic project to a private company or the sale of the project to executives and executives,

and the way The third is through the administrative contracts that are made through contracting with private or foreign companies specialized in the field of the project to manage all its economic operations while retaining its ownership of the state in return for revenues agreed upon by the contract, in order to benefit from local and foreign expertise and avoid the losses realized by the state administration of these projects On the integration that is achieved with Globalization".

The method of excellence

Under the concession method, the State grants the local or foreign investor the right to exploit a specific economic resource or to produce a particular good or service in return for agreed revenues. The concession of this type extends from natural resources such as oil, gas and other types, Or transport of various kinds.

Economic projects

Moussa said that "the choice of privatization in the path of economic reform will leave different implications at the economic levels, partial and macro, at the micro level must be provided private capital domestic and foreign investment necessary, especially in large industries such as telecommunications and electricity,

He called for achieving economic and technical efficiency by reducing costs and eliminating unproductive surplus labor and thus making profit by "providing new departments for economic projects with the economic expertise that qualifies them to take economic decisions related to production And pricing."

Stressing that "privatization achieves the financial stability of governments in light of their disposal of spending on economic projects lost and provide financial support is not justified, as well as what will return to the State of the amounts of the sale of a number of projects as well as tax revenues from private projects."

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