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Privatization .. and the specificity of the Iraqi economy 1-3

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Privatization .. and the specificity of the Iraqi economy 1-3

21/6/2018 12:00 am
Mohammed Turki Al-Qaisi


After the Second World War, the world's countries experienced economic changes resulting from the losses they suffered as a result of the war, whose effects emerged after a quarter of a century.

At the same time, the capitalist economy was experiencing a revival not because of the regimes followed by the destruction and direct influence in Europe the war.

Where countries needed to restructure their economy to solve the debt problems and raise the efficiency of the operation and allocation of resources for the rapid reconstruction of privatization; which led to the transfer of ownership of major projects of countries after the budget was unable to cover losses and promote them again, and Britain and France have been successful in this the field.

Privatization is a contemporary concept that entered the economic dictionary for the first time in 1983 during Margaret Thatcher's tenure as prime minister after privatizing public companies such as water, electricity and railways and privatizing them.

The general concept of privatization is the transfer of economic activity in whole or in part from the authority of the government to the authority of the private sector, or the policy of transfer of public ownership and private sector, where these sectors are transferred from the state to individuals, whether local or foreign,

so that the role of the state in legislation and monitoring And the supervision of the market, which is a means to reach the application of mechanisms of the free market and the capitalist system partially or completely.

In the modern concept, the state has concerns based on security, defense and top strategic policies, which are more important than securing the services that private firms can do by competing in the market to promote them and high efficiency.

Privatization is a package of integrated policies based on the principle of competition among large companies to reach the service of a larger number of consumers; the more companies competing in the same specialization, the better the consumer in the attempt to attract these companies to more consumers.

With government control and consumer protection laws, the private system becomes more effective in serving the consumer, easing the burden on governments that suffer from economic crises, unstable economy, unstable resources or sometimes inflation, and the difficulty of achieving the economic balance by balancing its growing expenditures with imports

And in some cases the failure of the economy to keep pace with modern technology as a result of mismanagement and lack of economic expertise with the existence of wealth faced with waste and waste, so when some developing countries begin privatization, subject to the conditions of the World Bank, which takes on the policy Structural adjustment through a package of economic policies such as lifting government subsidies on consumer goods, devaluation of the currency, reducing government spending, liberalizing goods and services, lifting foreign exchange controls and ending the customs protection enjoyed by local industries, and reducing financial support to State institutions that depend on the state budget;

These policies are difficult to implement in countries that used to be responsible for the large and small in the life of their citizens, so it will take a long time to adapt to new policies, especially since the idea of privatization has doubts about the usefulness of low-income where it is perceived as o Causing high prices.

The transformation of the economic system from public to private can not be successful if there are no long-term policies that overshadow the transformation process:

1. The state must gradually withdraw from some economic activities and allow private initiatives and encourage private investment by providing the appropriate environment, both in terms of legislation and laws, or the appropriate security climate for the transformation process.

2 - Revitalizing the internal market by encouraging small investors and creating a balance between large foreign invested companies and local companies already existing in the local market and supporting them to cope with the development of the economic arena.

3. Setting determinants for the elimination of disguised unemployment, low research and development, low savings and domestic investment.

4 - The process of transformation needs to be prepared for the citizen to receive each stage of privatization through the process of promoting communication communication aimed at the citizen with a view to attracting certain responses and appropriate impact so that the citizen to deal with the situation positively, especially that the process has several parties (consumer, foreign investor, Local investor, companies, banks, parliamentary and legislative councils, etc.). Therefore, the potential for misunderstanding and distortion will be the subject of promotion. Therefore, the state should create a general definition of what affects the life Citizens.

Therefore, privatization is a set of integrated policies that must be consistent with the orientations of economic structural reforms by providing an appropriate economic climate with supportive mechanisms so that privatization can bear fruit.

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