Prevent capital flight enhances domestic investment
09/5/2016 12:00 am
The Academy said Dr Abeer Mohammed Jassim of the College of administration and Economics in University Rajasthan, that the problem of capital flight is one of the most important issues that States must pay attention to their funding gap hinders and weakens the size of investment needed to continue the process of development.
Migrant money back
She added in the interview for» morning»: there must be a means of promoting such funds to return and invest in the best developmental objectives, and capital flight is Arabic important issues nowadays for an inkling of turning the required investments in the Arab world towards the outside world, and it represents a sort of economic challenges in the financial conditions that harm the economic interests of the Arabic countries, Iraq in particular, at the expense of economic and social benefits to foreign countries.
Bridging the funding gap
Muhammad said, they complicate the problem of indebtedness of Arabic countries and what do to other problems like unemployment and low production and high prices, investment financing gap in some States to 70% covered through borrowing, not to mention the benefits of attracting foreign investment in which you may not be able to bridge the funding gap due to poor investments, Arabic capital was moving toward a more dangerous countries using those funds to serve her and undermine the economic development of Arabic countries, especially Iraq.
Most researchers known as the flight of capital that loss or major loss of domestic investment resulting from the imbalance in political decisions, and deepening and expanding the more negative dynamic interaction between policy decisions and investment decisions, as different definitions of capital flight in scope and focused, prepared by another important indicator of the efficiency of economic policies,
adding that a direct loss of fixed capital formation Or reflection effects the overall investment policy is also an indication of expected future growth, and the country's capacity to finance external debt payments, and in another definition of capital flight (it is part of the external financial flows to the residents who are affected by political and economic instability).
She explained that the issue of limiting the migration of Arabic funds are the main priorities of the Arab world, especially in Iraq, including the need to provide appropriate climate to encourage them to return and investment financing Developmental goals.
Attract money immigrant
She invited Muhammad to take various measures to encourage the return of migrant capital and treat problems in the resettlement of local funds or attracted to the inside, indicating that the procedure is to put economic and investment laws and regulations that ensure local and foreign investor rights, and adopt the legal relationship between the investor and the State and consistent with the local environment and the new world order data, stressing the need to take into account the domestic investment sector development support and develop all corporate systems. Local.
Especially on open investment in various fields without restriction, added to facilitate privatisation and employ private sector savings in national economy rather than routed out of the country, indicating the importance of deepening of privatization of the public sector and the State-owned corporations which represents an important factor in the return of capital.
Establishment of economic management
Dr found Abeer Mohammed concluded to emphasize the importance of economic management in the State has a strong influence in the end all problems encountered in investor, far from the bureaucracy and red tape in the completion of transactions and transparency, especially in the financial market confidence from inside or outside because they give a true picture of the reality of investment,
attention should be paid to the development of technology in all economic activities and keeping up with the demands of investment activity and providing sophisticated banking and financial devices to develop formulas for investing in banks. To achieve a high investment.