Free movement of capital are attracting investment
11/5/2016 12:00 am
An academic Economist called to ease restrictions on capital inflows to Iraq because that would bring attractive to more foreign investment, which the country needs to strengthen the infrastructure and services development.
Said Dr Starr Jabber Imran from College of administration and Economics in College, Rajasthan: risks that hinder investment in all countries of the world is to change monetary and fiscal policies in the State where the investor or put restrictions on currency conversion abroad or new taxes.
Added in the interview for «morning», sometimes resorting to Government confiscation of foreigners through nationalization and management of investment projects, indicating that it has happened in quite a few countries in Asia, Africa or South America.
Maran explained that it all goes back to political and economic instability and lack of legislation guaranteeing the rights of foreign investors and protect him under political and economic fluctuations, frequent in these States, especially in relation to long term investment.
«The economists suggests there are many parameters that hinder the movement of capital and its flow into this country or that, usually observe several divisions of these determinants observed under several labels, including political, economic, financial, administrative, along with technological, legal, technical and financial and administrative corruption, as well as other divisions of economic reform and exchange rate and inflation.
Imran returned to adds: that politically and economically stable countries all over the world working very hard to provide the enabling environment to attract more foreign investment, and therefore considers that States in South East Asia, such as Malaysia and Singapore, had predated the other in this field having started to provide the proper environment for the domestic private sector to work.
She pointed to the early privatizations widely led to attract foreign direct investment, especially in public institutions, banks, communication, and then followed by South Korea, China and India and countries of South America where she worked to enact laws and regulations that guarantee the protection of FDI and its development and reducing restrictions on him.