BY SAMIR ALNASIRI- PUBLISHED IN 06/05/2016
Council of Ministers issued a final decision in its session dated 31.05.2016 launch electronic form for promoting and facilitating the financing of the government's measures for small and medium enterprises, and encourage the production process in agriculture, industry, housing, support and stimulate the sector [...]
The cabinet Last Minutes dated 05.31.2016 decision to launch electronic form for the promotion and facilitation of government measures financing small and medium enterprises, and encourage the production process in agriculture, industry, housing, support and stimulate the private sector, and the investment allocated from the central bank's six trillion five hundred billion dinars Amount in order to achieve the government's plan to restructure the Iraqi economy and its transition from a rentier economy to a productive economy and give a key role for the private sector in achieving this.
A reading of analytic and assessment of the decision and its implications begin developing a strategy for implementation. In order to really give the role of the private sector, according to not stated in the private sector development strategy for the years ( 2014-2030 ) and stages set for this purpose, which ends the first phase in 2017, it requires the government to determine the mechanisms required to do its part and procedures in terms of the allocation of the necessary funds to implement its economic reform program, and that the private sector organizes itself and come to actually true representatives of the private sector. For the purpose of achieving reform strategy we propose the following:
A-allocation of funds from the IMF loan is distributed according to the grant provided by the Bank to the government every time for three years.
2-distributes the allocation to finance industrial and agricultural sectors, housing, according to the mechanisms or instructions approved by the Council of Ministers in partnership with private sector representatives.
3-subdue the distribution and exchange and finance operations for monitoring and follow-up, audit and evaluation based on audit international companies.
4-creation of an independent private sector holds the implementation of the government's plans to support and stimulate the private sector in coordination with the private sector representatives, who are regarded as the rightful representatives of the private sector. He suggested here that the Council is a unified private sector represents all unions and organizations and sectoral forums and gatherings, public and holds those elected authorities and under the supervision of the legislative, executive and judicial power.
5-establishment of the government through the Ministry of Agriculture and Water Resources inventory of arable land in all provinces, including Kurdistan provinces, assigning local governments to secure the requirements of supplies cultivate these lands and invest directly through an invitation and operation of all graduates of agricultural colleges and institutes and hiring or with the private sector cultivated and invested and marketing of agricultural production and the division of the income earned between the workers and the local government. Thus, we achieve two goals: economic goal of a transition to a productive economy, and social goal is to turn young graduates and transferred to the producers.
6-activation of the General Federation of cooperation by stimulating and encouraging housing co-operative societies and the establishment of the secretariat of Baghdad, local governments in the provinces to allocate residential land, sorting and preparing designs for the construction of cities and complexes housing in coordination with investment and private sector circles to be a turnkey citizen. And distribution operations are subject to the owners of the low-income and slum inhabitants and to benefit from the World Bank loan fund in this sector to be subject of exchange operations for review and monitoring and auditing.
7-establish a bank to finance small and medium enterprises. The foundation, which must be adopted for the establishment of the bank is the state's contribution to 25 percent of capital, which should be up to 500 billion dinars, and that the private sector contributes 75 percent and be the participation of the state representative government banks and ministries which currently holds the funding of some small and medium enterprises such as the Ministry of labor and social Affairs, for example. The contribution of the private sector should include private banks and companies, retaining the banking business and private companies concerned sectors and productive men rightful business and people with economic reputation known and that the bank accounts are subject to audit the Office of Financial Supervision and the supervision and control of the Central Bank of Iraq, and that the Council of Ministers shall grant the bank a fixed amount as a loan to the bank IMF loan like allocated from the central bank loan mechanism for financing small and medium enterprises. The new bank, and setting guidelines and instructions and facilities to grant the loan to entrepreneurs.
It can illustrate key goals achieved by the roadmap above is as follows:
1-one achieve the development goals of the IMF loan to support and stimulate the private sector.
2. The contribution of the private sector to diversify revenues and reduce the budget deficit and activating the production process in the economic sectors.
3-achieving social goals, the reduction of the unemployment rate for graduates and professionals, craftsmen, which amounted to 31 percent.
* Samir Abbas Alnasiri
Economic expert consultant in Baghdad Economic Forum
Copyright Network Iraqis economists. Allowed to re-publication, it provided reference to the source. June 5, 2016
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