Economic conversion requires moving the General and special production
03/7/2016 12:00 am
Academic Economist stressed Dr Amar Majeed from the College of management and Economics at the University of Rajasthan need to find ways to cope with rising prices, indicating that economic policy makers, decision makers and economic choices that fit the nature of the community and local economy.
Glorious said in interview for «morning» that these choices have to be made in the heart of the Iraqi economy away from the interests of the international institutions in line with the nature of economic transition in Iraq, and this can be achieved only by moving hay production in private and Government sectors that suffer from standstill due to overrunning local market by foreign goods.
Glorious invited to prepare contingency plans and quick advancement of the agricultural sector, which suffers major negligence, with the need to promote the reality of Iraqi industry through technological update to reduce the costs of producing units and continued production factories and economic projects and increase their ability to absorb the unemployed.
He noted that inflation had been caused by fallout from wars that took their range and their impact on economic policy that developed solutions and wizards to pull the economy from worsening reality, however, most of these processors were not successful in getting the economy right, but reflected the increasing price levels in the domestic market pulling down the value of the local currency with the State continues to issue banknotes (critical edition).
Those conditions contributed to rising economic development expense and weaken confidence in the national economy, the decline in exports has led to declining Treasury's foreign currency earnings, not to adjust import and value of accumulated savings and lower their contribution to development, as well as inflation has led to damage to the limited income layers and depth of disparities between the incomes of community groups.
Majid said that inflation rates have increased dramatically after the events of 2003 as a result of structural imbalances afflicting the economy by lack of competence and ability to manage and control the ministries and institutions of the decisions CLA.
He noted that this event contributed to the economic crisis that fostered corruption in the State apparatus and influenced the growing waves of inflation, the rise in prices began gradually with a crisis of petroleum products then go to befall the transport and communication sector and then heated up the crisis to affect the lives of citizens with electric power crisis intensifies and constant interruptions in power supply.
He pointed out that it shares the low living standards and a significant disparity in pay levels among segments of society, featured categories enjoy high levels of welfare recipients from other categories crises receive wages barely sufficient to meet the requirements of living in the shadow of the soaring prices of goods and services in the local market, the numbers reflect how big change in prices since 2003, especially lighting and fuel prices changed within twenty fold.
And that the numbers indicate that the individual data which he needs to spend 100 000 in 1993 to get certain good became need spending 248 000 in 2008 for the same commodity, this refers to the erosion of the real value of money and the reflection on the low quality goods, the loss of trust of the individual in local currency leads to increased his request for goods and services and it pays producers to not caring about the quality of a commodity as long as there is a significant demand for them Lack of appropriate alternatives.
Glorious noted in conclusion that although the State increased staff salaries to cover the increase in price but the lack of essential services and the expansion of administrative corruption cases and bear most of the costs of individual services may have dispelled such increases because these might have endured high prices caused by these increases without any additional entry they thus deepened the gap between the classes of society.