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Economic changes in the Middle East and North Africa

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Economic changes in the Middle East and North Africa

08/8/2016 12:00 am
Baghdad-Emad Emirate's PM Chai

World Bank report on oil prices, changes in the price of oil will have repercussions on the countries of the Middle East and North Africa.

The report, titled "oil prices. Where?» that oil producers in the region strive to overcome low oil prices a few years ago, crude revenues taken into decline for the third consecutive year, with a growing budget deficit and debt.

At the same time, several countries, including Iraq, Syria, Yemen and Libya, the devastating effects of wars and forced displacement crises, leading to heightened pressures on their budgets which are already Resource constraints.

According to the report, the fiscal budgets in the region's oil-exporting countries, including the GCC group lost $157 billion of revenue last year and is expected to lose 100 million dollars this year.

In 2015, exhausted 178 billion dollars Saudi foreign reserves, followed by Algeria $28 billion and Iraq $27 billion.


Talking about the report, said Shanta Devarajan, Chief Economist for the Middle East and North Africa at the World Bank "with continued low oil prices rate, the Governments of the region to tighten the belt, apply some bold actions that are expected to change the old social contract, providing State support for fuel and food, and free health care and education services, subsidies and public sector jobs, a new State encourages job creation in the private sector and enable citizens to Does the consumer choices.»

Provide funding

The academic said d. Abdul Karim Jaber shangar, Faculty of management and Economics at the University of Qadisiyah, the International Bank for reconstruction and development seeks to achieve two objectives: to provide funding to rebuild what had been destroyed by World War II of productive projects and infrastructure in Western European countries, and assistance in the development of developing countries by providing investment financing in Enterprise Productivity.

And added shangar in interview for «morning» Bank exert pressure on Governments borrowed to increase tax on foreign investments to increase production for export to benefit mainly corporations that dominate commerce.

He noted that the Bank acts as an intermediary for the flow of money abroad with the use of taxpayers' money in developed member countries to ensure the safety of selling bonds through investments in transportation and communications and aid to certain multinational companies operate primarily in the Mining.

Development policies

He said the World Bank oversees financial management development policies and investment and structural reform of the Member States and also concerned about creditworthiness because it relies on borrowing from capital markets, working consciously and insistence on using financial strength to help international capital in expansion and seek to cover every nook in the underdeveloped world in ways Different.

He continued that the bank refuses to lend to Governments which reject international debt or nationalize foreign property and opposed minimum wage laws and against unionism and all measures aimed at increasing the share of income workers.

And the World Bank aims to be shangar purchase from the open international tenders are usually for multiple companies Nationality.

Concessional loans

He stressed that financial credit was offered by the international credit institution which is a component of three World Bank International Bank for reconstruction and development and the international credit institution and IFC, which addresses the demand of third world countries regarding the provision of soft loans, as soft credits offered by the Foundation the largest value of non-concessional loans provided by the International Bank for reconstruction and development, the degree of competition and politics revolves around a civil war or authority to obtain these credits.

Concluded Dr. Abdul Karim, a key criteria for these two powers, the result is lower per capita gross $730 or so country financial solvency qualify for loans under the terms of the World Bank, and the second doses to be good economic performance is a prerequisite for both Bank loans and credit institution.

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