Sovereign wealth Fund
29/9/2016 12:00 am
Dr Abdul Hadi's name.
Days before I met one of my friends who like economics which rain me questions whenever we met after exchanging peace walthaia take my question about the future of the current situation: how economic crises and challenges remain hovering around us?
I told him after we missed many chances and the trend towards diversification of the Iraqi economy during the "fat years" leaving us today as we live "lean years" but pray for the recovery of oil prices,
you might be surprised by the cynical answer this time, so I wanted to pick a quarrel with me said: economic solutions seem to have run out, is there a solution to address the financial crisis are not repeated at least?
I answered him hard here: Yes, my friend is still in our inventory many solutions and I will tell you about a solution as what is known as sovereign wealth funds.
In many countries this kind of boxes for motives vary from one country to another and there are States called FGF Fund as in Kuwait, and another called Government reserve fund in Oman, its goal is different, it may be economic stability, or it may be future savings and sometimes combine ends as it gets in Mexico and Norway.
International experience suggests that a sovereign wealth Fund in Iraq could contribute to enhancing the general budget to face failures in annual revenues and face unexpected deviations between public revenue and expenditure, the average balance is selected budget surplus and invest financially as sovereign investment portfolio.
The role that could be played by the sovereign Fund in Iraq is to isolate the general budget and macroeconomic shocks between other and recently in world oil prices, thus leading to a situation of stability as well as working to safeguard the rights of future generations as well as an important platform for initiating economic and social priority projects towards success in the economic development process, and here I interrupted my friend wondering This Fund will be established when important: do we have?
I said maybe if you choose a new Finance Minister be economically this time, maybe not.