An economy after ISIS
Article: Samir Abbas Al Nassiri Publish date: 10/05/2017-22:19
Most States, especially developing States and Iraq one economic system curricula based on thought and philosophy and ideology of the political system based on economic resources and human and natural resources and infrastructure and structural focus and available to the economy and the strategic objectives to be achieved for the welfare of society and securing the basic needs of the people that make him feel that the political system works For his service and build his future
but in the political and security circumstances and economic plight of our country and particularly its troubled economic and financial crisis that started clear impact on the implementation of the plans of the Government and the private sector to contribute to economic development so that this crisis causes and current and future repercussions because of the sudden drop in oil prices in the world market And is the primary resource of Iraq economically, which is 60% of GDP, 95% of annual revenue in the general budget, failure in creating new economic resources and poor economic planning and the lack of coordination between fiscal and monetary policies and the continuation of the deficit from one year to another year in public budgets due to retain cash reserves for lack of a sovereign Fund, like other oil States.
In addition, confusion in-depth economic vision with rentier economy backgrounds and national capital migration abroad due to subjective and objective conditions above.
What interests us here is the Iraqi economy and what's new in what degrees of sophistication and backwardness in its core and what are the implications for sustainable development? What economic strategy beyond ISIS
To achieve this we propose the following:
The general framework
1. draw a roadmap progress and strategic level to rework the new economic approach to Iraq that supports the transition to a market economy mechanisms
2. activate the decisions reached in Cabinet committees experience problem in 2015 to each sector holds the economic roadmap for each economic sector and the implementation of these decisions to continue monitoring and evaluation
3. common legal Committee to rework, amend and pass new laws serve the roadmap adopted and all legislative environmental laws that regulate and manage the Iraqi economy by the new approach.
4. Design and develop policies and mechanisms to ensure partnership between private and public sector and private sector involvement in economic decisions and economic management industry and establish market leadership Council of representatives of the private sector and its functions as set out in the strategy for the development of the private sector for the years (2014-2030)
Economic reform and banking methodology proposed:
First: review, evaluate and rebuild the institutional and structural system of Economics
According to the following:-
1. establish (Economic Council) is linked to the Council of Ministers with broad participation of government experts and private sector experts together with experts and specialists and independent technocrats take over strategic planning for economy and determining operational policies and follow up and monitor the implementation and make that law by ministries and all institutions and sectors of the State and its decisions are binding after cabinet endorsement. Supervision and follow up national economic institutions:.
A National Provident Fund
B-the Supreme Committee for import and export and investment fund and the national reconstruction
D-support and protect national production
E-Commission on development of small and medium enterprises, public service Commission
II. restoration of MRA and evaluate financial and monetary policy applications
Although the Central Bank of Iraq prepare and launch of asttragith (2016-2020) which included a major and subsidiary goals to achieve financial stability and development of the banking system in accordance with the mechanisms and new points of action but that does not mean that the Central Bank has the following priorities:
1. the Central Bank and Finance Ministry to analyze the financial position of the banks, current and expected for years (2017-2020) and determine the actual need for liquidity to sustain cash circulation in the Iraqi market and revitalize the economic cycle in all fields and proactive plan to prevent bankruptcy and the collapse of some banks and perpetuate wheel banking business under the present circumstances and use new mechanisms and tools of monetary policy applications.
2. the current bank financing structure worn by many failures and constraints in order to increase the total credit and financing from banks and activate their contribution in various investment and reconstruction and promote development and move economic cycle in Iraq see as a key step towards serious is reconsidering a policy lending bank financing and activate maximize SME projects funded as a priority social and economic goal especially urgent and that the Central Bank and effective regulatory and supervisory role.
3. modify Iraq's economic legislation governing banking and economic action to promote economic and banking realities and in particular Central Bank code number (56) of 2004 and the law on banks (94) in 2004 and the company Registry Act number 21 of 1997 Iraq securities market law No 74 of 2004 and investment law (number 13) in 2006 and activate the money laundering Act.
4. the enactment of small and medium-sized enterprises and micro-enterprises to help create new jobs and reduce poverty, destitution and contribute to economic and social development plans and reduce the high unemployment rate that exceeded 28% and the deposit guarantee law and credit and loan guarantee Act and the establishment of companies involved.
5. activate the role of State banks and specialized banks and private banks to provide soft loans to the domestic private sector as well as finding solutions to problems in tax and accrued interest of entrepreneurs ceased production.
6. review instructions and regulations and guidelines for monetary policy applications and develop a proactive regulatory system accurate to follow the implementation and in particular regards external conversion currency window controlled by the Central Bank of Iraq and the elaboration of new mechanisms regarding external transfer credits and here we propose establishing a Bank for foreign trade import function implementation for the private sector, which should be prepared by the Ministry of Commerce in light of consumer need estimates.
7. securing the legal and technical requirements for an extensive Government banks twin private banks and international banks on the other, with the aim of developing and modernizing the banking payments system and monetary and financial trading operations on the edge of modern electronic banking systems applied in the countries of the world.
8. review and appraisal and the reclassification of the banks in accordance with the standards of performance and activity by adopting international standards to audit and evaluation process accounting accredited international and neutral institutions under the supervision of the Central Bank of Iraq.
9. the Central Bank is preparing an analytical study to review the reality sinks in the light of the results of its work for the year 2015 and up 31/12/2016 and make critical decisions to restructure and merge small banks and weak activity with large banks and discreet with a view to the development of the private banking sector.
Banking integration should be selected bases and means to address the problems and constraints of working for the banking sector and move from the role of finance to the developmental role.
* An economic adviser and banker