Privatization .. and the specificity of the Iraqi economy 3-3
30/6/2018 12:00 am
Mohammed Turki Al-Qaisi
In the first and second parts we reviewed the concept of privatization as a process supporting the Iraqi economy and the gradual abandonment of the state role in the management of these projects and give the role of the private sector to exercise its economic role, but the privatization of the oil sector will be fraught with legal difficulties,
Expands production capacity
Privatization criteria raise the dilemma that they allow foreign investment in the Iraqi economy.
This method of privatization does not guarantee Iraq's need for large amounts of foreign investment, especially that which adds and expands its production capacity, not the imaginary investment that the occupation envisages replacing the local owner with the owner Foreign currency without changing the level of GDP.
That foreign capital is in a position to bypass local capital in the ownership of government projects, which in turn stimulates the flight of Iraqi capital abroad and create an obstacle to the Iraqi economy.
What about the oil sector?
In the past, during and after 2003, there were mounting voices inside and outside the Bush administration defending the privatization of the Iraqi oil sector. These allegations are based on the need to restructure and privatize the oil sector, claiming that national oil companies have failed widely.
Moreover, privatization of the Iraqi oil sector will be used as a tool to weaken or Crashing permanently.
The most likely consideration is that privatization will encourage foreign investment towards the Iraqi economy and this claim is false as long as this flow is not restricted to public or private property.
A cadre of Iraqi specialists
The Iraqi experience in the era of the Iraqi Oil Company and its subsidiaries was not positive, that the continuing failure forced the government in 1961 to issue Law No. 80 inventory operations of the Iraqi Oil Company and the establishment of the first structure of nationalization procedures in 1972. It is true that the Iraqi National Oil Company helped to form cadre Of Iraqi specialists in the fields of the oil industry all quickly compared to the international level.
There are other considerations against privatization based on the strong interrelationship between the oil sector and the political evolution of the country since the beginning of the Iraqi political system in 1921, so the sudden rupture of this historical relationship will lead to the creation of all forms of tension and instability of Iraq.