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The mixed sector is seeking help from the respondent?

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The mixed sector is seeking help from the respondent?

Bassel Abbas Khudair

The mixed sector is a joint investment between the state and the private sector, and the mixed sector companies are the group of joint producing companies established by the public and private sectors and individuals.

The beginning of this sector in Iraq dates back to the 1930s when the Agricultural Bank established the cement company

It promoted the idea of government and mixed private investment in advanced productive fields because of the reluctance and inability of the sector to obtain such investments.

After the emergence of the Industrial Bank (1946/1947) as an institution aimed at the development and development of industrial investment, Large companies in the mixed sector were able to make big leaps during the 1980s and 1990s (due to wars and siege) after capitalization of most of their profits and the attainment of corporate funds of about JD63 billion.

The mixed sector companies also used the accumulation of capital to return capital and add capital The companies that made a profitable profit, as the turnover of the capital of companies exceeded three times, and the purchase of assets from the land and machinery made them financially soundness has led to its sustainability so far, and the opposite happened after 2003, where the sector suffered severe damage when the companies lost what not less (30) billion dinars because of the security chaos and looting.

However, the value of its assets at current market prices is about (90) billion dinars, equivalent to three times the book value, companies have not compensated for these losses during these years, which requires attention To restore the productive status of these companies in order to contribute to the GDP, employment of the unemployed and compensation of the importer and modernize the means of production to be ambitious ambition to compensate the local product imported from abroad.

And the companies of the mixed sector, which constitute the largest shareholding companies in Iraq currently have a major role in the privatization phase.

Most of the world's advanced industrial countries treat the joint-stock companies as state property as they belong to the society.

These companies help the state in some of its tasks towards economic and social matters by developing its industry and research Specialization and the need to recruit manpower and absorb unemployment to reach prosperity economy and achieve the advantages of the establishment of mixed companies, the national economy is in urgent need to re-development of the mixed sector as the productive sector of our country (and the whole sector And most of the legislation since 2003 and till today is for the benefit of trade, not industry, and some of them are working to harm the existing industry.

Even the soft loans given to the industry were mostly for the public sector and a small part for the private sector.

However, if we look at the reality of the sectors, the situation of the public sector can be described as bad or negative despite the support of the large state and the reality of most companies in the public sector indicates the recording of large losses, despite the federal funding of their operational budgets and investment,

It is noteworthy that the General Directorate for Industrial Development, which has about 30 thousand industrial projects, 80% of them are parked, and the companies of the mixed sector, despite the damage caused most of them and deprive them of state support, Of the total 18 companies, noting that their annual budgets depend solely on their activities, and that the reasons for this decline in employment are personalized, due to general reasons and the lack of state sponsorship of the industry or subjective reasons for each mixed company that can be addressed and solutions developed.

The treatment of this sector reinforces the economic status that the mixed sector must occupy as a domestic sector and has real successes witnessed by the actual reality during the previous decades.

The goal is not to make illegal gains or to enrich certain parties, companies or individuals at the expense of others but to fill the place occupied by the mixed sector And the rehabilitation of this sector through the local product that won the public satisfaction and across the border to compete the products of many foreign companies,

the Iraqis fondly recall the products of the light industry and companies Crescent, date products, molasses and other products not And there is a great belief that the return of such products with technology and modern technology would shift the demand for them and achieve many of the economic privileges of Iraq in the case of providing some facilities and in the case of failure to address either of the reasons will not be able to address the general situation and direction (18 companies) registered in the Iraqi market for securities and to stop them will hit the stock market with a strong shake that could have a significant negative impact on the economy and investment in the naked markets

However, there are clear developments and a road map through which the mixed sector can be reactivated by the faster and easier than the public and private sectors.

Most of the proposed solutions are compatible with the government program and do not intersect with the Industrial Investment Law No. 20 of 1998 or the Investment Law No. 13 of 2006 and their amendments. One of the most prominent solutions proposed:

1. To oblige all ministries and entities not affiliated with the Ministry to purchase public, private and mixed products for the next five years at least.

2. To grant exemptions from taxes and duties when importing equipment and production requirements for the purpose of modernizing the technology used and achieving the stages of initiative and creativity.

3. Supplying the mixed sector projects with the non-commercial price of fuel and reducing the wages of electricity in exchange for guarantees that there will be no corruption with these facilities

4. Granting loans and bank facilities to existing projects without interest when the seriousness of the companies is proved through the feasibility studies that provide the objectives.

5. Granting concessions and soft loans to youth and business incubators and introducing universities as partners in the work, plans and experiences of the mixed sector to give hope to young people.

6. Allow the conversion of the sex of agricultural land to industrial if it does not have water quotas to provide guarantees not to breach the conditions on this subject.

7. Allow the establishment of food industry projects on land free of plantations to benefit from surplus agricultural production in food security and export.

8. Local governments allocate land plots necessary for the establishment of successful projects in such a way that sustainable development and decentralization will be achieved within acceptable limits

9. Formation of the Supreme Council of the mixed sector to work alongside the concerned authorities in the country, reflecting the benefit of national income and the achievement of successful indicators.

10. Activating the laws supporting the Iraqi industry such as the Industrial Cities Act, protecting the local product, protecting consumers, protecting the environment and the law of governorates and others.

11. Simplify procedures for obtaining approvals to complete the establishment of mixed projects in Baghdad and the governorates and establish windows to prevent corruption and exploitation.

12. Urge the Central Bank and banks to facilitate the granting of loans to the mixed-sector companies with encouraging advantages to provide liquidity to the companies of the mixed sector.

13. Coordination with the General Secretariat of the Council of Ministers for the issuance of the ministries of land allocation instructions for projects through Law 21 of 2008 and others.

14. Issuing legislation to consolidate the benefits of Law 20 of 1998 and Law 13 of 2006 in a manner that provides legislative support for the mixed sector.

15. The establishment by the Central Agency for Standardization and Quality Control of justice between the local and imported producer by applying relevant contexts

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• Date Added Topic: 2019/02/21
• Date of printing: 2019/02/25

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