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Economic morning: the removal of subsidies on the citizen!

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Economic morning: the removal of subsidies on the citizen!
(This Article Headlined 03/10/09)
Yasser incumbent
Prices are rising at a pace and one, starting of Ramadan until the end of Eid al-Fitr, and if we debate this period that the rising demand for food and other basic needs, it is natural and logical that prices would rise accordingly and this is recognized by the theory of supply and demand.
But let us watch as prices after this period where it is in accordance with the above-mentioned theory that prices will drop to its former level after the decrease in demand for those needs, but ..?
Strange thing is that economic theory does not work as it dynamically did not apply once the Iraqi economy not only in the former totalitarian regime or in the rules is not defined so far, transfer system change or try to move towards the capitalist system or a market economy, for example.
We believe that this phenomenon has several reasons, we call through this page and Economic Supplement economists to investigate the reasons for the steady rise despite the drop in demand and provide the solutions required to address such a flaw or economic distortion because it is damaging the Iraqi economy and according to our information, the modest stability of prices to rise may be due to the consumer behavior of the individual, where the effects of deprivation are still paying the consumer to make up for lost possessions and needs, toys, food, clothing and others.
We believe that this healthy situation in the economy of living recuperate after a tiring long and this image reflects the purchasing power of citizens, whatever their source.
But the fears of economists are of course legitimate to turn the Iraqi citizen to consumer permanent non-productive and this is what would result in the erosion of wealth on the one hand and the loss of human generations, on the other hand ..
For that we have been calling for the creation of a consumer culture respond to the influences and effects of the change coming and pre-requisites for a market economy is the most important of the adoption of the citizen on its own in the face of conditions of life and the lack of the state's role in the provision of ready-made dishes, as is the case in a totalitarian regime so we have to respond to changing requirements regardless of whether we believe it or not because it is coming inevitably and indicators ..Enter the international financial institutions in the imposition of the commandments of the removal of subsidies on the citizen? ! !
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Enter the international financial institutions in the imposition of the
commandments of the removal of subsidies on the citizen?

Is the IMF behind this as a requirement??

windreader1



MrsCK wrote:Enter the international financial institutions in the imposition of the
commandments of the removal of subsidies on the citizen?

Is the IMF behind this as a requirement??


Yes, this was one of the economic policy changes required by the IMF for the 5.5 billion that is due to be signed in Istanbul.

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