Conscious / privatization and its impact on the Iraqi reality / Studies Part I
07/04/2010 08:16:00 PM Wednesday Vivvo
Conscious / unconscious Center for Studies and Research / Sadiq Tima behind
Privatization is Important topics In the economy but highlights the role after the decline and the failure of the socialist system. If we want to follow the emergence of this idea, we found an old idea, with the view of some economists that the emergence of privatization Liberal economic thought (the classical school) came at the hands of Adam Smith in the writing of The Wealth of Nations, which was published Year (1776) m depending on the forces of individual Alsoqoualempawarat Alt_khassotksim in order to increase employment and thereby achieve economic efficiency, both at the partial or total way ideas are linked More Directly Policy Privatization
In the modern era Appeared jaw privatization Under this name (privatization) in the year 1979.
As called for the application of the idea of privatization Mrs. Margaret Thatcher, Prime Minister of Britain (UK RAAN), which diverted many From state-owned enterprises to public ownership.
In Iraq, by the former regime in 1988 to pursue a policy of privatization and through the sale of part of its facilities and institutions Economic and trade have increased the transition from public to private sector and because Tosrovcl the socialist system of the Soviet Union and the successes of capitalism and the spread at the expense of socialist doctrine had been adopted Political Privatization In most countries of the world.
But after the fall of governing in (2003) and the subordination of Iraq to Paris Club terms, and the International Monetary Fund Imposed Races on some measures in order to support the Iraqi economy and the introduction of market economy and liberalization of trade and prices and raise Government support services and the ration card and the removal of subsidies on oil derivatives, and here it was incumbent upon the Iraqi government attention to the issue of privatization Through the establishment of the privatization of the implementation of economic reform program to rebuild the economic sectors and a commitment to international conditions return for eliminating the bulk of the external debt on Iraq.
Importance of research
Importance of research to back political privatization, which it is able to countries to achieve the required development, particularly in developing countries that suffer from many Problems as a result of economic projects and the lack of profitability. Add to that the increasing economic efficiency In project management and rates of economic growth by eliminating Institutions and government projects, loss-making and give a greater role for the private sector and attracting investment Domestic and foreign, to reactivate and develop the financial markets and reduce the size of public debt.
The purpose of the research
There is no doubt that the purpose of this research is to provide a detailed study On this important topic after the political and economic changes that have occurred after the fall of the former regime and fears of implementing this idea to engage in intercourse Iraq's economic and ignorance of much of this policy and its aims and disadvantages, and methods of implementation, which was born to our desire to discuss this topic for its importance and dimensions, economic and social impact and familiarity Bhz issue has divided this Search into two classes we will in the first quarter and the concept of privatization is then a conclusion We will discuss the highlights of Matouselna its findings and recommendations.
Chapter One
To define the concept of privatization, we must define K_khasp and types and methods and to clarify the advantages and disadvantages of policy Privatization
Based on the foregoing we will divide Two sections of this chapter to We will first section, the definition of privatization and types And methods
We will set aside the second topic to talk about the benefits of privatization.
First research
Definition of privatization and the kinds and methods
We will discuss in this topic and throughout the three demands
The first demand
The definition of privatization
D known. Mahmoud Sobh as privatization (efficiency in the management and operation of public projects and rely on the mechanics Market and get rid of the central bureaucracy, which means that privatization here we go to the Department By the private sector for the state to retain ownership of the projects in the tourism sector such as hotels and hospitals in the Gaza Health services, etc.).
D as defined. Jabbar Sheikh Mohammed Hammadi privatization generally it (the transfer or conversion work is wholly or partly from the public sector to the private sector in order to achieve social goals)
While the opinion of Dr. Said Ismail privatization is that (transition to private ownership through the sale of the entire project to the private sector)
Through the above can be defined (privatization) that the transfer of ownership of public enterprises partly or wholly to the private sector is either the process of privatization laws, procedures and activities for which the transfer of ownership of some asset management units of the public sector to the private sector.
The second requirement
Types of privatization
There are many types of privatization are as follows:.
1- privatization of realism.
2- Privatization tactical (temporary)
3-Privatization of structuralism.
In short, we will discuss these types:.
First: privatization realism
This type of privatization usually is performed by its units away from bureaucratic interference and political pressure have been carried out this kind in the United States in decades, municipal (local) U.S.
With private sector operators to provide public services. But in developing countries may be motivated by internal crises on the economic problems faced by communities such as the budget deficit and balance of payments deficit of Foreign Affairs in conjunction with a plan to reduce spending. It is the best way to maneuver between the parties in their different beliefs especially during the parliamentary elections or presidential elections, where each political party believes this method, the option will give him support and support for individuals and the acceptance of its program and the application of this type Privatization requires public awareness of the economic reforms undertaken by the state, such as privatization.
Second: the privatization of tactical (temporary):.
Resort to this type of privatization politicians, heads of state and political parties, which aims to achieve the goals of short-term political reason for this desire to change the balance of power by winning allies and reward supporters and thus the opposite of privatization realism and such a practical application, as happened in the sales assets undertaken by the Government Hidal in France in the period from 1986-1988 and was the target in its application when that win elections.
Third: privatization structural:.
This kind of privatization means transfer of responsibility for the government to market economy, which will lead to changing the institutional framework through which citizens can Altobeiran their individual interests and social and promotion of it is built on more solid foundations of realism and tactical privatization and create effects far beyond The aim of this type of privatization to address problems of long-term, and changes in the relations between the layers of society and addressing the structural imbalances and structural for the economy in general.
Can take one to Aashkal
1- the multiplicity of the interests of the working classes and to suit the objectives of each phase and are sometimes called (transfer of power centers), which means the distribution of vacancies and removal from the public sector to the private sector because the private sector to lack of organization and expertise.
2- make a lasting change in the concepts and ideas, culture and the public so as to expand the activities, in particular individual and that no state may control. In addition to expanding the role of the private sector.
3- As to Valencia for the third form of privatization is concerned with the structural restructuring of the institutional arrangements of the community both on the economic side and this type of political decision-making is, however, the private sector through incentives to individuals and groups
The third requirement
Through privatization
Privatization of different ways and each has advantages and disadvantages and Iatbrakhciar way of the most important elements of a successful privatization process and stop this option to turn on a number of elements of the most important objectives of privatization and the size of companies to be privatized and the sophistication of financial markets and the nature of the buyers and investors in light of security and economic situations and the nature of the Iraqi economy.
It can identify the most important methods and techniques used in the conversion of public property to private ownership:.
1- Depression public and private
2- The liquidation of the entire facility or sale of the business to its employees
3- ( Bot 3 - Leases and management in accordance with the concession system (Bot ) )
4- a debt swap and the system of coupons for the participation of low-income
5- Re-organization and the division of public projects
6- selling to one investor
We will address these methods in some of the shortcut with an indication of the advantages and disadvantages of each method and style of them.
1- Depression and public sectors:
Appropriate way of public offering of shares is for the Government to announce the project contributed to the year for all in the stock market. The private placement of shares will be presenting the project year for sale for a group of investors or private institutions is done through a system of auctions or tenders. May not be the style of a public offering of shares appropriate of printed verbatim from many developing countries the lack of sophisticated capital markets and a decline in liquidity and the small size of projects and suitable for this method with the developed countries or developing countries, with large projects and available liquidity and sophisticated financial markets.
This method has its advantages To expand the ownership base of the masses and expand the pro-privatization being re-ownership of public enterprises to the people, either style of putting it for shareholder advantage of the flexibility and the buyer can develop the project through increased efficiency, productivity and economic, according to his will, and faulted for this approach is that it excludes small investors have resorted to the sale of the project and dismantle it and therefore stop the project activity as there are difficulties in determining the Saradl of the project as there are difficulties in determining the fair price for the project because this is the price determined by the desire of the buyer and not the government.
2- The liquidation of the entire facility or sale of the business to its employees as far as sale of assets, which goes out to the government to liquidate public project or enterprise through auction and this style features:.
1- get the state to large amounts of short-period compared to the period you take the offering of shares in the stock market
2- get rid of debt and the continual loss of projects with low economic efficiency
The disadvantages are:.
1- this competition a few projects and receives lower evaluation has been borne by the State indebted because of these projects with low financial value.
2- the injury Community and the public interest by charging the state to impose any financial burdens
The sales technique of workers to the project, which means the conversion of the company or facility or any public institution to a private company through ownership by the company to employees of the affiliated workers and administrators and this method has several advantages.
1- Achieving peace of mind for workers through the overall project has
2- spare the state of confrontation and rejection at the privatization of The overall project
3- Leases and management ( Bot According to the concession system (Bot ) )
This approach involves the separation of ownership and management and tracking of the Government in this style contracts ( Bot Leasing and Management and the advantages of this technique to provide liquid cash flow to the government on specific dates and the survival of ownership of assets between the state. The system starch-operate-transfer (Bot ) Vtattabrhzh way of franchising and leave the system to the privatization of infrastructure projects such as water and power plants, airports, roads, bridges and ports. This technique States prefer the ease and feasibility
4- a debt swap and the system of coupons for the participation of low-income.
The system of barter on the idea of replacing the creditors for the debts of shares in some of the projects that have been privatized this way was one of my favorite styles, especially in developing countries suffering from external indebtedness as well as countries that suffer from lack of domestic savings.
As for vouchers, charter schools comes in line with socio-economic conditions in developing countries and poverty-ridden As the government's aim of this technique to give the community greater participation and wider ownership of public enterprises.
5- Re-organization and division of public projects.
This technique is based on the gradual privatization of public enterprises. And the reform and reorganization of public enterprises, a tactic suited to developing countries despite the difficulty of the reform projects of the existence of unemployment and rising external indebtedness.
6- selling to one investor:
The government resorted to this method the presence of loss-making companies or projects and a few non-profits are encouraged to negotiate with the investor to sell the investor to be able to promote this company and transfer of loss-making situation to a successful company make a profit.
Through the above, we find that these methods may be overlooked in all circumstances, such as Iraq may be one of the approaches appropriate for the case of Iraq, the lack of sophisticated capital markets in addition to the economic situation.
There are ways and methods to end state ownership, including:.
1- Direct sales to investors
2- Sale of shares through the financial markets
3- Sale by auction
4- Sale of the unemployed and management or administration
5- filter
6- vouchers, charter schools
There are ways and methods to Atnei state ownership
1- Transfer to the companies to joint stock companies
2- Reconstruction of the structure and repair established by:.
A - management contracts
B - Lease
T - concession
W - contract
C - Projects
07/04/2010 08:16:00 PM Wednesday Vivvo
Conscious / unconscious Center for Studies and Research / Sadiq Tima behind
Privatization is Important topics In the economy but highlights the role after the decline and the failure of the socialist system. If we want to follow the emergence of this idea, we found an old idea, with the view of some economists that the emergence of privatization Liberal economic thought (the classical school) came at the hands of Adam Smith in the writing of The Wealth of Nations, which was published Year (1776) m depending on the forces of individual Alsoqoualempawarat Alt_khassotksim in order to increase employment and thereby achieve economic efficiency, both at the partial or total way ideas are linked More Directly Policy Privatization
In the modern era Appeared jaw privatization Under this name (privatization) in the year 1979.
As called for the application of the idea of privatization Mrs. Margaret Thatcher, Prime Minister of Britain (UK RAAN), which diverted many From state-owned enterprises to public ownership.
In Iraq, by the former regime in 1988 to pursue a policy of privatization and through the sale of part of its facilities and institutions Economic and trade have increased the transition from public to private sector and because Tosrovcl the socialist system of the Soviet Union and the successes of capitalism and the spread at the expense of socialist doctrine had been adopted Political Privatization In most countries of the world.
But after the fall of governing in (2003) and the subordination of Iraq to Paris Club terms, and the International Monetary Fund Imposed Races on some measures in order to support the Iraqi economy and the introduction of market economy and liberalization of trade and prices and raise Government support services and the ration card and the removal of subsidies on oil derivatives, and here it was incumbent upon the Iraqi government attention to the issue of privatization Through the establishment of the privatization of the implementation of economic reform program to rebuild the economic sectors and a commitment to international conditions return for eliminating the bulk of the external debt on Iraq.
Importance of research
Importance of research to back political privatization, which it is able to countries to achieve the required development, particularly in developing countries that suffer from many Problems as a result of economic projects and the lack of profitability. Add to that the increasing economic efficiency In project management and rates of economic growth by eliminating Institutions and government projects, loss-making and give a greater role for the private sector and attracting investment Domestic and foreign, to reactivate and develop the financial markets and reduce the size of public debt.
The purpose of the research
There is no doubt that the purpose of this research is to provide a detailed study On this important topic after the political and economic changes that have occurred after the fall of the former regime and fears of implementing this idea to engage in intercourse Iraq's economic and ignorance of much of this policy and its aims and disadvantages, and methods of implementation, which was born to our desire to discuss this topic for its importance and dimensions, economic and social impact and familiarity Bhz issue has divided this Search into two classes we will in the first quarter and the concept of privatization is then a conclusion We will discuss the highlights of Matouselna its findings and recommendations.
Chapter One
To define the concept of privatization, we must define K_khasp and types and methods and to clarify the advantages and disadvantages of policy Privatization
Based on the foregoing we will divide Two sections of this chapter to We will first section, the definition of privatization and types And methods
We will set aside the second topic to talk about the benefits of privatization.
First research
Definition of privatization and the kinds and methods
We will discuss in this topic and throughout the three demands
The first demand
The definition of privatization
D known. Mahmoud Sobh as privatization (efficiency in the management and operation of public projects and rely on the mechanics Market and get rid of the central bureaucracy, which means that privatization here we go to the Department By the private sector for the state to retain ownership of the projects in the tourism sector such as hotels and hospitals in the Gaza Health services, etc.).
D as defined. Jabbar Sheikh Mohammed Hammadi privatization generally it (the transfer or conversion work is wholly or partly from the public sector to the private sector in order to achieve social goals)
While the opinion of Dr. Said Ismail privatization is that (transition to private ownership through the sale of the entire project to the private sector)
Through the above can be defined (privatization) that the transfer of ownership of public enterprises partly or wholly to the private sector is either the process of privatization laws, procedures and activities for which the transfer of ownership of some asset management units of the public sector to the private sector.
The second requirement
Types of privatization
There are many types of privatization are as follows:.
1- privatization of realism.
2- Privatization tactical (temporary)
3-Privatization of structuralism.
In short, we will discuss these types:.
First: privatization realism
This type of privatization usually is performed by its units away from bureaucratic interference and political pressure have been carried out this kind in the United States in decades, municipal (local) U.S.
With private sector operators to provide public services. But in developing countries may be motivated by internal crises on the economic problems faced by communities such as the budget deficit and balance of payments deficit of Foreign Affairs in conjunction with a plan to reduce spending. It is the best way to maneuver between the parties in their different beliefs especially during the parliamentary elections or presidential elections, where each political party believes this method, the option will give him support and support for individuals and the acceptance of its program and the application of this type Privatization requires public awareness of the economic reforms undertaken by the state, such as privatization.
Second: the privatization of tactical (temporary):.
Resort to this type of privatization politicians, heads of state and political parties, which aims to achieve the goals of short-term political reason for this desire to change the balance of power by winning allies and reward supporters and thus the opposite of privatization realism and such a practical application, as happened in the sales assets undertaken by the Government Hidal in France in the period from 1986-1988 and was the target in its application when that win elections.
Third: privatization structural:.
This kind of privatization means transfer of responsibility for the government to market economy, which will lead to changing the institutional framework through which citizens can Altobeiran their individual interests and social and promotion of it is built on more solid foundations of realism and tactical privatization and create effects far beyond The aim of this type of privatization to address problems of long-term, and changes in the relations between the layers of society and addressing the structural imbalances and structural for the economy in general.
Can take one to Aashkal
1- the multiplicity of the interests of the working classes and to suit the objectives of each phase and are sometimes called (transfer of power centers), which means the distribution of vacancies and removal from the public sector to the private sector because the private sector to lack of organization and expertise.
2- make a lasting change in the concepts and ideas, culture and the public so as to expand the activities, in particular individual and that no state may control. In addition to expanding the role of the private sector.
3- As to Valencia for the third form of privatization is concerned with the structural restructuring of the institutional arrangements of the community both on the economic side and this type of political decision-making is, however, the private sector through incentives to individuals and groups
The third requirement
Through privatization
Privatization of different ways and each has advantages and disadvantages and Iatbrakhciar way of the most important elements of a successful privatization process and stop this option to turn on a number of elements of the most important objectives of privatization and the size of companies to be privatized and the sophistication of financial markets and the nature of the buyers and investors in light of security and economic situations and the nature of the Iraqi economy.
It can identify the most important methods and techniques used in the conversion of public property to private ownership:.
1- Depression public and private
2- The liquidation of the entire facility or sale of the business to its employees
3- ( Bot 3 - Leases and management in accordance with the concession system (Bot ) )
4- a debt swap and the system of coupons for the participation of low-income
5- Re-organization and the division of public projects
6- selling to one investor
We will address these methods in some of the shortcut with an indication of the advantages and disadvantages of each method and style of them.
1- Depression and public sectors:
Appropriate way of public offering of shares is for the Government to announce the project contributed to the year for all in the stock market. The private placement of shares will be presenting the project year for sale for a group of investors or private institutions is done through a system of auctions or tenders. May not be the style of a public offering of shares appropriate of printed verbatim from many developing countries the lack of sophisticated capital markets and a decline in liquidity and the small size of projects and suitable for this method with the developed countries or developing countries, with large projects and available liquidity and sophisticated financial markets.
This method has its advantages To expand the ownership base of the masses and expand the pro-privatization being re-ownership of public enterprises to the people, either style of putting it for shareholder advantage of the flexibility and the buyer can develop the project through increased efficiency, productivity and economic, according to his will, and faulted for this approach is that it excludes small investors have resorted to the sale of the project and dismantle it and therefore stop the project activity as there are difficulties in determining the Saradl of the project as there are difficulties in determining the fair price for the project because this is the price determined by the desire of the buyer and not the government.
2- The liquidation of the entire facility or sale of the business to its employees as far as sale of assets, which goes out to the government to liquidate public project or enterprise through auction and this style features:.
1- get the state to large amounts of short-period compared to the period you take the offering of shares in the stock market
2- get rid of debt and the continual loss of projects with low economic efficiency
The disadvantages are:.
1- this competition a few projects and receives lower evaluation has been borne by the State indebted because of these projects with low financial value.
2- the injury Community and the public interest by charging the state to impose any financial burdens
The sales technique of workers to the project, which means the conversion of the company or facility or any public institution to a private company through ownership by the company to employees of the affiliated workers and administrators and this method has several advantages.
1- Achieving peace of mind for workers through the overall project has
2- spare the state of confrontation and rejection at the privatization of The overall project
3- Leases and management ( Bot According to the concession system (Bot ) )
This approach involves the separation of ownership and management and tracking of the Government in this style contracts ( Bot Leasing and Management and the advantages of this technique to provide liquid cash flow to the government on specific dates and the survival of ownership of assets between the state. The system starch-operate-transfer (Bot ) Vtattabrhzh way of franchising and leave the system to the privatization of infrastructure projects such as water and power plants, airports, roads, bridges and ports. This technique States prefer the ease and feasibility
4- a debt swap and the system of coupons for the participation of low-income.
The system of barter on the idea of replacing the creditors for the debts of shares in some of the projects that have been privatized this way was one of my favorite styles, especially in developing countries suffering from external indebtedness as well as countries that suffer from lack of domestic savings.
As for vouchers, charter schools comes in line with socio-economic conditions in developing countries and poverty-ridden As the government's aim of this technique to give the community greater participation and wider ownership of public enterprises.
5- Re-organization and division of public projects.
This technique is based on the gradual privatization of public enterprises. And the reform and reorganization of public enterprises, a tactic suited to developing countries despite the difficulty of the reform projects of the existence of unemployment and rising external indebtedness.
6- selling to one investor:
The government resorted to this method the presence of loss-making companies or projects and a few non-profits are encouraged to negotiate with the investor to sell the investor to be able to promote this company and transfer of loss-making situation to a successful company make a profit.
Through the above, we find that these methods may be overlooked in all circumstances, such as Iraq may be one of the approaches appropriate for the case of Iraq, the lack of sophisticated capital markets in addition to the economic situation.
There are ways and methods to end state ownership, including:.
1- Direct sales to investors
2- Sale of shares through the financial markets
3- Sale by auction
4- Sale of the unemployed and management or administration
5- filter
6- vouchers, charter schools
There are ways and methods to Atnei state ownership
1- Transfer to the companies to joint stock companies
2- Reconstruction of the structure and repair established by:.
A - management contracts
B - Lease
T - concession
W - contract
C - Projects