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Economists: the plan "propaganda" did not address the private sector's role in Iraq

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Economists: the plan "propaganda" did not address the private sector's role in Iraq

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Five-Year Plan and the new fears of a return to the central system

Economists: the plan "propaganda" did not address the private sector's role in Iraq

Iraq News | 27-05-2010


Baghdad / agencies

Is not a five-year plans stranger to the economic system in Iraq, it has already implemented more than once, especially the seventies of the last century, and contributed to the economic boom in both the industrial, agricultural or in the field of housing and agriculture, but observers economists warn that weaken the five-year plan new approved by the Government the role of the private sector, and return Iraq to the time of the central administration.

Since nearly two years, the Ministry of Planning began preparing for a new five-year plan for the years 2010-2014 under the headline is "to achieve sustainable development" through ten specialized committees. The Iraqi government approved the plan late last April.

The plan, as is stated formally, to increase GDP by 9.38% average annual growth and to diversify the economy, which depends heavily on oil revenues, and also identified the contribution of the private sector about 46%, and called to promote decentralized management .

Despite the text of the Constitution and numerous calls to activate the role of the Iraqi private sector again, but the plan by the President of the Iraqi Businessmen Union Reza Ragheb at night, "a propaganda rather than aiming to reach concrete goals."

Does not hide his satisfaction concern that the five-year plan announced by the return of Iraq to the central system in the planning and management of the Iraqi economy "which is a private sector we need to guarantee it would not return," he said.

The implementation of the five-year plans the former regime of Saddam Hussein, has helped transform the strings of Iraqi economy into the hands of state Chea little, until he changed map of the private sector contribution to gross total of about 75% of the early seventies to 20% in the eighties, the form of the housing sector the highest proportion of it, Then, the percentage of private sector contribution to 13% in the year 2000 was the highest percentage of the agricultural sector.

According to Reza, the new plan "did not indicate how to access the 46 percent target for the participation of the private sector in GDP, did not address the contribution of a specific or how to make the merger expected between the public and private sectors", as well as the annual budget "did not specify the amount of support the private sector. " All of these things - by Reza - you need to "more than the outline, which came in the plan and enter into the details and mechanisms to be adopted."

Satisfaction and stresses that "the devil is in the end is in the implementation through the State's obligation to all requirements of the transition to a market economy, which is a major force in all countries of the world, based on the private sector."

In contrast to the optimistic tone of the authors and implementers of five-year plan, we find the voices talking about humility that will result from the plan in a precarious security, and service industry, and tainted by corruption too much like the situation in Iraq.

The economic expert Majid image that the Iraq problem before searching in the private sector and other "is the electricity in the first instance, followed by problems of infrastructure." He thinks that if there was a serious intent to address the problems of the economy, "would have been to resolve these issues which can not be a real development in the private sector without." He therefore argues that the plan "may be successful in general in the diagnosis of problems, but did not succeed in a real practical steps to eliminate it."

Graphic agree with satisfaction that there are many promotional ideas for the private sector with no clear direction to the Government with regard to public-sector enterprises and the private spheres, "where ideas ranging between privatization directly or to provide support and rehabilitation, and privatization."

For his part, said the expert, Institute of Economic Reform contrary goldsmith Five-Year Plan "did not address the issue of transition to market economy and private sector's role in Iraq is clearly the exception of some Altvasal here or there," pointing out that the next four years "does not see open area of the sector Special to enable and enhance his capabilities Fsnqa the same fatal mistake of increasing dependence on the state and therefore more marginalized than it is. "

Iraq has adopted a market system after 2003 in a manner described in the minds of economists "chaotic" because of damage to the Iraqi economy and shift to a state of open borders and dumped goods from various countries. Which may be caused by the high proportion of private sector contribution to 30%, but that figure went mostly for the commercial sector.

And select the Iraqi constitution of 2005 the market economy system economic doctrine in the country, without specifying the method and mechanism of the transition or economic transition.

In the opinion of the goldsmith, "It can not go to a market economy between overnight Legislation that we currently are based on a centralized system and we still have routine killer who works for the state's institutions," and that Iraq "has not yet established the foundations of modern management and commensurate with the requirements of the times ".

These comments received by the Member of the Economic Commission of the Iraqi parliament finished its mandate filled Baldawi said: Five-Year Plan "put into consideration the role of the private sector through involvement projects that would involve the government and reconstruction projects, there is also a role for civil society organizations as well."

The project is expected to enter the private sector during the implementation of the five-year plan is the "housing projects and the development of the provinces and territories and plans related to tourism and recreation side."

The Baldawi that the plan paid attention to "aspects of social and human were not taken precedence in previous plans, Kalahtmam groups vulnerable, poverty and the need to limit it, and the degree of achievement of the Millennium Development Goals, and the issue of institutional reform and good governance", as well as "focus on the areas of empowerment in many activities especially with regard to securing housing. "

As well as work "to achieve an increase in operating through the activation of the role of the private sector and what he believes to reduce high unemployment rates that plague Iraq now," which is expected to be "an increase of job opportunities between 3-4.5 million jobs as a result of the implementation of the plan."

At the same time Baldawi urged the private sector to "take its role and initiate action, not to wait for the state to give him work, it must take the lead for the participation of fact."

But an expert at the Institute of economic reform is contrary goldsmith indicates that the private sector can not be initiated without offering him support, "which is to support the legislation, laws, and activating the role of private banks and move to grant loans to the private sector to be able to open credits." He pointed out that all these points are missing in the new five-year plan.

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