Iraqi politicians and economic experts agree with IMF warnings over oil dependence

Posted by on Dec 30, 2013 | Leave a Comment

MPs and experts in favor of warnings from the International Monetary Fund Iraq’s dependence on oil

Warned parliamentarians, economists and oil, last Sunday, of the consequences of Iraq’s dependence entirely on oil, and have expressed their support for the report by the International Monetary Fund on the performance of the local economy, and while confirming the parliamentary Finance Committee that they had already informed the government repeatedly remarks similar without having any reaction because the officials “lack insights economic future”, he saw an economist that the problem of Iraq’s funds is that they “run around irrational,” warned an oil expert of the consequences of non-crystallizing economic vision for the future.

was the report of IMF experts on Article IV consultations with Iraq in 2013 the current, which was obtained (range Press), a copy of which may be asserted in one of its aspects, that Iraq still depends entirely on oil, with the presence of the structure of spending a rigid, low foreign direct investment, and the weakness of the business environment and the government, and that the financial system in Iraq “late strongly” to keep pace with development, expecting the survival of macro-economic outlook, “driven by developments in the oil sector”, in light of the continued rise in foreign reserves.

Parliamentary Finance: As long as we raised similar observations but there is no response to her
and see a member of the Finance Committee Parliamentary, Magda al-Tamimi, in an interview to the (long-Presse), said that “the observations contained in the report of IMF experts on Article IV Consultation with Iraq in 2013 the current, and others, addressed the Commission since 2011 last year, as confirmed at the time that the problem in the Secretariat Cabinet tarnished Project Unified Retirement, “indicating that” Iraqi officials do not think the interests of the country and do not take the recommendations and economic visions provided by Parliament for them. “

adds Al-Tamimi, that “the Commission has long offered such observations similar to those contained in the World Bank from the stomachs to alert her One of the government officials, “afterthought said,” but perhaps mindful concerned now on the report of experts Monetary Fund guardian, because they tend to view foreign more than Iraq. “

explains a member of the parliamentary Finance Committee, that “the decision in Iraq strictly non-political not economic, because officials lacked visions of future economic “, and demonstrate, however, that” the state budget prepared by the experts and spend the time and effort, thrown in drawers and progress of the parliament again different. “

It is noteworthy that the state budget as long as progress late in the year to the parliament, but the government did not send even Now to the Parliament during the year 2013 the current, which is likely to lead to a delay in approval by about affect service projects and programs of the provinces, especially with the start of the countdown for the parliamentary elections and exacerbate the differences and tensions between the political blocs.

Economist: Iraq’s funds are managed irrational
and sees an economist , that “the problem of Iraq’s funds is that they are managed by about irrational, since the disposal of large amounts of money without results, or they are weak are not commensurate with the size and potential of human and material resources enjoyed by Iraq.”

says Majid picture, in an interview to the (long-Presse) , said that “the economic problem basically lies in the lack of a sound environment for the work of the private sector or stimulate productivity, and lack of appropriate legislative environment to achieve economic growth,” adding that “the scarcity of electricity does not fit the growth of infrastructure in the agricultural and industrial sectors, which led to the weakness of domestic production . “

and follow the picture, that “reports of IMF experts and realistic, and rely official statistics issued by the Iraqi government,” and expressed surprise at the “lack of government’s efforts to provide a suitable environment for the work of the private sector, especially the public sector is still consumes more than it gives.”

explains economic expert, that “solutions that depend on them the government in the elimination of unemployment is exaggerating the administrative apparatus,” pointing out that “the administrative apparatus of the state has increased from 850 thousand employees, including military personnel, to about four and a half million, including retirees.”

Iraq has suffered from high unemployment, both among young people who are able to work or between university graduates, and is believed by many economists that the statistical estimates for these young people do not necessarily reflect the reality that already exists.

former oil minister: total reliance on oil poses a threat to the Iraqi economy and confirms oil expert that ” Iraq has not been able since 2008 and until now crystallizing vision of sound economic nation-building “, proving that the” economy remains dependent on oil as the basis in Moisnath, without did not constitute agricultural and industrial sectors and service ratio of merit in the gross domestic product. “

says expert The oil minister, a former Ibrahim Bahr al-Ulum, in an interview to the (long-Presse), said that “lack of crystallization economic vision is one of the risks key to the future of Iraq,” is that “Iraq is not yet able to employ oil revenues which exceeded more than 600 billion dollars During the past ten years, the diversification of the economies of the country around believes safeguards the future. “

and demanding Bahr al-Ulum, the political blocs need to “submit their projects economic seriousness, especially as it moves to contest the legislative elections, on the grounds that the economy will be the governor during the next phase,” and promises to “any bloc or party does not have such a vision of integrated economic to rid Iraq of the impasse unilateral or rent will face failure. “confirms the expert and the oil minister, former, that” the International Monetary Fund from organizations ancient, and must take its recommendations, especially that he familiar with the structures of spending in Iraq, ” And bridge that “most aspects of the budgets of the state goes to the tunnels, and the investment budget for Iraq a few, and still the central governor on most projects, in light of the failure area banking and finance.”

explains Bahr al-Ulum, that “the most dangerous of all, is the lack of transparency in Iraq particularly in the launch plans future productivity of the oil sector, as happened in 2010, when Iraq tried to put it on the public and the international community, “and goes on to” the numbers presented today has become unworkable. “

and went on oil expert, that “Iraq should benefit from its oil wealth , and do gas investment, which is the dilemma basis that can be graduating from the neck of the bottle, “It is considered that this would” contribute to control the volatility of the oil market potential. “

It is noteworthy that Iraq’s oil reserves of up to 140 billion barrels, which is the fastest growing in terms of export between OPEC countries and the rest of the world, where it is hoped that this will lead to a jump that has produced a boom from 2010 onwards, and the current production is estimated to Iraq with 3.2 million barrels per day, an increase of about one million b / d from 2007. The highest level of production achieved by Iraq in its history, is 3.8 million b / d in 1979, and jumped Iraq this level of export to second place, surpassing Iran, which is now in third place.

mention that the last economic and financial indicators of Iraq, confirming that the rate of price inflation basis , became in 2013 the current 5.0%, after it was 4.2% in 2012, the past, which means that there is an increase in inflation, at a time when the indicator shows that oil production after it was in 2012, 2.95 million barrels per day, is expected to increase later this year to 3.33 million, bringing the Iraqi per capita GDP to 67.8% in 2013, after it was 63.5% in 2012, which means that the share of the Iraqi individual to be in 2013 Current 0.6300 dollars annually.

announced that the United Nations Mission in Iraq (UNAMI), in (22 October 2013), that six million Iraqis out of 33 million, still live below the poverty line in the country beyond the budget of Finance’s annual 100 billion dollars.

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