The CBI Governor Sinan Al-Shabibi and Mohammed Saleh ~ Experts criticize the national economy’s dependence on oil without industry and agriculture

June 6, 2010 · Posted in NEWS
Sunday, June 6, 2010

Experts criticize the national economy’s dependence on oil without industry and agriculture

بغداد – الصباح BAGHDAD – morning

Experts described the economy of the national economy growth rate projected for this year, estimated at 7 percent as «reasonable rate», given the reliance on oil prices, demanding at the same time the rest of the revitalization of the productive sectors to increase this rate, not just oil.

The Central Bank Governor Sinan Al-Shabibi said in an interview with Bloomberg TV U.S. on the sidelines of the economic conference held in the Lebanese capital Beirut late last May, the country will achieve a growth rate up to seven percent this year, as growth in the last year.

An advisor to the CBI the appearance of Mohammed Saleh in a statement to site «Alsumaria News, said the expectations of 7 percent in the Iraqi economy such as the growth was due to improved oil prices after the recovery of the Iraqi economy.

He explained that «Iraq’s imports depend mainly on oil, which accounts for nearly 70 percent of the imports, and improved world prices had a positive role to increase economic growth by 7 percent.

However, Saleh said that other economic sectors and semi-frozen, which makes the calculation of indicators of growth depends on the increase or decrease the price of oil.

The world oil prices have fallen sharply and reached to nearly 50 dollars in 2008 after the global financial crisis, but it rose to between 70 to 75 dollars this year.

Indicates central bank adviser to «increase this rate, it needs to save in order to build investment is very high, because the achievement of three-point increase in the ratio needed to save 16 percent of the national income of the country», calling «the government more of the concerns the Iraqi economy, in addition to that next government will be an economic government, rather than a political.

The political blocs in the House of Representatives had previously failed to reach agreement on a law to manage the oil sector and the sharing of oil revenues, due to differences between blocks on the ratios for each province, as well as how to manage the oil sector, as called the Kurdistan Alliance bloc that there be a role for the Territory or maintain with the Federal Government in the management of the oil sector, with the view that the political blocs of the oil sector should be managed by the federal authority directly by the oil ministry.

For his part, the President of the Economic Reform Institute Manaf Al Sayegh rate of 7 percent, which asserts that the central bank to achieve it as «a good ratio», pointing out that this ratio exceeded depends on the revitalization of agricultural and industrial sectors.

Sayegh said in a statement »Alsumaria News», that «the central bank relies on some indicators to determine the rates of progress in the Iraqi economy, including the amount of low inflation in the economy and the amount of money supply in the market», pointing out that «Iraq was able to control inflation in the years 2007 – 2008 – 2009, except that the revitalization of other sectors of industry and agriculture as a sector will work in a positive way to increase the rate of progress the economy.

The head of the Institute of economic reform that «the Iraqi market to date market inefficient because of the old laws and the security situation and central in the work», and expected to «improve the efficiency of the Iraqi market through increased investment, especially in the area of the housing sector, as this will positively absorb unemployment ».

For his part, says economic expert Majid image that estimates of experts in the Ministry of Planning and has developed a 9.5 percent rate of growth that was supposed to be achieved in 2010.

He adds that the picture of «economic potential of Iraq’s capable of exceeding the 7 per cent if the use potential of the state provided that they are under good management», but he also said «defect of the Iraqi economy« lies in its reliance on oil only, which will need to move towards industry and agriculture in order to activate.

Suffer the industrial sector and agriculture in the country deteriorate, particularly after 2003, has stopped a lot of state-owned factories and private no longer able to work, some of which had been closed because of their inability to compete with foreign goods.

The Government in the twenty-fifth of the month of April, in cooperation with experts from the United Nations project of economic reform includes restructuring the Iraqi economy in accordance with the requirements of the transition from the general economy centrally planned economy to the private market to ensure the expansion of the productive base of the Iraqi economy for adoption by the market mechanism and free some of its prices and trade external and internal.

But government spokesman Ali al-Dabbagh said earlier for the »Sumerian News» The «Iraq has the desire and trend to privatize its economy and move it to a market economy but not in the way required by the World Bank, but a manner that prevents the occurrence of any major damage, and not affect the rights of more than half a million workers in state institutions, as confirmed the existence of strategic vision of economic integration with all countries of the region, the disarmament of the seeds of political differences between them.

The cabinet approved the end of April, the National Development Plan Five-year (2010-2014) as the final revised by the Ministry of Planning taking the amendments proposed by some ministries into account, and made such certification to reduce the differences and barriers between urban and rural areas and the provision of infrastructure and services social, and generate new jobs and increase awareness and acceptance of the principles of sustainable development for the realization of an integrated and coherent ensure activation and investment optimized for human and natural resources in the governorates of the country’s all, and by increasing the employment rate, particularly among youth and women, increase and improve the amount of water processed for human consumption and the quality and hard work to alleviate poverty widely available in the country.

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