Iraq’s economy is struggling due to central policy

 

Iraq’s economy is struggling due to central policy

Date: Monday 02/06/2012 18:31

Citizen – and agencies 
promising center «Carnegie» International Research report dealt with the economy of Iraq Almtakbt, he considered that «after about ten years to change the Iraqi regime, is still the economy of this country’s turbulent». 
The report pointed out that «so far, has not taken the measures necessary economic to strengthen the political agreements, such as the application of administrative decentralization policies in order to address the negative effects left behind by the economic regime of Saddam Hussein in the provinces, as well as enliven the economy dead in restive areas ». The report also pointed out that «for four decades, has pursued Iraqi governments economic policies based on the strategy of the central administration exclusive, leading to the impoverishment of the rest areas for the benefit of Baghdad». 
The «Carnegie» The National Development Plan for the years 2010-2014, indicate that a comprehensive analysis of the reality of Iraq’s economy on the overall level reveals significant disparities between the capital and the rest of the country (schools, health care, unemployment and development). He pointed out that the Baathist regime, deliberately through the nationalization of banks and the wholesale trade to make the transfer of systematic profit trade and investment funds from the provinces to the capital, adding that since Iraq imports most of the non-agricultural products has been able to central government, an inventory of commercial profits in the capital, depriving areas of the source was important to invest can be supplied in the provinces. The report considered that «the current Iraqi government to learn the disparity between the capital and the regions and the need to remove the central economic management», pointing out that it is aware that it must broadcast activity in the economy. 
and went on to say that «progress has been made ​​primarily to some extent on the paper along with the launch of a market economy free and cancel the control of the public sector on the economy, the text of the 2005 constitution on the distribution of oil revenues, which constitute 96% of government revenue, to the provinces according to population, and government involvement in the planning of oil and gas resources in the country and management ». 
The «Although the Constitution set the terms of reference in policies, but it is still necessary to clarify the mechanism of implementation and management ». He went on to say that «the Constitution clearly states the goal of transferring power to the structures of government subsidiary, but budgets operational currently subject to the control of the central government continues to fund management services is through the ministries concerned». 
According to the «Carnegie», the «-oriented negative taken by policy appears in the Changes between national development plans of the first and second …Where crossed the first national development plan (2005-2007) a large number of development needs and agreed that the central economic poses the problem, promoting the establishment of five centers of development in the areas to determine investment priorities and oversee the implementation of budgets at the provincial level, but the five centers yet to be formed, although Cabinet approval on the plan ». 
The Second National Plan (2010-2014) shall be allocated, according to the International Institute, additional funds (12.5 billion U.S. dollars) to address the disparities between regions, but they dropped the idea of establishing centers for development and assigned responsibilities to the provincial councils that lack to technical and managerial skills to carry out the tasks of an investment. 
He concluded by saying that «in order to allow each region to deal with their problems in a comprehensive manner, it must set its own priorities of development and their conformity with the investment strategy. Therefore, it is necessary to establish development centers, which provided the first national development plan to be set up in areas

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