Center for Global Studies criticizes Iraq desire to borrow from the World Bank; Despite large oil revenue growth and stability poverty on the rise
Criticized the “Global Center for Development Studies,” the Iraqi government’s desire to borrow $ 900 million from the World Bank, despite the continuous rise in Iraqi oil revenues during the recent period, which did not succeed in reducing the number of poor Iraqis whose numbers swelled to 8 million citizens.
The center, based in London, said in a statement that “the rise in world oil prices and increased production of Iraqi oil, which reached the level of 3.35 million barrels per day, not Wigan Iraq from resorting to borrowing.”
The World Bank announced in a statement on Wednesday (19 December 2012) its intention to lend Iraq $ 900 million over 4 years, and while pointing out that Iraq is still fragile and the public sector dominates the economy as a result of the legacy of central, stressed that good management of oil wealth and large resources Human Iraq, in addition to finding an effective investment climate will be the key to growth and job creation.
The statement said “Antrzalaalmi for Development Studies,” that “the observer for the details of this loan surprised how these amounts distributed over four years to create jobs and build institutions failed Iraqi budget for this year 2012, amounting to nearly $ 100 billion for do,” adding that “the Although the funds retained during the previous years amounted to $ 50 billion, the Iraqi government was unable to exploit these amounts in any significant development activities. “
The Centre indicated that “while donates the Iraqi government to other countries amounts to more than $ 30 million in one year from the budget for Iraq Federal, the nearly 8 million Iraqis live on less than one dollar a day, while nearly 7 million someone who does not know how to read and write, “noting that” Iraq is suffering from financial and administrative corruption impedes any large development process it. “
He Center that “the Iraq crisis today is not the poor infrastructure and poverty, but it also embodied in the misallocation of resources and poor skills and supervise the economic plans of the Iraqi state,” explaining that “at a time when the convergence where Iraq’s budget for next year 2013 the amount of $ 119 billion, the Iraq is still under a centralized economy which is controlled by the state and the recent crisis, the central bank only one of the signs went Iraq towards more central in a time when the country needs to a free economy. “
The statement continued that “the features of the Iraqi economy looks troubled and distorted often Instead of encouraging investment climate and to create an attractive environment for companies operating the Iraqi government on the military build-up and prepare for the atmosphere of war,” pointing out that “the Iraqi government, which tried and severely pass a law allowing them to borrow more than $ 20 billion to support infrastructure buy today and aircraft weapons more than $ 12 billion, while borrowing billions of dollars found allocates $ 20 billion classified under services and other expenses in next year’s budget. “
He concluded the center to be “Iraqi experience in borrowing billions of dollars over the past years will not be able to overcome the current crises as long as Iraq remained under the mentality that governed, can not succeed in Iraq build its economy in light of a dispute all parties it, because everyone will be a loser and will not there will be no winner. “
It is said that Baghdad says it aspires to private companies play a prominent role in rebuilding the country and reviving the energy sector after 9 years on the US-led invasion that toppled Saddam Hussein, but that the reality of wear in the infrastructure as a result of years of wars and economic sanctions against the interests of investors, which makes it imperative for the Iraqi authorities seek to attract investment reforms to the banking sector and the construction of housing units, roads and solve the crisis continued drop in voltage, and improve performance in the Iraqi oil sector due to poor infrastructure and means of supply.
The Iraq Iraq has the third largest oil reserves in the world, depends on oil revenues in the budget resources by 95%.