The repercussions of the political process on the Iraqi economy .. Responsibility?

D. Kamal Optical is no doubt that the political process in Iraq is an advanced experience for the Arab region (so far), but the experience is still young. That the requirements of newborn care to review the impact of the political process on economic performance in order to enhance the experience of political hope is that everyone, and also to deliver a message to educate citizens so that he can use his voice in the electoral rationalization. For the purpose of addressing the subject to be subjected to the relationship between the political process and economic development.


This article comes on the sidelines of a seminar for the Iraqi Institute for Economic Reform in 23/6/2012, which was attended by a number of professionals and owners of thought and political experience, including: d. Mehdi Hafedh, d. Raed Fahmi, professor Amerabd Jabbar, d. Abdul-Samad Sultan, Judge Wael Abdul Latif (who are former ministers) in addition to former MPs and a group of businessmen and civil society organizations … Etc.. As well as the workshop hosted by the World Bank on 25.6.2012 which relates to discuss the Bank’s report on the factors of civil rebellion.

Since confirmed the report for a very serious political turmoil in countries that suffer congestion politically (for reasons of sectarian or national) and not possess the elements of good governance, even if those countries have achieved economic growth. Article dealing with the political process after the Iraqi economy and demonstrate that poor economic performance due to the entrenched interests of the political process at the expense of the public interest. And suggest that Masssat weakness of civil society and its inability to rationalize the political process because of the lack of support, and concludes that the citizen’s awareness is an important factor in correcting the political process.

However, the current situation threatens the seriousness of the matter is reflected by the indicators that came in the questionnaire bully and young people conducted by the Ministry of Planning in 2009 and were some of the results as follows:

that the number who believe that the political practices have become the preserve of men, 30.5 percent, and the number who believe that terrorist groups lead to instability, security does not exceed 66.5 percent, and the proportion who believe that they have opportunities to discuss their views and make their voice heard in political organizations, 5.8 percent, and the proportion of do not trust political action 41.4 percent, and the proportion of those who support political transformations 56.7 percent, and the number who believe the right’s most important is equal to Iraqis before the law without discrimination 40.6 percent, and the proportion who Aaaadon work for women 42.9 percent, and the number who believe that women are less status than men does not exceed 68.7 percent, and the proportion of those who feel happy for the time being 58.5 percent and the proportion of young optimist 60.1 percent, and the proportion of practicing reading 21.5 percent, and the proportion of know how to use the computer 35.2 percent, and the proportion of those who use the Internet 13 percent, and the proportion of those who wish to participate in social activities 27.2 percent, and the proportion of supporters of the work of early 30.3 percent.

Add to the foregoing that the percentage of those who have not enrolled in education is 6.2 percent good, and drop-out rate from education for the age group (10-14) is 13.9 percent, and for the age group (15-30) more than half. that international experience confirms the strong relationship between political stability and economic development, as it can not be for the economy to grow and thrive in an environment that does not take place where the Stability political.

It generates political instability at the level of private sector high risk for the business and may lead to the migration of capital, and in the public sector leads to the instability of the economic programs and plans. Perhaps the best way to address the issue of political stability and its impact on the economy is through the consumption of vocabulary Miaraf «good governance», which include: the adoption of efficiency and the development of the individual in the right place, the vision strategy, a sense of responsibility, transparency, ensuring the rule of law, ensure the participation and acceptance unanimously and equality. Has shown a lot of testing strong relationship between efficiency (profitability) of the foundation and provide the elements of good governance.

For example, in the study included a number of East Asian countries (Thailand, Malaysia, Korea, Taiwan, Indonesia) and found that the values of buying shares of companies with good governance is higher by 25 percent, and that the foreign investor willing to pay a gain of 10 percent higher than local investors. Add to the above that the successful economic experiences in Korea, Japan and Singapore have not been achieved thanks to the natural resources but thanks to good governance and political stability. While other countries such as «Nigeria» has not been achieved in economic development, despite the availability of natural resources due to the absence of good governance and political stability.

On the other hand, found that countries that suffer from the political divide and the lack of social cohesion (as in the countries of sub-Saharan Africa) effect in the delay of economic development. We are in Iraq, we find that political competition is characterized as a competing social strata with after a national, religious or geographical rather than competition for economic programs, was reflected on the economic performance because of this competition.

The following will address the vocabulary of good governance, one after another and the reference to conditions in Iraq.

First: the adoption of competencies (development of the individual in the right place):

I have encouraged the political process to create the case of a negative is to give priority to quotas on the legitimacy of efficiency and the development of the individual in the right place, have been reflected internally twice the administrative performance in the various facilities and the weakness of economic achievement (for example twice ratios implementation of investment projects, which range between 5 percent to 70 percent, and delayed reforms necessary to achieve), and the absence of external negotiator, who can take the issue of Iraq and negotiate competently to get the rights of Iraq or take advantage of opportunities or the transfer of useful experiences.

For example, the water problem with Turkey, that State which provided it with Iraq, economic opportunities not provided by other countries throughout history as the value of the economic relationship in favor of Turkey’s $ 13 billion (the lowest estimate). Yes, we understand the reasons and motives at the beginning of the political process and continue but it is something else. You have reached the limits of government resources is currently $ 100 billion and that the size of the resource management requires a really efficient and professional manner (if such an amount of capital it is safe to put this money, however, such as inefficient). In spite of the political administration had moved to the Iraqi political leaders after the mid-2004 but so far we do not find economic plans Court, the current plans are just the wishes of individual officials, not accompanied by economic feasibility studies and planning administrative them.

It also does not inform the Council of economic energies of Iraq (at home and abroad) to draw the financial and economic policies. In this area we have to say that Iraq was and still is eligible to take advantage of foreign expertise, but it was lacking to pick out these opportunities properly. Despite the presence of a large number of consultants, personnel of international institutions, but they lack the proper guidance and follow-up, causing it to waste a lot of energy and potential and loss of time. Although the Iraqi competencies exist in parts of the world, there were not serious attempts to attract. Was better for the work of the establishment of a body of qualified Iraqi-style bodies, which was formed recently, the government is working to provide technocratic administration and financial allocations appropriate to do so. And that the absence of such a body and reality means the continuation of wasting money by departments is efficient.

the absence of technocrats, quality and quantity required and the lack of political consensus to the absence of or delay in the preparation of the strategy agreed economic means expedite economic reform and raising the suffering of poverty and deprivation. The delay in the reform of economic institutions and of companies and the Ministry of Industry, for example, the reform of State-owned banks, which represent a factor necessary for the growth of the market and the private sector and delayed repair policy support Alaguetsidi government (ration card), and could not conduct the census is necessary for the planning of development projects to the period of time is unknown, and late to join World Trade Organization … etc.. Despite the strategic dimension to the private sector as stipulated in the Constitution, the economic performance since 2004 until now, confirms that the contribution of the private sector in GDP has become less than it was previously because of the weakness of capital formation in the private sector. The federal budget has been far from sound economic planning. It also resulted in the absence of important laws such as oil and gas law, which is a pillar of the strategic mission has contributed to lack of political consensus since 2007 not to approve the law, such as the oil law, there are other laws, even those that won them the legislation missed the implementation such as the customs tariff, and consumer protection, and the prohibition of monopoly, and the law establishing regional banks, which provided for the budget law in 2006 (because it started without feasibility studies within the professional), and finally, despite the importance of the decentralized system to the provinces as enshrined in the Constitution, but he is not issuing laws and regulations necessary to enable the provinces of the performance of its high flexibility.

Third, a sense of responsibility (very important in the process of pressure) has produced a political dictatorship-era practices and policies of the past are far from the sense of citizenship. Rather than protect the rights of the individual moral and material were the direct cause of waste in those rights, was born in the same practices that deprived citizens malice or revenge made him blurry from the State and its property, which stands for the right position rapist. It was and still following the occupation of the individual practices embodied cases of looting of the public interest and the infringement of private rights of others. Have resulted in such practices and policies to the tyranny of the wrong I am and then the great conflict and lack of compatibility between the private and public interests, from our point of view the main factor in exacerbation of the problems of corruption. When the comparison between rich and poor countries to determine the factors of prosperity, we do not find the depth of the historical, nor to provide economic resources, the type of religion, skin color, little impact, but we find the rich countries are characterized in general: to respect the citizen to the law, and the performance of voluntary work, and performance Secretary of Business , and the other party to accept, by faith and values of humanity. that the absence of good citizenship leads to many evils of the political, security, economic and suffered and suffered in Iraq. For example, when studying the causes of the acute shortage of government services, which contribute to the lack of citizen the most basic requirements of life, we find that the causes revolve around the lack of staff to exercise their roles with the required efficiency and that there is shortening and inadequate. Failure means the absence of the necessary incentives, and either deficiency is the lack of the right person in the appropriate location. It also reflected negatively on the absence of many practices, international standards have been in Mark on Iraq by the «Transparency International» as third worst country in terms of corruption, and issued «Bank» economic survey indicates failure and the difficulty of the exercise of commercial and investment activities. Such indicators stripped Iraq of the many investment opportunities. and at the level of Parliament see all quorum Parliamentary when it comes to the private right and the lack of a quorum when it comes to the right year, which exceeded an explicit social contract, and at the level of government raising the wages of public sector (for the year 2009 ) for electoral reasons led to inflated operating expenses, to reach 70 percent of the budget and caused confusion for the work of the private sector, and wasteful expenditure is difficult to justify feasibility of economic, such as exceeding the total expenses of the three presidencies on the allocations of the following ministries: agriculture, industry, irrigation, telecommunications, the environment (for the period 2006 -2010).

Fourth, the rule of law to improve the performance requirements of the general economic environment is having to serve the rule of law. That is, the environment does not exceed the private interest of the members of the public right, but not exceeding the government to the rights of citizens to live in dignity, is an environment of a sense of responsibility and honesty in performing the duties of citizens, and of equality and justice, transparency, and scientific planning by the government. Otherwise invest in hard case does not guarantee the rights and dominated by mystery, it is difficult for the government also required the implementation of projects if not respect the right of citizens to public (as is the case in the exploitation of some assistance to social protection, or to infringe on public property …). This is reached by the recently «Frazier Institute» in Canada through statistical studies that there is a positive relationship between the level of rule of law and Alttoralaguetsada, and that this correlation is stronger than any other factors as an application of economic reform legislation and others free. A striking example is to encroach upon the failure of law and rebellion the Kurdistan Regional Government for the delivery of customs revenues to the federal government. There is also a trading bank recognized by the government is not characterized by dealing properly (and the fact that procedures for financial control were not required level to diagnose and alert in Mpkraly banking transactions referred to).

V: Transparency in decision-making due to the overlapping vocabulary of good governance among themselves as in transparency in the decision-making and participation and unanimous acceptance and to achieve the Equality Artina content with progress as it is a foregone conclusion.

VI: Recommendations to the political process in Iraq should evolve and rise of narrow factional competition to compete for the economic programs. At the current stage and the conditions for Iraq to be agreed to bring the Government of an independent professional, and that the limited political competition on Parliament Square alone, and that the only party that can achieve such a solution is the citizens through the ballot box, and plays the citizen through his voice electoral major role to streamline the process political. work on the establishment of an Iraqi competencies embodied in local talent, foreign affairs and be able to attract, and must establish by law. necessary to focus in Phase Akaddma to raise the human development indicators, particularly education and raise T_khasaasat sector in the budget to three times the current allocation, which is 9 percent. work hard on the grounds that the contracts for private sector participation for the year the option of Strategy, through work on a special law for these contracts and work to train and qualify administrative unit with which the workload.

and contracts for public sector participation for the private are contracts which give private companies a privilege to commends the project such as building hospitals, and sometimes work on his administration that the government pay on credit and the importance of these contracts as the liquidity necessary to pay tribute to the basic services needed by the citizen (and thus go beyond the failures of the current in the implementation of projects) and through which to normalize the transfer of technology and management practices developed and from which to develop the capacity of public and private sectors alike.