An Expert Offers “Solutions” To Address High Inflation And Warns Of A Sudden Economic “Explosion.”

An Expert Offers “Solutions” To Address High Inflation And Warns Of A Sudden Economic “Explosion.”

01/29/2022 | 6:02 PM

An Expert Offers Solutions To Address High Inflation And Warns Of A Sudden Economic ExplosionInformation / Baghdad..

The economist, Manar Al-Obaidi, presented, on Saturday, a set of solutions to control the high rates of inflation in Iraq, warning against adopting quick ways to address the problem that may lead to a sudden explosion of the economic situation.

Al-Obaidi said in a Facebook post seen by / the information / that “measuring the level of price increases for each item or service is done after measuring the level of its impact on the citizen. Housing and rent, whose importance is 17%, then housing, whose relative importance to the citizen is about 15%, and the rest of the sectors come in succession.

He added, “Inflation rates in Iraq rose in many important sectors, including those that are of great importance, such as the food sector, and sectors that rose significantly, such as the health sector and the electricity and water sector.”

He pointed out that “the solution to the inflation problem must be done by knowing the defect and the reason for the rise in prices in each sector and trying to provide the right alternative that contributes to reducing inflation rates for this sector.”

Al-Obaidi pointed out that “the food sector plays an important role in the process of high rates of inflation because of its great relative importance. Therefore, in the first place, we must work to achieve food security by adopting agricultural and industrial projects for agricultural production and similar industries such as canning and storage that contribute to alleviating the rise in global prices and provide Iraq has food security away from external influences and away from the impact of the exchange rate.”

He cautioned that “the transport sector also suffers from a rise in prices, and its relative importance represents about 15%, and to reduce inflation rates in transport prices, projects for internal transport and the governorates must be adopted,” noting that “the health sector, other goods and services and electricity supply are among the most high sectors, as they increased in rates. More than 30% and these percentages require vigorous intervention from various parties to reduce them.”

And regarding raising the value of the dinar, the economist saw that this “will lead to the depletion of the reserves of the Iraqi state as a result of the high bill for the operational expenses of the Iraqi state.”

He believed that “it is better to invest the surplus funds of the Iraqi state and the reserves of the Central Bank of Iraq by establishing initiatives that work on establishing various projects that will contribute to reducing inflation rates, and also contribute to creating real productive job opportunities and distance us from the social welfare state that we live in today, especially with the high unemployment rates that have turned From a problem to a real disaster, it rises annually, with more than 500,000 people entering the labor market annually.”

He stressed that “investment is not made only in industrial and agricultural projects and infrastructure, but should include investment in education, as human capital is one of the factors affecting the high unemployment rates,” calling for “the development of real strategies for implementing education projects that raise the head rate.” Human money that will contribute to a significant reduction in unemployment rates.”

He considered that “these solutions require the existence of a real vision of the Iraqi state and a clear and strong will to implement this vision. As for quick solutions and reactive solutions, they will not contribute to solving the problem, but will work to postpone it and cover it with a weak cover that may explode at any moment.” finished/25h