Al-Abbadi returned disappointed with Davos after hearing harsh words

Al-Abbadi returned disappointed with Davos after hearing harsh words

29-01-2018 02:38 PM

Al-Abbadi returned disappointed with Davos after hearing harsh wordsLONDON (Reuters) – Prime Minister Haider al-Abadi has returned disappointed after hearing harsh words from donors and presumed investors when he offered to help Iraq, the London-based Arabic newspaper Al-Arab reported on Monday.

The newspaper said today that Abadi faces a great challenge in persuading foreign donors and investors to work in Iraq in light of the spread of corruption and lack of political and economic guarantees.

Abadi seeks to provide international funding in two directions, the first in the form of grants and international grants, and is directed towards the reconstruction of basic infrastructure in the liberated areas, and the second in the form of investment opportunities, to create residential, commercial and recreational projects.

The newspaper said that ‘leaks from the hall of the Davos conference, held in Switzerland recently, indicated that Abadi’ heard harsh words, from donors and investors presumed, when he offered them assistance to Iraq ‘.

She added that donors are afraid to waste their money in the reconstruction and investment assumed, in a country competing at the top of the list of failed states, because of the spread of corruption.

State institutions suffer from a severe bureaucracy, and administrative transactions can only be accomplished by paying bribes to corrupt officials who control the decision.

Many of the special grade employees in the Iraqi government belong to political parties, with whom they share the commissions they provide.

Despite many legislative reforms introduced by Iraq on investment laws, the legal environment appears hostile to foreign investment, observers say.

They say that many legal contracts are still being put in the way of foreign investors contemplating coming to Iraq, with the aim of forcing them to pay commissions to facilitate their contracts. Sometimes commissions are about half of the expected profits. According to the newspaper.

“It has become widely known that Baghdad’s reputation does not encourage investors to venture with their money in a country that is still classified as the most dangerous country in the world. And there are those who firmly believe that the donations will not go for the reconstruction of cities destroyed by the war on the Dahesh, in light of the dominance of armed parties and organizations on the street and a large part of the joints of the state.

She explained that in the absence of confidence in the Iraqi government, the figures put forward by that government seems a kind of imagination that will not strengthen the global investment market to turn it into reality. The convening of the donor conference in Kuwait may seem a bad message to some Kuwaitis who still insist on not canceling the remaining compensation. Which will be an additional obstacle to dealing with investors and donors with Iraqi demands.

Economic and financial experts do not expect the conference to produce miraculous results and miracles in light of the inability of the Iraqi government to provide realistic guarantees to those seeking to help Iraq, making hopes on the conference closer to dreams.

Abadi is betting on persuading the international community to provide a fair portion of the funds Iraq needs. But first he needs to gain his trust. International donors are expected to meet on February 12-14 in Kuwait to discuss opportunities to help Iraq.

Baghdad is counting on this conference to launch a massive reconstruction campaign in the country, drawing on a series of pledges and actions it will take to convince donors to provide their money.

Ebadi’s Baghdad office seems confident of its ability to convince donors at the Kuwait conference, but diplomatic sources say the Iraqi government does not have enough arguments to gain the confidence of foreign capitalists. In devastated provinces such as Nineveh and Anbar, the work of foreign companies appears to be a source of political competition amid the chaos that prevailed there after the liberation. The newspaper reported.

Mosul, Nineveh, and Ramadi, the center of Anbar, have suffered extensive damage to the infrastructure and homes of residents, turning into two large fronts during the war against an oppressive organization. Political unrest prevails, and their administration is competing for power, most of whom are accused of corruption.

Diplomats say donors and investors may choose to channel limited funding to specific projects in Iraq to test the possibility of success. Anbar province appears to be a candidate for this experiment.

Anbar is bordered by three countries – Syria, Jordan and Saudi Arabia – which makes it easy for companies to access.

The Iraqi government believes that the international community will help it provide a normal living environment, prevent the emergence of violent extremism linked to authoritarian policies involving previous governments and characterized by poor distribution of wealth.

Iraq has suffered a large deficit in its financial budget, forcing the country to undergo austerity measures during the past three years, which also witnessed the control of an organization on a large part of its territory. Iraq was unable to recover its territory, except by spending billions of dollars on military operations, which subsequently destroyed entire cities.

Iraq was forced to seek international loans, constrained government spending on difficult terms, and raised fuel prices, which the state subsidizes production.

According to Iraqi estimates, the country needs about $ 100 billion to fund large-scale reconstruction, in areas that have been restored from a hasty organization.