Low rank Iraq in banking activities

Low rank Iraq in banking activities

12/15/2014 (00:01 pm)

Low rank Iraq in banking activitiesTranslation term

Each year, the World Bank published its report on the banking business, which ranks countries in the world on the ease or difficulty of the work of small and medium enterprises. Where he is seen in a ten factor is the establishment of companies, dealing with the incorporation permits, getting electricity, registering property, getting credit, minors, protecting investors, paying taxes, trading across borders, enforcing contracts, resolving things difficult, and market regulations Business.

Over the years, Iraq was at the bottom of the ratings because of government regulations that cause inconvenience. In the latest reports for 2015 – which included 189 countries – Iraq’s performance was worse than his performance during the past years, he moved Iraq during 2014 and 2015 ranked 146 to 156 in facilitating business activities according to the survey conducted by the World Bank, which puts him soon Below is a list of the Middle East and North Africa. The countries that performed the best of the United Arab Emirates are ranked 22 out of 189 countries, followed by Saudi Arabia ranked 49, Qatar ranked 50, Bahrain ranked 53, Tunisia ranked 60, Oman ranked 66, Morocco ranked 71, and Kuwait ranked 86. The rest of the countries were in the bottom half and included Lebanon ranked 104, Egypt ranked 112, Jordan ranked 117, Iran ranked 130, Yemen ranked 137, the West Bank and Gaza, ranked 143, Algeria ranked 154, Iraq ranked 154, Syria ranked 175, and Libya ranked 188. So many of the countries in the region have performed well with respect to the private sector, then comes the countries that hinder the sector because of the bureaucracy and red tape. Iraq has always been in the negative side of the spectrum because of the history of economic policy run by the state and lack of reforms that would strengthen the business activities after 2003.
Iraq did not lead well, but in a few factors eleven developed by the World Bank in the order of the country, what puts him near the top countries in the report. Where the factors that make the Iraq effort is building permits and electric power and paying taxes, Obtaining Building Permits required eight steps and takes 119 days, what puts him at the top of the world’s countries ranked ninth among 189 countries. Arab Emirates is the only country in the region, which was the best performance came in the fourth and then Saudi Arabia ranked 21 and 49 rank Amman, Jordan ranked 126 and 142 rank Egypt, Iran ranked 172.
Another decisive factor in the management of the business is electrical power, and Iraq has been ranked 36 in this category. It requires four steps to link the national grid and takes 77 days. In this area was the UAE again is the best fourth place and then Saudi Arabia ranked 22. What the report was not covered here is trust, where the supply of electric power that Iraq is known to frequent power outages and reliance on civil generators to compensate for the shortfall. Finally, and with respect to the payment of taxes, Iraq ranked 52, which puts him in the middle of the salaries of the region where the first prize Emirates, Saudi Arabia ranked 3, Oman ranked tenth, and Jordan ranked 45 good block, and Iran ranked 124, Egypt ranked 149 block bad. This shows that the business environment in Iraq were not stressful in all areas. Unfortunately, there were a lot of barriers to the construction company and its management.
In the remaining seven factors to clear the World Bank, Iraq was close to the bottom of the list. Was rank in the property register 109, and 141 in the enforcement of contracts, and to start a business 142, and 146 in the minors protection of investors, and trading across borders 178, and in access to credit 180, and the solution of the difficult things 189. In the field of start-up company’s performance was worse than Iraq in 2010 – 2014, where ten steps requires registration company and takes 29 days, and that the cost of this increased since 2010, in addition to the high cost of support for the company’s name and an attorney for the drafting of the terms of participation. Also, the cost of import and export products also rose, Vtsidir material requires ten documents and take 80 days at a cost of $ 3,550 College, and requires the import of material 82 days at a cost of $ 3650. It is a huge amount of time and money putting Iraq in eleventh place from the bottom in this category.
On the whole, these factors indicate the reason for dwindling private sector in Iraq in front of the public sector, the matter requires quite a lot of time and money not to mention the bribes offered to government employees that are not included in the World Bank report. This does not mean that people have stopped trying, but the tedious and hinder the economy booms process.
For decades Iraq has lived under a command economy under Saddam, and although he has some economic reforms in the last years, but the idea of ​​state control still is prevalent within government circles and in the minds of many of the leaders of today, and this is why all the talk for economic reform in Iraq since 2003, has gone in vain to a large extent. In fact, the ministries tried to increase government control over sectors of the economy through the creation of monopolies, using state-run companies, and even that Iraq will remain unchanged in the bottom of the ranks of the world.
an: Thoughts on Iraq