Leave events experienced by our country after 2003 at both the political and economic opportunity, but was concern the president where is the shift toward a market economy, which Aptdotha Coalition Provisional Authority ruling) civil authority of the occupation (by taking the initiative to build a quick fixes in the legal infrastructure for the financial sector and building market institutions money according to the visions I thought it facilitates the transmission of capitalist rentier state central to a free market economy as a specimen Eastern Europe in the transition to a market economy in the least of which was in the forefront of a law to an independent central bank uses the tools of the money market is direct in his quest for stability and inflation targeting and addressing him in order to Tovermnach price appropriately cope with the mechanism of price liberalization, as well as pass a law regulating the work of banks, provides Market Iraqi merger and integration with the international financial market and make appropriate changes to the Companies Act civil under the exercise of freedom of trade and foreign exchange. It was accompanied by the provision of the climate of rapid liberalization of financial policies free interest rates and bank credit. and this has become political democracy as a framework for the transition to market economies inherent in a democratic financial, commercial, and not exclusively for macro-economic democracy .
At a time lived in public finances by the grace of capitalist rentier state as a central financial source revenues oil wealth, the terms of economies in transition, which requires the imposition of severe restrictions on the state budget to maximize the incentives that lead to increase the efficiency of the market economy did not find a way but prevail the idea of justice on efficiency ( through the pattern of the operational budgets of the state, which was printed during the past nine years and the launch of the policy through the widespread use of annual budgets) to bring the idea of the welfare state rentier severe justice to the idea of a transformed economy strong enough in character and use of the labor force. Legal framework and institutional guarantor of property rights and regulatory rules that allow access to the market transition Blabralah high, today was limited to two markets: the financial market are free and then the commercial market-based funding on the market As part of his previous unilateral democracy of the financial.
Democracy of the current financial research topic is today a source of conflict and generated continuous across the problem of unresolved between state capitalism and financial capital, a civil conflict that has not been resolved after the extremes in the arena of economic policy today.
did not provide economies in transition in Iraq after 2003 of the foundations of economies in transition macro to a market economy Alamsbbat conflict of freedom’s broad financial and create a financial market equivalent of liberation incontinent in foreign trade, while not seen elements of economies in transition, the other a motionless as possible that is integrated with financial liberalization Whether in the privatization of public enterprises (which almost its two hundred project and includes among its ranks less than a million workers, semi-worker or unemployed) or to impose severe restrictions on the state budget to maximize the incentives that lead to the improvement of efficiency of productivity and optimal utilization of resources or even the establishment of legal and institutional framework guarantor of property rights, according to the requirements of comprehensive transformation or transition to a free market economy. As it is said that our country is still mired more than six thousand a limitation of the official instructions and regulations and the laws of various accumulated over the years and currently in force and which do not provide sufficient transparency to enter the free market and the conduct of the business environment productivity.
When characterization system of state capitalism, and forces the transition to a market economy, the characterization of this they have to take a different pattern in the central oil rentier state Krosmalah state to allow characterization of the capital system in Iraq and the problematic transition to a free market economy. Apart from what several anarchists in the history of economic thought a mixture of state socialismstate socialism is the equation of the essence of state capitalismstate capitalism in terms of state control of the means of production and sources of wealth, and he knew Nicholas Bukharin, one of the leaders and thinkers of the Russian Revolution in 1917 in his book: imperial and the World Economy (1915), describing the new phase in the development of capitalism as state capitalism, at the time warranted the October Revolution of its economic policy newNEP in Russia in 1921 that state capitalism run from the dictatorship of the working class and the dominance of the forces of production workers. But that did not stop the world in the early nineties of the twentieth century, the involvement of about 30 countries, who have enjoyed state capitalism or state socialism, the phenomenon of shifting the economy towards a free marketeconomies in transition. and described the economy at this stage being the economy is subject to the decisions of a free market away from central planning, implementation, and takes over the market forces determine prices and allocate resources rather than the plans of central, accompanied by the removal of trade restrictions as well as privatization of state-owned enterprises and resources of different. Remarkably, of the order, The mechanism of the transition from not only be done by changing the function of the financial sector in terms of funding before production.
supposed economies in transition to take over the financial sector itself and the function of economic stability and regulate the movement of capital, Al-Ahli, which requires the availability of financial institutions and independent at the head of these institutions and the existence of an independent central bank adopt means of indirect instruments of monetary policy in dealing with the market to achieve the overall stability of a given vertical creating a climate of investment and optimal use, however, that in order to discharge the economic role of the institution of the state in assigning the function of economic development and support economic growth and social condition of being converted from a provider of growth and motor developmentprovider of growth and development function to enable the development and growth enabler.
and notes that the countries of the world used different models in the transition to a market economy. Valonmozj Chinese economies which adopted the idea of one state is different from the model of Russia and the whole transition countries of Eastern Europe, which is different from the pattern of other Yugoslav who used a model in accelerating the shift towards a free market economy.
was born the global economy and no doubt patterns of state capitalism, the rentier nature co-exist on the centrality of political Mrkzyatea economic inherent to them. Of growing degree Mrkzihma Ptaazem export revenues from the resource rent-seeking, poor and troubled relationship between the center of global economic center and the ocean depending on the rentier economic cycles generated by the leading economies in the industrial economy first. While subject to the facilities of the country in those nations peripheral of the global economy, whether those facilities productivity or social institutions, to manage the central state, the outcome of the behavior of the Central is currently only at the end of constructing a model of state capitalism or state capitalism rentier and as he referred to Nicolas Bukharin , that new development or new phase in the evolution of global capitalism, and certainly not focused vision Bukharin which singled out the nations of the world first, which is one of the signs of the First World War and certainly did not materialize the vision to have on third world nations as economic rents live in the vicinity of the capitalist world Ohuamhh which achieved political independence of the unfinished product of the Second World War and the outbreak of the Cold War in the twentieth century .
When characterization system of state capitalism, and forces the transition to a market economy, one has to take is a different pattern in the oil rentier state or what can be called the central state rentier capitalism. In order to allow diagnosis of the phenomenon of polarization of economies in transition in our country, we find it prone to liberalize financial activity and the evolution of capital market pattern of working in isolation on the activity of economic development, public central, accompanied at the same time alienation of real activity in the markets of other production in a state of stagnation and unemployment, and free of the elements of economies in transition policies and fee requirements in an integrated framework for the free market economy transformed .
relationship between state capitalism and configuration rentier them and between capital-Ahli, is the result of the birth of a financial source of such capital rentier central, either by cloning) or (Partnership in economic activity in the high level of co-existence or intruding on an incubator of public expenditure to end to foster financial and multiplication money in the financial market alone is alone in the building components of the economies in transition to a free market in Iraq rentier.
On this basis, did not generate our country’s economy, a transition is clear from the capital of the central state to a free market economy even in the time absent the patterns of partnership between the market and the state to act according to the foundations of the market both in investment or production and development facilities in the country’s productivity all. On the contrary, they were not born only a Transitional Economy of Mali was accompanied by neglect fully in building the institutions of transition exercise its functions as a market free in the real sector in the later stages all, the only country relationship market is incomplete transition form Based troubled relationship in the camp of financial capital in Iraq, fueled by the state of the coexistence of public finances of the state (to represent the weight of the financial capital of the rentier state central) and the severe financial market to move to a free market and the solo Unlike other markets stalled productivity (to represent financial capital based Ahli.)
and so on, was not born to move to a market economy in our economy, rent-seeking, but capitalism central fiscal and civil dealing in the alienation of Mali and wide in front of the overall market, who missed the move with him as an investment and production of a real lack of infrastructure, legal and institutional structures for the transition to a market economy the real integrates with the financial market within a national market rather than shifting from one extension to the free market, the financial corridors of the international financial market and the absence of development!, which could be called the tax development.
the financial capital Ahli, who is a clone of the rentier state capitalism in the transitional economy of financial solo in Iraq did not free himself of opposites and conflicts of interest in sharing the wealth and written consent of the financial market and the capitalist system through the central state financial capital overall. In the midst of coexistence or intrusion transition, generated incomplete partnership among the parties of capital (the state and the financial market), which is unprecedented in the history of capitalism rentier state in Iraq. Task is the main financial market transition liberal, made the unilateral severe, is currently only provide incubator are inspired to move and function to convert the partnership missing for financial capital and the National completion of the shortcomings through phases successive direction of the international financial market and not towards the real activity the local investment and development, which absent the foundations and the foundations of his move to free market and the provision of legal infrastructure similar to what was provided for the free market financial transition. If these two successive phases:
I: Develop Partnership missing: The creation or the birth of financial wealth, cloned from the capitalist rentier state through the equation to maximize the distribution of consumption in the budgets of state operational and low production efficiency in the transition to a free market economy productive and enable their development, a stage of incomplete: it accumulates financial capital assets of wealth actual cash fast collection represents the rights to view the material or a real local benefits, goods, services and resources are limited amounts weak diversity in the market for low-performance futile in the provision of the prospects of development and economic development does not have at the same time ready enough to generate real added value and enter the real investment. On this basis, the financial capital has been constrained by the civil movement and growth in the embryonic stage of incomplete integration of the weakness of the markets with transitional and other Takbtha within the financial market to represent the silent mobility or expatriate financialfinancial alienation experienced by the financial capital in a civil partnership deficient) system with macro-financial capital or financial capital Camp.)
and the other: the process of integration: The achievement of wealth of financial capitalism, a process of civil integration of any integration with the global market very liberal, which owns an incubator with a broad spectrum of markets, the transition functions integrated infrastructures. Any transfer of wealth to financial wealth under-take a full financial climate transferred to the local liberal rights and obligations to offer very broad international diversity in the international financial market, which we call the writings in the previous financial capital negative! Which settles in the reservoirs of wealth out of the country and its transfer from savings or surplus latent Local (minus civil) to the savings or surplus potential international (fully qualified) under the mechanism provided by the current economic system in our country over the conflict between the two colors to see the scene of economic events, one sees black and the other sees and white, but the only loser is the real investment in Iraq.
that the current economic system, did not provide the virtue of economies in transition to a free market structure integrated in front of this indivisible or unilateral transition from state economy to a free market economy without financial markets, particularly the other real. Thus, it has become the financial market free-arm for the transition of financial wealth missing configuration weak link joints production in the national economy to financial wealth, complete with warehouses international capital and the strengthening of accumulation at the global level and deprive the country of accumulation the real cross configuration wealth funds, non-sovereign-capitalist financial civil outside the economic activity of the country.
that the mechanism of action in the transitional economy of Iraq, the financial touched on a cause of the conflict erupted between the financial state capitalism (owner rentier great) and financial capitalism civil (Little Owner) to rent Spam Central .
and Mknunat conflict set off by two factors :
the first is the availability of a high degree of tax-negative on the financial capital Ahli leading to maximize the accumulation of financial through tax evasion or tax capitalism is fragile
and the other, and is the role of the financial sector liberalized power market centralized economy of the transitional provision of pathways automatically to convert the domestic savings of the positive (wealth missing to financial capital Ahli according to phase I) to save an external negative (wealth full financial capital Ahli according to the second stage mentioned above), a conversion of recent savings Foreign finds itself in warehouses money safe out of the country as part of an incubator for liberal high availability domestic financial market incomplete market international financial.
In this integrated cycle of financial capital Ahli in an incubator the growth of fetuses in the womb of the market transition unilateral financial free in Iraq, which result in its means liberal role of nourishing the president of the tendencies of consumer business with the outside of the party at the other end ends with a financial negative in the warehouses of money out of the country as part of the equation begins by creating financial wealth locally and completed the missing tools through economies in transition, a phase of financial wealth and the full completion of the dock with a cumulative turnover at the global level .
In other words, the turnover pass through the economies in transition financial free from a local market narrow fragile generating wealth missing do not provide diversity to act in perfect her (because of the absence economy transitional national integrated mechanisms of the market) to take the wealth of capitalism on track to move to international financial market is highly diverse and wide- flexibility to act. Here are complete cycle of financial wealth (from the embryonic stage of financial capitalism (positive) to the stage of full financial capital (negative, then to enter the financial capital Ahli network of the global financial capital as a cumulative wealth funds via formation of a civil Asiadeh! .
did not provide economies in transition financial in Iraq, which is in such a unilateral severe, the objective conditions for the sustainability of the economic surplus, or capital formation, spanning assets of state capitalism, to integrate with the national market that live earlier stages of the transition to a free market economy, and the only way it is that opens up a negative impact on the international financial market and a one-way working on the financing of foreign trade and / or transfer of surplus financial wealth resulting in head and turn of the wealth of deficient conditions Oalahlih to the wealth of full financial conditions to dispose of available markets in the world with a capacity transition high to a free market economy unimpeded.
economic activity the total breath, both in Rusband or masters, behind the movement of public expenditure of the budget (a tool of fiscal policy) on the one hand and the activity of an auction of foreign currency the central bank (a tool of monetary policy) on the other in the syndrome is one of the polarization without generating real use High (as it is still actual unemployment by about two places decimal to present) or that generates real investment most of the growth, is a matter of great regret about our economy in Zhardh current to tend toward the multiplication of money or transferred out of the country or even speculation in foreign currency as an activity and the priority exercised by the financial market in its current form, making the economy more like the so-called casino economy approachCasino Economy or economy of the gaming room! , A paradox pointed out by economist John Keynes MainrdKeynes in his famous book, issued in 1936 and is marked by: General Theory of Employment, Interest and Money, stressing the fact the so-called: the casino economyCasino Economy to speak in capitalist economies, as it describes the idea of being a Keynesian economy, seen from two different angles: Valmdharben money in them that can not be more harmful once the bubble generation priceBubble in real economic activity being practiced by the actual production projects, but from the other corner position will be more serious turn when production projects or activities to the real price bubbles going on in financial speculation Houmt Istqdobaa the financial sector or as a tool for speculation. And confirms John Mainrd Keynes in his book above that when the economy is set to be the byproduct of all the gaming room, the function of the economy will play its role of merely an expression of the patient’s economy!!! Which will not Nrdah We the economists aspiring to build a real economy and a national firm and strong in the present and promising in the future, especially when the capital development in our country heading to be a byproduct of the activity of the gaming room to speak and there will result in the economy and his job or his role just the role of ailing economy .
of elite speak, can be seen that the economies in transition to a free market in our country is only a stage of limited did not move the market, the financial sector to the free market and the promise of a transition financially abstract simulates trade finance consumer of Foreign Affairs and a one-way working on the transfer of financial wealth missing (seed capital of Mali my family negative / negative or savings) Otthoelh to the full financial wealth (financial seed capital Ahli positive / Awadkhar positive). Thus, the financial economies in transition, is himself Atktml degree Antqalith free market to the domestic financial phenomenon unless it is integrated with one-way free-market external (international financial market.)
has worked very domestic financial sector to move to a free market alone basis taking the task of providing impetus to the alienation of the financialfinancial alienation and performance of the role of the incubator for the missing financial wealth created) in the domestic financial market and transfer to the financial wealth (a full investigation or embodiment) through the foreign markets). The notice that the international financial market and integration with the local market in one direction may have led her role as an incubator or a complete integration of the embryos in the Iraqi capital markets, strong transition to free market and its mechanisms, but outside the country and one-way !
although there is a paradox indicate the economic activity of financial transition in Iraq, has become an activity distinct in the calculation of value added services in the components of gross domestic product, estimated at about 13% of the components of the output role of the financial market in transition, while not exceeding the contribution of commodity sectors ( agriculture and manufacturing) in the components of gross domestic product between a minimum of 7% and a high of 9% per year. These levels, which reflect the limited production of consumer rentier structure of current macroeconomic .
that the private financial sector to move to a free market alone, with the loss of public sector restructuring and privatization of appropriate infrastructure, legislative help to move the overall economy to work according to market mechanisms with the hardening of the attitudes the general budget towards the distribution and response to the problems of unemployment vast through the expansion of the phenomenon of use and employment in the balance growing constantly operational without some productive efficiency in the investment budget. As it contributed to all these trends in the policy of the general budget and economic policy associated with the disruption of economic development and waste of economic surplus candidate to head the country’s financial, where the waste budget annually returns oil revenues to the weak market efficiency and productivity devouring expenses of the budget and Tsthilha to the savings a negative way or another After satisfying consumer preferences through the gate of the financial sector moving to a market economy and integrated in the international financial economy moving in one direction and is exhausted of resources and development of the disabled. No longer the national market faculties competitive market in the provision of use of the labor force and the development of physical investment competence required by the economic diversity of the country that the system of capital immersed Bpartyaha (financial capital of the state and financial capital Ahli) in the game Allataaonah which prohibits the country from the economic well-being objectives and the attainment of fitness in allocation of resources between uses different and to maximize the production of material and head with investment real to Tacherh unemployment rates low to rank the decimal one and the escalation of real growth of GDP is oil to poor rates of current or achieve the goal of five year development plan for that growth at an annual rate of more than 9% a little.
Valmnzawma total capital in its current form is a weak system of cooperation in Mabinha Mathrki cooperative and if it moves at the expense of the development of national economy, which requires common goals in the movements of that system. Common phenomenon Altmanamutual exclusive among the parties of the system itself (the market and the state) what is in reality only an expression of the phenomenon of the formation of negative financial) resources posed by leaks from the general budget for Atdfa the value added in the country, something significant in raising the rates of development only to maximize consumption and consumer sovereignty. And turn the results of this expenditure or public expenditure surpluses to take a civil negative way in the end system to the international terminal and warehouse incubator financial alternative for economic development. Valkhasr is the largest development and that this loss really like this began to form the continuous existence of conflict within the camp of the same capital (Rentier state capitalism and financial capital Ahli negative).
Altmana The case of the joint, which we referred to above between market capitalism and state capitalism as part of the game with the fact Allataaonah development and target rates to achieve the well-being, is today more like the so-called Science in Mathematical Economics B: a loss of prisonersPrisoner’s Dilemma , which dealt with the theory of games. Fermi ball to the other within the system makes the capital of the state and the market in case of badworse state , rather than bring them into a single case of well-being, and in this point they have to explode, even if the conflict is between the joints Tnaharia that system .
Vmazahr conflict triggered by financial capital Ahli when turning the entrance to the positive way out negative for the disposal of the case of bad worse state to transfer his wealth of financial wealth is incomplete (the process of wealth creation) to the financial wealth is complete (the process of wealth), a conversion that passes through the market transition of financial singular. Will reassure the financial capitalism civil and Ajriah her mind unless realize that wealth is open about the display of physical assets and rights are very diverse and not provided unless the international financial market as long as you see that the joints of the market transition of Interior in the real sector is still absent, at least in its legislative and other structures .
that conflict within the camp of capital generated by the phenomena of alienation in the system of financial capital Ahli, who took the alienation that ends sprayed conflict within the capitalist camp so long as the total financial capital Ahli will not get rid of the positive Aghtrabh until it becomes a financial surplus-saving or negative in its strongholds State to turn into a welfare statewell being state of the one party state capitalism juncture for the camp, which is a contradiction today, more than yesterday!.
that the joints of the different decision-makers started to deal with and constantly different evaluations of the financial sector in transition towards a free market economy and the impact that moving solo of the problematic in the investment climate and real economic progress desired, without being aware that the theory of the transition of Iraq to a free market economy is the single-configuration Since its inception, took over the financial activity of an important pole system poles financial capital Ahli negative without the other, which is in stores financial wealth outside the country. The basis of the candidate’s wealth of financial capital of the state, which come from oil revenues Ktheroh central.
Based on the foregoing, the problematic transition to a free market economy did not provide a model transitional correctly and integrated to serve the cause of development and achieve competitiveness in the business environment and provides enough capacity and raise the utilization rates, as far as what has become the financial sector in transition singular mere passage serious offers savings outside the negative to the strongholds Foreign capital in the system instead of the international financial system integration in the national capital .
way to repair the financial system in transition: a scenario to contain the conflict within the capital
of what was the monetary policy are the focus of the conduct of financial economies in transition in Iraq, the contradiction with the party’s strong fiscal policy in the camp of capital to make it in Bodqp that conflict among the parties of the camp of capital. And the options open are either back to the stage of state capitalism, the central and the removal of economies in transition, the entire financial in its current state, a path is incompatible with political democracy and democratic financial in the conduct of the joints of the economy towards a market economy, and possibly restore the country to the patterns of economic no longer valid and constitutional life the country’s new and the reforms of the financial sector transition itself by making it less liberal and re-run orientation to other sectors not completed the transition to a free market economy, which may raise concerns repulsion pole current financial situation with the other tracks of state capitalism did not solve the problems of conflict within the camp of capital.
Beyond Polemics the Chamber that all damage in a vicious circle, where you see a school of public finances in a liberal financial market, and its ability continued to generate financial capital and the National Maerafgah phenomena of alienation financial ends in warehouses financial wealth outside the country, is to graduate from being an incubator recession represents the development tax that contribute to the disabled joints production, investment and employment in the opinion of the real sector. While you see the school Alncodeh Iraq in the behavior of public finance consumer severe and holy for the rule of the consumer and the search for additional resources through the desire to borrow from the foreign reserves of the Central Bank, the lid supporter for the stability of the Iraqi dinar, is the way to undermine the stability and the generation of pressures and inflationary expectations, which caused the crush standard of living during the past decades, which works against the goals of stability exerted by monetary policy in achieving its goals through the collection of tax by borrowing represents the inflation tax. Taxes crush the first development in the crush when the tax the second standard of living and people’s lives and brought into the dark tunnel release cash.
and noticed that the pillars of reform, no matter how moved away or close to it is wrapped about the principles that are enshrined in the law of the Iraqi Central Bank No. 56 of 2004, which was born as an introduction to financial market liberalization and access to a Transitional Economy holistic form of the Central Bank head of the spear in the development of liberal financial in Iraq.
began Supplies transition to a market economy really in financial activity or financial market without other sectors marked by liberalization of prices and the use of the sector to achieve macroeconomic stability and make the inflation at the lowest level in the economic history of the near in Iraq and the launch of the forces of demand suppressed, as well as the development of the indirect means in monetary policy-based financial market is free to achieve financial stability and depth of influence in the development process and development investment in the real market, provided that such market-transformed and enjoy adequate legal infrastructure .
The procedures and banking reforms and the liberalization of interest rate, credit and adapting the law of the Iraqi market for securities and the formation of the Securities Commission as a regulatory organization for the capital market and reform of the legal infrastructure for the financial sector, which was issued a number of laws and regulations, regulatory and organizational transformation of the financial sector to a market economy, all of which have generated a truly very liberal market transition to incomplete markets is Off relatively untouched the desired transition toward a market economy or a private sector to improve its stagnant and is unable to intervene unless the movement of financial capital of the state or to move it within the civil system coordination of macroeconomic .
question the field of controversy, is whether fiscal policy lacks the capacity to stimulate economic development and management are efficient across their balance sheets of investment since 2004 and until the time near to Aatqadtha that the financial sector moving to a free market economy is the one who will exercise such as this post funding and implementation, we find in turn that independent monetary policy, which indulged in the provision of climate stability and the achievement of ideal levels of it, they nevertheless did not move is the development of other capabilities and advance real investment in the area of the market .
So notice, he did not fiscal policy, that lack of availability of the elements of sufficiently productive to meet the development goals, which plunged right in distributive justice and building elements of the welfare state consumer is able to create the investment climate development and enable development and to maximize the business environment, especially in weak markets is transitional and production sectors inherent in the real, nor as well as independent monetary policy, which provided stability at the top levels of fitness in the country, has stimulated the financial capital for real investment is moving towards the desired.
said the call to change or amend the law on the Iraqi Central Bank in force No. 56 of 2004, is an explicit invitation to address the manifestations of economies in transition in Iraq by this unilateral liberalization in the transition to the market, the financial transition of free exclusively, especially after the launch of its strength and its liberation from the constraints that have provided stability Kmnach important development but did not provide criteria for development in the market because of the real dilemmas caused by the high polarization of financial capital in the economy of the state and the market together by the absence of economies in transition, coordinated and comprehensive.
Although it does not find a value for the objective diagnosis in shaping the future unless the country’s economic develop economic policy approach intellectually and clear for them to come out of the national economy from its crisis in the current development of any necessary development.
Valrjoa to the idea of extreme centralization, again in the management of the economy posed by the other between now and then or we read between the lines is the return to the game of snakes and ladders, but this time the beats where the number of snakes on the number of stairs, which enters the country in a bind constitutional intersects with the orientations of the new Iraq eager to strengthen the institutions of a free market and improving the conditional behavior of the market and move it from a free market incontinent to a free market oriented.
The call to reform the law of the Central Bank of Iraq’s current requirement of maintaining the independence (and that this independence does not mean the intersection with the provision of credit to the general budget when economies reach critical stages threaten its security national economic) should correlate such a call in the repair strategy the general budget so as to provide conditions that dock where the fiscal and monetary policies and Tensjama in their work towards the overall activation of the transition to free market-oriented homogenized, and the re-weft real investment and promote economic development Bmnachat new, requiring the integration of economic policy in a free market-oriented policies in order to generate backflow effectfeed back to the financial capital of the case and turn the negative into the positive state actors to finance the actual investment inherent in development activity and to maximize the use of local instead of infiltration into reservoirs outside the country under the influence of the financial behavior of alienationfinancial alienation which we noted it in advance.
Think about that the law reform Central Bank of Iraq, while maintaining the independence of monetary policy is the idea should not begin in isolation from the reform orientation of fiscal policy before the change inherent in the paths and the appropriate monetary policy. Should be on fiscal policy that Atstsel go into the inflation tax through the easy availability of cheap or easy casheasy money as referred to whenever and however it pleases you want except for critical cases affecting the interests of the country and be a cause for national economic security threat then lend to the general budget of the Central Bank and the limits set by law .
As long as oil revenues and its growing economic surplus will continue to be central to the country in term perspective it is necessary to take two-way complementary in terms of investment :
I :
The investment budget and orientations toward the production of public goodspublic goods we mean here the physical infrastructure or other infrastructure as well as enabling investment climate and development in the private sector including the provision of strategic partnership between the market economy and the country’s economy through what could be called the creation of a free market-oriented or uncontrolled and draw strategies to do so immediately and kept the state production of private goodsprivate goods , which holds the output of many public sector companies.
and the other:
create a sovereign wealth fund supportive of the public budget to cope with failures in annual revenue and meet the deviations between revenue and public expenditure and financial promise of bumperfiscal buffer and an average balance of 15% of the budgets of the past five years consistently invested financially Khguibh sovereign investment .
and as much as it came to repaired monetary policy, the development of its credit towards a free market-oriented (according to the personal vision of the author) should take another course in moving the Real investment in accordance with the perceptions do not affect the independence of the central bank to the market this time and maintain stability at the same time, a is consistent with the objectives of the Central Bank in achieving stability and development of a single level of competence out of the so-called dualDual Mandate comes this approach because of the privacy of the circumstances of our country, which requires a strong market orientation and more effective additional axis of !
noting that the areas of empowerment of the market that can be exercised by the monetary policy in the development and economic progress and the performance of its role in this regard is to exceeding areas of the Advancement of financing public goods-use custom club public good away from indulging in investment in private goods which are the prerogative of the market transition heat wave. And I think from the standpoint of personal that provide credit to those investment activities through the national banking system will pay the rates of development and real investment to the level of desirable contribute to breaking the cycle of attrition financial experienced by the national economy by creating a climate of active and attractive reduces the external saving and provides areas of strong attraction to the head Ahli Capital Financial positive.
the scenic, fiscal policy and monetary policy as a response above represent undoubtedly walk to the principles of work and the atmosphere of healthy economic strong coordination with each other and keep time the same principles and mechanisms of economies in transition towards a free market-oriented without violation of constitutional and ensure the independence of the Central Bank and end the Problems of conflict within the joints of the economic policy of joints of the hand, and the overall system of capital on the other.
as the lending market by the rules and discretionarydiscretionary and enable development paths and where the real investment on the part of monetary policy and the promise of an active center towards the market has to be configured to coincide with the sovereign wealth fund compensates the needs of the general budget revenue and deviation at the face of failures where.
conclusion: that walk in the repair system of capital, requires, in essence economic policy reform pillars all in order to provide the objective conditions of the national economy in the transition mass to the free market economy competitive disciplined or directed in one package keeps on track to ship Iraq strong economic and adjust its direction in stability and fight inflation and achieve economic development and targeting of parallel lines and equal without resorting to the lifeboats!!
* Deputy Governor of the Central Bank of Iraq
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