International Center for Development Studies: Economic chaos
Posted: Wed Oct 19, 2011 9:25 amInternational Center for Development Studies: Economic chaos threatens Iraq; Monetary policy needs reform
BAGHDAD (Iba) .. Warned the International Center for Development Studies of the high rates of inflation in Iraq to the numbers may exceed the 10% in the next few months, after it reached an average of up to approximately 6% during the third quarter of this year 2011.
The Center said that the prices of commodities, particularly food and fuel will witness a remarkable increase of the burden of the Iraqi citizen simple.
He attributed the status of this increase to several factors the most important policy advances large government granted by the Iraqi government to the staff and the size of financial aid and loans, which leads to the accumulation and the growth in the money supply in the Iraqi market and reduces the strength of the Iraqi dinar purchasing power without creating real investment opportunities develop national wealth or maintain power.
And supports these expectations the sharp rise in food prices around the world and the adoption of Iraq is almost entirely on imports to get food consumption basket. Add to that the concerns arising from the economic recession in the global capital markets which will reflect negatively on oil prices, which is expected to reach below the barrier of $ 90 per barrel.
The Director of the Center, an economist Sadiq Hussain Rikabi that Iraq will be in the unenviable position if oil prices fell to below those levels, because of its adoption by 95% as derived from oil revenues.
The center said in a statement that the current monetary policy of the Iraqi government does not serve the Iraqi people, but on the contrary, it is expected in the trap of a major financial and restricts future forbidden to make any progress on development.
He warned that the current monetary policy lead to the Iraqi government to lower the value of the Iraqi currency and to the more negative effects of this particular, with regard to the ability to attract foreign investment.
He pointed out that Global investment funds prefer markets stable financially and politically, which is not seen in the Iraqi economy, the current, noting that millions of dollars out of the circle of the Iraqi economy in recent years to invest in regional countries adjacent to the existence of incentives and laws encouraging attract capital to it.
He stressed the International Center for Development Studies on the need to speed up Iraq to diversify its economy and to focus these investments on new sectors not only on the energy sector, saying that investment in agriculture, industry and services in addition to human resource development has become a matter of urgency to get out of the cycle of dependence on oil as the only source of income .
The position that the economic risks posed to Iraq at the present time is not caused by lack of financial resources as they are caused by the inability to manage funds for Iraq and its resources properly, and called to the need for private sector participation in the development process especially in the sector of private banks which may result in development to create new investment opportunities to contribute to the progress of the economy and provide real jobs for large numbers of unemployed.
http://bit.ly/oca5io
BAGHDAD (Iba) .. Warned the International Center for Development Studies of the high rates of inflation in Iraq to the numbers may exceed the 10% in the next few months, after it reached an average of up to approximately 6% during the third quarter of this year 2011.
The Center said that the prices of commodities, particularly food and fuel will witness a remarkable increase of the burden of the Iraqi citizen simple.
He attributed the status of this increase to several factors the most important policy advances large government granted by the Iraqi government to the staff and the size of financial aid and loans, which leads to the accumulation and the growth in the money supply in the Iraqi market and reduces the strength of the Iraqi dinar purchasing power without creating real investment opportunities develop national wealth or maintain power.
And supports these expectations the sharp rise in food prices around the world and the adoption of Iraq is almost entirely on imports to get food consumption basket. Add to that the concerns arising from the economic recession in the global capital markets which will reflect negatively on oil prices, which is expected to reach below the barrier of $ 90 per barrel.
The Director of the Center, an economist Sadiq Hussain Rikabi that Iraq will be in the unenviable position if oil prices fell to below those levels, because of its adoption by 95% as derived from oil revenues.
The center said in a statement that the current monetary policy of the Iraqi government does not serve the Iraqi people, but on the contrary, it is expected in the trap of a major financial and restricts future forbidden to make any progress on development.
He warned that the current monetary policy lead to the Iraqi government to lower the value of the Iraqi currency and to the more negative effects of this particular, with regard to the ability to attract foreign investment.
He pointed out that Global investment funds prefer markets stable financially and politically, which is not seen in the Iraqi economy, the current, noting that millions of dollars out of the circle of the Iraqi economy in recent years to invest in regional countries adjacent to the existence of incentives and laws encouraging attract capital to it.
He stressed the International Center for Development Studies on the need to speed up Iraq to diversify its economy and to focus these investments on new sectors not only on the energy sector, saying that investment in agriculture, industry and services in addition to human resource development has become a matter of urgency to get out of the cycle of dependence on oil as the only source of income .
The position that the economic risks posed to Iraq at the present time is not caused by lack of financial resources as they are caused by the inability to manage funds for Iraq and its resources properly, and called to the need for private sector participation in the development process especially in the sector of private banks which may result in development to create new investment opportunities to contribute to the progress of the economy and provide real jobs for large numbers of unemployed.
http://bit.ly/oca5io