How Can The New Iraqi Government Confront and Deal with The Economic Crisis In Iraq
Dr. rana Khalid
Head of research on IFPMC
The term economic crisis can be defined as a situation in which sudden and severe disturbances occur in any component of the economic system, and the term economic crisis is called in the English language Economic Crisis, and the occurrence of economic crises leads to some economic phenomena such as the decline in stock prices of specific companies, and the occurrence of what is known as the economic downturn, in addition to the high rate of unemployment among individuals who are able to work, and the occurrence of inflation in the prices of goods and services, as well as the direct impact of economic crises on the banking sector, where the occurrence of these crises contributes to bankruptcy, leading to a state of stagnation.
According to Canadian-born economist Jacob Viner: (economics is what economists do). Iraqi government has a big issue to dealing with economy crisis using the approaches of economists. The crisis of the spread of the Corona epidemic is not the only crisis that the Iraqi economy suffers from. Rather, the deep and serious crises of the Iraqi political system threaten all the foundations of the modern Iraqi economy
A key role of new government is to protect the well-being of its people—most crucially and visibly during emergencies such as the recent outbreak of the coronavirus.
Considering that the Iraq economic fallout reflects particularly acute shocks in specific sectors, policymakers will need to implement substantial targeted fiscal, monetary, and financial market measures to help affected households and businesses. The best way to get past the uncertain future is to focus on flexibility to withstand times of uncertainty and shocks, by building specific and focused growth strategies, adopting and enhancing technical and innovative competencies, emphasizing the role of sustainability, and taking proactive actions in relation to cooperation. Business should focus on long-term growth drivers, not simply resorting to austerity by cutting costs. We need to “initiate actions, not reactions.”
First: Establishing the institutions of the democratic system in a real way and raising the efficiency of its performance because, as we mentioned earlier, the political transformation and the stability of its institutions is the basis of the economic transition.
Second: Working on setting a clear economic vision that convey the image of the Iraqi economy to be reached in the present, presently, so that everyone can work to achieve it as soon as possible and with less costs.
Third: End the state’s monopoly of lands and delegate them to the private sector in accordance with eligibility, efficiency, order and justice, and this means that the costs of establishing projects to be completed are reduced because the land occupies a large proportion of the costs.
Fourth: Unlocking the economic freedom of the private sector in owning and setting up the projects that it wishes to establish, and this encourages the private sector to be creative in achievement and performance, but at the same time it should be ensured that the private sector does not break out in a way that corrupts the system.
Fifth: Upgrading the investment environment that encourages the private sector to take steps to establish projects, as lack of interest in the investment environment leads to higher production costs, so the private sector refrains from establishing projects.
Sixth: Unification of wages and social security between the official authorities and the private sector so that workers do not refrain from