Warnings Against Relying On The “Rentier Economy”: Use Effective Systems And Digital Infrastructure - Urgent, 20 SEPT

 Warnings Against Relying On The “Rentier Economy”: Use Effective Systems And Digital Infrastructure - Urgent

 Economy | Yesterday, 14:59 | Baghdad today – Baghdad  Today, Wednesday (September 18, 2024), the specialist in economic and financial affairs, Nawar Al-Saadi,

 warned of the danger of Iraq’s continuation of the rentier economy, while giving solutions to overcome the danger of this matter.  Al-Saadi told “Baghdad Today” that

 “the Iraqi economy is considered a rentier economy par excellence, as

the state depends up to 90% on oil revenues to finance its general budget,” noting that

 “this type of economy is very natural and is exposed to severe danger when oil prices decline.” In global markets,

 which prompts the government to search for additional sources of income to avoid future financial crises, and imposing taxes is considered a step within the government’s attempts to create new sources of income from non-oil sectors, and

 this is in line with the reforms proposed by the government in the recent period with the aim of diversifying the Iraqi economy.”.  He added,

 "The government's success in implementing these policies remains dependent on the ability to confront the main challenges that hinder economic reforms,

 the most important of which is the widespread corruption in many government sectors, and the bureaucracy that burdens the reform process," stressing that

 "the government needs to develop effective systems for collecting taxes from sectors." New, in addition to providing the digital infrastructure necessary to support this transformation.” Al-Saadi stated,

  “In the long term, if the government succeeds in

      overcoming these challenges and

     develops effective and sustainable strategies to collect taxes from various sectors,

 it may be able to create sustainable sources of income that help reduce excessive dependence on oil,

 which contributes to the stability of the Iraqi economy, but the matter is

“It requires strong political commitment and comprehensive institutional reforms to achieve this.”

Economist Nabil Al-Marsoumi confirmed on Wednesday (September 11, 2024) that the

fair price of oil is the one that achieves the interests of producers and consumers together.

 Al-Marsoumi said on his Facebook platform, followed by “Baghdad Today”, that

 “the fair price for oil is the one that achieves the interests of producers and consumers together, that is, the price that achieves good financial revenues for producers that enable them to return part of it to renew and increase oil production capacities.” He added:

  “It also enables consumers to obtain oil at reasonable costs that facilitate economic growth,” explaining:

 “The price can be set in the seventies as the fair price for both parties,

 but when the price falls below $70, it fulfills the interests of consumers because it enables them to obtain energy at a cost.” Cheap, thus reducing the prices of production inputs and increasing the competitiveness of their produced goods.” He continued:

  “But on the other hand, it is harmful to producing countries because it reduces their oil revenues and frustrates investment in developing oil production, and vice versa, when the price is $80 and rising, this price is harmful to economic growth in consuming countries.

 It also reduces demand for oil in the long term, even though it achieves large revenues.” For oil producing countries.

Oil prices are witnessing a noticeable decline, especially in futures contracts, which specialists believe may affect Iraq's rentier economy and thus the state and the citizen.    https://baghdadtoday.news/258110-تحذيرات-من-الاعتماد-على-الاقتصاد-الريعي-استخدموا-أنظمة-فعالة-وبُنى-تحتية-رقمية-عاجل.html