Pimpy
Iraq is well on their way of accomplishing what they need to accomplish to get the Iraq dinar back on the global Forex, which is important.
We need to get those restrictions off those banks so they can start using the SWIFT system more freely without babysitters because that's going to help the Iraqi dinar get back on the global Forex, which is what everybody is waiting for.
WHEN DO WE GET OUT OF THE RENTIER ECONOMY?
When do we get out of the rentier economy?
Jawad Al-Attar
The World Bank’s report on Iraq’s economic situation for the second half of this year and the first half of next year, released a few days ago, may be overlooked in the daily news cycle. However, it undoubtedly sounds alarm bells, as the economy is a fundamental component of any country’s national security architecture.
Although government advisors downplayed the report’s significance, asserting that Iraq’s economic situation is robust and capable of overcoming any obstacles or shocks in global oil prices, the Ministry of Finance responded seriously to the report and is moving within a framework that may temporarily extricate us from the crisis. This includes approving budget schedules for the second half of this year that secure funding for salaries and ongoing projects, along with partial payments to investors and a relative deficit based on an oil price of $60 per barrel.
However, the question remains: When will Iraq’s economy decouple from global oil prices? And when will we emerge from the crucible of a rentier economy?
These questions should be addressed by experts and decision-makers, and the country’s politicians should bear the responsibility for accomplishing these tasks by, first, operating productive public sector companies; second, facilitating routine procedures for the private sector and foreign investors; through real decisions, not ink on paper; third, diversifying sources of income; through regulated irrigation agriculture, complementary and transformation industries, and balanced inter-trade with neighboring countries; and fourth, providing the enabling environment and requirements that meet the above requirements; in the shortest possible time.
A country that has managed to oust the occupation and defeat terrorism is capable of overcoming economic crises and achieving growth if the political will is realized and politicians overcome their differences, their pursuit of privileges, and their desire to win elections.
Fnu Lnu
Citizens in the central portion of the country are ready to start burning down government residences like they did to Malaki because while the bureaucrats stall for more time to steal more money, the people are living in squalor and deprivation.
To try to say that "Stability and Security" are the order of the day is ignorant..
.The citizenry are angry
because they have been lied to by the PM and others about the "delete the zeros" program and currency revaluation.THE PARLIAMENTARY INVESTMENT COMMITTEE CALLS FOR BREAKING THE LEGISLATIVE “STALEMATE” AND PASSING IMPORTANT “ACCUMULATING” LAWS.
The Parliamentary Development and Investment Committee called for breaking the legislative deadlock to pass and address dozens of important laws that have accumulated and directly impact citizens’ lives. The committee emphasized the importance of fulfilling the government’s commitments under the ministerial program and budget-related spending plans.
Hussein Al-Sa’bari, deputy chairman of the parliamentary Development and Investment Committee, said, “More than 140 draft laws, including new ones and amendments to existing laws, are still pending in parliamentary committees and require a vote by parliament.”
He added, “Many of these laws have been discussed by the relevant committees and are ready to be included on the agendas of the plenary sessions,” noting that “these projects relate to vital aspects that impact the lives of citizens and various state sectors.”
He explained that “the most prominent of these laws is the Popular Mobilization Law, in addition to projects related to higher education, the basis for granting certificates, and other legislation of a service and administrative nature . ”
He pointed out that “the upcoming parliamentary sessions are of particular importance as they will determine the fate of a large number of pieces of legislation, eagerly awaited by citizens and state institutions alike.” He explained that “delaying the passage of these laws could negatively impact the work of ministries and disrupt the provision of services.”
Al-Sa’bari noted that “there is an increasing number of calls for regular and intensive parliamentary sessions to ensure that the legislative deadlock that accompanied previous periods is overcome and to fulfill the government’s commitments under the ministerial program and spending plans linked to the general budget.”
He explained that “Parliament’s legislative agenda also includes strategic laws such as the Oil and Gas Law, the Civil Service Law, and the Social Security Law, as well as laws related to administrative reform and oversight of government performance.”
😊I find the following article VERY interesting is it titled “WHEN DO WE GET OUT OF THE RENTIER ECONOMY?”.
To begin to answer this question you must first ask what a rentier economy is and how Iraq go their in the first place. A “rentier” economy is based solely on one form of revenue. Its dependence on it can make it unstable if the one revenue stream changes drastically. It can become unpredictable.
So, for Iraq they entered this path to the “rentier” economy the day the .U.S. decided to kill it economy with sanctions and then the use of the petro-dollar. The next step was to kill its currency.
This put Iraq in a funny situation as it could only receive U.S. dollars and buy imports with U.S. dollars. Everything evolved around the U.S. If you re-read my definition of a “rentier” economy it clearly states one source of revenue stream.
Today it still the U.S. dollar. Although Iraq is making progress to diversify its holdings of other foreign currencies and is also now allowed to pay for imports with these other currencies.
This is all progress away from the “rentier” economy. But what about sources of revenue for stability’s sake?
In the article Jawad Al-Attar asks – When do we get out of the rentier economy?
I will leave it up to my readers to go read this entire article in the Articles Section. It is short and it does tell us that this won’t happen until Iraq can get off the petro-dollar as their main revenue stream.
As investors in our study of this situation we know that many measures in Iraq have already taken place to shore up the lack of revenues from a sole source of oil.
Just look at what is happening now and shock to their economy when oil dropped from $75 to $60. We learned about the future Customs and Tariffs revenues, tourism, the future Development Road project and all the minerals and agriculture yet to be tapped into. There is more but I can’t think of them now….lol..lol..
However, my point is to show you that until Iraq puts on its Big-Boy pants and takes control of these other sources, they will not get out of the “rentier” economy. They must do it. If we read all these recent articles about their economy, they are doing it and that is what I wanted to emphasis to you. All the article about this situation put more and more pressure on the govt to do something about it and to make the citizens aware of what is causing their lack of salaries and pensions being paid on time.
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/🇮🇶 Al-Zaidi’s Anti-Corruption Push Could Be Laying the Foundation for a Stronger Iraqi Dinar 💵 Recent developments coming out of Iraq are...