Wednesday Evening Iraq Economy News Highlights 6-22-22
Wednesday Evening Iraq Economy News Highlights 6-22-22
World Bank: The Doors Of The World May Be Closed In The Face Of Iraqi Oil
Energy Economy News-Baghdad The World Bank warned of the risks of climate impacts on Iraq, from an economic point of view, and while it called for "structural" reforms and for the formation of an Iraqi government, the doors of the world will be closed to Iraqi oil if this economic approach continues.
The Bank's Special Representative in Iraq, Ramzi Numan, said in an interview that "economic reform must coincide and harmonize with looking at the climatic effects in the country."
He added that Iraq is an oil country par excellence and depends on oil for its economy, while the world has begun "to place restrictions on crude oil," stressing that "if these restrictions are placed on oil and on oil exports, Iraq must take (reform) steps, otherwise global markets will become closed to Iraqi oil.
He explained, that Iraq is on the verge of "a crisis that may be the most dangerous", which is the crisis of climatic impacts, "and how can the Iraqi economy adapt to these climatic effects in accordance with the development plans set by the government, and how the process of gradual transition towards a clean economy will be with the financial consequences that follow." economic and human capital levels.
Noman pointed to the climatic changes that Iraq is going through, stressing that they "affected the quality and quality of available water, which negatively affected agricultural lands, increased desertification rates, and prompted the migration of citizens from the countryside to the city."
The World Bank official said that the climate also had an "impact on food security" in the country, as food and agricultural production declined, which had consequences "currently caused by the rise in commodity prices at the global level and also because of the Ukraine crisis, which was considered one of the most important sources of food in the world." ".
Noman pointed out that the World Bank sees that Iraq is currently going through a period of growth, after reaching 11 percent in 2021, compared to a recession in 2020 due to low oil prices and a decrease in economic activity due to Covid-19, noting that "while things are going better with Increasing oil revenues, the structural crises that afflicted the Iraqi economy previously are still present, and therefore the risks remain for the economy even with the rise in oil revenues.
He stressed the importance of "looking at reforms at this stage and that the government should look at reform in an integrated manner", taking into account the importance of "addressing the social crises that may arise as a result of some of these steps, and it is necessary to work on approaching them in a way that prevents the occurrence of the most vulnerable groups by increasing poverty and increasing The unemployment".
He continued, "Iraq has gone through multiple crises as a result of low oil prices," stressing that "the World Bank has repeatedly spoken about the importance of economic diversification and the importance of looking at non-oil sectors that can be invested in to increase growth, create job opportunities and open the way for investment, especially private sector investments. ".
Noman pointed to a decline in services, an increase in poverty rates, and an increase in regional differences between the different governorates, stressing that "in a society 60 percent of it is under thirty years old and there is a population increase, it is very important to take into account the availability of resources."
He added that "the increase in the population at a time when food is in short supply as a result of low agricultural work and the high prices of food commodities in the world and their shortage in some places puts us in front of a dilemma that manifests itself seriously, which is the issue of food security, and this is a national danger."
He added: "Iraq is facing a reality that is reflected in the fact that the largest percentage of spending is on salaries and pensions, in the absence of the investment aspect that allows creating job opportunities."
The World Bank Warns Of The Economic Effects Of The Political Crisis In Iraq
June 22 2022 The episode discusses the challenges of Iraqi economic reform, after warnings issued by the World Bank in its quarterly report on Iraq for the spring of 2022, and in light of the current food security challenges that have intensified in the country, what are the most important findings of the report of the Iraqi Economic Monitor issued by the World Bank for this season? What are the main factors identified by the report? And what are the recommendations of the World Bank for Iraq to make better use of the windfall oil gains to achieve sustainable growth? LINK
The Popular Movement Calls For The Formation Of A Parliamentary Bloc To Address The “Silk Road” File
Politician 2022/06/22 | 3:04 PM Information / Baghdad.. On Wednesday, the popular movement for the Belt and Road called on members of the House of Representatives to form the Parliamentary Silk Bloc.
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A member of the movement, Hussein Ali Al-Karaawi, said in a statement to "The Information", "Popular demands continue for Iraq to join the Silk Belt and Road project through conferences and clan and elite gatherings in various regions and cities of Iraq."
He added that "there is a popular movement towards members of the House of Representatives to form the Parliamentary Silk Bloc to demand that Iraq join the Silk Project and to transform the agreements of the Iraqi governments into a long-term strategic agreement with the State of China."
He pointed out that "the coming days will witness the launch of massive demonstrations throughout Iraq to pressure the government to terminate and cancel the contract of the Korean company for the port of Faw and refer it to Chinese companies."
The movement had earlier accused Parliament Speaker Muhammad al-Halbousi of colluding with the Gulf states and neglecting the Belt and Road Initiative. https://almaalomah.me/2022/06/22/604859/
Between The Dollar And Gasoline Crises.. Iraqis Are Looking To End The Era Of The “Poverty” Government
Economic Last Update 06/22/2022 | 11:58 AM The Information/Baghdad.. The records recorded by the government of the outgoing Prime Minister Mustafa Al-Kazemi are increasing, most of them bear a negative nature, despite the astronomical sums that that government earns due to the rise in global oil prices compared to all governments that have passed through Iraq since the prehistoric era.
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The first months of the era of Mustafa Al-Kazemi witnessed the rise in the price of the dollar, causing a stifling crisis in the prices of basic commodities and building materials, and the collapse of the dinar against the dollar, amid “resonant” government statements that promised Iraqis rosy dreams and a prosperous economy without any achievement.
According to specialists in the field of economics, “making a simple comparison between the government of Adel Abdul-Mahdi, which witnessed demonstrations against it due to the high cost of living, Al-Kazemi hit Abdul-Mahdi’s numbers against the wall, as the price of a liter of cooking oil, flour, medicines and all commodities increased by 120%, while the case of smuggling of gasoline increased. All over the country, what caused the gasoline crisis.”
And regarding the desired economic reform, “Al-Kazemi did not achieve any achievement and did not implement the most important decisions of the Federal Court regarding preventing the sale of Kurdistan oil without the approval of Baghdad or a pledge to make a constitutional amendment and achieve the demands of the October demonstrators, but appointed those close to him as advisers,” as observers see.
In great contradiction to the caretaker government, Iraq achieved historical monthly export revenues estimated at 11 billion dollars, and a rise in cash reserves to 70 billion dollars without the presence of any strategic project.
Amidst these data, the World Bank came to “make matters worse” and confirm that the Iraqi economy is sterile and unable to grow under the current government, while noting that population growth and the lack of foodstuffs will increase Iraq’s economic disasters.
https://almaalomah.me/2022/06/22/604823/
Industrial Development: Facilities To Attract Investors And Measures To Prevent Manipulation Of Local Commodity Prices
Baghdad - INA - Muhammad Salim Photography - Hussein Ammar The Industrial Development Department of the Ministry of Industry announced today, Wednesday, the establishment of 426 laboratories in one year, and while it indicated that advanced rates of achievement were achieved in the establishment of industrial cities in four governorates, it confirmed the success of implementing the product protection decision. the local.
The director general of the department, Aziz Nazim, said in an interview with the Iraqi News Agency (INA), that "the mechanism that was developed in the government curriculum under this government is to grant the largest possible number of industrial project licenses," noting that "the establishment stage is a first stage and coordination must be made." with other sectoral bodies to prepare the rest of the matters.”
He added, "A plan has been drawn up by the industry to support the investor," noting that "the fruit of these plans will collide with other political, security, societal and bureaucratic issues, and we are ready to remove all these obstacles."
And speaking of industrial
cities, the Director General of Industrial Development explained that “the basic idea of establishing industrial cities is to eliminate the random spread of laboratories and gather them in one place to facilitate the issue of the work environment and the formation of a single industrial community,” noting that “the Ministry of Industry adopted this issue through Law No. 2 of 2019 establishing a special authority for industrial cities.
He continued, "These cities are distributed among all governorates, and they have been initiated and reached advanced stages in the governorates of Dhi Qar, Basra, Anbar and Nineveh, and a plot of 600 dunums has been prepared for the establishment of an industrial city in Najaf as well as Wasit governorate, and it will be in all governorates as well." That "Iraqi industry is moving towards industrial cities."
The Iraqi industry, Nazim confirmed, that "there is a clear advancement of the Iraqi industry in its various sectors, and this is recorded according to accurate numbers and statistics," stressing that "the pace of projects is increasing. One of 426 factory projects, and these numbers are good, but not at the level of ambition."
He continued, "The private sector absorbs more workers annually than the state absorbs in the public sector."
Protecting the national product,
Nazim pointed out that “the issue of product protection comes to the basic level to protect the interest of the citizen and achieve the interest of the industrialists,” noting that “in the event that local goods are monopolized and their prices tampered with by some factories, it will cause harm to the citizen. from the impact of prices on the citizen.”
He explained, "There are many industries that have succeeded after the implementation of the Product Protection Law, including the cement industries as well as the juice industry, and this applies to the public and private sectors, as those factories started production and covered local needs at competitive prices."
The General Directorate of Industrial Development is one of the formations of the Ministry of Industry and Minerals, through which the state exercises care and directs the industrial activity of the private and mixed sectors, and provides means of support for it and promotes the opportunities and aspects of Iraqi investments as required by the economic conditions of the country and within the general framework of the directives of the state, and through its implementation of the provisions of the law Industrial Investment No. (20) of 1998 and its amendments.
The directorate aims to build an advanced industrial base in Iraq based on the foundations of modern technological industrial principles with the need to preserve the safety of the environment and provide the best services to Iraqi industrialists and investors and provide the necessary advice and support for the success of their projects and ensure their sustainability through the application of the provisions of the Industrial Investment Law for the Mixed and Private Sectors No. (20) For the year 1998 and its effective amendments and approval of the five-year plan 2014-2018. https://www.ina.iq/159085--.html
Chinese Ambassador: Our Cooperation With Iraq Focuses On Three Axes
Baghdad - conscious - Imad's roaring Today, Wednesday, Chinese Ambassador to Iraq Cui Wei announced that his country will help Iraq to increase its capacity in the field of development, while noting that cooperation between the two countries focuses on three axes.
Cui Wei said, during a meeting held via the "Zoom" platform, and attended by the Iraqi News Agency (INA), that "the Chinese government respects the sovereignty and territorial integrity of the Iraqi side," noting that "China will not interfere in Iraq's internal affairs, and supports Iraq's decision to oppose it." interference in its internal affairs.
He pointed out, "The importance of developing bilateral relations between Iraq and China," noting that "all Chinese companies operating in Iraq aim to conduct cooperation with the Iraqi side, and not just conduct sales and purchases."
He explained, "Cooperation between the two countries is in the interest of both parties," noting that "China has great experience in the field of development and will help Iraq to strengthen and increase its capabilities."
He pointed out that "cooperation with Iraq focuses on several axes, including improving the livelihood of the Iraqi people, helping Iraq restore its industrial capacity, as well as helping it achieve economic transformation." https://www.ina.iq/159083--.html