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Sovereign funds and their role in national development DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Sovereign funds and their role in national development

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Sovereign funds and their role in national development Empty Sovereign funds and their role in national development

Post by claud39 on Mon Feb 18, 2019 7:50 am


[size=36][rtl]Sovereign funds and their role in national development[/rtl][/size]

Sunday 17 February 2019

Sovereign funds and their role in national development Alsabaah-6232

Fares Al Salman 
After the victory of the will of the people and the defeat of terrorism, we find that the Iraqi economy exhausted by the financing of military operations and low oil prices and weakness in the management of the country's economy, as well as the existence of corruption. Therefore, it is necessary to rebuild the Iraqi economy according to a clear vision and sound development principles that achieve social justice and activate the productive and service sectors, qualify and develop the infrastructure and contribute to the rapid increase in the GDP and diversification of the economy and create jobs to accommodate the young energies in society.

There has been an international trend to establish sovereign and large sovereign funds to promote the idea of ​​public-private partnerships with a view to injecting strategic investment directly into the various sectors of the economy in public, mixed and private sector activities. The main objective of the proposed Iraqi sovereign funds should be to focus on The internal market and the development of the national economy .. Thus, the funds achieve a return of economic, financial and social locally puts the country on the road to sustainable development and comprehensive, taking into account the possibility of thinking of foreign investment only when To invest in the local economy and to diversify the investment portfolio in order to create tools of influence.
There are successful international experiences in this field, namely the Asian Development Funds, which focused on the development of internal markets through upgrading the manufacturing sector, and then went on to the services sector.
As a vision, we see the SWFs as a goal of saving and developing government and mixed companies and developing them, as well as helping the private sector build sustainable companies. GCC sovereign funds have recently injected $ 60 billion in investment financing into local development projects.
The idea of ​​these funds is to facilitate the flow of investments after building the citizen's confidence in the system of state administration and the financial and monetary system, so that these investments flow through a government investment system that has a scientific business mentality and high flexibility in line with the market need.
There is a package of sovereign funds that we believe should be established to regulate the Iraqi economy, through development or merger or joint ventures.
Participating Projects
1 - Fund for the future sovereign (surplus fund):
This fund is funded by deducting 5% of the proposed oil and gas revenues, revenues from holy shrines, endowments, rents of state real estate and sale of government properties of various denominations, as well as fixed assets all the assets of endowments and thresholds and the secretariat of Baghdad and real estate 
The state. 
This fund guarantees the rights of future generations to the poor wealth, as well as being a sovereign reserve that supports the government and other sovereign funds. It invests in financing strategic projects that contribute to strengthening infrastructure and services, diversifying the economy, improving the local product and exploiting natural resources to ensure a prosperous future for future generations. In financing major projects in coordination with the sectoral banks.
The Fund also aims to bridge the budget deficit, achieve a fixed exchange rate for the national currency, to cope with economic shocks, emergencies and disasters, and to maintain the stability of the economy.
2. Social Security Fund:
The Universal Declaration of Human Rights of the United Nations General Assembly of 1948 states that social welfare is a human right. Article 22 states that sickness benefits, work accidents, lactation period, family allowances for child support 
And housing.
The purpose of this fund is to achieve social peace, political stability, the ability to live together, security immunity, cohesion of society, and a sense of belonging to society and the homeland.
This fund includes every citizen who does not have a guardian in the community (meaning that the child welfare fund enters under this fund), as well as the owners of basic salaries and pensions (meaning that the pension fund enters under this fund) Pensioners, people under the poverty line, victims 
The Fund is financed by the Fund for Minors 'Welfare in respect of minors / pension fund funds in respect of pensioners / funds of the Police Martyrs' Fund, for the families of police martyrs / and all other welfare funds in the State (all of which are located under the Social Security Fund But it maintains the privacy of its beneficiaries for the purpose of centralizing information and streamlining the administrative structures) / revenues of charitable activities from concerts, sporting and artistic activities, etc. / returns of investment of the fund's imports / returns of Hajj and Umrah / Zakat funds / donations and unconditional donations.
The fund also provides services to health services, education, housing and other services, as well as providing assistance and subsidies in accordance with the laws, social welfare institutions, care for the disabled, elderly homes, orphanages, public and private kindergartens and women's care institutions. It also provides exceptional and additional salaries and bonuses to citizens who have provided great services to the country.
3. School Building Fund:
This fund is linked to the vision and strategy of the country in the establishment and development of schools and colleges of all levels, as well as the comprehensive and sustainable development of the educational system. It is funded by a percentage of the oil export revenues determined by the legislation of the establishment of the Fund. It is also financed by the resources of each governorate, which is derived from all fees and traffic violations, On highways, part of the fees for the completion of official transactions in government departments, part of the fees for the transfer of ownership of real estate and the sale and purchase in real estate registration services and book Altul, part of the proceeds of auction auctions sale of state funds.
A successful model that can be used as a successful experiment is the Texas School Permanent Fund, founded in 1854, and the oldest sovereign wealth fund in the world. Its goal is to invest the state's fixed assets and to allow Texas to fund public primary and secondary education in the future. Using the Fund's funds to finance primary and secondary education exclusively. This fund has become an unlimited source of funding for public education in the state, and expenditure has been restricted by interest earned from the use of fund funds 
4. Hospital building fund:
The goal of establishing the fund is linked to the vision and strategy of the country in the development of health services. It is funded from a proportion determined by legislation from oil export revenues, however simple, and from similar revenues to the construction fund of schools. In addition to part of the proceeds of compulsory insurance on vehicles.
Additional Notes:
1. The post-oil era must be prepared by harnessing the resources of the future sovereign fund, orienting a future perspective, enhancing the spirit of citizenship and enabling the Iraqi private sector to participate in leading economic development and improving opportunities in the non-oil sectors.
2 - Development of sectoral banks to practice investment development.
3 - Supporting private sector initiatives aimed at diversifying sources of income and focusing on competitive projects that have exceptional need and supporting the private sector to invest in different sectors in order to create economic diversification that contributes to the creation of sustainable development.
4. The Sovereign Fund of the Principles of the International Labor Organization (ILO) should be respected in 2008 and include the development of the legal framework and objectives of each fund and its alignment with macroeconomic policies / institutional framework and governance / investment framework and risk management.
Sovereign funds policies include:
(A) Buy and retain securities for a long period of time and shall be called (bought and retained).
B) To provide an opportunity for the growth of institutions through the purchase of their shares and thus develop their production lines and move to the path of sustainable development.
C) Financing major projects in the country.
5 International Experiences:
Quebec Development Fund in Canada:
The Canadian province of Quebec has suffered from considerable indebtedness, as well as a huge investment gap in infrastructure. This fund was created and funded by the Provincial Chief Pensions and Pensions Fund, an integrated model of PPP contracts in the field of design, construction, finance, operation, maintenance and transfer of ownership ) And called (DBFMT). The private sector selects projects and proposes solutions. These selected projects are removed from the government budget and thus the burden is reduced 
the government.
(B) Expansion of Highway 33 in the Netherlands:
The Dutch government is trying to expand one of the highways and found that there is no allocation of this paragraph in the state budget, so a company was established between the public and private sector and took this company a loan from the Pension Fund and salaries supports the capital of the company to implement the expansion of the road to be paid the loan and its benefits from And the tender will be won by a consortium of companies 
Chairman of the administrative body of the Baghdad Economic Forum
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