Privatization is the key to development

by **claud39** Tue Feb 19, 2019 7:25 pm

http://alsabaah.iq/4898/%D8%A7%D9%84%D8%AE%D8%B5%D8%AE%D8%B5%D8%A9-%D9%85%D9%81%D8%AA%D8%A7%D8%AD-%D8%A7%D9%84%D8%AA%D9%86%D9%85%D9%8A%D8%A9

[size=36][rtl]Privatization is the key to development[/rtl][/size]

Monday 18th February

Privatization is the key to development Alsabaah-6330

Baghdad / Emad Al-Amara

"The implementation and adoption of privatization programs as a tool for economic reform is accompanied by a number of positive and negative economic effects," said Dr. Abdul-Karim Jaber Shangar, an economist.

Privatization programs

Between Shangar in an interview with "Sabah", that "some countries of the world reaped the fruits of privatization to varying degrees according to the various stages that started their economies," pointing to "the possibility of Iraq to benefit from those experiences."

In terms of domestic investment, private capital will invest in the purchase of public institutions. Savings will turn into investment, increasing the economic efficiency of producing goods at reasonable prices and high quality after introducing new methods of administration and purchasing lines. productivity".

"On the level of foreign investment, the deficit of developing countries led to attracting this type of investment, which helps in the actual implementation of privatization by creating new jobs and increasing profit and growth."

Investment Policies

"The advantages of privatization programs also contribute to the stability of countries and improve their financial status by excluding the expenses incurred in strengthening public sector institutions and trying to cover losses, which reduces inflation, in addition to the possibility of the State to obtain revenue from the sale of institutions."

He pointed out that privatization "achieves regulatory reform covering the organizational structure and regulations of the activities of productive institutions responsible for investment policies and fiscal and monetary policy, as well as the enactment of legislation and laws for the growth and expansion of the private sector during a certain period."

"Privatization can contribute to the development of financial markets by providing foreign and local investors with the opportunity to sell and buy shares, as well as reduce the cost of performance by reducing excess labor and improving work efficiency when decision makers feel the importance of work because they have given the opportunity to be owners and contributors to the production process."

The disadvantages of privatization

Since privatizations are accompanied by corruption in many countries, narrow individual interests seized valuable assets and valuables that were public property of the state and were then bought at cheap prices and became billions of dollars. For example, in Russia, stolen assets amounted to $ 1500 billion.

"The costs of privatization do not want many elements of society to pay because they are beneficiaries of existing social systems and fear changes in implementation," he said.

"Without a doubt, it will be difficult for the population to bear higher rates of unemployment, lower industrial production and higher inflation rates, resulting in opposition from trade unions and managers in state institutions and popular-oriented political groups. There are new rules introduced by privatization, They were getting it. "

"Unemployment is one of the most important disadvantages of privatization faced by countries because of their inability to find alternative employment opportunities, as well as the government support needed by the institutions for restructuring, maintenance expenses and replacement of assets before the transformation process, which is a problem for countries with low resources and large size of the public sector, Institutions and financial markets concerned with the financing process needed by the transition phase. "

Overcoming Obstacles

"If Iraq wants to overcome these obstacles, it is necessary to study the ways of implementing the privatization steps and the policy to be followed, then the study of the potential benefits within the economy or within a sector," he said. Activity to study the state of the market, which calls for the identification and evaluation of competitive opportunities available, followed by the actual implementation phase, which begins with the preparation of the privatization plan to describe alternatives to the decision makers of transformation.

by Jimplants Tue Feb 19, 2019 8:05 pm

Slowly but surely. Their intent is to become a world power and that they will be

Privatization is the key to development

Privatization is the key to development

Re: Privatization is the key to development