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Washington consensus ... and the white Iraqi paper DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Washington consensus ... and the white Iraqi paper

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Washington consensus ... and the white Iraqi paper Empty Washington consensus ... and the white Iraqi paper

Post by claud39 Sat Feb 27, 2021 7:51 pm

[size=35]Washington consensus ... and the white Iraqi paper[/size]

It is time for the Iraqis to learn from measures that have registered success in economically troubled countries.

Saturday 02/27/2021

Washington consensus ... and the white Iraqi paper Iraq_13

Brick factor: the state of the Iraqi economy after a century of oil rents, development and education

 Washington Consensus: Markets drive more growth than the state

 The Iraqi "white paper" is fully consistent with the provisions of the Washington consensus

 Reducing the value of the dinar is the first harsh government steps against large segments of Iraqis

In 1989, economist John Williamson developed an economic draft of ten articles, which he presented as a treatment description for failed states that suffer major financial and economic problems in the Latin continent (failed states or fragile states is a political term referring to weak and ineffective governments that were unable to control the performance of Its successful or failed service and administrative duties to monopolize the authority of legitimate violence) during which it called the International Monetary Fund and the World Bank to adopt this bylaw, and the recommendations presented at the time were as follows:

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[*]Policy of fiscal discipline and consideration of expenses

[*]Redirecting public spending from random subsidies to infrastructure investment

[*]Tax reform in the sense of moderately broadening the tax base

[*]Giving markets the freedom to set prices so that they are higher than inflation

[*]Liberalizing the trade sector with a focus on the principle of eliminating quantitative restrictions, such as licensing and concessions

[*]Liberalization of foreign investment flows

[*]Privatization of state institutions

[*]Liberate and abolish regulations and laws that hinder market entry or restrict competition

[*]The currency exchange rate is appropriate and reflects economic strength

[*]Observance of laws and land rights


In the 1990s, this list took a broad political turn, after it was approved by the World Bank, International Monetary Fund and the US Treasury Department based in Washington, DC, until these policies were overshadowed by the term Washington Consensus, referring to those institutions that adopt these policies that Supports international globalization policies.

And between a critic and objector to these policies, which were considered by some, an interventionist policy directed in favor of certain liberal countries in manipulating the competitive advantages of those countries for political purposes, as these reform policies were applied in Latin countries and applied again in the second world countries, i.e. socialist countries after their separation from the Union Then, ten other items were added to the list, called at the time - Post-Washington Consensus, the amended Washington consensus - during which consideration was given to the developing countries' economic conditions and the size of the responsibilities restricting their economies and constrained by the dependence of many social classes and classes on their central economies.

The principle of the regulation and its provisions in general - as economists see it - is based on the concept that markets lead to achieving growth more than the state itself, and to reduce the state’s role in managing the economy.

White paper

In August 2020, the Iraqi government presented the economic reform report, which it called the "white paper", which included a set of recommendations, strategies and policies that it thinks are capable of reforming the economic and financial system in Iraq, and through which the Iraqi government believes, as stated in the preamble of the paper, that it is inevitable. Other than implementing these reforms, there is no room for postponing those decisions and policies and continuing to depend on Iraq on recovering oil prices and export quantities to finance its increasing expenditures.

With the study of the five frameworks and axes of the white paper and allowing ourselves to rearrange them in accordance with the terms of the ten Washington Consensus paper, we find that most of the themes and topics dealt with in the Iraqi White Paper came fully compatible with the terms of the Washington Consensus. And if its effect was not clearly observed in the last proposed budget for 2021, the privatization of public sectors is another goal that the Al-Kazemi government seeks to implement, while the move to change the exchange rate of the dollar and reduce the value of the dinar was the first steps that the government implemented, whose severity was reflected on large segments of the people Iraqi.

Feasibility and effectiveness of these steps

We can at least agree with most liberals and believers in the free economy who believe in the principle of limiting state intervention in the economy, with the importance of implementing these paragraphs, but it is possible that the objections about the implementation and implementation mechanism are logical, acceptable and justified as well, especially with the nature of the fragile and complex situations of those countries whose environments were not Legal, economic and political are qualified to carry out comprehensive reforms of this magnitude, which could harm the interests and entry of many segments of their societies that are unable to defend their interests or even understand their rights and their duties.

As for returning to the countries and institutions that sponsor these articles, which are considered advanced industrial capitalist countries such as the United States and Britain as an example, whose economic thinkers, their major economic institutions and their research centers have adopted these reform items! We find that it took a contradictory behavior with the call of developing countries and socialist countries to adopt these difficult decisions in a time of financial and economic crises that they experienced in the years 2008 and 2020, as the United States and even the European Union countries and Britain abandoned measures to lift state support, and turned towards interventionist policies in the market, And increase spending and economic stimulus, and support the affected companies with grants and loans without interest or negative interest, and the adoption of spending policies, and a large increase in spending to take care of the vulnerable classes and large payments for unemployment!

Those international financial institutions and those who support them from among the major countries are trying to impose policies that pressure peoples' governments to implement harsh economic provisions and steps in difficult periods, as is happening in Iraq today, contrary to the nature of the behavior of their decisions and economic policies in times of crisis, which calls us to stop a little and reconsider adopting such The procedures in our countries and the return to hearing the opponents of those policies and procedures or to re-evaluate and discuss the objective reasons for the success or failure of such measures and economic policies on the reality of developing countries or countries that are in a state of economic transition from centralization to a market economy.


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