Financial planning and poverty alleviation

by **claud39** Mon Mar 01, 2021 6:31 pm

[size=36][rtl]Financial planning and poverty alleviation[/rtl][/size]

Monday 01st March 2021

Financial planning and poverty alleviation 980-Alsabbaq

Dr.. Ahmed Al-Husseini

It seems that financial planning in Iraq has not taken upon itself seriously to address the main societal issues, such as trying to reduce poverty rates. Despite the official announcement of two strategies to alleviate poverty (2010-2014) and (2018-2022), the Ministry of Planning recently announced the possibility of higher rates of poverty. Poverty in Iraq reached 32 percent, and she attributed the reason to the effects of the Covid-19 pandemic.

Perhaps the effects of the pandemic are clearly visible and its aftermath of a general stagnation in the Iraqi market, disruption of economic activity and high unemployment rates, especially among vulnerable groups that depend on their daily work to earn a living, but it seems that the Ministry of Planning has overlooked other reasons that may be more rhythmic and influential than the effects.

The pandemic, the most important of which is the decisions of the Supreme Committee for National Safety and Health, to impose a curfew that lasted for quite some time, which affected the entry levels of those groups, which represent most of the Iraqi people, and this led at a later stage to an increase in the rates of economic recession in the markets, because these groups are the most consuming It is driving aggregate demand in

Economy.

The aforementioned committee was supposed to recommend the necessity of covering the living expenses of those groups, if they wanted to achieve the maximum benefit from the health curfew decision, but we did not notice this thing, in addition to the recent decisions of the Iraqi government related to reducing the value of the dinar and imposing progressive taxes targeting certain groups without Others, and the proposal to reduce allocations to more than 3 million employees within government institutions, all of these factors are expected to negatively affect the movement of economic activity, and then negatively affect the vulnerable and poorest groups in Iraq, especially if we know that most of the groups are classified within the poverty line NBK or below it works in simple businesses related to local markets, transportation, and retail stores.

As a result, the reduction in the pace of personal spending due to the decisions issued will indirectly affect the generation of recession waves in the local markets, which will later affect the entry of vulnerable and poor groups, and according to this analysis it was imposed on the financial planner, especially when he drew the financial plan for the current year 2021, which Translated into the general budget, it takes into account those effects and the reflection of the financial plan on those groups of Iraqi society.

It is also expected that if the House of Representatives passes the draft budget proposal for 2021 in its current form, poverty rates will rise to more than 38 percent in the first quarter of 2021, and what reinforces our expectation is the emergence of a new strain of the Corona virus under the name of Covid-20, which recorded many countries Confirmed cases of infection with this type of virus, not to mention the political influence, whether at the local, regional or international level, which is a major driver and influence in the movement of economic activity in Iraq.

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