Thread: Archive - Latest News Think Tank - 15/01/09 - 04/05/09

INTERVIEW - Iraq leader urges reverse of IMF, World Bank policy

International Monetary Fund (IMF) and World Bank insistence that Iraq cut industrial subsidies in return for aid has stifled economic growth and fuelled unemployment, the country's vice president said.

Vice President Tareq al-Hashemi, who heads a presidential economic committee, praised IMF and World Bank efforts to reduce Iraqi debt, but said steps to discourage subsidies for local industries had led to unemployment that could fuel instability.

Iraq, where the state set prices and restricted trade for decades, has opened its borders to a flood of cheap imports and scaled back industrial subsidies and support since U.S. forces toppled Saddam Hussein in 2003.

Unsubsidised Iraqi manufacturers and farmers now struggle to compete with cheap foreign products, some coming from countries nearby which subsidise their own industries, Hashemi said.

The lack of demand for relatively expensive Iraqi goods depresses demand for local labour, adding to the country's legions of unemployed who have proven a fertile recruiting ground for extremists in the past.

"The deterioration of domestic production has affected demand for workers, and this has had an effect on security," Hashemi told Reuters in an interview on Wednesday.

"The policy of (the World Bank and IMF) is that the economy must be 100 percent left to the private sector, and the state has no input ... Our industry is an infant one and needs support," he added, making a case for state subsidies.

Iraq is emerging from years of conflict, but the drop in violence has coincided with a drop in oil prices that has squeezed its budget -- crude sales account for almost all Iraqi income -- and laid bare the poor state of its other industries.

The IMF has worked with the Paris Club group of creditors to cancel 80 percent of the roughly $38.9 billion Iraq owed them, and the World Bank has worked on educational, health and reconstruction projects in Iraq.

The IMF and World Bank are currently working with Iraq to modernise its public financial management system, and Baghdad will soon decide whether to seek a second lending facility, or standby agreement, with the IMF.

The institutions' worldwide promotion of free markets and a more streamlined public sector has boosted growth in some cases, but critics say such reforms come at huge social cost and often do little to improve life for ordinary people.

"I'm not saying we should go back to the old economy ... Our problems are unique, and we need a unique solution. We could take a recipe between a directed economy and the free market," Hashemi said.

His call for more state control in Iraq's economy comes as Western nations pour money into their banking industries and some manufacturing sectors to safeguard homes and jobs in the wake of the global credit crisis.

Hashemi said he had called for an economic summit in Baghdad on March 22 to review Iraqi economic policy, and that IMF and World Bank representatives were invited.

http://www.reuters.com/article/middl...s/idUSLB182991

An invitation to reconsider the policy of the Central Bank of Iraq

Chamber of Commerce called on Baghdad to review the policy by the Central Bank of Iraq Kaanjaz achieved a proportion of deposits in banks.

Mahmoud said Alwash Vice Chairman of the Chamber, told the independent press (Iba) on Friday: "The Bank holds 75% of the deposits made with banks, a situation which requires the process back to the previous rate of 20% to enable the bank to activate its role in Altamoi."

"There are a number of things that need to take practical measures which the economic cycle in order to move the interest rate reduction due to the presence of an enormous mass of cash firm call to move to allow workers in the private sector for use in construction and reconstruction and contribute to the establishment of development projects. He adopted the simplification of procedures and the removal of red tape and overcome the granting of facilities and benefit from the contexts of work in foreign banks and to guarantee the rights of banks.

He called attention Allosh Altodiat process through the external opening of documentary credits in local banks, instead of resorting to the opening credits in the banks of the neighboring countries or by means of a direct remittances through these channels, which caused damage to businesses and the national economy.

The necessary integration of civil and banks to increase their capital, so that they can better perform its role and the expansion of the Bank to open branches in Iraq, many countries in the world, the light volume and importance. He pointed out that the other hand, it is necessary to provide facilities for foreign banks to open branches in Iraq in order to facilitate the operations of foreign Altodiat.

The Allosh for the activation of the Investment Law No. 13 of 2006 must take practical measures to attract capital, national as well as retrieval of migratory migratory minds and provide all the facilities and exemptions in order to utilize them in the process of construction and reconstruction and the rebirth of the industrial projects stalled and the absorption of labor force unemployed to work and put them in the process productivity.

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Talabani told Press TV: I shall be retiring from politics, to write Memoirs!!

Iraqi President Jalal Talabani, on Thursday, less than in the station with exclusive Press TV Press TV Iranian TV news, he will retire from the political field this year and the richest businessman to write his memoirs.

The Iraqi president, who calls the station Balnact able in the field of human rights is the first president of post-invasion Iraq, U.S. in 2003, said Thursday that he had "no plans to seek re-election in the forthcoming presidential elections after the end of his term later this year."

Talabani said in an interview with the "Press TV" program in the English-speaking "face to face", "No, I do not plan to continue [as]. think that the end of this year will come to an end and I hope that my retirement, I am going back to my home and will have the time to write Mzkrati."

In response to a question whether the Kurdish community, a distinct political like "unwritten rule" in Lebanese politics, which saw the election of the President of Christian routine, Talabani strongly "not.

No. ... Not in Iraq, according to the Constitution, all Iraqis have the same rights. In Iraq it is not provided by the Constitution is not a gentlemen's agreement that the prime minister must be a Shiite, and Kurdish President, the President of the Arab Parliament ... we can elect as an Arab, Kurd, and prime minister, and a Christian as president of the parliament. According to the constitution, all Iraqis are equal. "

Talabani arrived in the Iranian capital in March 10 to attend the tenth summit of the Economic Cooperation Organization (ECO) as guest of honor.
The channel will be full text of the meeting on Friday.

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Massoud Barzani said the Kurds with Iraq, the strongest

President of the Kurdish autonomous in Iraq, expressed solidarity with the central government in Baghdad on Thursday, but warned that there are still profound differences with the leadership needed to be resolved. He said Massoud Barzani, president of the Kurdish regional government, speaking to experts on foreign policy in London Kurds will be in a better position in partnership with Iraq as a whole, even if the ultimate ambition of independence has always said. Barzani, the son of Kurdish leader of a revolutionary in a Royal Institute of International Affairs, "The Kurds of Iraq and with a stronger more powerful Iraq with the Kurds

"As long as Iraq was governed by the Constitution and the role of the Kurds within the framework of action in Iraq, they will continue to be so in the Constitution." But he added: "We believe that we all have a right as a nation that we have the right to self-determination. "This is what the Kurds ****** him a natural right ... and that will never be through violence and war. Will be in accordance with the conditions where there is dialogue, understanding and hope that this will happen."

The region has a Kurdish northern Iraq, consisting of three provinces on the border with Iran and Turkey, already a high degree of autonomy and has its own knowledge and the international airport and a strong government. While it is the strong desire of the Kurds for a long time to unite as a nation, the establishment of an independent Kurdistan would lead to tremors, geographical and political opposition to it, even by allies of the Kurds, such as the United States. There are Kurds in parts of the eastern part of Syria and southeastern Turkey, Iraq and western Iran.

Instead, the Kurdish leaders seek to build the greatest possible autonomy and want to join Iraqi cities like Mosul and Kirkuk within the Kurdish region. The Kirkuk issue is particularly sensitive because it is the city that includes some of the largest oil reserves in Iraq.

During the rule of Saddam Hussein's expulsion of tens of thousands of Kurds from the area around Kirkuk as part of a process known in the Arabic region. Since Saddam was toppled, the Kurds have returned in large numbers, causing a change in the population composition again. It was scheduled for a referendum in Kirkuk in 2007 but was postponed several times. Barzani said that the delay in the five areas is a source of deep disagreement with the central government in Baghdad.

Other areas of the ownership of oil and gas, foreign policy and the structure of the partnership in Baghdad and is known to paragraph 140, a clause in the constitution governing the management is at the end of Kirkuk.

Barzani said he expected to be implemented shortly, paragraph 140 which requires a referendum.

"We did not lose hope yet. We remain committed to this and we hope we do not get to the stage that does not give the people to implement them. We still have hope."

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Barzani told the Financial Times: We will not give up Kirkuk

The head of Iraq's Kurdistan region Massoud Barzani, yesterday, to the «true national reconciliation and the establishment of real government to share power in Iraq is based on partnership and not by the dictates of any». He warned Barzani, who is currently on a visit to London, in an interview with the «Financial Times» yesterday, that «the process of national reconciliation in Iraq still elusive». He said: «Kurds must defend themselves and protect the gains they have achieved and, more importantly, the prevention of conflicts with fellow Arabs of the transition to a new chapter of sectarian violence after the withdrawal of U.S. forces». And the problem of Kirkuk, Barzani said: «The Kurds have shown flexibility, but they will not give up their demand for the city as part of their semi-autonomous and have agreed to postpone the proposed referendum on the future, but they still want to determine the identity of Kirkuk, the population». He added: «We are confident that Kirkuk is part of Kurdistan, and if the other parties in Iraq believed that the Kurds abandoned, it will not happen».

The President of the Kurdistan region that «the oil law, which guarantees a fair distribution of revenues to the way regions have been frozen, and Kurdish officials abstain from the ratification of the programs to develop oil fields in their territory, while the central government insists on the management of programs to develop the oil sector in various parts of the country».

Barzani said that «the KRG has signed dozens of oil contracts, but the government refused to recognize the central». He put the Iraqi oil ministry responsibility, saying it was «there has been no progress in the management of the oil sector in the rest of Iraq, have not been able to do things and does not want anyone else to do so».

The Head of the Kurdistan region, that local elections were held recently in Iraq to undermine the trend towards granting autonomy to the regions of Iraq under a federal system, but believed that «these elections were an indication that a viable solution in Iraq is a federal system, because each community voted for their leaders».

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A symposium on investment in Iraq

Scheduled to establish the National Authority for the investment seminar on Sunday to develop the work of specialized bodies to invest in the provinces and to discuss obstacles and solutions proposed.

The Information Office of the Commission it would establish a Sunday in Baghdad's Rashid Hotel, a seminar designed to develop the specialized work of the bodies of investment in the governorates of Iraq.

He added that he will discuss the obstacles and the solutions proposed to activate the work of the Commission in the field of promoting and attracting investments in the advancement of the country's economic reality.

The office added that the symposium will be attended by agents and representatives of ministries, chambers of commerce and industry of all, the President of the National Authority for Investment and chairpersons of the investment in the provinces.

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BARZANI: Oil Ministry has failed to perform its duties

The president of the Kurdistan region Massoud Barzani and Iraq's oil ministry of the Central Government on the dispute over the distribution of oil wealth.

Barzani said in an interview published in newspaper (Financial Times) on Thursday, "The problem lies in the failure of the Ministry of Oil in the performance of its functions and not made any progress in the management of this sector in Iraq."

"The ministry has spent billions of dollars, but nevertheless failed to meet the promise made by the goal of increasing production."

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Economic Commission considers the government "delayed" fight against financial corruption

Deputy Chairman of the parliamentary economic committee, we Yonadam Kanna announcement by the Secretary-General of the Council of Minister Ali Alaak the Government's intention to launch a campaign to combat corruption as "late."

He said: "The announcement came late Makhlgueth because of the negative aspects of this phenomenon has hurt the economic reality of the country and led to the depletion of billions of dollars, not to mention the delay in the implementation of projects and service development."

He pointed out that we were "the security conditions of the past and shed the greatest impact on the militia phenomenon is ex****bated in recent years and prevent the government from taking decisive action against those involved in the administrative and financial corruption."

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The U.S. military organizes economic conference in the country to discuss the reality of the investment

U.S. military plans to organize the first economic conference in the district of the country of Iraq in Salah ad Din Province in collaboration with the reconstruction in the province.

A spokesman for U.S. Central Command in the province, Ghazi Al-Ahmadi "The conference will be held next Tuesday is devoted to the discussion on banking and finance in the region."

He added that "a number of businessmen and investors from the Iraqis and the Iraqi government leaders will participate in the conference to discuss the facilitation of the investment process for investors and stimulate the region's economic development."

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Kuwaiti ambassador in Iraq: the terrorist threats will not Ttnini with the performance of regular diplomatic

The Kuwaiti ambassador in Baghdad to the insured that he would not care about anonymous terrorist threats directed against him and the elements of the embassy in Iraq.

He stressed that the insured will not be deterred by threats from the functions of his role in the performance of service.

The Kuwaiti ambassador that it was not the first time exposed to threats such as those working in the center of an unstable security conditions, where there is high risk.

He pointed out that with the task of national and must be based on the fullest without regard to such threats.

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