Archive News - Iraqi Dinar Think Tank - 06/05/09 - 04/09/09

Advisor Central Bank: Inflation

Ruled out the Iraqi Central Bank Consultant rising inflation, the economic return to Iraq after the latest report issued by the Arab Economic Unity Council about the high inflation rates in all Arab countries.

Appearance, "said Dr. Mohammed Saleh, said Iraq is less countries of the global financial crisis, which hit those countries Baktaatha all, without exception, unlike Iraq, which continued inflation rates to decline over the past two years.

He said the inflation report Makeshvh the foundation for the last month of the arrival of the annual rate to 7,8 percent, indicating the success of the monetary and fiscal policy to control the economic dilemmas that were likely to occur due to security disturbances.

He praised the plans for programmed for fiscal policy to assign the strategy of monetary policy set by the Central Bank of years ago. Referring to the bank to follow-up studies on the development of areas related to the financial sector by the experts.

It should be noted that the Council of Arab Economic Unity issued a report about the high inflation rates in the Arab countries, among which the possibility of the spread of the phenomenon in the Arab countries.

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The current reality of the Iraqi economy

Indicates the current reality of the Iraqi economy to the content of economic and political philosophy were showing and clearly the dominance of oil sector profit-taking on the economy and state control of economic activity and the patterns of economic growth in Iraq in the former derived from the oil sector growth at the expense of simple growth rates in the productive sectors loaded in them the seeds of the rapid collapse of the reasons that I will mention later. the private sector in Iraq is weak and limited participation in the gross domestic product.

The strange thing is that all attempts to build the Iraqi economy had started relying basically on oil export revenues, which led within a few decades of time to change the structure of the gross national product to become a two-thirds of the Iraqi economy posed by the Iraqi oil sector and the orbit of course, before the modern Iraqi state (young). Therefore, the results of the modest growth in national income in Iraq since the fifties of the last century was due to the growth of the oil sector exclusively, for example, we believe that the rapid growth in GDP during the seventies and achieved more than (3600) dollars on average per capita income of Iraq comes originally from the growth oil exports and high crude oil prices is not sustainable growth of the non-oil productive sectors (agriculture and industry) in the Iraqi economy.

It was dominated by oil revenues, rent multiple effect on the economy, economic, political and social have left their mark on the problems faced and is facing Iraq.

In other words we can deduce that the policies of development has been and continues to have failed in creating a base of productive economic sectors in the agricultural, industrial, service and other reliable and sustainable as a result of the dominance of the oil sector and state control of oil resources gave rise to the absolute domination of the state for decades on all aspects of economic life which arose from and that in turn is a perception among many politicians and decision-makers and thinkers, economists and general public alike that the definition of economic affairs can not only be done across the state and the public sector and the state must have a hand in all aspects of economic life in a holistic manner and to control the distribution of economic resources.

Therefore, the patterns of economic growth in Iraq in the past and is still derived from oil sector growth at the expense of simple growth rates in the productive sectors carried within them the seeds of collapse because of rapid extraction of the oil sector that supports the working patterns of capital-intensive use of scarce labor and suffice it to say that (60 % 70%) of the gross domestic product generated in the oil sector to get a job, but less than (1%) of the employment available in the market and therefore resorted to successive governments in Iraq to inflate the administrative apparatus of state and absorb the largest possible number of military and security institutions and intelligence as well as in private facilities General production in excess of real requirements and to cover the losses of such enterprises through the support of the oil revenues and in different forms.

It should be recognized that in any case, these sectors remain unable to accommodate the rapid enrollment of the labor market, resulting in economic effects manifested in unemployment, poor income distribution among citizens and has been especially clear after the demobilization of large numbers of those enrolled in the army after the Iran-Iraq war.

And perhaps helped to prepare for the events in Kuwait because of financial, economic, and results as well as the concentration of economic activity at the center of the state (the capital) and stay until the parties near Baghdad in case of default of any significant result of this form of ill-regional distribution of the results more modest development.

Estimated the volume of labor available in Iraq at about (8.5) million people (according to the World Bank) and the estimated volume of unemployment before the events of about 942003 (30%) rose after the events to about (40% 50%) and add to this number any aspiring underemployment a large number of workers in the informal sectors and low wages and working hours fluctuate.

About this case adopted a large number of Iraqi families on government support through the ration card in the provision of staple food has worsened the problem of unemployment after 2003 because of the demobilization of the army and internal security forces and solve a number of ministries and layoffs by the plants and the activities of the private sector because production was halted immediately after the events and exposure of the Iraqi economy to a policy of continuous and permanent dumping from the countries of geographical proximity.

Model of development has been profit-taking in Iraq to successive shocks associated with fluctuating oil revenues due to the fluctuation in prices or quantities exported or for political reasons, as they did during the siege between 1990 and 3003.

Hilal Ta
Researcher and academic

Syria decides to recall ambassador to Iraq

Syria decided to recall its ambassador to Iraq as a response to Iraq's recall of its ambassador, a Syrian official source said. "As a reaction to Baghdad's recalling of its ambassador from Damascus, Syria decided to summon its ambassador from Baghdad," the source, which was not identified, was quoted by the official news agency SANA as saying.

Iraq has recalled its ambassador to Syria and demanded the Syrian government to hand over senior Baath party members for their alleged roles in last week's deadly truck bombings in Baghdad that killed 97 and injured some 585, an Iraqi government spokesman said on Tuesday.

The Syrian official source said, "the Syrian government completely rejects the remarks of the Iraqi government's spokesman on Baghdad bloody bombings last Wednesday," adding Syria had already strongly condemned the terrorist attacks that claimed the lives of many Iraqi civilians.

"Syria informed the Iraqi side of its readiness to receive an Iraqi delegation to see available evidences at their side concerning the bombings perpetrators. Otherwise, Syria considers what has been broadcast through the Iraqi media mere fabricated evidences intended to serve internal political goals, and the conflicting statements by the Iraqi officials is an evidence of that," the source added.

Two days ago, Iraq's Baghdad operations command spokesman Major General Qassim Atta showed a videotape at a press conference aired by the official ********** of Iraqia, which showed the confession of Ali Kadhim Ibrahim, a high-ranking member of Saddam Hussein's Baath party.

Ibrahim confessed his responsibility for planning and organizing the suicide truck bombings, and the name of Sattam Ibrahim as the one who phoned him a month ago from Syria and ordered him to carry out an attack that would destabilize the security in Baghdad.

Mohammed Younis al-Ahmed was also mentioned in Ibrahim's confession as the leader of Saddam Hussein's Baath party wing in Syria, and the one behind the violence in Iraq.

The Syrian Foreign Ministry last Thursday issued a statement which strongly condemned the deadly attacks in Baghdad and expressed great grief over the loss of a large number of lives and casualties.

The Syrian official source noted that Syria has "frequently repeated its keenness on the unity, independence, security and stability of Iraq," and was regretful that "relations between Syria and Iraq become tied to internal disagreements and maybe foreign agendas."

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Originally Posted by Seaview

Iraq Shiite leader Hakim dies in Tehran hospital

The leader of Iraq's largest Shiite party, Abdel Aziz al-Hakim, died in a Tehran hospital on Wednesday aged 60 after a long battle with lung cancer, five months ahead of key parliamentary elections.

"He died a few minutes ago after battling cancer for 28 months," his son Mohsen Hakim told AFP. He and his brother Ammar had been at their father's bedside.

Hakim, a cleric who helped establish an opposition movement in exile in Iran in 1982 to battle Saddam Hussein's Sunni-dominated regime, returned to Iraq after the US-led invasion of 2003.

His Supreme Iraqi Islamic Council swept Shiite areas in first provincial elections after the invasion but in new elections this January the party suffered major losses to the rival list of Prime Minister Nuri al-Maliki.

"The body of the head of the SIIC will be transferred to Najaf and the details of the mourning ceremony will be announced in due course," Mohsen Hakim told Iran's Fars news agency, referring to the central Iraqi shrine city where Shiites from around the world are traditionally brought for burial.

The Iranian ISNA news agency said mourners will hold a funeral procession on Thursday at 9:00 am (0430 GMT) from Vali Asr Square in central Tehran to the Iraqi embassy. It did not say when the body would be transferred to Najaf.

Hakim, a former heavy smoker, was admitted to hospital on Saturday after he developed a "medical complication", the son told AFP on Monday.
The cleric, who had been in Tehran for treatment for more than four months, had undergone frequent medical check-ups in the Iranian capital in the past and even visited the United States to see lung cancer specialists.

"Mr. Hakim died in the hospital at 2:40 pm (1010 GMT)," Iranian state T.elevision quoted the head of the medical team treating him as saying. "The advanced stage of cancer had damaged his liver, brain and bones and because of that he died," added the doctor, whom the T.elevision identified only by his last name Masjidi.

A scion of one of the traditional leading families among Iraq's Shiite majority, Hakim took over the leadership of his party in August 2003 after his brother Ayatollah Mohammed Baqr al-Hakim was assassinated by a massive car bomb in Najaf.

He had previously served as deputy leader and head of the party's Badr Brigades military wing.

Their father, Grand Ayatollah Mohsen al-Hakim, was one of Shiite Islam's top spiritual leaders between 1955 and 1970.

But the family has had to contend not only with the rising influence among poorer Shiites of the radical movement of anti-US cleric Moqtada al-Sadr but also with the increasing power of prime minister Maliki.

Hakim's death came just days after the premier confirmed he was breaking his alliance with the SIIC under which he fought the last parliamentary elections in 2005 and will go it alone in the next polls in January. The decision leaves the SIIC facing an uphill struggle to retain its power at the political centre contesting the elections with its remaining Shiite allies.

http://www.zawya.com/Story.cfm/sidAN...ran%20hospital

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Interesting,

Having seen all the political posturing over the past few months, and now with Hakim's death, and new Iranian backed Shiite Alliance being formed to run against Maliki, supported by the poorest of Shiites, makes you wonder how Maliki will win election for second term.

When Maliki states he will run on his record, what record, he has nothing but thieves in Parliament, billions are missing which were suppose to go into infrastructure rebuilding, and there is still not electric service in most areas for more than a few hours.

I don't know about most, but with oil law still hanging for over a year, what the hell has he accomplished? With mounting fear he will not win given the fact he has lost support from Shiites, his own party, makes you wonder when you read that the poor Shiites are mounting a campaign to oust him.

Now as one who uses commons sense, if I was Maliki and knowing so little has been accomplished to his credit over the past three years, what miracle would I pull out of the hat to insure I won election? Now everyone can shout at the same time, REVALUE!!! Think about it, what better time to push this long awaited restoration of value of dinar than this, for political reasons. Isn't everything done for political reasons in the world. lol

Success to all, Mike

the divergence of views on the second oil licensing round

Preparing the Oil Ministry to hold a conference promotional second round of licenses to foreign companies to invest in 10 oil fields, emphasizing its commitment to provide fuel for the Ministry of Electricity in order to generate electric power.

The ministry spokesman Assem Jihad said the oil ministry will hold its promotion in the Turkish capital Istanbul.

Jihad said the fields are covered by the second round of licenses are required fields and "crazy, West Qurna, Alhvaip, Gharraf, a Kifl, coral, Pedra."

Will include the licensing round, "Fields collection, which includes the eastern Khashm Red Moon Clamps and Qayyarah and field star in the province of Nineveh."

The official emphasized that the 45 companies will compete to invest Iraqi oil fields, and pointed to the intention of Jihad, the ministry opened for bidding the end of next month.

It's still likely a member of the Commission on oil and gas representative Abdul Hadi al-Hassani possibility to double oil output in the event of a successful second round of licenses to be held in late November.

Hassani, welcomed a second oil licensing round for 10 oil fields, investment, and stressed that al-Hassani awarding contracts to firms investing in this round will double oil production to reach six million barrels per day that the fields are not productive.

The Hassani, not legal grounds for the objections of some tours of the licenses that grant the law No. 22 of 1997 and Article 112 of the Constitution the right of the government administration, in the absence of a law of oil and gas.

For his part, questioned the decision of the Legal Committee Osama Nujaifi legality of licensing rounds not be passed on to parliament for obtaining consent.

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Ban Ki-moon: the deposit of $ 165 billion in the Development Fund for Iraq

UN Secretary-General Ban Ki-moon said in the report to the UN Security Council that some 165 billion dollars have been deposited in the Development Fund for Iraq since its inception in 2003 from sales of Iraqi petroleum products.

The secretary general of the United Nations in press statements Thursday that the Development Fund for Iraq was established at the resolution 1483 and to deposit the proceeds of export sales of Iraqi oil and the remaining balances from the UN oil-for-food and frozen Iraqi funds.

The moon has been some progress in the implementation of the Finance Act to measure the seizure of the fuel by the Iraqi Oil Ministry, pointing out that there is still much to be done to control the full system of measuring Iraq's oil production, distribution and export.

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Maliki confirms government's keenness to develop relations with Britain in all fields

Prime Minister Nuri al-Maliki government's keenness to develop relations with Britain in all fields, particularly economic, and the need for British companies in Iraq.

He renewed his call during a meeting with a delegation from the British company British Petroleum, which won a tour permits oil Rumaila conducted by the Ministry of Oil to British companies for work in Iraq and contribute to the process of construction and reconstruction.

Calling for steps to advance the work of British Petroleum Company in Iraq and achieve that serve the interest of both parties.

For his part, CEO of British Petroleum Tony medicines that these contracts will help to consolidate relations between the two countries in the future, would be an incentive for the work of other companies in Iraq and take part in the construction process.

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Oil sign a contract with Shell and Mitsubishi to invest $ 700 million provided Gas in Basra

The Ministry of Oil signed an agreement to establish a joint venture with Shell and Mitsubishi to invest 700 million cubic feet of natural gas in the oil fields south of the country.

He said ministry spokesman Assem Jihad said in a statement Thursday that the South Gas Company entered into an agreement to establish a joint venture with Royal Dutch Shell, Mitsubishi Japanese, explaining that the ministry's share in the contract amounted to 51 percent of the investment process with the two companies share the remainder.

The jihad that the first phase of work will be concentrated in the fields of Basra province, pointing out that the technical process will feed into the production of gas power stations and gas plants and petrochemical plants, gas-powered.

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Originally Posted by Seaview

Syria decides to recall ambassador to Iraq

Syria decided to recall its ambassador to Iraq as a response to Iraq's recall of its ambassador, a Syrian official source said. "As a reaction to Baghdad's recalling of its ambassador from Damascus, Syria decided to summon its ambassador from Baghdad," the source, which was not identified, was quoted by the official news agency SANA as saying.

Iraq has recalled its ambassador to Syria and demanded the Syrian government to hand over senior Baath party members for their alleged roles in last week's deadly truck bombings in Baghdad that killed 97 and injured some 585, an Iraqi government spokesman said on Tuesday.

The Syrian official source said, "the Syrian government completely rejects the remarks of the Iraqi government's spokesman on Baghdad bloody bombings last Wednesday," adding Syria had already strongly condemned the terrorist attacks that claimed the lives of many Iraqi civilians.

"Syria informed the Iraqi side of its readiness to receive an Iraqi delegation to see available evidences at their side concerning the bombings perpetrators. Otherwise, Syria considers what has been broadcast through the Iraqi media mere fabricated evidences intended to serve internal political goals, and the conflicting statements by the Iraqi officials is an evidence of that," the source added.

Two days ago, Iraq's Baghdad operations command spokesman Major General Qassim Atta showed a videotape at a press conference aired by the official ********** of Iraqia, which showed the confession of Ali Kadhim Ibrahim, a high-ranking member of Saddam Hussein's Baath party.

Ibrahim confessed his responsibility for planning and organizing the suicide truck bombings, and the name of Sattam Ibrahim as the one who phoned him a month ago from Syria and ordered him to carry out an attack that would destabilize the security in Baghdad.

Mohammed Younis al-Ahmed was also mentioned in Ibrahim's confession as the leader of Saddam Hussein's Baath party wing in Syria, and the one behind the violence in Iraq.

The Syrian Foreign Ministry last Thursday issued a statement which strongly condemned the deadly attacks in Baghdad and expressed great grief over the loss of a large number of lives and casualties.

The Syrian official source noted that Syria has "frequently repeated its keenness on the unity, independence, security and stability of Iraq," and was regretful that "relations between Syria and Iraq become tied to internal disagreements and maybe foreign agendas."

http://pukmedia.com/english/index.ph...12981&Itemid=1

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Syria says it will return its ambassador to Baghdad prior to Iraq's reciprocation

Issued a Syrian Foreign Ministry condemned Thursday a statement it accused Iraq of sheltering the perpetrators of recent bombings in Baghdad last Wednesday, saying that Damascus condemned strongly in time these explosions and described the terrorist.

The sources said that Damascus is committed to all agreements signed with Iraq on the control of the security situation, pointing out that America knows very well that Syria has nothing to do with what happened will not affect at all on the American agenda to Damascus, and even the Iraqi government itself knows that these accusations are false, according to those sources.

The source added that Syria will not return its ambassador to Iraq to calm the situation and initiate a similar move, Iraq, stressing that Syria's support for efforts to preserve the security and integrity of Iraq.

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Iraq says Syria has repeatedly refused to hand over suspects

Iraq has repeatedly asked without success that Syria hand over terror suspects sheltering within its borders and, until it does, relations will suffer, a government spokesman said on Thursday.

"The Iraq government has asked for a long time that these people be handed over," spokesman Ali al-Dabbagh told AFP.

"The list was given a few times during bilateral security committees but we always received evasive answers. Iraq will not accept this kind of situation."

Iraqi Prime Minister Nuri al-Maliki demanded one last time that Syria hand over those named on the list during a meeting in Damascus on August 18, but he was rebuffed, Dabbagh said.

Twin truck bombs the following day in Baghdad at the ministries of finance and foreign affairs left 95 people dead and about 600 wounded.

On Sunday, the Iraqi security forces paraded on state t.elevision a former police chief who said he planned the finance ministry attack, on the orders of his Baathist bosses based in Syria.

And on Tuesday Iraq recalled its ambassador in Damascus. Syria, which has publicly condemned the August 19 attacks, retaliated within hours by ordering back its envoy from Baghdad, triggering a major diplomatic crisis.

"Our relations with Syria have reached a crossroads of whether they choose to have good relations with Iraq, or whether they choose to protect persons who attack Iraq," Dabbagh said.

Iraq will ask the United Nations and use its remaining relations with Syria to try and ensure that the suspects are handed over, he said.

"We are moving on an international level to let the people know that crimes and genocide are launched from countries in the region," Dabbagh added.

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