Thread: Archive News - Iraqi Dinar Think Tank - 08/09/09 - 09/01/10

Rising inflation index during the month of

Index of inflation for the month of September by 1.1 percent over the index recorded in August, as shown by the report issued by the Central Bureau of Statistics and Information Technology Ministry of Planning and Development Cooperation.

An official source said in a press statement that the device has been completed for the month's inflation report last September on the basis of field data collection on the prices of goods and services component of the basket of consumer retail prices in selected markets in Baghdad and the provinces where the results showed a rise in the inflation index rose 1.1 percent due to higher indices for some commodity groups.

He said the totals for food and beverages and tobacco, textiles and clothing, footwear, furniture, medical services and medicines recorded a fall in prices during the month of September compared to the previous month. The source said the annual inflation index decreased during the period from September 2008 until September 2009 by 2.7 percent due to lower indices of commodity groups, except foodstuffs, beverages and tobacco and miscellaneous goods and services, rent recorded increase in their prices during the period in question

http://www.alsabaah.com/paper.php?so...page&sid=91998

Foreign investment and its expected role in the development of the Iraqi economy

The world uses different methods of organization, communication and production, to interfere with the domestic economy with the outside world, making it more susceptible to rapid change than was the case in the past, at the same time, the past thirty years.

Showed the differences are striking and growing relationship between the countries in the competitiveness and growth, there is a constant need to improve competitiveness and maintain the growth of income in the framework of open economy. In light of this changing world, the most coherent, the Iraqi economy for more than two decades living in crisis Canyon, and suffers from structural imbalances are real, by the depletion of resources in wars is not futile and unwise economic policies, and economic blockade tightened the net around it, so the ration card has become a window for live, continuing rights of the Iraqi - which remain on the sidelines of life, though it did not provide the most basic conditions to ensure the humanity and dignity. This study to address some of the theoretical aspects of the importance of foreign investment and its role in the development process, through the following points:

First ": the concept of investment and foreign investment.

1 - Investment: Is the allocation of capital to get a good means of production, or development of existing tools to boost productivity. Or is: the net increase in real capital of the society, which consists of: investment goods Standing Kalmkain, machinery and equipment, any goods of capitalist production. Residential construction projects and buildings, roads and bridges ... Etc.. Inventories of goods.

2 - foreign investment: - the economic literature differentiate between two types of foreign investment is foreign direct investment, foreign investment is indirect.

A - Alastosmaralajunbi direct: the long-term investment includes a lasting interest. And control of a resident entity in one economy (represented by "the company's headquarters) on the project built in another economy. The World Trade Organization, she believes that foreign direct investment, investing occurs when a resident of the country (home country) originally productive in another country (host country) in order to manage it. it is clear that FDI is a long-term real investment in real assets. has committed to direct foreign investment entities or individual businesses, and generally, most investment global foreign direct is by multinationals and multi-nationalities.

B - non-direct foreign investment: the investment takes the form of foreign ownership of stocks and bonds, private or government in the host country for speculation and thereby benefit from the price differences or to obtain profits earned on fixed-interest bonds, or stock, provided that Aihoz foreign shares, allowing them to the right to run the project, and is characterized by being short-term investment (sometimes "stretching for weeks or a few months only). They are usually by the funding institutions such as banks or by individuals, especially after he released the Iraqi market for securities instructions allowing the foreign acquisition and trading of shares of Iraqi companies to contribute Special included on the list of trading in the Iraqi market for securities.

II ": the role of foreign investment in the development process for investment - in general - in the modern economy of great importance, the demand for investment goods is part of a" significant and important "in economic performance, and that being a part" of Iraqi history, and because he plays an "important" in determining the income and employment, although it is uncertain and fluctuating continuously. As for the importance of foreign investment and its role in the development process, The debate still exists, "on its importance and its relevance in economic and social development in host countries has existed as long as the dispute" between the objectives and interests of various parties to the investment. This despite the fact that foreign direct investment had exercised an "important" in the economic growth of multiple segments, as fields in the Gulf Arab oil and tea plantations in India, but there are some negative economic, social and political problems of such investment. The overall development concept today: the community-conscious and permanent, directed by the will of an independent national in order to find structural shifts and changes of political, social, economic, allowing for steady growth in the capacity of the community, and continual improvement of the quality of life. Therefore, the development indicators are interrelated and complementary:

A - economic growth leads to a steady increase in individual productivity and the production of society.

B - structural changes affecting all aspects of underdevelopment, political and administrative, economic, social and cultural rights, in order to create infrastructure and capacity development and release energies good at both the individual and collective.

C - a steady improvement and sustainable quality of life of the moral and material assistance to members of the community.

D - devoted social values, in order to expand the benefits available to citizens Bajayalam successive, as an expression "to embrace a strategy of community-based sustainable development. Although there is some dissent to this investment since it was raised," negative, relying on historical periods characterized by the dominance of colonialism and its role the depletion of the wealth of many countries, say in spite of this, there is support for this investment and discourage it, especially direct him, because "for his role in the transfer of capital, technology and organizational and marketing skills to the host countries as well as to expand trade, create jobs and accelerate economic development and integration in global markets. On the whole, the investment is one of the pillars of economic growth, it leads to increase the capacity of the country's productive, and that effective means to change the structure of the national economy for the benefit of modified structural imbalances, as well as "for that by increasing the size increases the rate of economic growth, through increase the value added, productivity and operation of the labor force. This hand.

http://www.alsabaah.com/paper.php?so...page&sid=91999

Continued ......

A - In terms of its impact on domestic investment, it may encourage domestic investment by creating new investment opportunities for domestic firms, or more of the exports of the host country, and this has a positive impact on domestic savings and Alastosmaralamhali, and that foreign investment may take the form of equipment, machinery and equipment technology can not be manufactured locally.

B - either in terms of its technology, the technology transfer through foreign direct investment by providing systems and methods of planning, organization and production, marketing and technical know-how and capital. It is assumed that this investment is the deployment of technological progress in other sectors of the economic system through simulation. Aln results of interdisciplinary research, which was devoted to study the nature of the technology available to firms in developing countries, showed that these companies focused on the use of capital and technology that do not fit with the factor costs in developing countries, lack of job opportunities provided and the effect of the acquisition and the possibility of labor local technological skills, where the functions assigned to it, but routine and normal.

C - affects foreign investment through the use of the Arts production of capital-intensive and skilled work in the redistribution of income in the host countries for the benefit of higher income groups of staff and skilled workers with limited number of users and relatively, because of the consumption patterns for these groups which lead to increased domestic savings. In the case of the use of unskilled labor force, their salaries are usually low, and this ex****bates the disparities in income.

D - that foreign investment, direct source of financing for development in developing countries may be exposed to aspects of the instability with multiple imbalances in economic, social and political, for it is characterized by vulnerability and volatility and instability in relative terms.

III ": the challenges of foreign investment, these challenges stemming mainly from the same forces pressing in the center of the capitalist developed countries. Moreover, the pressure forces of capitalism in developing countries as well, capital is usually pressed to be loosened in order to maximize profits or revenues. Include the liberalization of the head Money from the perspective of a particular State, to allow the flow of direct foreign investments, usually long-term investments (ie investments in real projects), and allow the flow of non-FDI, which contains the inflow of foreign funds to it, for the purchase of bonds or shares, or its national currency. the one hand another would allow the state on freedom of exit, including the capital, whether it's national "or foreign" for direct investment abroad, which means in short, to let the banking systems to sell foreign currencies to residents or non-resident and without borders, either fixed-rate or floating rate to finance the movement of capital. Before exposure to the challenge of foreign investment, and should determine the size of this challenge. This volume is still low "percentage of the GDP, during 2006, for example, the value of foreign direct investment and net in developing countries (plus" to Hong Kong and regions free and in some coastal provinces of China, Singapore and South Korea, Taiwan and Israel) to (505) billion, a figure that represents less than (2%) of the GDP of these countries in 2006 after it was (105) billion dollars in .1996, and of course , these direct investments to enlist focused to a large extent in a number of developing countries in South-east Asia and in Latin America. In order to underline that may be mentioned that foreign direct investment flowing to developing countries in the Middle East and Europe, namely, (Bahrain, Iran, Kuwait, Libya, Oman , Qatar, Saudi Arabia, United Arab Emirates, Cyprus, Egypt, Jordan, Lebanon, Yemen, Malta, Syria, and Turkey) in 2006 reached the amount of (2 R. 1) billion dollars, which accounted for less than five per cent of GDP for these countries in 2005.

IV ": the economic consequences and political consequences of foreign investment that generated by foreign direct investment to host countries can be summarized as follows: --

1 - to speak of these investments within a political vacuum. It is either flowing mostly to the countries of the West politically and economically, or contribute to the creation of this dependency.

2 - exercise of these investments pressures to pursue a development strategy based on export as an incubator for growth, and all this instead of a strategy aimed principally "and directly to the needs of a home, and then link the fate of the country's economy and sovereignty to a large extent condition that the world market.

3 - may result in direct investment flows to the failure of efforts in the State concerned to raise the level of savings as a percentage of gross domestic product, a result of preference for decision-makers, the easy solution, which is trying to attract foreign direct investment through incentives or gain exceptions to the tax and labor laws, which would All this could lead to social and political tensions.

4 - lead foreign direct investment if a large foreign to the control of a key part of the wealth of its host country. They also lead to foreign investors to exercise political influence and economic cooperation with groups of parasitic capitalism recipient of them, taking into account that foreign investors are finding support from their government. In an environment of economic, political, administrative and legal weak, making it easier for foreign investors taking advantage of the host country for their investments. V. ": the objective economic justification for attracting foreign investment. Racing the world's developed and developing countries alike attract foreign direct investment to it, through the provision of incentives and benefits, facilities and tax and customs exemptions, and the economic reforms, fiscal and development of infrastructure, trying to highlight in their possession and promote the benefits of differential it all means to convince the potential investors as the best country to set up businesses there. Iraq is one of those countries most in need to bring in foreign direct investment for the following reasons:

1 - the economic blockade imposed on him for a period of (13) three years led to the interruption of Iraq's scientific and technological development the world has witnessed during this period. What led to the widening technological gap between him and the world on the one hand, the obsolescence of the technique used in most institutions, factories, production and service on the other.

2 - the massive destruction and widespread long-productive enterprises, service and infrastructure of the Iraqi economy by the U.S. occupation of Iraq.

3 - large yield debt to the Iraqi economy, which is approximately (140) billion dollars. In addition to the unresolved claims for compensation for the war, the invasion of Kuwait, which is estimated (160 - 200) billion dollars at the resolution.

4 - the structural imbalance suffered by the Iraqi economy Baktaath different. Therefore, for the purpose of attracting the largest amount of direct foreign investments to Iraq must provide a favorable investment climate by focusing on the most important factors in attracting investment, which was an outcome of the experiences of countries that succeeded in attracting the largest amount of foreign investment and of

b: a - providing differential advantages (host of investments): This includes the provision of a broad market, active and modern infrastructure and sophisticated, and natural resources easily accessible, and skilled, committed and cheap wages.

B - the provision of institutional structures: this includes a judicial system capable of achieving justice and equality and the rule of law. And the presence of sound government management and non-corrupt, and a feeling of affection towards the local and foreign investors and welcome them, and provide political stability and economic stability and investment policies of the state for the foreseeable future.

C - Ease of administrative and operational procedures and financial transactions, tax, this means easy procedures for obtaining the approved entry and exit, residence and clarity and transparency of the tax system and fairness, and ease of transfer of profits, capital and the absence of bureaucratic obstacles as well as the ease of converting loans premiums, benefits and bonuses, and other foreign workers without difficulties

d -- availability of sophisticated banking system meets the requirements of investors and act in accordance with market mechanisms.

E - cultural and economic ties between the country of origin of the investment recipient country has the geographical proximity to the host country for investment are an "important factor in investor's decision to choose the host country for investment. It therefore seems clear that the investor does not care about a country which invests the interest in the benefits provided by the that country, and economic decision-makers must know that to attract the foreign investor must provide the conditions and incentives are better than that offered by others.

http://www.alsabaah.com/paper.php?so...page&sid=91999

UNAMI mission concerned the delay adoption of amendments to the election law in Iraq

The United Nations mission to help Iraq (UNAMI) expressed concern about the delays in approval of amendments to the electoral law, which may lead to significantly disrupt the schedule and preparations for the elections.

UNAMI statement quoted by the Special Representative of the Secretary-General of the United Nations in Iraq Ad Melkert emphasized that the time factor is very important that any further delay in the ratification of the amendments and the legal framework will affect the current schedule for the elections and the credibility of the electoral process.

He called on deputies to assume their responsibilities to meet the aspirations of the Iraqi people to exercise their right of option during the upcoming elections and beyond secondary considerations that may be the reason behind the current disruption.

http://radionawa.com/ar/NewsDetailN....0298&LinkID=99

Economists warn of the deterioration suffered by the Iraqi economy

Experts have warned in the economy of the degradation suffered by the Iraqi economy because of the lack of government economic policy are clear, as well as slack, which affects many joints of this vital facility.

http://radionawa.com/Ar/NewsDetailN....281&LinkID=105

CBI dollar sales up to $135m

The Central Bank of Iraq (CBI) dollar sales went up to reach $135.525 million in its daily auction on Thursday compared to $101 million during the previous session.

“The demand hit $1.500 million in cash, covered by the bank at an exchange rate of 1,183 Iraqi dinars, and $134.025 million in foreign transfers outside the country, covered at an exchange rate of 1,173 Iraqi dinars per dollar,” according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 14 banks that participated in today’s session offered to sell dollars.

http://en.aswataliraq.info/?p=120795

Germany to host next month a conference on investment in Iraq

A source in the German embassy in Baghdad, on Thursday, said Berlin will host in November next two-day conference for investment in Iraq.

The secretary of the German ambassador in Baghdad, Louay al-Rubaie's statement, told AFP that the conference will be held on the fifth and sixth of the month of November / Novmr in Berlin.

Before, and the United States and Germany that hosted investment conferences related to Iraq, which needs money to rebuild its economy.

http://radionawa.com/Ar/NewsDetailN....297&LinkID=105

Ayad al-Samarrai called to take responsibility in resolving disputes election law

Speaker of Parliament Ayad al-Samarrai said he referred the discussions on the draft electoral law to the Political Council for National Security was because of the inability of the parliamentary blocs to take the decision about it.

Samarrai said at a press conference in Baghdad that the solution "better" is approaching.

"The presidency of the Republic, approached the Political Council for a meeting as involving most of the political blocs."

He stressed that the issue of Samurai Kirkuk is a dispute the President in the election law, pointing out that "all other things the Council could address it."

It is noteworthy that representatives of Kirkuk in the House of Arabs and Turkmens insist that Kirkuk should be given a special status in the coming legislative elections, which was rejected by the Kurdistan Alliance bloc.

http://www.radiodijla.com/cgi-bin/ne...?id=2009-10-22

Three Pathways to Adoption of the electoral law before the end of the month

The Board of Deputies of trying to pass the amendment to the Electoral Act on three tracks in a time frame does not exceed the end of the month.

According to the Coalition MP Mowaffaq al-Rubaie, the use of these paths is the political council for national security and sending a delegation to visit the Kurdistan region in order to conduct interviews with Kurdish regional president Massoud Barzani, and then go to the ****utive Board in order to ease the passage of the law.

He pointed out that these movements would be in sequence to find a solution to the issue of Kirkuk elections.

The head of the House of Representatives Iyad al-Samarrai, had announced that he would submit a request to President Jalal Talabani to add a number of other leaders to the Political Council for the participation of its meetings to be held to discuss the law because of changing formations and coalitions.

http://www.radiodijla.com/cgi-bin/ne...?id=2009-10-22

Completion of the study on the reform of the ration card system

Completed the General Secretariat of the Council of Ministers study on the reform of the ration card system in preparation for discussion at the Council of Ministers next week.

UN Secretary-General of the Council of Ministers on the Keywords in a statement that the committee charged with reforming the ration card system was formed a number of sub-committees have undertaken the study of all aspects of the vocabulary ration card of quantitative and qualitative aspects.

He added that the committee had confirmed the importance of planning the future of the card in terms of coverage of the slides that should benefit from them.

Indicating that the Committee has completed the preparation of studies and recommendations in this regard and will be presented to the Council of Ministers at the next meeting for discussion.

The Keywords that the recommendations brought focus of its objective basis to ensure the ration card items and reach due to the slide identified by the study, as well as withholding some affluent sections gradually over the next few years.

http://www.radiodijla.com/cgi-bin/ne...?id=2009-10-22