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Wednesday, September 21, 2016

"More than a Tidbit" - Wed. PM KTFA Thoughts/News


 » September 21st, 2016





Iraq: Letter of Intent, Memorandum of Economic and Financial - IMF 2016


 » September 21st, 2016

IMF Statement on Iraq

September 21, 2016

Mr. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), issued the following statement today:

“IMF Managing Director Christine Lagarde met on September 21 with Iraq’s Prime Minister Haidar Al-Abadi in New York on the sidelines of the United Nations General Assembly meetings. During the meeting, they discussed Iraq’s IMF-supported economic reform program that was approved by the Executive Board on July 7, 2016.

“The Managing Director welcomed the Iraqi authorities' economic program, which is being supported by a $5.34 billion Stand-By Arrangement (SBA) from the Fund approved in July 2016. The Managing Director and the Prime Minister exchanged views on how the SBA can help Iraq address the shocks posed by violent attacks and the drop in global oil prices. The Managing Director reiterated the importance of strong commitment to sound policies and decisive action on key reforms that are crucial to yield the largest gains for Iraq’s population.”


 » September 21st, 2016

Something tells me that all the prior studies and talks about reform are about to be pushed into warp speed.....full ahead.....let's get this show on the road. Aloha Randy

 » September 21st, 2016

Economic reform in Iraq (1-5)


Adnan al - Janabi ,

starting today published the "morning" in search of shaped parts of the Deputy researcher economic Adnan al - Janabi. Find highlights the economic dilemmas in Iraq and propose appropriate solutions in the light of the current reform wave.


before entering in the description of «economic reform» required must agree on theultimate goal of the economic system that we want for Iraq.

Article 25 of the Constitution stipulates that follows: «State shall guarantee the reforming of the Iraqi economy according to modern economic bases, in a way that ensures complete investment of its resources, diversifying its sources and encouraging and developing the private sector».

in Article 24 , the text of the constitution to ensure freedom of movement of labor, goods and capital. and reported in the Ministry of trade Act began in 2011, that of the duties of the ministry:

«contribute to the development of the private sector and providing an appropriate environment through the conversion of public sector companies to the private sector in the light of the new orientation of the transition from command economy to a market economy» at the rationale for the legislation of that law refer to the targeting of the shift towards a market economy.

since the change in 2003 to today there are repeated calls to support the private sector, and the transition to a market economy and economic reform.

the advisory board in 2014 made a «strategic development of the private sector: 2014-2030», which is the result of efforts involving the World Bank and program United Nations development. The initiation of these studies since 2009.

The committees presented at the Council of Ministers similar reports in 2015 and held various meetings and seminars outside the framework of the state and within it, including contributions to the committees of the House of Representatives, to characterize the desired economic reform, without reaching a unified vision of theultimate goal of this «reform »or the nature of the economy that we want the arrival ofIraq him.

worse yet , the process steps of this shift are still non - existent, and did not go beyond setting« plans »and talk of« reform ».

We have the research and the Iraqi Studies Center (creator) , and since 2007, a series of seminars, research and studies to arrive at the diagnosis of the following things:
first , the imbalance in the Iraqi economy.

Second , ways to overcome imbalance.

Third , the nature of the target economic system.

first , the imbalance in the economy of Iraq:

a dangerous imbalances in the Iraqi economy, which Iraq involving with All rentier states, is caused by distortions stemming from the nature of the rentier state and that the most important characteristics:

● prevailing income of the state is from the proceeds of oil.
oil rents revenues come from abroad (exports), making the state is in need of a local productive sector Mayweather.

● is not used extractive oil sector only a marginal proportion of the workforce.

● be government is the recipient of the proceeds of the oil.

and consistent all researchers States rentier oil tends to central control (dictatorship) and inflation , state agencies and private agencies of repression, relying on parasitic activities Almatahh on the state.

In Iraq began the deterioration of state institutions since the Iran - Iraq war, then theperiod of the siege, and spent the occupation in 2003 , the rest of the state institutions in the absence of institutions , rampant corruption and increased the country 's dependence on oil revenues, and decreased participation of the productive sectors, industrial and agricultural, in the national income.

b - the problem of Iraq, even after the drop in oil prices, it is not the scarcity of financial resources , but economic mismanagement.

c - can also be considered as the financial and administrative corruption of the worst phenomena resulting from the rentier state, dictatorship and the effects of the occupation of sectarian quotas, political and destruction of state institutions.

T - the new Iraq have inherited a system economist characterized by state capitalism under the socialist banner, which is in the SOEs (SOE) economically failed state monopoly for the banking sector and inflation state programs for the support that prevail corruption all its facilities.and can not be written for the reform of the economic success unless the elimination of financial and administrative corruption, and the liquidation its resources and tools.

Secondly , ways to overcome imbalance:

States have the rentier representative (representative) is not made available to the owner and the elders and the dictatorships of the possibility of difficult transition from the rentier state to state collection.

there are a lot of experiments and studies on the rentier income distribution in the form of a comprehensive basic income Universal Basic Income )). The experience of the State of Alaska are known, and the removal of rentier income of the reach of thegovernment in the experience of Norway for example can take advantage Menh.olkn decisive solution and comprehensive is the application of universal basic income principles for all citizens, which has been studied or tested or applied in India, Namibia, Finland, Switzerland and the state of Ontario in Canada and the Netherlands France and others.

In summary , these studies and applications are given a basic income for all citizens equally. It is then possible to impose taxes on citizens according to their income to fund state services. In rentier states are all oil and gas revenues on the distribution ofcomprehensive income citizens equally essential.

The most important critique of the principle of universal basic income (UBI) is thedifficulty of financing. However , the rentier states exceed these difficult by the fact thatoil revenues comes from the sale of oil and gas to the outside, and other state resources are not compromised if the allocation of such rents or sections of it directly to all citizens equally. A principle that stems from the application of Article 111 of the Constitution, which stipulates that the oil and gas belongs to the Iraqi people. Income universal basic guarantees the status of all citizens above the poverty line and concludes the state of corruption in government support programs and stir equation correlation between therentier state and its inclination to dictatorship.

Third , the nature of the target economic system:

Regardless of nomenclature, there is a general understanding of the need to transition from a centralized economy market - oriented economy , which relies heavily on theprivate sector. This transition is not through committees of stakeholders in the central system run by the state bureaucracy staff, but in cooperation with the private sector itself and some international organizations.

The first thing that takes this transition is:

● the liquidation of state - owned enterprises (.SOE) and other commercial activities ,such as filling stations fuel and stores the singular.

● removing obstacles to private sector, especially the circles Registrar of companies and the tax collection and classification of companies, and other obstacles.

● develop a comprehensive social security system, and the abolition of all types ofgovernment support ( the ration card, electricity support, fuel subsidies) and move into income Universal basic (UBI).


Aggiedad77 » September 21st, 2016

Zebari's sacking was "politically motivated"......you think.....no kidding.....that slimey snake in the grass Maliki is doing his darnedest IMO strongest opinion to tear apart Abadi's government....but you know what.....Abadi is keeping his cool....through all the adverse climate that is being created all around him.....he's being a statesman extraordinaire....he is not showing any ruffled feathers or any type of anger or temper at least in public.....now behind closed doors.....maybe Maliki's ears are burning......Abadi is a man on a mission and he knows that he must complete his mission without excuses or any crying sessions.....on with the plan A....on with the plan.....keep showing them what you are made of sir.....Frank this couch has a few lumps in it.....IMO. Aloha Randy

Iggy » September 21st, 2016

The Seven Wonders of the World

Junior high school students in Chicago were studying the Seven Wonders of the World. At the end of the lesson, the students were asked to list what they considered to be the Seven Wonders of the World. Though there was some disagreement, the following received the most votes:

1. Egypt’s Great Pyramids

2. The Taj Mahal in India

3. The Grand Canyon in Arizona

4. The Panama Canal

5. The Empire State Building

6. St. Peter’s Basilica

7. China’s Great Wall

While gathering the votes, the teacher noted that one student, a quiet girl, hadn’t turned in her paper yet. So she asked the girl if she was having trouble with her list. The quiet girl replied, “Yes, a little. I couldn’t quite make up my mind because there were so many.” The teacher said, “Well, tell us what you have, and maybe we can help.”

The girl hesitated, then read, “I think the Seven Wonders of the World are:

1. to touch…

2. to taste…

3. to see…

4. to hear… (She hesitated a little, and then added…)

5. to feel…

6. to laugh…

7. and to love.

The room was so quiet, you could have heard a pin drop.

May this story serve as a gentle reminder to all of us that the things we overlook as simple and ordinary are often the most wonderful – and we don’t have to travel anywhere special to experience them.

Enjoy your gifts!



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