Political Progression, Econom ic Stagnation           and the Strategic O pportunity               Mohammed A . Field A l-...
Content          The indicators of Political progression and economic         stagnation          Challenges facing the ...
Has Iraq Achieved political progress?    Iraq made significant political achievements in comparison to other Arab    count...
Has Iraq made political progress?               Source:Freedom in the World 2010: Table of Independent Countries          ...
Significant Economic Progress?       Decrease in unemployment from 51% to 15%,       Decrease in poverty from 54% to 27%...
Economic Stagnation         A significant proportion of citizens lack access to basic services.         Lately the grievan...
Family Satisfaction: survey of Public Services in 2006                  Percentage of unsatisfied Families with public ser...
What is the relationship between                 Democracy and Economic prosperity ?    There is no direct relationship, ...
Economic & Social Challenges      What are the facts of the Iraqi Economy?      Damaged SMEs, and ineffective Public and ...
Obsolete System and Regulation      Complicated Government routine,      Non-clarity of roles and responsibilities and  ...
Absence of Rule of Law & Good Governance                Participations                                                   ...
Weak Enviroment for Investment       Despite good investment legislation and incentives to do       business, there a numb...
Total Revenue in 2011 is $ 69,175 Billion                                                                   13www.iier.org...
Total Expenditure                                           14www.iier.org                       info@iier.org
Revenue, Expenditure & Deficit for 2011 ($Bn )                                                                        15ww...
Is the Federal Budget really in deficits?                     Federal Budget 2006- 2009.         Total Government Revenue ...
Financial Execution Ratio of Capital Expenditure for                                      2010                            ...
The Relationship between Economic                                     Development & Rule of Law         Kaufmann, D. and A...
The Relationship between Economic                            Development & Rule of Law    There are international evidence...
What is needed?                              Culture/Religion:                                   Values                   ...
Democracy without Rule of Law                  is a bird with one wing                                                    ...
Upcoming SlideShare
Loading in …5
×

Political Progression, Economic Stagnation and the Strategic Opportunity

572 views

Published on

Published in: Economy & Finance, Technology
1 Comment
0 Likes
Statistics
Notes
  • blessing_11111@yahoo.com

    My name is Blessing
    i am a young lady with a kind and open heart,
    I enjoy my life,but life can't be complete if you don't have a person to share it
    with. blessing_11111@yahoo.com

    Hoping To Hear From You
    Yours Blessing
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total views
572
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Political Progression, Economic Stagnation and the Strategic Opportunity

  1. 1. Political Progression, Econom ic Stagnation and the Strategic O pportunity Mohammed A . Field A l- K hafaji Iraqi Institute for Economic Reform www.iier.org PRESENTED AT 6TH ECONOMIC FREEDOM IN THE ARAB WORLD Beirut 20 – 21 October 2011 1www.iier.org info@iier.org
  2. 2. Content  The indicators of Political progression and economic stagnation  Challenges facing the Iraqi economy  Importance of Rule of Law & Good governance  Democracy and Economic prosperity 2www.iier.org info@iier.org
  3. 3. Has Iraq Achieved political progress? Iraq made significant political achievements in comparison to other Arab countries, and this has manifested in for example:  Referendum on Federal Constitution,  Elections at National and sub-National Levels 3www.iier.org info@iier.org
  4. 4. Has Iraq made political progress? Source:Freedom in the World 2010: Table of Independent Countries http://www.freedomhouse.org/template.cfm?page=505 4www.iier.org info@iier.org
  5. 5. Significant Economic Progress?  Decrease in unemployment from 51% to 15%,  Decrease in poverty from 54% to 27%, Increase in electricity production from 3500 to 7500 MW,  Increase in GDP per capita from $3000 to $ 4000.  Decrease in inflation rate from 65% to 6%,  Increase in access to safe drinking Water from 30% to 70 %, 5www.iier.org info@iier.org
  6. 6. Economic Stagnation A significant proportion of citizens lack access to basic services. Lately the grievance of citizens have escalated to protests calling for basic services. 6www.iier.org info@iier.org
  7. 7. Family Satisfaction: survey of Public Services in 2006 Percentage of unsatisfied Families with public services  Health: 30% on average Crosse the board not satisfied with heath service  Education: 40% on average cross the board not satisfied with education service  Other Services: 60% on average not satisfied with other services (e.g. Electricity, water, housing) 7www.iier.org info@iier.org
  8. 8. What is the relationship between Democracy and Economic prosperity ? There is no direct relationship, but evidence internationally, linking economic prosperity to an environment where there is respect for the rule of Law.  Yes, Democracy does provide better environment for economic growth providing there is respect for the Rule of Law 8www.iier.org info@iier.org
  9. 9. Economic & Social Challenges What are the facts of the Iraqi Economy? Damaged SMEs, and ineffective Public and Private sectors  Poor business environment for economic and investment  Poor social structure and ineffective educational system  The absence of good management of the economy Lack of respect for the Rule of Law and Good Governance 9www.iier.org info@iier.org
  10. 10. Obsolete System and Regulation  Complicated Government routine,  Non-clarity of roles and responsibilities and  Overlapping of jurisdictions. Process of Procurement at Basrah Province (as example). Advertising Receiving Issuing the offer contracts 10www.iier.org info@iier.org
  11. 11. Absence of Rule of Law & Good Governance  Participations It is very  Rule of law hard to  Transparency find any  Responsiveness of these  Consensus orientation elements  Effectiveness and efficiency in place  Accountability  Strategic vision  Equity 11www.iier.org info@iier.org
  12. 12. Weak Enviroment for Investment Despite good investment legislation and incentives to do business, there a number of obstacles: Government Bureaucracy, lack of commitment and management skills; The absence of Insurance Companies, responsive Commercial Banking; Corruption . 12www.iier.org info@iier.org
  13. 13. Total Revenue in 2011 is $ 69,175 Billion 13www.iier.org info@iier.org
  14. 14. Total Expenditure 14www.iier.org info@iier.org
  15. 15. Revenue, Expenditure & Deficit for 2011 ($Bn ) 15www.iier.org info@iier.org
  16. 16. Is the Federal Budget really in deficits? Federal Budget 2006- 2009. Total Government Revenue $210 Billions Allocated spending $211 Billions Actual spend $182 billions Notes: Investment Budget execution rate is 58% Operational budget execution rate is 91% 16www.iier.org info@iier.org
  17. 17. Financial Execution Ratio of Capital Expenditure for 2010 17www.iier.org info@iier.org
  18. 18. The Relationship between Economic Development & Rule of Law Kaufmann, D. and A. Kray (2002), ‘Growth Without Governance’, World Bank Policy Research Working Paper No. 2928, November. 18www.iier.org info@iier.org
  19. 19. The Relationship between Economic Development & Rule of Law There are international evidences to suggest:  Creates confidence between the citizens and the state/ organization  Encourages transparency and reduces waste of resources  Provide an incentive to financial institutions to lend, and  Encourages investors to provide liquidity and technology transfer 19www.iier.org info@iier.org
  20. 20. What is needed? Culture/Religion: Values Code of conduct Strong Economy Better State: Rule of Law & Environ Formal Education ment for With Good Governance positive rule Business spill over Accountability Civil Society: Voice for the People 20www.iier.org info@iier.org
  21. 21. Democracy without Rule of Law is a bird with one wing 21www.iier.org info@iier.org

×