Bondlady’s Corner

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Iraq Economic News and Points to Ponder Late Wednesday Evening 12-20-23

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The Governor Of The Central Bank Sets The Conditions For Engaging In The Digital Technical Revolution

Wednesday 20, December 2023 14:40 | Economical Number of readings: 329  Baghdad / NINA / Today, Wednesday, the Governor of the Central Bank, Ali Al-Alaq, set the conditions for engaging in the digital technical revolution. While he pointed out that purging state institutions of corruption is fundamentally linked to the use of information technology, he stressed that providing data and information at the state level maximizes state revenues.

Al-Alaq said at the annual international scientific conference held under the auspices of the Minister of Finance: “The Financial and Accounting Training Center continues its efforts to cover basic and important aspects that represent the most important framework in aspects related to economic issues, especially in public finance and monetary policy,” indicating that “we are now in the midst of the fourth revolution.” Which was called at the Davos Conference in 2016 after the first, second and third industrial revolutions.

He added, “This fourth revolution is based on the pillars produced by the third revolution, which was represented by digitization and the use of the Internet in various fields, which changed many aspects of practices at all levels,” noting that “the fourth revolution is a revolution at the individual and societal levels, and it takes on broad dimensions that change everything.”

Today, many practices and trends are heading towards another world, through ministries without papers and without visitors, digital transformation in health, education and various sectors, and the transition to artificial intelligence, robotics, smart cities and other aspects that are expanding every day.”

He stressed that “reality indicates that we are far from the fourth revolution, and in the beginnings of engagement in the third revolution due to all the circumstances that the country has gone through and is going through,” pointing out that “the third revolution is a digital, technical revolution that has dimensions in organizing various aspects, and has broad economic and social effects.” ‘

And great, we are still finding the way for this revolution to take on its technical fields in agriculture, industry, trade, environment, education, health and other aspects that require a technical dimension that can carry out the process of managing these matters and these fields and sectors in another way.”

He stated, “We are still in the simple framework of digitization, which attempts to set the rules for work frameworks in their technical form, as this description and identification of what we are is very necessary in drawing the necessary steps and procedures to take the correct path,” explaining that “engaging in the technical digital revolution requires a number of… Among the conditions that must be worked on and established in our reality so that we can actually be part of these transformations, including:

First : eradicating technical illiteracy, in which we need to increase technical awareness and expand its fields, starting with education in all its stages to a higher level in our various institutions and sectors.

State institutions are making progress in engaging in this trend, as we undoubtedly have a broad government and large authorities and agencies that include many formations dealing with different fields and are crowded with human resources. Therefore, institutions must be a model and role model in using these technologies to the highest possible degree, especially since they complain There are many negative phenomena in the performance of its work, in the organization of its activities, in its efficiency, and in its outputs, and it has solutions, which are technical solutions.”

He continued, “Cleansing state institutions of corruption is largely and fundamentally linked to the use of techniques and information technology to reshape the relationship between the institution, society, and the individual, which removes many areas that are the cause of institutional confusion, performance, corruption processes, weakness, or delay in the various procedures related to what these institutions provide.” Institutions,” explaining that “employing information technology in state institutions is very necessary.”

Third: It is necessary to provide the infrastructure for this transformation, especially within the framework of communications, in terms of speed, cost, and service availability at the best possible, because it is a necessary condition for the success of technological work. Fourth:

Allocating financial and human resources to stimulate innovation in this framework, which is described as not being a focus area. In general planning, this is observed in the state’s general budget and elsewhere, while what is required is for this aspect to have an exceptional focus and sufficient allocations.”

He stated that “when the government structure was reconsidered years ago, two important ministries were abolished at the time, namely the Ministry of Science and Technology and the Ministry of Environment,” explaining that “the Ministry of Environment was restored, but the abolition of the Ministry of Science and Technology contradicts the developments and desired goals of focusing on this aspect and embracing all energies.” that can work in this direction.

He continued, “The companies that operate within this framework are the most profitable in the world, and we have human resources and young energies that deserve to have a role in stimulating and developing this important aspect.”

Fifth: Coordination between state institutions within an integrated framework of information and data. The outputs of each institution must be transformed into inputs for another institution to integrate data and information to benefit from them with correct planning.

He stated that “providing data and information at the state level represents the sound and correct basis for planning, organizing, and controlling the economic sectors that contribute to increasing gross domestic production and maximizing state revenues,” pointing out that “the non-oil deficit exceeds 80 percent.”

He stressed that “the Central Bank is the institution that most uses and benefits from modern and digital technologies,” stressing “the necessity of stimulating and developing the development of these trends to regulate the work of the Central Bank.”/https://ninanews.com/Website/News/Details?key=1096454

Economic Reform In The Prime Minister’s Vision And Governmental Approach

Samir Al-Nusairi  Prime Minister Muhammad Shiaa Al-Sudani said last week while answering questions from attendees of the “Beston Talk” program on Rudaw TV that economic reform begins with financial and banking reform, stressing that the government’s economic vision is based on an accurate diagnosis of the obstacles and challenges of economic reform, which has not been achieved since 2003 due to… The banking and financial sector has not witnessed any real reform process for two decades because without a sound financial and banking sector it is not possible to build a sound national economy.

Therefore, the vision of the Prime Minister for comprehensive and radical economic reform comes in line with what was stated in more than 12 axes examining economic reform, the details of which were included in the government curriculum, which were emphasized and considered among the priorities that must be implemented.

What concerns us here is what is stated in the twelve axis (financial and banking reform) and paragraphs (1, 2, 3, 4, 5, 6 and 7) thereof, which clearly and accurately state that (financial and banking reform provides a real and effective basis for the advancement of the Iraqi economy and stimulating investment through restructuring and mechanizing government banks, reconsidering their work and stimulating… Private banks and empowering them to be able to support investment and development in a real way)

and that the Prime Minister’s vision focuses on the importance of the financial and banking sector so that it occupies within the financial structure of the economy a vital position in mobilizing savings and financing development through its ability to flow money between the categories of the national economy, which is the basic step for economic reform

and that The measures that the Central Bank is currently taking in high coordination with the support of the government to implement its new comprehensive strategy to reform, develop and classify banks according to several axes, the most prominent of which is the completion and implementation of projects for the transformation from a cash economy to a digital economy and a cashless society and the development of national payments systems by establishing the National Payment Systems Company, which will undertake the development and operation of systems.

Payments are under the supervision of the Central Bank, launching a financial inclusion strategy, working to adhere to international standards for the global financial system, focusing on regulating foreign trade financing, opening accounts for Iraqi banks with correspondent banks, controlling foreign transfers, and opening dealings in other foreign currencies in addition to the US dollar, as well as drawing up a national lending plan to be approved.

New mechanisms for organizing the granting of loans for the development of small and medium enterprises in accordance with the Prime Minister Riyada’s initiative to employ young people and qualify them to choose their projects, relying on the banks’ own financial capabilities and attracting deposits to provide liquidity and invest them in accordance with the instructions of the Central Bank.

Directing the small and medium enterprise financing initiative towards the economic and productive sectors that have the greatest impact on contributing to development. Establishing Riyada Bank, creating a loan guarantee company, activating the work of the deposit guarantee company, and amending its internal system in a way that enhances confidence in the banking sector.

Continuing the procedures and using monetary policy applications to control the exchange rate and reduce the gap between the official rate and the black market rate, which has begun to narrow towards reaching the targeted and balanced exchange rate.

Referring to the Prime Minister’s assertion that the government cannot accept that the official exchange rate be equal to the black market rate. All of this indicates that the many services provided by the banking system in developed countries have enabled these countries to achieve the progress and economic growth they have achieved.

The solidity of the banking structure has become one of the necessities of building a prosperous economy that adopts modernity and sound sustainable development systems. The development of banking habits and awareness of the importance of developing banking facilities in a way that secures the building of the national savings base and develops the financial resources necessary to build the economy have become among the priorities of decision makers.

Therefore, the soundness of the banking system and the mobilization of sound decisions in the field of economic policies towards developing and modernizing banking systems ensures achieving momentum in the world of real and financial investment, which revitalizes the financial and monetary markets, leading to attracting foreign capital in search of profit, which requires the government and the central bank to take measures.

It is necessary to fortify and strengthen local banking systems in a way that makes them capable of facing the challenges of transferring capital to and from abroad without causing money laundering or foreign exchange smuggling operations, and thus increasing the profitability of financial and banking institutions and enhancing the structure of the gross domestic product. This is what the government and the Central Bank are currently active in doing. It is, in fact, a new reformist economic vision and thought to harness all capabilities and energies in order to achieve it in the next stage.  162 views 12/20/2023 – https://economy-news.net/content.php?id=38665

 

Prime Minister’s Advisor: The Hypothetical Budget Deficit Is Close To Disappearing

Money  and business Economy News – Baghdad  Advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed on Wednesday that the hypothetical budget deficit is close to disappearing, and while he pointed out that

there is a government tendency to implement major development projects by creating a financial partnership between the state and the private sector in projects for the next two years, he pointed out that the current year was characterized by balance and discipline. Financial.

Saleh said, in a statement reported by the official news agency, seen by Al-Iqtisad News, that “the federal general budget for the years 2023, 2024, and 2025 was initiated as a medium-term operational and investment financial plan and was approved in accordance with Law No. 13 of 2023, with an annual total expenditure ceiling estimated at about 199 Trillion dinars annually, with a hypothetical annual deficit of approximately 64 trillion dinars,” noting,

“The budget adopted the price of a barrel of oil at an annual average of $70 for the purposes of calculating oil revenues in the general budget.”

He added, “Oil export revenues constitute approximately 87 percent of the aforementioned budget estimates,” noting that “the financial administration has begun implementing the spending updates stipulated in the law, as we mentioned, in its two parts: operational spending and investment spending, since the issuance of the budget implementation instructions that were approved weeks later.” From the budget law legislation last June.”

He continued,  “At the level of annual investment spending, financial planning for the three-year budget has allowed for high flexibility and efficiency in adopting strategic priority projects that will constitute a qualitative shift in the future development of our country in the coming years, specifically the manufacturing industry and investment in natural resources,” stressing that

“there is no need to… Neglecting the urgent needs for the immediate implementation of service projects, which today take precedence in implementation because of their connection to the life of the citizen, such as social care expenses, the food basket, and the medicine basket, which receive the highest priority in terms of sustainability and efficiency in order to support the real income of low-income families.

He stated,   “With regard to external debt, the payment of debt service dues is carried out on time and according to its payment schedules with great care by the General Accounting Departments and the Central Bank of Iraq,” pointing out that  “these funds are fed from the general budget allocations that cover this spending aspect.”.

He pointed out that  “Iraq’s oil sales have achieved returns that exceeded the default price of a barrel of oil in the budget, amounting to $70 per barrel, as we mentioned during the fiscal year 2023,” explaining that

“public finances have accumulated balances of unspent and accumulated cash surplus from the year 2022, which touched The 23 trillion dinars, which provided high financial revenues that contributed to the accelerated reconstruction campaign supervised by Prime Minister Muhammad Shiaa Al-Sudani, which made the virtual deficit close to disappearing.”

He stated that  “the fiscal year 2023 will end with some balance, supported by strength in financial consolidation or discipline,” pointing out that “the country’s strategic investment projects, specifically for the years 2024 and 2025, were based, in an important part, on a financial vision based on partnership between the state and the private sector to achieve the principles of Sustainable financing for major development projects, and economic prosperity by sustaining the wheel of development itself, the basis of which is the development path and the Iraq Fund for Development.”

He stated,  “The strategy of investment partnerships in manufacturing industries will target the young workforce and provide them with employment opportunities and technological knowledge.”

Views 48      Added 12/20/2023  https://economy-news.net/content.php?id=38690

 

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Provoking Points To Ponder on Money

Definition of the upper crust: A bunch of crumbs held together by dough. – Anonymous

Money can’t buy happiness, but it will certainly get you a better class of memories. – Ronald Reagan

The man who invented slow-motion movies got his idea while watching a Scotsman reach for a check in a restaurant.  – Anonymous

When asked to borrow money: “I’ll see what my lawyer says. . . . And if he says yes, I’ll get another lawyer.”  – W. C. Fields

Money won’t buy happiness, but it will pay the salaries of a large research staff to study the problem.– Bill Vaughan

By the time a man is rich enough to sleep late, he’s too old to enjoy it.  – Anonymous

Money can’t buy you happiness, but it does bring you a more pleasant form of misery. – Spike Milligan

Another good thing about being poor is that when you are seventy your children will not have you declared legally insane in order to gain control of your estate.  – Woody Allen

Money makes the man.  – Aristodemus

A fool and his money are soon parted.  – George Buchanan

Penny wise, pound foolish.   – Henry Burton

Famous Quotes and Authors, Famous Quotations for all Occasions