Dr. Mohamed Saleh published on the network of Iraqi economists a paper entitled "Financial Strengthening of Iraq: Vision for the years 2018-2020". As usual, our Galilee professor puts before us his academic weight and practical experience as the most important economic adviser to the government. (I) Do not argue with Dr. about the description of the bug in the economy "rentier". "The burden of the war on terror and the burden of reconstruction requires an aggressive fiscal program to rebalance the economy and the fiscal balance" of the treasury. However, Dr. Saleh's proposals in the "Adaptation and Financial Consolidation Approach 2018-2020" need to be reconsidered because most economists in the rentier countries fall in the wrong call to balance by increasing the share of non-oil resources in national income . In Iraq, for example, all the attempts made since 1961 to date have only deepened the rentier dependence in an inevitable spiral out of them because of the nature of the rentier states. Salvation is to Ekman in re - raking all the treatise on the subject, has not left the door only ways economists, and the whole is lost in a mirage illusion in front of the dynamics of the rentier state , which makes it imperative to deepen the rentier dependence which private him not to demolish the foundation upon which the rentier economy of the four components of :
1 - the main income of the economy Of oil exports.
2. The value added and local labor do not constitute a small percentage of the total value of oil exports.
3 - Oil revenues come from abroad.
4. The rent income goes to the government. So what is the solution?
The solution is to overthrow the state rent equation and turn it into a state that is charged with giving oil income to the citizens with a universal basic income, and financing the state budget through a tax imposed on citizens. In terms of the medium, Article "111" of the Constitution states t
that oil and gas belongs to the Iraqi people, and this is an appropriate entry to overthrow the equation of the rentee state.
In practice, it is possible to start the 2018 budget by the following steps:
First: Collect the following paragraphs and convert them into a comprehensive and equal cash balance to all resident citizens on the basis of the record of the families of the ration card:
1 - Sale of crude oil to domestic consumption at the external market price, - $ 8 per barrel.
2 - Suspension of allocations ration card and social guarantees and converted to the share of comprehensive basic income.
3 - Remove electricity allocations from the budget starting in 2018 and pay the electricity sector for self-financing "with the provision of gas at cost."
Second: Freezing oil allocations for subsequent budgets "2019 and beyond:. At the price and quantity of 2018 and the conversion of each increase in price and production to the reserve fund "Sadiq Fund" and the development of comprehensive primary income "UBI". And linking it in the future with oil revenues outside the budget.
I think Selah is planning for the push away from the Rentier/user state. In a rentier state (reliance on a resource, in this case oil) the people aren't taxed. When they move away from that & put the oil/resource proceeds into the hands of the citizens then they can move forward with tax reform & some of their laws (they have been working on implementing but can't because they are still a rentier/user state). I don't think it has much to do with the currency reforms other than it may push free markets (wanting the taxes). and The budget that was approved yesterday part of the agreement with the IMF is the implementation of the private sector in that budget
. That's just my 2 cents/dinars worth. input from a person in our skype room.
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1 - the main income of the economy Of oil exports.
2. The value added and local labor do not constitute a small percentage of the total value of oil exports.
3 - Oil revenues come from abroad.
4. The rent income goes to the government. So what is the solution?
The solution is to overthrow the state rent equation and turn it into a state that is charged with giving oil income to the citizens with a universal basic income, and financing the state budget through a tax imposed on citizens. In terms of the medium, Article "111" of the Constitution states t
that oil and gas belongs to the Iraqi people, and this is an appropriate entry to overthrow the equation of the rentee state.
In practice, it is possible to start the 2018 budget by the following steps:
First: Collect the following paragraphs and convert them into a comprehensive and equal cash balance to all resident citizens on the basis of the record of the families of the ration card:
1 - Sale of crude oil to domestic consumption at the external market price, - $ 8 per barrel.
2 - Suspension of allocations ration card and social guarantees and converted to the share of comprehensive basic income.
3 - Remove electricity allocations from the budget starting in 2018 and pay the electricity sector for self-financing "with the provision of gas at cost."
Second: Freezing oil allocations for subsequent budgets "2019 and beyond:. At the price and quantity of 2018 and the conversion of each increase in price and production to the reserve fund "Sadiq Fund" and the development of comprehensive primary income "UBI". And linking it in the future with oil revenues outside the budget.
I think Selah is planning for the push away from the Rentier/user state. In a rentier state (reliance on a resource, in this case oil) the people aren't taxed. When they move away from that & put the oil/resource proceeds into the hands of the citizens then they can move forward with tax reform & some of their laws (they have been working on implementing but can't because they are still a rentier/user state). I don't think it has much to do with the currency reforms other than it may push free markets (wanting the taxes). and The budget that was approved yesterday part of the agreement with the IMF is the implementation of the private sector in that budget
. That's just my 2 cents/dinars worth. input from a person in our skype room.
SOURCE