Iraq Economic : the pros and cons of high purchasing power ...

September 15, 2010

Economic : the pros and cons of high purchasing power

د.بكر ابراهيم محمود D. Bakr Ibrahim Mahmoud

That the increase in the purchasing power of the citizens of a country is a healthy phenomenon and a positive sign on the growth and prosperity and improve the economy of that country. ولكن هنا قد تثار عدة تساؤلات :- But here may be raised several questions: -

Is the rise paced and clear?

Is the rise is leading to improved living standards?

Are there plans take precautions and plan to keep pace with this increase?

Is there legislation that takes the legislator to regulate this increase?

Is that such a rise is heading towards the promotion of national industry or towards imported goods and thus freeze the national industry?

Is the rise leading to moving the national economy or not?

Is the rise leads to run the workforce and thus reduce the phenomenon of unemployment?

Moreover, there are many other questions that can be raised to such a situation.

If we follow the Iraqi economy and the purchasing power of the Iraqi family we note that in recent years, and after 2003 have increased the purchasing power of the Iraqi family.

The reason for this rise is due to several factors, including:

Increase the salaries of employees and retirees.

Advances and loans granted to employees and retirees.

Iraq's openness to the world's countries and the flow of goods into Iraq, all easily.

Entry of modern communication networks in Iraq from the phone and the Internet and other networks.

Iraqi family's thirst for shopping after the denial in the previous period and the accompanying wars and economic blockade.

Competition among importing firms making competitive prices as well as retail comfortable.

The question arises here has the following:

Is that the increase in the purchasing power of the Iraqi family had achieved a positive or negative features of the Iraqi economy?

And to answer the previous question can not be judged from the fact that absolutely high purchasing power has made the advantages or disadvantages.

That the natural thing to the high purchasing power is to achieve positive benefits and this actually scored, of the Iraqi family and the enjoyment of entertainment devices and items of the dream as well as the emergence of commercial companies, many imported goods flooding the market and the various commercial brands.

But on the other hand, has led to this increase, many of the negatives because of not taking the considerations that have been logical to ask them at the beginning.

Where the rise is sudden and unplanned, has led to several things, including:

Rising purchasing power of the Iraqi family is limited to essential goods and luxury goods and did not have to build housing units for example.

With the expansion of the family led to break apart into several families within the unit housing the old breed great pressure on the infrastructure of water, electricity, sewers, and others.

The purchasing power of the Iraqi family headed towards imported goods, which led to the freezing of the national industry and most of the freezing of Agriculture and we are a country of Mesopotamia because of credit became a fruit and vegetable imports.

Reliance on imported goods led to the emergence of commercial companies at the expense of many industrial companies as the businesses do not absorb only a small number of employment contrary to what is the case in industrial companies that can accommodate the large number of employment.

Flooding the market with inferior goods and origins are not known because the consumer has become cheaper looking than what is in accordance with the economic base that the goods expel cheap quality goods.

The latest upheaval to the state agencies involved in the provision of services and has become an excuse by officials argue about the deterioration of services provided to citizens.

Based on the above and if we are to revive our national economy and raise the purchasing power of the Iraqi family should be in accordance with a deliberate plan takes into account all the negatives associated with this process and try to overcome as well as development of infrastructure to accommodate this increase, as well as the need to encourage investment, age and construction of housing units as well as promotion of national industry and support in order to become a strong competitor for imported goods as well as the legalization of importation of luxury goods in accordance with customs laws and regulations.

As well as work to increase citizen's awareness and education about the importance of national industry.

If scored, so you will have a high purchasing power of the Iraqi family and good health of the Iraqi economy as well as make it attractive for foreign investment.

Mustansiriya University / Faculty of Business and Economics»

http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout=1&eotf=1&u=http%3A%2F%2Fwww.alsabaah.com%2F&sl=auto&tl=en