Economists Urge The Iraqi Government To Establish A Sovereign Wealth Fund

Iraq news

On May 24, 2022

Independent/- Sovereign wealth funds represent, according to the economic perspective, an urgent necessity to support the economies of countries, as well as being a financial pillar to protect countries from fluctuations that occur as a result of crises, whether economic or other, which prompted many economic specialists in Iraq to repeat Demanding them to establish such funds, and to benefit from the financial abundance achieved as a result of the rise in global oil prices, by allocating an amount of 10 dollars for each barrel, the proceeds of which go to the assets of these funds, suggesting that the establishment of the “sovereign fund” begins with a capital of one billion dollars.Sovereign wealth funds are “arrangements for investment with a special purpose, owned and established by the general government for macroeconomic purposes, and they maintain, employ or manage assets to achieve financial goals.” The government can, according to the views of many specialists in economic affairs, adopt the establishment of “sovereign wealth funds.” – Or the Generations Fund, which is directed towards real investment inward within the framework of exceptional strategic economic and social development and in a different administrative style.

financial abundanceThe economist, Dr. Ali Hadi Judeh, said during his interview with the independent newspaper “Al-Sabah” that it is necessary for the government to move to establish the sovereign fund with real assets, taking advantage of the rise in oil prices and the increase in the financial abundance achieved as a result.Hadi suggested allocating $10 for every barrel, the proceeds of which would go to the assets of that fund, suggesting at the same time, the exploitation of the state’s untapped real estate, part of which can be transferred to the ownership of this fund by entering it into real investments, as well as benefiting from the suspended public sector companies. , by transferring part of its assets to this fund to provide financial liquidity.

Fund assetsThe expert, Hadi, indicated the possibility of starting with one billion dollars as real assets to establish this fund, as this number can be achieved by taking advantage of the high costs of oil, which reached the barrier of 110 dollars per barrel, and the arrival of “black gold” revenues to approximately 10-11 billion dollars. Monthly, and then the cash assets of that fund can be realized, and then other assets represented by government real estate and stalled companies can be provided.Hadi noted that there is a “Law of the Foreign Development Fund, affiliated to the Ministry of Finance, which was established in 1974, and whose name can also be changed to the Public Investment Fund or otherwise, and the government begins to offer no more than 25% of the shares of this fund for trading in the Iraqi market.” Securities to maximize its revenues and expand its assets and shareholder base.The expert, Hadi, stressed that “the sovereign fund has become a very important necessity, as it represents the pillar that supports the state’s finances and economy in the event of any damage, as well as being a fund for the stability of the budget in case it enters any emergency circumstance represented by a decrease in its revenues.”

resource maximizationEarlier, the financial advisor in the Cabinet, Dr. Mazhar Muhammad Salih, urged during an interview with “Al-Sabah” the need to work with “sovereign wealth funds,” stressing their importance in maximizing the nation’s depleting resources, achieving sustainable development goals, and continuing economic prosperity between generations, noting At the same time, to the possibility of accumulating double returns within the investment of the resources of these funds, which are essentially “investment”.The government advisor pointed out that “the majority of the world’s oil-producing countries in particular have established sovereign investment funds from their surpluses from oil revenues and employed them as capital in various investment assets, whether they were financial or real and generating income.”

خبراء بالاقتصاد يحثون الحكومة العراقية على تأسيس صندوق ثروة سيادي


Washington comments on Parliament’s approval of a law criminalizing normalization

  • Time: 05/27/2022 13:27:13
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Washington comments on Parliament's approval of a law criminalizing normalization

  {Political: Al Furat News} The US State Department issued a statement regarding the Iraqi parliament’s approval of a law criminalizing normalization with the Zionist entity yesterday, Thursday, unanimously.

In a statement received by Al-Furat News Agency, US State Department spokesman Ned Price said, “The United States is deeply disturbed by the Iraqi parliament’s passage of legislation criminalizing the normalization of relations with Israel, in addition to endangering freedom of expression and promoting an anti-Semitic environment.”
“This legislation stands in stark contrast to the progress Iraq’s neighbors have made by building bridges, normalizing relations with Israel, and creating new opportunities for people across the region,” he added.
Price emphasized that “the United States will continue to be a strong and steadfast partner in support of Israel, including expanding relations with its neighbors in pursuit of greater peace and prosperity for all.”
The Iraqi parliament unanimously approved a law criminalizing normalization with the Zionist entity.

The UN Security Council voted unanimously to renew the mandate of the United Nations Assistance Mission for Iraq

From the archive: UN Security Council.

UN Photo/Loey Felipe

From the archive: UN Security Council.

26 May 2022

peace and security

Today, Thursday, the UN Security Council extended the mandate of the United Nations Assistance Mission for Iraq (UNAMI) for an additional year, until May 31, 2023, while retaining its basic tasks.

By unanimously adopting resolution 2631 (2022), the Council requested the Special Representative of the Secretary-General for Iraq and the United Nations Assistance Mission for Iraq to prioritize providing advice, support and assistance to the government and people of Iraq on promoting inclusive political dialogue and national and community reconciliation, taking into account civil society input and full, equal and meaningful participation of women .

Council members also requested the Special Representative and UNAMI to provide further advice, support and assistance to the Government of Iraq in facilitating regional dialogue and cooperation, including on issues of border security, energy, trade, environment, water, resilience, infrastructure and health public, refugees, and the negative impacts of climate change, particularly those that contribute to desertification and drought.

The Council also requested the mission to address gender mainstreaming as a cross-cutting issue throughout its mandate, to advise and assist the Government of Iraq in ensuring the full, equal and meaningful participation, inclusion and representation of women at all levels of decision-making, including in the context of elections and government formation, and to promote empowerment Economic for women.

In addition, the Special Representative and UNAMI are mandated to support the Government of Iraq and the Kurdistan Regional Government to work together and engage in regular and structured dialogue to resolve outstanding issues, including security allocations, budgetary arrangements, management of Iraq’s oil and gas resources, and implementation of existing agreements, including Sinjar Agreement 2020.

Security Council resolution on Iraq

politicsIraqbreakingSecurity Council

 2022-05-27 06:55A-AA+

Shafaq News/ The UN Security Council in New York is preparing to vote today, Friday, on a draft resolution to renew the mandate of the United Nations Mission in Iraq (UNAMI), but it will also include calls to speed up the formation of the new government, intensify cooperation between the Baghdad and Erbil governments, and implement security understandings, including the Sinjar Agreement , in order to emphasize the importance of combating desertification in Iraq because of its effects on the stability of the country.

And the “Security Council Bulletin” website stated in a report translated by Shafak News Agency, that the council will vote on the draft resolution that was distributed on May 13, after negotiations took place in which all council members participated on May 18, with the aim of renewing the mandate of the mission. UNAMI” for a period of one year, until May 31, 2023.

And after the report noted that the Security Council is generally united in its support for UNAMI and that the basic aspects of the mission’s mandate remain the same, some amendments have been made to the text to reflect recent events and the fact that the mission will not play an assisting role in electoral support at present, In light of the fact that the elections actually took place on October 10, 2021.

The report added that the council members proposed minor amendments stemming from specific concerns or in response to the wishes of the Iraqi government, rather than substantive amendments, adding that despite the prevailing atmosphere of general consensus, there are significant differences among council members with regard to climate change.

The report indicated that the previous mandate of the “UNAMI” mission included a text indicating that the negative effects of climate change “can contribute to desertification, drought, the humanitarian situation and stability in Iraq,” and that there is a need for a comprehensive assessment of risks by the Iraqi government and the need to take measures for adaptation. or mitigating the challenges posed by climate change and environmental change.” The text also talks about the need for the UNAMI mission to assist Iraq while facilitating regional dialogue and cooperation on the negative effects of climate change.

The report added that Norway apparently sought to enhance this language by adding a new paragraph requiring the UNAMI mission to support the Iraqi effort to mitigate climate change, adding that despite the wide support that the Norwegian proposal received from many members of the Security Council, However, Brazil, China, India and Russia opposed it, as India proposed removing the existing text on regional dialogue and cooperation on the harmful effects of climate change, and replacing that text with a paragraph referring to desertification and drought as examples of harmful effects instead. However, this proposal was not accepted by Brazil, China, India and Russia, as they considered that desertification and drought are not caused by climate change only.

He added that as a compromise, the paragraph on this issue in the draft resolution talks about “the negative effects of climate change, especially those that contribute to desertification and drought.”

The report also indicated that the paragraph on climate change was amended during the negotiations that took place, as the new version says that climate change could “negatively affect” the humanitarian situation and exacerbate “any existing instability” in Iraq, while the previous mandate was repeating the reference Only to the “current instability” in the country, and it seems that the word “any” was added to this paragraph in response to the concerns raised by Iraq.

In addition, the new draft resolution calls for accelerating the formation of a new government in a peaceful manner to enable it to achieve the national priorities of the Iraqi people, such as economic reform, regional cooperation, stability and development, and the strengthening and protection of human rights.

The report explained that this paragraph was added in order to deal with “the current political impasse in the country, which shows little signs of abating after the parliamentary elections on October 10, 2021.”

He pointed out that the paragraph related to the formation of the government was added to the current paragraph related to the full and equal participation of women in all levels of decision-making, based on a proposal from Ireland.

There is also a new paragraph in the draft resolution related to condemning the attempted assassination of Iraqi Prime Minister Mustafa Al-Kazemi on November 7, 2021. The draft resolution also praises Iraq for organizing technically well-managed elections.

Baghdad and Erbil

In a parallel context, the report indicated that the current text on the relationship between the Iraqi federal government and the Kurdistan Regional Government has been amended.

While the current mandate of the “UNAMI” mission includes encouraging the federal government and the regional government to fully implement the budget agreement for the year 2021, and to negotiate agreements related to other outstanding issues, the new text in the current draft resolution requests the mission of “UNAMI” to provide effective support to the federal government And the regional government in order to engage in regular dialogue in line with the unity of Iraq and its constitution, including with regard to security allocations, the budget and the management of oil and gas resources in Iraq.

The new draft resolution also calls for the implementation of existing agreements related to countries as well, including the “Sinjar Agreement 2020”. The report explained that the goal is to deal with recent developments in Kurdistan, including the clashes that took place between the Iraqi army and the “Sinjar Resistance Units”, in addition to the February 15 Supreme Court decision to repeal the 2007 oil and gas law established by the Kurdistan Regional Government. He explained that it was Washington that added this reference after consulting with Baghdad and the Kurdistan Regional Government.

Nechirvan Barzani welcomes the Security Council’s call for Baghdad and Erbil to engage in regular dialogue

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 2022-05-27 06:52A-AA+

Shafaq News/ The President of Kurdistan Region, Nechirvan Barzani welcomed on Friday the call of the UN Security Council Erbil and Baghdad to engage in regular dialogue to resolve differences and outstanding issues between them.

“I thank the United Nations Security Council for extending the mandate of the United Nations Assistance Mission for Iraq,” President Barzani said in a tweet posted today on social networking sites “Twitter.”

And he welcomed the Security Council’s call, “Baghdad and Erbil to engage in a regular and orderly dialogue to resolve all outstanding issues, in accordance with the constitution of Iraq.”