Business Development Services in Erbil
Erbil – 6.Jul.010
1-The privet sector became weak since 1964 until the occupation of Kuwait.
-Arab Socialist Ideology of the Government lead to:
1. The nationalizing processes big privet industry.
2. The big size of public sector
3. Possessing of the biggest part of GDP and the entire Oil Revenue.
4. The Dominant of antagonism Sprit of Government Institution s toward P.S.
5. The P.S Depended mainly on Governments allocations of Budget and Expenditure(infant suckled
6. In this. tendency of degradation the share of medium and small business was as it called the lion share . But why ?.
3-After invasion of Kuwait & imposing INT embargo followed by war of liberation
Until the collapse of former regime, the entire economic live ware semi parallelised.
4- After the collapse until now the sufferance and critical situation of S&M.B. is continued :
- Because of violent action increase and degradation of the security situation.
- Fleeing the Business men into the abroad with their capital, and closing their own projects, and reinvesting it there. According to Jordanian official info. The amount of Iraqi investment only in Jordan is more than 10Miliard-$-.
- Stopping all kind of support, aids and facilities from Government
- Adopting the policy of opening the door in front of imports with out any-limit-ations and regulation,
- That leaded to dumping the market with imported goods ,which is more competitive to our native products .
- Rapid increase in the Salaries 0f Civil Servant as well as their number (disguised unemployed) plus
-Growing employee in security and Military forces which together estimated be around 70% of local Manpower supply
- and that leaded into high rate of inflation, and that participate into bad phenomenon in our econonmy:
-First rising the cost of production and investment.
- second increasing profit opportunity for imports .
- increase in the cost of living
- rising the level of wages in privet sector, and accordingly the cost of production,
- decreasing the business opportunity, and business profitability in local Agriculture & industry sector.
- Then increasing the rate of unemployment.
-In addition to the above the majority of production plants i in both medium´-or-small existing businesses own old out of dates technology which lead to low productivity and quality, and scarce financial sources for replacement of new one.
5-Anther reason which devitalise the business is backward and deterioration of infrastructure and municipal serveces which regarded as big impediment for business development.
6-Inspite of improvement of some kind of infr. Like Wireless communication (mobile, Internet)and IT technology, but there is still big shortage in other kinds (electricity, water supply and grey (used)water recycling as well as all kind of Garbage s and high rate of all kind of pollution.
-Transportation net is anther kind of weakness of Infr.the results of that lack of options and high of costs.
-The Bank system is breakdown since two decades, and till now regarded as the main obstacle impeding business development
7- Even the new Investment Law issued in both KRG and Iraq and Although the Kurdistan’s contain more advantages comparing it with Iraqi, as well as the security is available but still the Investment Law didn t brought out expected resultes.busause of disability of establishing appropriate business and investment attractive environment which can be realized only through more economic and public administration reform and more investment in Social and Physical sectors .
8-The other barrier deterioration the business environment is the old-fashion of Paper Public Administration System, in addition to corruption and shortage of institutionalize government.
9-Lack of socio- economic development policy connected with sufficient planning system paved the way to un regular market mechanism role in allocating the investment in both trade and Real Assets. on the account of economic development priority (development of industry,Agricultur,Electricity,Public Economic Administration …etc.
10-The big shortage of statistical information on socio economic life and lack of data bases every where make the process of planning and realistic decision making more difficult.
11- Weak role of Business organization such as Chamber of Trade Business association, civil society organization & media (which maily controlled by ruling party, for example the Chamber of Trade in Erbil has more than hundred thousand members, about twelve thousand of them are companies, the rest are small plus medium size business, that indicate the important role of it in the KRGs economy and creating the value added and supplying job opportunity.
,the chamber has good opportunity to take the leadership to study how to develop this essence and gigantic affluent to strength the KRG economy .And giving instruction, consultation and information to the privet sector.
Proposal and Suggestion:
1-The main condition for sustainable economic development started with KRG highest authority (Presidency of the region, Prieminister, counsel of Ministry and/ Ministries from the following points of view:
a. To be confident that the economic development is the only way bringing the prosperity, stability and rising the standard of living of the people.
b.restructuring in modern scientific & democratic way the entire public administration ,strengthening the role of Judicial and parliamentary power in addition to the different kind of controls in order to insure transparency ,accountability & best utilization of the economic resources specially for socio-economic sustainable development.