Why Iraqi Economy Criticized by the World Bank?

The management of Iraqi economy examined by the World Bank and indicated hundreds of thousands of unnecessary employees in the public sector companies. The representative of the World Bank, Yara Salem has forwarded a report to the Cabinet Secretariat. The report has indicated that the World Bank stressed the need for the handsome level of public-private partnership. The importance of partnership between the public and private sectors was emphasized by the World Bank. The Bank also highlighted challenges experienced by the public companies. Yara Salem pointed out that the Iraqi economy is still considered a central economy in which public companies have suffered from high-costs in production as it caused unemployment. It has been considered a major obstacle in restructuring and reforming.  A member of the National Central Committee for Poverty Reduction, MP Najiba Najib said in a press statement that the unemployment issue in public companies linked to the Iraqi Ministry of Industry and Minerals started since 2004.

Iraqi Economy

Najib said that most of the previous military production and its major facilities used for destruction and looting. Each of them had at least 6 thousand employees work waiting for their salaries without work at the end of each month. The Iraqi Council of Ministers and Iraqi House of Representatives formed a joint committee in 2014 to study the subject. The Committee was able to give recommendations and specific solutions in order to eliminate all that was stopped in offering investment or privatization, such as a significant amount of decrease of employees through their retirement. It was said that total amount of salaries of public companies was calculated at more than 234 companies linked to the ministries. The monthly salaries were paid more than 100 million U.S dollars (155 billion Iraqi dinars) without any productive activity and it was a massive burden on the Iraqi Treasury. So, the World Bank stressed to decrease the number of state employees.

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