Abstract
The development period pre-2003 is characterized by a lack of resources especially financial resources. In contrast after 2003, the economy has rapidly been modernized by the inflow of oil revenues and the promotion of private sector, capital investment and FDI development and privatisation. Government market intervention is minimal, and the economy has become open, liberal and the private sector has operated effectively. The inflation and wages increased and the corruption expansion have deteriorated the competitiveness and development of local industrial production. Meanwhile, in order to increase the possibility of success in the implementation of new law of investment (No.4 in 2006) in Kurdistan Region (KR), it should be focused on the investment of infrastructure in KR. However, here raise some questions, has KR a relatively suitable investment climate for privatization in accordance with legal and constitutional safeguards? In plus, the public manufacturing industries was loser and it did not work any treatment only disposal through sale, due to a complex bureaucratic which includes many of the laws, legislation and instruction, and many of the administrative constraints. That prevent the advancement opportunities and suppress quick response, losing of the property of sustainability, and the governmental administration economically/ financially, particularly time and effort wasting, and the administrations in public plants have been addicting in supporting, particularly on international subsidies and protection. So, are there economic reform in KR?
Highlights
In the light of the current reality of Kurdistan Region (KR) economy, the reliance on the style of privatization as a way to solve these worsening economic crises is suffered by the KR economy must take into account the privacy KR economically, politically and socially
The approach of Building, Ownership and Operating (B.O.O): Kurdistan Regional Government (KRG) used this approach for privatization of the projects carry out the functions of basic services which before monopolized by the state for purpose the politic and social more than been economic targets
1.2: The problems and obstacles of the privatization process in manufacturing industries in KR: It is clear from MoCI’s data that, there are some public manufactures which did not privatize lost (-6344407.273) USD in 2011. ( KRG/Ministry of Trade and Industry) Because some of them did not has any revenue and some of them did not has any production except “The ice manufacture in Kefry” which its total revenue does not consider in account on the KRG’s budget. It should be mentioned this manufactures despite they did not have production or have a low production while KRG obliged to pay the salaries of employees.It should to note the total public manufactures producing just 7% of them manufactures expenditures and 93% of them expenditure is an absolute burden on the KRG’s budget in 2010
Summary
In the light of the current reality of KR economy, the reliance on the style of privatization as a way to solve these worsening economic crises is suffered by the KR economy must take into account the privacy KR economically, politically and socially. The economic environmental which is characterized disfunction, instability, declining the role of PS, the weakness of its competitiveness in the local market by virtue of economic openness to the rest of the world's countries, the liberalization of the trade fields, and the invasion of the goods and foreign goods to the Kurdish market. The question of attracting this type of investment into KR requires the availability of necessary infrastructure and institutions, ease of administrative and implementation procedures and the financial, tax transactions, and presence of a banking system that works well under the market mechanism It is worth noting here, the local investment in KR depends on oil revenues, which represents the oil the main financial resource of the state, especially since Iraq has been placed the second largest reserve in the world. It could be said that the economic future of KR in a manner associated with significant of the investments volume that performs and the other is based mainly on the level of future oil revenues
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