Salam Jabbar Shehab
Economic diversification entails measures to reduce dependence on a single source of income (currently), which is through these new revenue channels, as well as creating new channels; To generate other economic outputs, so the basic idea behind economic diversification is to develop or create a type of diversified sectors that provide significant added value in the economy instead of the current dependence on one sector, and economic diversification implies the process of reducing dependence on a single source of production, income, employment, and revenue. It also entails the idea of reducing dependence on a homogeneous basket of export goods, and diversification includes developing a more robust set of sectors and providing a variety of goods and services. In other words, the primary goal is to enhance the performance of non-typical sectors such as (manufacturing, services, construction, infrastructure, tourism, information, and communication technology, finance, etc.) diversification plays an important role in maintaining long-term economic growth and development in countries. Diversified economies are better in the ability to perform in the long run, while those countries that specialized in the export of basic commodities performed worse, especially in the economic crisis of the past year as a result of the coronavirus epidemic (COVID- 19), the capacity created by diversification helps to maintain and/or create international competitiveness in the global economy, and the obvious advantage of economic diversification is that it helps to create a flexible economy capable of mitigating the likelihood of business volatility.
