Ali Abdelkadhim Daadoush – Ph.D. in economics, trainee researcher at Al-Bayan Center
Introduction
Advanced economies are experiencing a state of highly efficient coordination of economic policies, particularly policy coordination (monetary and fiscal); to stabilize economic growth and prevent waste of public funds, especially since today the world is witnessing a significant and increasing rise in the prices of goods and services, which directly causes inflation, which has coincided with the emergence of numerous shocks, such as: The health shock, the trade shutdown in 2020, the shock of the volatility of crude oil prices in world markets, their access to record prices as well as the shortage of supply chains, and the third shock of the ongoing war between Russia and Ukraine, following which the world witnessed an apparent lack of global food security; Because the two countries produce more than a quarter of the world’s production of the most essential strategic crops, these shocks have caused a process (commercial closure and unemployment, overheating, inflation, and then a slide into inflationary stagnation).
Iraq is one of the countries most severely affected by the aforementioned global shocks compared to the Gulf States (Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar) and others; Because these countries have sovereign funds that protect economies from shocks that hit the world from time to time. So Iraq took a step towards devaluation, leading to a rise in inflation rates that exacerbated the situation for consumers at home.
In these complex circumstances, the fundamental question arises: does the waste of public money – generated from unplanned spending – play a role in exacerbating corruption and limiting growth in the country?
Government spending is chaotic (unplanned spending) and has generated a clear waste of public money, and at the same time, has increased the volume of money in circulation; he then deepened the growing problem of inflation and worked to block the central bank’s actions in controlling inflation, Which was supposed to stabilize the economy. And then work to create a suitable environment for the private sector, expand investment, and increase use to create additional demand. (investment multiplier) on the production and consumption of goods and services, resulting in the country’s continued economic growth and macroeconomic stimulation.
Advanced economies are experiencing a state of highly efficient coordination of economic policies, particularly policy coordination (monetary and fiscal); to stabilize economic growth and prevent waste of public funds, especially since today the world is witnessing a significant and increasing rise in the prices of goods and services, which directly causes inflation, which has coincided with the emergence of numerous shocks, such as: The health shock, the trade shutdown in 2020, the shock of the volatility of crude oil prices in world markets, their access to record prices as well as the shortage of supply chains, and the third shock of the ongoing war between Russia and Ukraine, following which the world witnessed an apparent lack of global food security; Because the two countries produce more than a quarter of the world’s production of the most essential strategic crops, these shocks have caused a process (commercial closure and unemployment, overheating, inflation, and then a slide into inflationary stagnation).
Iraq is one of the countries most severely affected by the aforementioned global shocks compared to the Gulf States (Saudi Arabia, the United Arab Emirates, Kuwait, and Qatar) and others; Because these countries have sovereign funds that protect economies from shocks that hit the world from time to time. So Iraq took a step towards devaluation, leading to a rise in inflation rates that exacerbated the situation for consumers at home.
In these complex circumstances, the fundamental question arises: does the waste of public money – generated from unplanned spending – play a role in exacerbating corruption and limiting growth in the country?
Government spending is chaotic (unplanned spending) and has generated a clear waste of public money, and at the same time, has increased the volume of money in circulation; he then deepened the growing problem of inflation and worked to block the central bank’s actions in controlling inflation, Which was supposed to stabilize the economy. And then work to create a suitable environment for the private sector, expand investment, and increase use to create additional demand. (investment multiplier) on the production and consumption of goods and services, resulting in the country’s continued economic growth and macroeconomic stimulation.
