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Planning Minister Discusses Restructuring, Iraqi Debts
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blackenterprise.com - [6/21/2006]
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Text of interview with Iraqi Planning Minister Ali Baban, by Khayyun Ahmad Salih, in Baghdad; date not given, headlined "Planning minister tells Al-Zaman: we are living in atmosphere of chaos", carried by Iraqi independent newspaper Al-Zaman on 17 June
[Baban] The ministry has many plans and projects, and I believe that restructuring it and assessing its tasks will be the basis of our work. Restructuring will include three key sectors. The first is the sector of international cooperation and foreign investment. We seek to benefit from foreign loans and grants that are offered to Iraq and to rationalize their use to provide the best returns. We also seek to promote foreign investment and open the doors of Iraq to it and to offer all facilities to foreign investors to be able to come to Iraq, invest their money, and carry out projects to alleviate the economic suffering of the Iraqi citizens. This will also provide more job opportunities. We are thinking about appointing an under secretary for international cooperation and foreign investment affairs. This sector will be one of three key sectors, which make up the new structure that is planned for the ministry soon. We hope that we will make the best of international cooperation.
Our assessment of the previous stage is that despite the efforts made by the ministers who have assumed this ministry since the change occurred in 2003 and the good actions they carried out to reap the benefits of this international cooperation, we probably will not receive what we had expected out of these foreign relations and aid. This is perhaps due to the method by which this aid was offered, and not due to the Planning Ministry. The ministry did its best, but I think that the way that these loans and grants were offered in the previous stage, especially by some countries, was not up to the required level and did not achieve what Iraq had hoped for. This is especially true given the fact that some of these countries are responsible, one way or another, for the deteriorating economic situation experienced by Iraq because of the wars that were waged on it and because of the economic embargo that had been imposed on it over the past years. Therefore, we wish that the international commitment towards helping the Iraqi economy will continue in the next stage and that we, as ministry and government, will succeed in getting what we want out of this assistance. We also want the Iraqi citizens to see the fruit and results of this international cooperation. The citizens hear a lot about this cooperation, but they have seen very little results so far.
The second sector, which we want to receive the attention it deserves at the ministry, is the sector of information. It is common knowledge that the responsibility of this sector is divided among several parties and several ministries. We in the Planning Ministry want this sector to be part of the responsibilities of the ministry in the next stage. This should include all the details and activities of this sector, starting with courses, training, rehabilitation, dissemination of information, and ending with the e- government programme, which we hope will be achieved in the end. We also seek to promote the use of computers and other tools related to electronic knowledge at state institutions and in all walks of life in Iraq, and ending up with the promotion of research and development in the information field. We want to catch up with the information revolution, which has swept up the world, and we want to create an information society. Some people might disagree and argue that Iraq's current conditions indicate that this is not a priority in the time being. However, we think that we must catch up with this international development, even if we are lagging behind. We must take the first step. We must lay the foundations of a broad knowledge and information base in the country and we must promote and encourage the use of the tools of electronic knowledge to reap some of the benefits of the information and communications revolution. Therefore, we will see to it that this should be one of our most important activities in the coming stage.
The third sector, which will be part of the direct responsibilities and concerns of this ministry, is the sector of development and planning. It is the traditional sector, in which the ministry has carried out its activities in the past stage. However, the fact that it is a traditional sector in the work of the ministry does not mean that there will be no changes. There will be great concentration on human development and regional development and cooperation with the regions to achieve their development projects. We will listen attentively to the opinion of the Iraqi regions on preparing development plans. We will cooperate more closely with all Iraqi official agencies and civil society organizations. There will also be changes and replacements in the structure of the ministry to absorb these new tasks, which emanate from the new vision of the ministry and the strategy that will be adopted for its future action.
[Salih] As you know, the Planning Ministry has actively contributed to the creation of the employment scale that is currently in force, but many problems came up during the implementation. How can the ministry address these problems and does it have plans in this field?
[Baban] I think that coming up with general models and applying them to all ministries is a big mistake because every ministry has a special character in terms of the type of function and role it performs. This concerns the organizational structure of the ministry in question and the qualifications of its staff. Therefore, applying one model to all the ministries is not practical and is wrong. We at the Planning Ministry paid a heavy price for this standard employment scale. A large number of our staff were done injustice and were assigned a lower grade than the grade they had occupied previously. We feel that this employment scale should be reconsidered, at least at the Planning Ministry. Having one model for all the ministries is not practical. We will first seek to end the injustice done to our staff at the ministry. After that, we will seek to correct the employment scale, which we think is defective, for all agencies and institutions of the Iraqi state.
[Salih] The file of unemployment is one of the serious files, which must be seriously addressed. What are the actual measures that the ministry will adopt in this regard?
[Baban] Unemployment is really one of the serious and big problems in Iraq. However, unemployment cannot be addressed separately from the situation of the economy as a whole. The Iraqi economy is suffering from some serious problems, most important of which are the decline of the role of productive sectors and the failure of local and foreign investments to create job opportunities. We must address the performance of the economy as a whole before we think about addressing the problem of unemployment. We are now seeking to activate the productive sectors, including the agricultural, industrial, and service sectors so as to be able to create new jobs. We are also seeking to promote local and foreign investment. These matters are not separate from the political and security aspects because the political and security aspects affect everything and affect the performance of the Iraqi economy. We cannot reform the Iraqi economy before addressing the security situation and before we provide more stability and firmness to the political process in Iraq. In effect, the problem of unemployment cannot be radically addressed without promoting the Iraqi economy as a whole and without reforming productive sectors in it and promoting huge local and foreign investment in Iraq. We are currently thinking about creating a fund for supporting small and medium-sized enterprises [SMEs] and about launching this project shortly. This will create job opportunities, but I cannot claim that it will solve the problem of unemployment because this problem is much greater than our capacity as a Planning Ministry. But we in the ministry are thinking of launching a fund for SMEs.
[Salih] The census has been delayed several times. We have learned that the ministry plans to revive it now. Can the minister tell us something about it?
[Baban] It has been decided to conduct a general census in October 2007. We have started preparations for this census as of now, although some people think it is too early. We have started forming committees and a higher census commission, which I have the honour to chair. This commission will supervise the work and preparations and the formation of committees. This commission has started its work and set a budget for the census. We believe that this is a very important step, which will have a great impact by providing general information about the population of Iraq and about many vital matters, some of which are linked to economic activities and others related to education and other dimensions. The census is a very important step, and we seek to make it succeed and to provide all the means that enable us to get accurate and reliable figures about the population in Iraq. The ministry is facing a big challenge to conduct this census in an efficient, fair, and successful way that includes all parts of Iraq. The previous censuses conducted in Iraq were criticized. We hope to overcome this criticism and to conduct an exemplary census next year.
[Salih] What about Iraq's debts? What is your position towards the donor nations, especially since some of them have not yet fulfilled their commitments?
[Baban] There are two separate issues. The first is the debts, while the second is the grants. With regard to the debts, the Paris Club decided to reduce and write off 80 per cent of Iraq's debts. This is a very important decision, which we welcome. We had hoped that all of Iraq's debts would be written off. Of course, the countries that wrote off the debts are the members of the Paris Club, which are mostly Western countries. There are other countries that are still hesitant to write off Iraq's debts. I regret to say that these include some Arab countries. We had hoped that these countries would be among the first to write off Iraq's debts. Our efforts are continuing to write off the remaining debts or to repay them based on easy terms that take into consideration the financial and economic conditions being experienced by Iraq, especially since we are still at the beginning of the phase of economic recovery and cannot tolerate the burden of debt and debt service, which had accumulated over the past years. In some cases, the debt service has exceeded the original debt. This is an unfortunate thing, which has done great damage to the Iraqi economy. We deem the step of the Paris Club members as a very good initiative, and we hope that the other countries will follow suit. We hope that foreign debt will not become a burden on the Iraqi economy. As for loans and grants, I can say, quite frankly, that we have heard a great deal of talk, but received very little. Yes, there are funds designated for Iraq, but in the short period during which I assumed the duties of the ministry and in the period that preceded it, I have followed the situation of the Iraqi economy closely and I found that the method by which some grants and loans were extended did not achieve what was desired for the Iraqi economy. Some of the money was spent abroad and was deducted from the loan extended to Iraq; some of it was paid to foreign experts and consultants; some of it was spent on foreign services; and some of it was spent on areas that are not priorities for us in the building of the Iraqi economy. However, I would like to clarify that this does not apply to all countries. It applies specifically to some donor countries. In effect, I do not think that the reported figures about foreign aid and grants, which were exaggerated, have greatly benefited the Iraqi economy. Therefore, we need reassessment and a realistic study of what has been offered to us and of the strategy of giving loans and grants to Iraq. We need to tell our friends and partners, who offered us aid in the past period, that they should listen to what the Iraqis tell them and listen to their needs and change many mechanisms and methods of choosing projects and allocating funds.
[Salih] Do you have anything further to say, having just assumed a ministry that is concerned with economy and development in Iraq?
[Baban] We only want to tell our people and brothers that we are exercising our role at the Planning Ministry under very difficult circumstances, which should be appreciated. We do not use such circumstances as a pretext in order not to perform our duty, God forbid. But we tell them frankly that we are living in an atmosphere of chaos. Corruption has spread in the Iraqi state in an unprecedented manner. All these reasons and others, as well as the lack of security, affect the planning process. Planning cannot perform its duty correctly unless there is stability and a government administration that is characterized by stability and permanence. I regret to say that all these elements are unavailable at present, but we will continue our efforts until we accomplish the tasks that are assigned to us and achieve the hopes of our community and people in the next stage; namely, to improve the living conditions of the Iraqi citizens.
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