The Obstacles Facing the Privatization of Manufacturing Industries and Economic Reform in Kurdistan Region/Iraq

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?