Hussian Kurdnezhad , , Economy
In times of crisis is important to the possibilities for doing that we have to point out the very unique virtues of the concrete economy.
What we mean by economic development or development in general is nothing else than structural changes – putting the labour force in more productive work- and development of fundamentals, namely human capital and the institutional regime.
The demographic transition of Kurdistan offers huge possibilities of economic expansion in regard to the growth of labour force. This historical window of demography must be utilized. The best way forward is to benefit from a comparative advantages of the Kurdish market in comparison to the neighbouring markets namely the possibility of easy entrance of the multinational in to the Kurdistan region.
Why is that? Studying for example the Iranian economy we see clearly that the existing traditional structure of Bazar which constitutes the economic base of political power at least in part, acts such as a hinder for the entrance of the multinationals. This obstacle does not exist in Kurdistan.
so cooperation with multinationals is an effective way forward in these times of economic crisis. This alternative seems even more promising while regarding the good international relations of KRG.
The solution to the crisis without doubt is not austerity but working us out of the crisis and this is possible through cooperation with multinationals in a decisive manner.
These cooperation’s can take place within agricultural activities such as marketing the surplus of the wheat production or exporting fruit or starting new activities according to the needs of international markets.
These activities will constitute bases of substantial structural changes making the labour force more productive in short term, cutting down the public employment and thereby the budget short come.
Furthermore, the KRG should play a vital role in coordination of domestic entrepreneurs in fields such as carpentry/ especially the production of school and office furniture and publishing in particular publishing the school books.
KRG should be helpful in addressing the structural deficits of various domestic markets.
All the mentioned activities address the need for structural change as a way of working through the crises in a pro- active manner.
Parallel to these KRG should consider the development of fundamentals in a serious manner. This can be done by establishing a body of educating task forces for various competences, which will act as an integral part for the needs of above mentioned activities.
Making a policy choice between the politics of austerity or pro -actively activating the economy. The policy should target both domestic entrepreneurs and foreign multinationals, is vital and will decide the future scenarios of KRGs performance, will it be successful entrepreneurial state or another failed oil dependent entity. It is now the we have the chance and we shouldn’t miss it.