Towards establishing a viable macroeconomic and medium-term fiscal framework integrated approach for the Iraqi economy
Author: Al-Ali, Hashim
Source: International Journal of Contemporary Iraqi Studies, Volume 6, Number 2, 15 November 2012 , pp. 195-204(10)
Abstract:This article intends to shed light on the importance of a functional link between medium-term macroeconomic framework and fiscal framework, to steer the economy towards achieving its development objectives and priorities in a coordinated manner. A medium-term macroeconomic framework should, however, delineate and quantify the main development objectives reflecting, to greater extent, the actual needs of the society and the strategic goals of the economy, such as positive real GDP growth, economic diversification, low rate of unemployment, manageable inflation rate and sectorial development priorities and sectorial allocation of investment/contribution to growth and development, poverty reduction and uplifting society's well-being. These and other objectives are obviously subject to a number of financial, investment, technical and absorptive capacity constraints. Accordingly, it is imperative, nonetheless, to optimize the state of the macroeconomy given these constraints. Thus, this derived feasible macroeconomic setting should be used as the main developmental base to structure the country's medium-term fiscal and budgetary framework. By doing so, the national economy would achieve, the aimed at, macroeconomic stability - achieving real growth without bottlenecks - and longer-term fiscal sustainability.
Furthermore, the article would attempt to bring together all significant development pillars in an integrated framework to produce a more developmental oriented federal budget for the Iraqi economy. This would be approached analytically with relevant illustrations.
Document Type: Research Article
Affiliations: Freelance Senior Economic Development Planning Advisor
Publication date: 15 November 2012
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