Involve the Kurds in Building Kurdistan

[Aslan]

The Kurdistan Region is asking foreign investors to help finance major projects such as roads, dams, public transport, and even schools.

“Kurdistan is open for business, invest now!” was the slogan at a conference in Erbil last week, targeting foreign investors.

The yearly allowance from Baghdad to the autonomous Kurdistan Region is not large enough to carry out such major projects that are essential for economic development, Kurdish ministers explained.

Roads are needed to make sure trading remains profitable and will go on growing; public transport is essential for people to move around freely and cheaply, since mobility is closely linked to economic growth; dams and water purification are needed because deep wells are running low, and both people and agriculture need water to survive.

But most important on the list are schools: It is impossible for anyone to compete in today’s world without making education a priority.

Many expatriates and foreign companies complain about the quality of the local work force. Vocational training has to be set up to meet the demands of the labour market. It is needed for economic growth -- and even more, it is needed because Kurdish people deserve better education and more job opportunities.

Still, many primary schools in Kurdistan take students in shifts, because they cannot accommodate all pupils at once. Only a good foundation can guarantee children success in their education. Yet, Kurdish schools still only provide pupils limited classroom time every day.

The government is waiting for foreign money – loans or investment – to carry out all of the planned projects. Yet, it is already clear that investors are not eager to finance road building, as it takes too long for them to recover their investment.

Beautiful designs were made for tramways in Erbil and Suleimani. But if no investors are found, the millions spent on designs are wasted. And, drawing investors will take time.

But are there other ways to finance these projects? How about taxes?

People in the Kurdistan Region hardly pay any taxes at the moment. As a result of the oil income, both Iraq and Iraqi Kurdistan have created consumer societies where citizens criticize the government without taking part in creating their future. Paying taxes could make for more active and conscious citizens.

Schools could be built with help by some of the newly rich, many of whom are now squandering their wealth by importing $1 million worth of cars every day. It can be done by the government insisting that, every time the pious rich want to build a mosque, they should also build a school.

To encourage local investors, perhaps the government could bestow titles such “Support of the Nation,” or “Member of the Board of Givers,” in return for public philanthropy and contributing to the region’s economic growth.

Kurdistan no longer is a country of poor people. Many Kurds are very rich. Why not use some of the money to support their young, developing enclave?

In other countries, and even in Iraq in the past, governments have practiced a system of state loans, where citizens can grant their government an amount of money, to be paid back within a certain period and with a certain interest rate. They buy, in fact, a share in the loan.

Of course, this only works if the rates are interesting and competitive with those offered by banks. Another requirement for this system to succeed is that people must trust their government enough to be convinced that their investment will generate a profit, and will be returned.

When looking to foreign investment, the Kurdistan government cannot think only about economic priorities. It must also consider the effect of growing dependency on foreign loans. Is Kurdistan building up foreign debts that future generations will have to repay? If that is the case, it is taking an advance on future earnings.

This can be done, of course, but is their sound planning on how the money will be generated and returned?

And what about the lack of transparency in Kurdistan?

What Kurdistan’s citizens deserve is not only economic progress to solve problems and improve lives. They deserve a government that involves them on major issues, such as how to raise the money to provide better lives for the present and future generations.

COMMENTS:


0 0 Mn kurdm | 9 hours ago
It is impossible for anyone to compete in this world without making democratic rights,and education,and less corruption,this is going never to succeed,we(citizens)don't have rights in our kurdistan,kurdistan is open for business(only slogan).the rich peopele will never build a school,the don't want education en democratic rights.
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0 0 salah nader | 8 hours ago
Mev Neurink. I totally agree with your thoughts.Kurdish nation has to understand what does mean team work!Kurdish adminstration needs to dubble their effot to build a trust between them and citizens to come up with new ideas!Mooi verhaal bedankt. Gr. Salah
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0 0 Patriot | 7 hours ago
"The government is waiting for foreign money – loans or investment – to carry out all of the planned projects. Yet, it is already clear that investors are not eager to finance road building, as it takes too long for them to recover their investment." Basically selling our land out to wealthy Turks, Arabs and other foreigners. I am pretty sure KDP, PUK and the elite in Kurdistan have more than enough to fund every project in Kurdistan. "When looking to foreign investment, the Kurdistan government cannot think only about economic priorities. It must also consider the effect of growing dependency on foreign loans. Is Kurdistan building up foreign debts that future generations will have to repay? If that is the case, it is taking an advance on future earnings." That's why the KRG should try to minimize foreign investment, and rather try to be the king holders in any project in Kurdistan.
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0 0 azad | 5 hours ago
Thanks for sharing your ideas but I think the article is very general and the current situations of the region and various economic levels of the society are not considered in detail.

[Anthea]

If those very kind Arab gentlemen would be good enough to pay Kurdistan the money owed Kurds could be much more self-sufficient