Nechirvan Barzani: Our goal is to bring about financial stability and develop a modern economy
Dear Distinguished Guests,
Good morning to you all. I would like to thank representatives of foreign countries, Members of Parliament, representatives of political parties and businessmen for being here with us today. Welcome to this gathering to announce the reform plan of the Ministry of Finance & Economy of the Kurdistan Regional Government.
During recent months, various issues have become the source of intense discussion and debate in our Kurdistan Region. It is not surprising that our fellow citizens are deeply concerned about the situation and to see their concerns have reached a level higher than ever before. Their concerns are largely rooted in the financial crisis facing our region, in their daily struggle to secure a better life, to raise their children in good health and with good education, and to prepare for a comfortable life after retirement.
It is right that every citizen pay attention to these concerns. The response of the Kurdistan Regional Government over the upcoming years is to work toward ensuring that our economic system benefits all citizens. Our strategy should remedy social vulnerabilities, provide protection and safety, provide youth with real opportunities, bring about financial stability, and preserve our natural resources for future generations.
As we all know, dramatic events during last year were totally unexpected. It was a tough and challenging year for our people and the economy of our Kurdistan Region. We have been facing multiple shocks that require urgent response.
The sharp decline in global oil prices from more than $100 to below $30 per barrel within less than two years, which was totally unexpected, has been catastrophic. It severely affected our economic growth, our public revenue and our currency, and our social-economic condition.
Prior to the dramatic fall in oil prices, withholding the Kurdistan Region’s share of national revenue by the Iraqi Federal Government since the beginning of 2014 caused a surge in our budget deficit that excessively burdened government capacity to respond to unexpected circumstances. The war imposed by ISIS, compounded by the influx of nearly two million refugees and internally displaced persons caused by this war, has greatly exacerbated this financial situation. Notwithstanding our limited resources, the KRG remains committed to helping those in need during this period of turmoil.
Ladies and gentlemen,
The reform plan prepared by the Ministry of Finance & Economy, once implemented, should have real and direct impact on all our citizens. Since the beginning of last year, I have personally supported the Ministry of Finance & Economy and Minister Rebaz Hamlan in their efforts to develop and implement plans intended to strengthen and enhance our capacities to respond to this crisis.
I am glad to be here today to announce a roadmap designed to transform the Ministry of Finance & Economy to an international standard in terms of financial administration, with the mission of achieving economic stability and sustainable growth in the Kurdistan Region.
I want to take this opportunity to thank Minister of Finance & Economy Rebaz Hamlan and the Ministry’s staff, and to commend them for the work they have done in developing a comprehensive reform strategy.
Please also allow me to thank Mr Jihad Ezoor, former Minister of Finance of Lebanon and his team for their support in preparing the reform plan for the modernization of the KRG Ministry of Finance & Economy.
The KRG is committed to strengthening our financial and economic administration. We are committed to modernize the Ministry of Finance & Economy in order to provide necessary services for all our citizens. We are determined to reorganize the structure of public banks, to modernize the financial sector, to reinvigorate our economy and to galvanize support for the private sector. We are also committed to strengthen transparency and accountability within the government.
Achieving these goals is intended to create a conducive environment to bring about our government’s financial stability and durability, and develop a modern economy in the Kurdistan Region. It will also provide a healthy, competitive environment for investment. By implementing this strategy, the Ministry of Finance & Economy will serve as the role model for reform of other KRG institutions.
Dear guests,
Despite the challenges facing our Region and despite all shortcomings, it is important to highlight the achievements of our Region during the past 12 years. Since 2004, the economy of Kurdistan Region has witnessed remarkable growth. The KRG has taken steps to facilitate economic opportunities in the Region. More than $30 billion has been invested in the Region between 2006 and 2013 of which $5 billion was foreign investment.
All of our social indicators improved considerably during the past 10 years. However, our economy is facing structural and institutional impediments - onerous regulation, inefficient financial markets, and an inflexible labour market.
At the same time, we should look critically at missed opportunities, examine mistakes we have made and the reforms that we failed to introduce in a timely manner. To achieve more for our people we have to plan for the future by facing current challenges and committing ourselves to strengthening our public institutions, to reform our economy and to strengthen accountability.
Therefore, we as government will work as key partners with our business community, unions, syndicates and academics to support the reform process. This year will be the year of reform and modernization across government institutions. We will put in place policies aimed at reducing poverty, strengthening productive sectors, and pursue a growth agenda for our future generations.
As for the current situation, in tackling the financial crisis the government will set in place urgent austerity measures. The measures will include withholding a portion of the salaries of public servants that will be paid back later.
I would like to say that we do not look at austerity measures as part of our economic reform plan. Austerity measures are required at this particular time to balance our budget. Short term austerity measures, therefore, should not be confused with long term comprehensive reform plans that we are here to announce.
Ladies and gentlemen,
I believe we must transform not just policies related to individuals, but drive changes in the very way government functions. We count on the success of the reform programme of the Ministry of Finance & Economy to usher in a new era that will bring about effective policies to improve services and accountability. More importantly, it will be an opportunity to unite around common cause that will lead to a prosperous and brighter future for all citizens.
Dear Guests,
I would like to take this opportunity to highlight the bravery of our Peshmerga. Our Peshmerga forces are defending the values we share with our partners in the international community. We have invested so much blood and resources to protect the common values for which we stand.
We are at the forefront of the war against ISIS and we care for nearly two million refugees and IDPs, more than 98% are Iraqi citizens. Yet, regrettably, the Iraqi Federal Government has provided almost no financial support to the KRG. Further, most of our partners in the international community refuse to directly arm our Peshmerga forces. This is dangerous. I would not be exaggerating if I say it is as dangerous as the threat of ISIS to the Kurdistan Region.
Considering the financial situation that we are going through, especially the significant inadequate support for our Peshmerga, our institutions are in serious danger. Therefore, I would like to call upon the United States of America and other members of the anti-ISIS coalition to urgently raise their level of support to meet the needs of our Peshmerga forces and our public institutions. We the people of Kurdistan Region, especially our Peshmerga forces, expect more support, particularly financial support from our friends in the international community.
The people of our Kurdistan have well-demonstrated their resilience. I realize times are especially tough, but I promise that we will reach our ultimate objectives. We will destroy ISIS, we will build new industries, including the export of natural gas to the world market. We will build a just, prosperous and united society. During this time of austerity, those who are more capable will have to share the burden with others who are less fortunate. We all have to work together.
Yes, one day we will own our independent state, climbing mountains has never been easy. For the sake of the future of Kurdistan and those who live here, I urge you to be remain steadfast and never lose hope. I call upon all of you to remain united so that we can work together as a team to achieve our common dreams.
Let me conclude by restating that our reform plans will benefit all of us, above all the new generation. I am convinced that the decisions we make today in the near future will provide our children with real opportunities. That is what the new generation expects from us and we cannot disappoint them.
Thank you all
