World Bank ups Middle East outlook

The World Bank has warned developing countries to get ready for a downturn, but said economies in the Mideast and N. Africa are set for a better-than-predicted growth.
DUBAI -- The World Bank has cautioned developing countries to get ready for a downturn, but said economies in the Middle East and North Africa are set for a better-than-predicted growth of 4.1 per cent this year and 3.8 per cent in 2012.
Raising the forecast for the Middle East for 2011 is up by half a per centage point relative to a May 2011 forecast, the global body warned that global uncertainty is clouding the horizon.
The upgrade in the regional outlook was due to "more expansionary fiscal policies in the region, expanded oil production, better than expected growth in Iran, and a quicker than anticipated pickup in industrial production in Egypt," the World Bank said in a report. In 2012, however, growth is expected to decline by half a per centage point because of lower expected oil prices and slower global growth, the report said.Caroline Freund, chief economist for the Middle East and North Africa region at the World Bank, said unlike in 2008, when MENA countries were in a strong position to weather the storm, the ongoing political and economic uncertainties have put a number of countries in a weaker position for additional response to another global downturn. "Overall, while improving government institutions is necessary for voice and accountability, it is also necessary for growth and efficient use of resources."

To revive investment above and beyond pre-Arab-Spring levels, a move to transparency and accountability is urgent, she said. With contracting global demand, lower oil prices will put further pressure on fiscal balances in many developing oil exporters, especially in a period of expanded government spending, she said in a report.

"Indeed, if we look at examples from other countries undergoing transition, investment surged in many economies that made early moves to improve governance," Freund said.

The report noted that investment in the MENA region has been strong over the last two decades in comparison with Latin America and Eastern Europe.
However, in the oil exporting countries, such as Algeria and Oman, it has been primarily supported by large and expanding public investment. Oil importers, in contrast, like Egypt and Morocco, have shown more strength in private investment, which has increased in recent years.
World Bank chief economist and senior vice-president Justin Yifu Lin said on Wednesday that developing countries can prepare for the threat of a global recession by improving policies to generate growth and jobs, diversifying economies, bolstering their banking sectors and readying social safety nets.

Lin said the sentiment in the international economic community had abruptly changed from a feeling of general confidence in global recovery six months ago to "alarming uncertainty" now facing policy-makers.

"We once again are seeing the financial markets in the world in turmoil," Lin said, adding that the creditworthiness of several countries "on both sides of the Atlantic" was now in question, fuelling the general crisis of confidence. This was a worrying scenario for the world's developing countries, as investors and consumers across the globe might now be inclined to hold back out of caution.
"We still hope for the best," Lin said, but he added: "For the developing countries, it is very important for them to prepare Lin, and the World Bank's top economists covering regions from East Asia to Africa and Latin America, warned that while many regions had weathered remarkably well the 2008-2009 financial crisis, this meant that their economic defences might not be as sturdy now to face another global recession.
"The fiscal cushions are not as strong anymore as they were in 2008," Augusto de la Torre, the bank's chief economist for Latin America and the Caribbean, told the round table on "Developing Countries and the Global Economic Outlook." Lin urged developing countries to gird their economies for another downturn by identifying new drivers of growth, overhauling banking regulations to protect their banking sectors against transmitted financial shocks and fine-turning policies to sustain productivity and job creation.

Paradox of the relative improvement in security and the absolute deterioration in the policy

Paradoxically, today's Iraq, a country with distinction. It is floating on a lake of oil, imported oil products and looking for a torchlight electricity. And Iraq's two great rivers, suffer lack of water and unable to fill a need for people to food from local cultivation. City of Peace, Baghdad became a city of concrete barriers and checkpoints. Iraq, which he boasted bright colors, gentle apprehensive now of the split components of the people and lack of trust between those who speak in its name. Today, Iraq is what the gains achieved on the security front with great sacrifice on the corresponding decline in the political front, sign the country is in crisis. Instead of contributing to the relative stability in the provision of an atmosphere appropriate to resolve the outstanding issues between the political forces, the continuation of the crisis threatens to undermine this stability itself. The situation is complicated by differences between the political forces within them, so that the voices rose from within the National Alliance of Prime Minister Nuri al-Maliki, accusing him of building a new dictatorship. And so joined the Sadrist movement to the Iraqi List and the Kurdistan Alliance in this situation specifically. Despite the ongoing meetings between political leaders and renewable initiatives looming signs of a breakthrough in the crisis. And competing analysis and views on the diagnosis of malfunctions that have brought the situation to this money. Radio Free Iraq met with Member of Parliament for the Sadr movement Rafi Abd al-Jabbar, who attributed the cause of the crisis to the dominance of political parties instead of building the state institutions, he said. criticized the MP Abdul-Jabbar quota system warning of its consequences compared with the example of Lebanon. leader of the Iraqi List, Ahmed Massari Sadrists believed that the warning of the risk of the emergence of a new dictatorship confirms the concerns voiced by the Union of Kurdistan and the Iraqi List itself. And MP paths that manifestation of the dictatorship, the new non-formation of the strategic policies agreed by the political blocs and the non-implementation of many of the terms of agreement of Arbil and private Prime Minister responsible for the security file. Member of Parliament from the Kurdistan Alliance bloc pro-perfume called for a coalition of state law, led by Prime Minister Nuri al-Maliki to review its practices and allay the fears of the other blocks of the tendencies exclusive. in the face of these warnings Location leading the coalition of state law on the Keywords, stressing that the prime minister performs his duties in protecting the interests of the people and the responsibility that falls on him by the Constitution. a political analyst and am sure al-Hashemi said he expected escalation current in the political arena is temporary and he is linked to the imminent departure of U.S. forces at the end of this year, stressing that no choice of various factions but to return to the negotiating table despite the struggle of the Council of Ministers. In the meantime, prepare the Iraqi citizen to receive the rainy season and the conflict with the failure of mud and floods, hoping to end their conflicts and politicians pay attention to the suffering with services or rather its absence.

Najafi announce that the initiative is to resolve differences

Revealed House Speaker Osama Najafi that his initiative aimed at resolving the differences between the political forces, through the activation of previous agreements. Najafi said during a press conference held in the House of Representatives Thursday for fear of the political differences that affect negatively on the security situation in the country. He said: The danger of intersections between the political forces, through the sectarian tension, ethnic, gave an indication that things may be up to civil confrontation, ethnic and sectarian result in security violations significantly. He Najafi that the aim of his recent visit to the Kurdistan region, put his initiative to the President region Massoud Barzani, the activation of previous agreements and to resolve problems between the political forces, noting that he met Prime Minister Nuri al-Maliki and leaders of the Iraqi List and the other blocks. Nujaifi said that part of the initiative include a visit to Iran and Turkey to discuss the common files of interest to Iraq based on . The Najafi met with Barzani, upon his arrival in Erbil on Monday, carrying with him the initiative for resolving the files, and the outstanding issues between the political blocs, as well as between the Federal Government and the Government of the Territory, after the strained relationship between the two governments in recent times against the background rejection of the provincial government draft oil and gas law approved by the Council of Ministers.

Obama announced his country's continued support for Iraq

The Iraqi government welcomed the statement in the speech of President Barack Obama in the General Assembly of the United Nations, who pointed out that U.S. military operations in Iraq will expire by the end of this year. 's media adviser to Iraqi Prime Minister Ali al-Moussawi said the Iraqi government appreciates the U.S. stand on this, and expected that the coming period would witness a remarkable development in the nature of relations between Baghdad and Washington on all levels. and char President Obama in his speech also said that the United States will establish normal relations with Iraq, and will deal with him as a sovereign state, and will support his government and its security forces and people and their aspirations. Deputy Chairman of the Committee Security and Defense Council of Representatives Alexander and berries that Washington's assurances to provide uninterrupted support for Iraq would contribute to strengthening security and stability, and democracy-building in the country. to the MP for the Kurdistan Alliance bloc Farhad Atrushi the United States not to leave Iraq alone during the next phase, which he said sensitive and very critical, especially in light of the political situation is stable, the country has seen. In the meantime, he citizens interviewed by Radio Free Iraq, welcomed the announcement made ​​by President Barack Obama, and pledged his continued support for Iraq, but they express at the same time fears that reflected the withdrawal of U.S. forces negatively on the security situation in Iraq.

39 oil sites in Kurdistan under development

ARBIL / Aswat al-Iraq: The Kurdish government signed tens of contracts to develop the oil industry in the region, ranging from exploration, production, and development in 39 different sites in Kurdistan.

Kurdish ministry of mineral wealth published these contracts on its web site with 20 international companies.

These contracts vary from preliminary ones to final operational agreements.

Taktak and Taoki are the biggest oil producing field in Kurdistan for time being, with production capacity of 100-150 thousand b/d.

All these agreements depend on the terms of the Kurdish oil and gas law, but these are rejected by the central government that led to boycotting all oil companies working in Kurdistan.

Nujaifi denies deals with Barzani

BAGHDAD / Aswat al-Iraq: Parliament speaker Usama Nujaifi today denied the existence of any deal between him and Kurdish leader Masoud Barzani to form a broad parliamentary front between al-Iraqiya and Kurdish alliances.

"We went to have a dialogue in Baghdad among all political entities based on the constitution," he added in a press conference held in Baghdad.

Nujaifi and Barzani agreed in a meeting in Arbil on political and economic reforms, consolidation of national and constitutional balances, and to abide by previous initiatives to ensure that the national partnership a success.

Iraqi oil exports up by 700,000 barrels in August

BAGHDAD / Aswat al-Iraq: Oil production during August was more than the previous month of July by 700,000 barrels, the Iraqi Ministry of Oil announced today.

The minstry's spokesman Asim Jihad in a special statement to Aswat al-Iraq that the volume of oil exports during August last reached 67.9 million barrels compared to 67.2 in July.

He added the revenues reached 7.124 million dollars, with a cost of 104.9 dollars per barrel.

Oil exports from southern fields reached 53.6 million barrels, with a total revenues of 5.614 billion dollars, while Kirkuk exports reached to 14.3 million barrels, with a revenue of 1.510 billion dollars, he added.

Jihad elaborated that 28 international companies bought Iraqi oil during the last month.