RISKS OF TRANSFERRING IRAQI INDUSTRIAL COMPANIES TO SELF-FINANCING (THE EXAMPLE OF DIALA STATE COMPANY FOR ELECTRICAL INDUSTRIES)

Abstract

Identifying the risks of transferring industrial companies in Iraq from central funding to self-financing is important to stabilize the situation in the national industrial sector, which has long been in crisis under the oppression of military conflicts and sanctions. It is hypothesized that the state financial and commercial support of industrial companies at this stage of their development is necessary to reduce the likelihood and negative consequences of risks. The object of the study is the Diala State Company for Electrical Industries – an Iraqi state-owned company that has made the transition to self-financing and provided publicly available information on the results of financial and economic activities. The article presents the results of a retrospective analysis of the economic situation in Iraq since 1990; the structure of the industrial sector of Iraq was determined by type of ownership, the features and problems of economic development of public and private industrial enterprises of the country were revealed, the possibility of using Russian experience for the strategic planning of Iraq industrial development was determined. The experience of transiting from target financing to self-financing (in 2003) of the Iraqi state company Diala State Company for Electrical Industries was studied. And the analysis of the results of financial and economic activities under the new conditions of its financing was carried out. A whole range of problems and risks of the company’s current functioning and development under the conditions of lack of state support was pointed out; some mechanisms of its adaptation to the conditions of self-financing are indicated. In conclusion, the mechanisms of achieving economic stability of such companies and the entire national economy, including through the development of cooperation with Russia, were proposed.

Keywords

state financing of industrial enterprises, national economy, industrial sector, self-financing of enterprises, sanctions pressure, economy of Iraq

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About the Authors

Adnan Taha Al Obaidi – Graduate Student, Belgorod State Technological University named after V.G. Shukhov, Belgorod, Russia. E-mail: Adnan-taha76@mail.ru. ORCID 0000-0001-8827-3334
Sergey F. Chizhov – Cand. Sci. (Economics), Docent; Associate Professor, Belgorod State Technological University named after V.G. Shukhov, Belgorod, Russia. E-mail: chijov@intbel.ru. SPIN РИНЦ 9683-2862. ORCID 0000-0002-7842-9224. ResearcherID AGY-6672-2022

For citation

Al Obaidi A.T., Chizhov S.F. Risks of Transferring Iraqi Industrial Companies to Self-Financing (the Example of Diala State Company for Electrical Industries) // BENEFICIUM. 2022. Vol. 2(43). Pp. 50-56. (In Russ.). DOI: 10.34680/BENEFICIUM.2022.2(43).50-56