Private sector was the pillar of building the industrial basis that was established during the second decade of the previous century. However, the continuous change of governments as well as the change in economic policies led to an exchange of roles between Private and Public sectors to the benefit of the latter. In spite of what is written about promoting the Private sector's role in the economic activities, and issuing supportive laws and legislations, this sector was reluctant to have large participation in relatively large industrial projects, and stayed within the limits of consuming projects which have high capital rotation, and fast profit, because of the lack of confidence in the regimes since July 1964. The number of such small project increased under the administration of one of MIMs SOEs, namely, the State Directorate for Industrial Promotion.
In the highlight of the new economical policy diversion, Private Sector will play a major role in the development process; hence there is a need to provide it with all possible support through:
- Encouraging Private Sector participation in the production process and decision making introducing the Private Sector to modern management concepts and adapting hi tech: * Short and Medium term strategy focuses on SMEs that play a crucial role in countries with transitional economy.
- Such businesses are the main player in local markets, for products with high demand on local level and export. They also are a main employment generating means, and a motivator to restructuring.
- Establishment of Industrial and Technology incubators to support SMEs
- Finding the appropriate means to have Iraqi entities participation in Iraq reconstruction
- Supporting Chambers of Commerce, Unions, Commissions and Banks to play a role in the enhancement of investment environment and investment policy decision making
- "Unique window" concept to facilitate investment procedures
- Financial and Administrative support through reviving Development trust funds and Bank loans to Private Sector
- Establishment of Industrial Clusters by Government (represented by MIM) in order to encourage the Private sector to establish SMEs within them
- Encourage the Private Sector's participation in providing Consultancy Services offices in the field of investment design, feasibility studies, quality and environment control
- Establishment of Local and Foreign Trade shows and support of other marketing activities.
