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The role and importance of social capital in face of the challenges of economic development

Author: 
Dr. Saoud Chayed Mashkour, Dr. Aqeel Hameed Jaber and Dr. Mohamed Hassan Rashem
Subject Area: 
Social Sciences and Humanities
Abstract: 

The aim of the research is to know the role of social capital as one of the main pillars of the economic development process, which requires the treatment of the causes of underdevelopment, reducing unemployment and economic inflation, and to bring about a radical change in society in order to elevate it to certain levels to achieve its aspirations to live in welfare according to accepted health, educational and social standards. The concept of economic development is based on the fact that it is a dynamic social activity that involves material and qualitative changes in the life of the community within a certain period of time. The economic development is a conscious and deliberate process of society, as well as structural transformations that lead to the formation of a material base that is used to expand self-productive capacities to achieve a systematic increase in the average productivity of the individual and the capabilities of society, within a framework of social relations that emphasizes the correlation between efficiency and effort, and deepening requirements participation for the purpose of providing basic needs (material and immaterial) for individual and social security. The Iraqi economy faces a number of challenges due to the lack of diagnosis of structural errors and imbalances of different economic sectors accurately. The decline in petrol prices has caused negative effects on the development plans in Iraq because of the significant decline in petrol revenues. This has hindered the development process due to the lack of indicators of the economic performance of the economic sectors, the widespread phenomenon of unemployment, inflation and financial and administrative corruption. This economic variables led to the increase and multiplicity and diversity of challenges that have negatively affected the Iraqi economy in various economic sectors. The study reached a number of conclusions, the most prominent of which is the observation of the increase in operating expenses on investment expenditures in the Iraqi state budget. These expenditures are not consistent with the size of the planned targets for economic development in Iraq. Based on this conclusion, the study recommended that financial returns should be invested in raising the indicators of economic development, including human development in education, housing, health and reconstruction. It is necessary to reduce dependence on petrol exports, which is considered a phenomenon of rent, by adopting strategic planning to employ petrol revenues in non-petrol investments, and industry in order to achieve comprehensive economic development.

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