6-23-13 Kaperoni: Article & quote: “4 days separating Iraq from the disposal of Chapter VII” “on the 27th of June, a schedule that vote the UN Security Council to remove Iraq from Chapter VII ‘national day’ for Iraqis.” We have always stated, when they get out of UN Chapter VII, it will be a huge event.
And in Iraq they will party on the streets. This would never happen quietly.
What is the significance of releasing them from UN Chapter VII? As I have stated in the past, technically, UN Chapter VII is a series of resolutions imposed on a country.
And the resolutions vary depending on the act. In the case of Iraq, all of the resolutions that pertained to banking, investment, etc. had been removed in December 2010. All that remained was resolutions that pertained to Kuwait such as waterways, borders, artifacts, bodies, and payment.
So technically, Iraq has been free to engage with the global community since Dec, 2010. Shabibi knew that and pushed forward his monetary policy only to be stopped by Maliki on two instances.
That being said, UN Chapter VII carries a “stigma” with it. That you are under sanctions, and do not do business with until these sanctions are removed.
Apparently, Iraq feels that attitude globally exists. Therefore, we are seeing article after article talking about the benefits of the full release of UN Chapter VII.
And certainly, there may be some truth to it, but I would say any global “attitude” is more the result of Iraq’s doing (lack of stability, bombings, political disagreements, etc.) then the UN Chapter VII issue.
Personally, if this release motivates Iraq to do what is right, to move forward with the economy, raise the value of the dinar, etc. I am all for it. So it is all good news.
Do they have to RV before the can get out of Chapter VII? No.
There is nothing that I have ever found that says this. I have researched and looked for a connection with the UN and the IMF and all I can find is the following…
The only connection I see is the relationship with the IMF under the UN. The UN Charter specifically stated members must follow the UN Charter. And the IMF and World Bank are part of the UN.
Therefore, they are obligated to follow the charter as well of the IMF and WB.
Below is the IMF Charter…
The purposes of the International Monetary Fund are:
(i) To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.
(ii) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.
(iii) To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.
(iv) To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.
(v) To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.
(vi) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.
Therefore, release from UN Chapter VII will re-engage Iraq with the International community.
As well, they will need to comply with the IMF Charter. The timeframe for that compliance is unknown.
It could be weeks, or months. But I refer back to all the signed agreements with various companies, countries, etc that certainly implies they will act sooner than later.
The “TIFA” portion of the SFA indicates that as well. And recently we saw the new MoP 5 year plan (2013-2017) that indicates that focus towards the private sector, development, of agriculture, manufacturing, tourism, etc. is now the priority. I hope that helps everyone understand.