The Danger of the Issue of unpaid Wages in South Kurdistan
Posted: Sat Feb 15, 2014 8:29 amThe Danger of the Issue of unpaid Wages in South Kurdistan
Kurdistan Regional Government has not been able to pay wages to civil and security force employees recently. This is because Kurdistan Region has not received their share of the budget from Baghdad. This has caused a lot of hidden and unhidden protest in Kurdistan. This is really something very serious and dangerous. It is a security risk especially if the wages of security forces delayed for a long time.
The delay of Kurdistan share of the Budget from Baghdad for whatever reason is not going to be only this time. It is going to happen very often and in future it will be used to blackmail KRG and create instability in Kurdistan. Therefore KRG must find a practical solution to counteract it.
The solution is very easy as I see it. KRG can create cheque payment system to pay wages When it doesn’t have cash enough. By this system KRG pays each employs a cheque or multiple cheques as the wage of the employ. KRG or Kurdistan Central Bank undertakes to honour the cheques, after their share of the budget from Bagdad arrives, when the cheques presented. Now these cheques need to be used as cash to buy goods and services. This is something new, not every one will accept it. To ensure every one accept it, KRG can undertake to pay an interest like 0.5% to the value of each cheque used in exchange for cash or goods and services.
This should solve the problem and turn the problem around to become an advantage to Kurdistan economy. KRG may suffer from liquidity each now and then but not the private sector. Kurdistan private sector must be highly liquid. So these cheques should create new business by private sector to cash these cheques. Whoever accepts these cheques in exchange for cash or goods and services gets extra profit from the interest on the cheque.
Accordingly an employ shouldn’t have any problems, he or she can immediately cash the cheque at private banks or money exchanges shops or cheque-cashing shops opened especially for this purpose.
These cheques should become like a hard currency because they have two values, cash value and interest value, both guaranteed by KRG. It could become a means of exchange on large scale before presented to KRG or Kurdistan Central Bank.
Kurdistan Regional Government has not been able to pay wages to civil and security force employees recently. This is because Kurdistan Region has not received their share of the budget from Baghdad. This has caused a lot of hidden and unhidden protest in Kurdistan. This is really something very serious and dangerous. It is a security risk especially if the wages of security forces delayed for a long time.
The delay of Kurdistan share of the Budget from Baghdad for whatever reason is not going to be only this time. It is going to happen very often and in future it will be used to blackmail KRG and create instability in Kurdistan. Therefore KRG must find a practical solution to counteract it.
The solution is very easy as I see it. KRG can create cheque payment system to pay wages When it doesn’t have cash enough. By this system KRG pays each employs a cheque or multiple cheques as the wage of the employ. KRG or Kurdistan Central Bank undertakes to honour the cheques, after their share of the budget from Bagdad arrives, when the cheques presented. Now these cheques need to be used as cash to buy goods and services. This is something new, not every one will accept it. To ensure every one accept it, KRG can undertake to pay an interest like 0.5% to the value of each cheque used in exchange for cash or goods and services.
This should solve the problem and turn the problem around to become an advantage to Kurdistan economy. KRG may suffer from liquidity each now and then but not the private sector. Kurdistan private sector must be highly liquid. So these cheques should create new business by private sector to cash these cheques. Whoever accepts these cheques in exchange for cash or goods and services gets extra profit from the interest on the cheque.
Accordingly an employ shouldn’t have any problems, he or she can immediately cash the cheque at private banks or money exchanges shops or cheque-cashing shops opened especially for this purpose.
These cheques should become like a hard currency because they have two values, cash value and interest value, both guaranteed by KRG. It could become a means of exchange on large scale before presented to KRG or Kurdistan Central Bank.
