between our companies, the economy, energy and an ongoing security partnership. our engagement with the iraqi government across-the-board is intended to not only redeemed the partnership but to strengthen it. >> you talk about something called the 360 and you want american companies to go there. but it's not up to you to push the american companies. what can the iraqi government offer to these companies and what is your advice? >> i think what we can do as a government and what we try to do is encourage u. s. companies to

take a look at opportunities in iraq and make them aware of the opportunities and create -- there is dense and certain ways we can help to highlight opportunities for u. s. companies. yes we cannot direct them to take advantage of those opportunities. they had to make their own investment and a half to decide that iraq is possible for them. so i think they are a number of things that we can continue to do that would help attract companies. the prime minister has taken time in the past year to increase the focus on private-sector development. certainly what the government can do to advance the private-sector is important not only for foreign investment companies but it's important for iraqi companies to be able to continue to develop. i think the work that the government does to ensure that

foreign companies in u. s. companies are paid, that contacts are enforced and the companies that are there of a positive experience, that's important because companies certainly will look at the treatment that other companies are receiving and if u. s. companies and other foreign companies look like they are being very successful than that's certainly more attractive to the other companies that are taking a look at the iraqi markets. and the work that the government can do to fight corruption, to improve the enforcement of contacts, all of these things in reducing regulatory barriers, those are all things that help make it easier for not only u. s. companies and other foreign companies that also iraqi companies ultimately.

we are having conversations with the iraqi government to highlight some of these issues and i know that they are also looking at these aspects as well. >> you consider it one of the main challenges for the iraqi government. your thoughts? >> yes as i mentioned earlier it's conducive to investment. looking at the whole region every single country has a major issue the role of the state economy. there you have it and economic

determination through the lens of enterprises and the financial sector. we have two major banks managing 90% of the private-sector. i remember few years back and a discussion with the governor of the central bank we were able to open a window to allow for state-owned enterprises to be able to --.

it was just a small window that was opened but the weight of the public sector and the financial sector or any other place is very important. and one talks about the challenges, notably the compatibility between iraq and others we have worked with the iraqi government for years on putting together projects that will open iraq to more trade with its neighbors with turkey and in other places. by going into infrastructure, opening literally to trade in the neighborhood not only for

diversification but also frankly when countries get to place where you have mutual contact generally tensions between them kind of become less official. everyone has an interest and a stake in it so it's something the iraqi's have been doing and it's a way for the last point i'd like to make is the necessary intelligence cooperation between kurdistan. iraq is part of doubt about it so during the years i worked looking at it slightly differently the attention was up and down and up and down. there's a need for more engagement between them and i

believe many things have been done and in order for iraq as a whole to be a platform for investment it should be the whole of the country operate to basra and everyplace in between. >> thank you. we are joined by someone from the iraqi government. everybody sing the kurdistan region has very big potential to impact the iraqi economy and i want to ask you on this you have been trying to ease the relationship and educating for

reforms. >> i think of he made a critical point here and of course i relationship with the kurdistan regional government is an important part of our overall relationship and we want to make sure there is a strong and resilient iraqi government and that means also economically prosperous. so it is important that there are not only effective coordination but i think improved coordination and communication. certainly being gauged with their friends and herb you to see how we can help support this goal. >> and the challenges on this can you elaborate is it a

governmental problem? since you were engaged on this topic itself the specific topic. >> i think the challenge between herb you and baghdad terms of government are well-known and we continue to engage with all elements both in baghdad and herb deal to improve relationships and at the end of the day we cannot resolve issues for either but we can be a good counterpart and a good friend and trying to support improved medications between all parties. >> thank you so much.

can you hear me? >> yes, ken. >> can you elaborate on this topic? >> for sure, for sure. the thing is there have been many opinions in the kurdistan regional government as well as the government of iraq. the thing is all the solutions of people have been working on they get to work on technical between the two sides. the real conflict between the two is not an issue of just oil and gas it's not different things like that. the real issue which nobody seems to ever address within iraq itself is the crucial difference between the two sides

we are a federal entity so we defined the relationships between the federal as well as -- and their huge differences in the krg looks at the federation in a tactical sense with the passing semi autonomous so all the solutions and discussions always fail and starting from 2006 enormous work has been done on the federal oil and gas bill and recently the issue over the resumption of exports from turkey. they look identical. nobody seems to look at the fundamentals. if you don't address the fundamentals you are not going to go anywhere. >> you are saying we had a boom

and he spoke about one of them in iraq and one of the three external factors. how can iraq sustained by focusing on external factors and what can be done to it least see some growth? >> that needs to be done you mentioned something like the changes in the economy. the issue again one of the question comes about the iraqi economy which means basically moving away from the state. one of the issues is most of our economy we have a private-sector

however the shadow economy or the parallel economy so to speak is in consumption and we support almost everything. one of the things we need is to not diversify with the service industry. one of the things we can do in the department of agriculture we have an obsession with -- which mixes super uncompetitive compared to our neighbors. we are two of the three largest exporters. both of these countries took almost collapsed over the last 10 years. which means in addition to the challenge since we have in iraq and i think you mentioned is the rule of law and the rule of law

and that was one of them. it's a very complex thing. we have no private banking center without they private banking center the changes that are happening are from the private-sector. the other two which are really crucial. we have a stronger currency so again when we work on the things we don't address the core issues. we only address the technical which are wonderful but they aren't a long-term solution. i think we as a country not for someone on the outside tells what to do. because we import everything to

fear is iraq is weaken against the dollar. that is one of the big challenges facing us today. [inaudible] when you get money from oil how do you invest it and wear it you invested? how does the iraqi government improved that in which sector? >> a good point and i fully agree. the issue is that again without taking a position on it we have

volume to export so the value becomes a factor. if the only thing left to export its oil, there's a discussion to be had. something that struck me, for years i worked in iraq is that goodyear or bad year i was there when iraq was in a very dire situation. the bulk of the income is going into the functioning of the state which is again going back to the role of the economy it's not just the factors of

production by the state it's also the cost of running the state. to have a public sector not as efficient as it used to be, well then you have an issue. if the bulk of your money is going to financing the functioning of the state and meeting your debt obligations what remains for investment becomes that. so their two there's an issue to be discussed. how can you get into a reform that would allow today and tomorrow and over the long-term can you make sure in the public sector is functioning. the numbers will go down and

their many ways of doing it. and find solutions and lower the cost of running the state possibly and make investments that would then trigger with a number of our countries are trying to do so there's more space for private public

partnership whereby having the state invest at this newly-acquired business investment areas where the private-sector could be performed as well whether it's health, education you name it, all sectors could be open for ppp schemes and arrangements so that again you need the state to show that they can put some skin in the game and to put skin in the game you need skin. you need the physical space that would allow you to be a player in prompting the private-sector

to take a considerate risk. thank you very much. i know we've enough time on this but i want to understand from you how this applies to energy. can you give me an example if you were dicing my what can be done because it's just 6%. >> gets seven and some. that went down to two in some and i don't know where we are right now but the growth in iraq is linked to the situation of the oil. that's why we are looking at diversifying so we have growth and the capacity of the state to do more for its people hinging on geopolitical issues or what's decided in vienna.

this is something iraq is a major producing country. two things actually. but i thank you so much. can you hear me? >> yes, i can. just to go back to our own economy i think you both acknowledge there were problems. it's still above 90% dependence on oil. since you are the expert can you give me which sectors iraq has made some progress here in non-oil? >> first of all the question should be taken into context so it depends. we were talking about height -- how iraq was diversified and you were talking percentages. we were in an embargo for exporting oil as a percentage of our economy which is much bigger. i think you ought to take it with a --of salt.

oil prices are low becomes 18 but in terms of what we need it pretty much made almost every sector but i is iraqi would focus on this and it's extremely important for two reasons. it employs 20% of the private-sector. most of it is low pay but the country is in the rural area so we need to be investing a lot more and hopefully we will be investing not in -- the group culture because we can't do that. that's clearly an important sector and we can't hope to replicate the success of nul countries or other countries in terms of that but we can start with those in work with all the

areas. it comes into managing your water. the water system is ancient and their pipelines. weekends a ton of energy into these areas and local industries don't need to. we almost need everything because we import everything. we import even the data. we are nowhere in terms of the dollar value. i think you much. i think we can go on i want to take some questions from the audience. i want to ask more questions about banking reforms that you are asking for. what advancement do you

anticipate? >> i think what i would say this has been an ongoing conversation with our government have particularly the treasury department and the iraqi government so we have seen a number of steps over the course of the past year and a half in particular. this has been an ongoing conversation about how iraq can make sure it's banks are up to international standards and i think there is still more work that can be down there. some of the banks have operated a little bit more like an exchange house where you are exchanging it for dollars at the banks need to be operating more like retail banks where there's an iraqi iraqi businessperson who has an idea for a business that they could come and secure a loan. i think those are the kinds of

activities that would both help facilitate the private-sector but i think also it would help show how the financial sector is modernizing. the conversation at the treasury department have been about not only ensuring strict anti-money laundering and corruption procedures that are in line with international standards would also encouraging the modernization of these banks to ensure that they are operating in a way that will facilitate the private-sector. i have two questions from the audience. would you recommend renewing the iraqi dnr to make exports more effective? >> i won't get into that.

it's very complex and i would say iraq has a very capable central bank who i i'm sure would be able to look at it through much more professional view than what i can submit. >> okay and we want to talk about diversification. in which particular capacity besides energy does iraq have the ability? >> is a culture would be great. i was mentioning earlier and eye-opening report that we published 18 months ago the development report on iraq. we can see what's happening with water in iraq. it is really alarming and for us

it was kind of a red flag. we need to do something when it comes to water management. iraq is a country that traditionally, people say it's the only country in the world that has human capitol, water and energy. there is a need to work on that and the corollary is agriculture. it would be important for iraq to open up any gauge they are. second i've always been impressed by the energy of the young people in iraq. people may not necessarily see it because it's not on everybody's radar screen but the whole startup industry in iraq is very vibrant and you can give

us more of that. the last time i was there not long ago about nine months ago i visited with a number of them in factories and it is moving. the issue they are as they are engaging in this industry without the proper framework or rather they are operating with a framework that is not linked to what the industry is all about. did don't need a law to regulate it. you need a loose regulation because by the time you look at the regulations things are moving so fast. there's a need to do something in order to get more from these young people's energy and creativity.

and third iran should be investing in its human capitol, its education and unfortunately it's not at the level where it was 20, 30 or 40 years ago. things have gone down so there's something to be done for the government to invest and this is a place where public or the partnerships can be made. >> i want to ask you about that. i want to hear more from you because in an interview you mentioned a new generation of reforms and sometimes companies start going down. do you consider it's good now

and are you concerned they may be behind? >> the real question is whether all of the countries there is a realization that the state should be a loose regulator. basically giving directions and letting the energy of the private-sector takeover. that's the row question. this is a question we have been struggling with in other places as well but all the countries. the issue is to change the mindset of government so they can let go of a number of economic activities