As a part of lectures and programs within public activities, quarterly organized by the Institute of diplomatic studies, a lecture was held in the lecture's hall on Wednesday 30 Dhul Heja 1428H, entitled " Inflation in the Kingdom Causes and Solutions'' by Dr. Naseh Almarzouki Albuqmi, Professor Assistant and Supervisor of legitimate policy on the management of development programs, in which he spoke about Definition of inflation, where was divided into three sections, demand inflation, inflation costs, and imported inflation.
He outlined the reasons of each section as pointed out that the reasons for cost inflation is summarized in the increase of raw material and medium prices involved in the production of goods including land prices, increase in the cost of wages paid to workers, rate of interest, and manipulation of traders and producers. Reasons of demand inflation reflected a number of root causes, which lie in the increase of government spending, and the increase of private consumer demand, the increase of demand Investment, in addition to the increase in foreign demand on local products.
And the reasons for imported inflation which is related to the decline in dollar exchange rate, high oil prices, in addition to Higher commodity prices due to global non-oil reasons. He also reflected the effects of inflation, and curing methods as per
As for the economic and legal solutions to the problem of inflation in the Kingdom , he pointed out there are solutions to the problem of cost inflation, which are summarized in cancellation fees of public services, and work on
Reducing land prices, and prevent dealing with high interest loans, and the introduction of the mutual funding, the application of pricing policy in the event of any manipulation of the prices of goods from the part of traders, and accelerate the establishment of government institution for consumer protection, as well as Association for Consumer Protection in order to control prices and the rhythm of penalties on violators.
As for the solutions appropriate for the inflation in demand, the instructor summarized it stating that, there are a need to make people aware of the seriousness of Wasteful in the world and the hereafter, and eliminate government debt by creditors through the ownership of Government shares
in the corporate and finance projects through the instruments of Islamic and rent contracts that ends with ownership, increased restrictions on bank loans wave of funding consumer products, and imposing custom duties on exports in the event of failure to meet domestic demand, and support Zakat activating incomes of the poor and Endowments, and payment allocations depending on the size of families.
The instructor summarized the solutions of imported inflation in the importance of increasing the value of Saudi Riyal against the Dollar, reduction of oil prices, provide alternatives to imported goods with high prices, cancellation of custom duties, reduction of mediators and commercial agencies, as well as to prevent monopoly and encourage competition.
This lecture gained the presence and participation of teaching board members and students along with those members concerned with above mentioned subjects of interest.
It is worth noting that such lectures are among the activities of the institute's Rehabilitation programs department, aiming to diversify gained and cultural knowledge and promote it among scholars in diploma program.