By Dr. Saman Shali

During a country's economic crisis, large companies can play an essential role in helping the government confront challenges and contribute to economic recovery. Here are several ways big corporations can help the government during these times by reducing the size of government and reducing unemployment:

1. Job creation: Large companies can support government efforts to reduce unemployment by creating or retaining existing jobs. Continuing employment, vocational training programs, and job training initiatives can achieve this job retention.

2. Investment: Companies can invest in infrastructure projects, manufacturing, local technology, agriculture, healthcare, and tourism. These investments stimulate economic activity, create jobs, and contribute to long-term economic growth.

3. Tax Payments: Timely and responsible payment of corporate taxes is crucial during economic crises. Businesses must meet their tax obligations to ensure the government receives the revenue to fund essential services and programs.

4. Supply chain support: Large companies can help stabilize supply chains by working closely with their suppliers and partners. They can offer financial support or flexibility in payment terms to help small businesses get through the crisis.

5. Innovation and research: Companies can contribute to economic recovery by investing in research and development. Innovations in technology, healthcare, and other sectors can lead to new products and services that drive economic growth.

6. Corporate Social Responsibility Initiatives: Companies can expand CSR initiatives to address pressing social and economic challenges. These challenges may include financing education programs, healthcare facilities, community development projects, and small projects for women.

7. Small business support: Large companies can provide financial support, guidance, or partnerships to struggling SMEs during the crisis. This financial support can help SMEs survive and contribute to the economy.

8. Resource Mobilization: Businesses can assist in resource mobilization efforts by participating in public-private partnerships or collaborating with the government on projects of national importance.

9. Taking care of the workforce: Ensuring the well-being of their employees during difficult economic times is essential. Companies can provide job security, fair wages, and employee assistance programs to support their workforce.

10. Transparency and Accountability: Demonstrating transparency in financial reporting and corporate governance practices can build trust with the government and the public. Companies must also adhere to ethical and responsible business practices.

11. Adaptation and flexibility: Businesses must be flexible and adaptable in their operations and adapt to the changing economic landscape. This flexibility could include diversifying its product lines or expanding into new markets.

12. Advocacy and Collaboration: Businesses can advocate for economic stability and recovery policies. They can also collaborate with other companies, industry associations, and government agencies to address systemic problems.

13. Financial support: Businesses can provide financial funds to the regional government to allow them to operate and pay employee salaries and operating capital to run the government day-to-day. These financial funds will give the regional government a better negotiating position with the central government.

It is important to note that a company's actions will depend on its industry, financial health, and available resources. In addition, the government and business community must maintain open lines of communication to coordinate efforts effectively during the economic crisis. Collaboration between the public and private sectors can be a robust force for economic recovery and stability.

In return, the KRG can take several steps to attract and engage significant companies for their contributions. Attracting large companies involves creating a business-friendly environment, providing incentives, and addressing concerns about stability, infrastructure, and regulation. Here are some strategies the KRG could consider:

1. Investment law in the region:

The investment law in the region is among the best laws in the region, as it attracts foreign and local investors. As a result, efforts must be made to improve the law to make it more transparent and allow investors to access the investments announced by the Authority without any obstacles.

2. Investment Incentives:

Offer competitive financial incentives and tax breaks to attract big companies. This could include reduced corporate tax rates, customs exemptions, or other financial incentives to encourage investment.

3. Infrastructure Development:

Focus on improving infrastructure, including transportation, energy, and telecommunications. Upgrading infrastructure enhances the ease of doing business and reduces operational costs for companies.

4. Political Stability and Security:

Ensure political stability and security in the region. Stability is a critical factor for businesses, and a secure environment is more likely to attract major companies looking to invest.

5. Regulatory Framework:

Streamline and simplify regulatory processes. A clear and efficient regulatory framework can make it easier for companies to navigate legal requirements and obtain necessary permits.

6. Transparency and Governance:

Enhance transparency and good governance practices. Companies prefer regions with transparent and accountable governance, which reduces the risk of corruption and provides a stable business environment.

7. Local Workforce Development:

Invest in education and skills development programs to create a skilled and competitive local workforce. A well-educated workforce can attract companies seeking a qualified labor pool.

8. Partnerships with Educational Institutions:

Foster partnerships with local universities and vocational institutions to align education with industry needs. These partnerships can ensure a pipeline of skilled graduates ready for employment in various sectors.

9. Customized Investment Promotion:

Develop targeted investment promotion strategies for specific industries. Highlight the competitive advantages and opportunities for companies in sectors that align with the region's strengths.

10. Infrastructure for Research and Development:

Develop infrastructure to support research and development activities. Companies often look for regions that foster innovation and provide resources for R&D.

11. Public-Private Partnerships:

Encourage public-private partnerships (PPPs) to address infrastructure development. Collaboration between the government and private sector can accelerate the implementation of critical projects.

12. Environmental and Social Responsibility:

Emphasize environmental and social responsibility. Many companies prioritize sustainable practices and corporate social responsibility, so demonstrating a commitment to these values can attract responsible investors.

13. Industry-Specific Support:

Tailor support programs for specific industries that align with the region's economic development goals. This can include sector-specific incentives, infrastructure development, and workforce training.

14. Market Access:

Facilitate market access and trade by streamlining customs procedures and improving connectivity with neighboring regions and countries.

15. Stakeholder Engagement:

Engage with potential investors and stakeholders regularly to understand their needs and concerns. Establishing a collaborative relationship can build trust and facilitate smoother business operations.

By combining these strategies, the KRG can create an environment that attracts large companies and encourages their participation in the economic development of the region. These strategies create a robust non-oil economy, reduce unemployment, and reduce the size of government and operating expenses.

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Saman Shali has a Ph.D. in Science (1981) from the University of Sussex. Dr. Shali worked as an Assistant Researcher and Assistant Professor at the University of Sussex, King Saud University, and Pennsylvania State University. He is also a senior fellow at the Mediterranean Institute for Regional Studies.