|
|
 |
| |
| January 3, 2006 |
| |
| Iraq Must Rebuild Itself |
WASHINGTON - January 3, 2006. The United States is nearing the end of its $18.4 billion fund for
rebuilding Iraq, with little prospect of further multibillion-dollar
injections, reports The Times (UK, 01/03).
In language mirroring the planned reduction of troops, US officials in
Baghdad have begun talking of "drawdown," "transition" and the "wind-down" of American reconstruction projects. Instead they plan to focus on building up the Iraqi Government's capacity to manage its own affairs.
Outlining what he called the “drawdown,” one American official said, “US reconstruction is basically aiming for completion (this) year. No one ever intended for outside assistance to continue indefinitely, but rather to create conditions where the Iraqi economy can use reconstruction of essential services to get going on its own.”
Realization that the last of the US money will be allocated by the summer,
with work continuing well into 2007, will dismay ordinary Iraqis. Millions
remain frustrated at what they see as a paucity of large-scale projects
such as power stations, and still expect the US-led coalition to rebuild
the shattered country's electricity network and essential services, writes
the British daily.
William McCoy, commander of the US Army Corps of Engineers in the Gulf,
confirmed that contracts for 80 percent of the $18.4 billion had already been issued. Those for the remaining $1.7 billion will be issued by the summer. McCoy, who also heads the Project and Contracting Office in
Baghdad, insisted that the Iraqis' own ability to reconstruct had
"developed quite well." Whereas 60 percent of reconstruction contracts
were once carried out from design to completion stage by international
companies, nearly 77 percent were now awarded to Iraqi contractors, he
said.
US officials say that experts will remain to train Iraqi ministries to
manage their budgets. The aim is to decentralize and free up the sclerotic
Iraqi economy through privatization and subsidy reductions, and to improve
the business climate. They also aim to replace the current poorly targeted
ration system with a welfare network designed for the "poorest of the
poor," the 25 percent of Iraqis living on less than $1 a day.
The Independent (UK, 01/03) notes that in the future it will be up to
other foreign donors and the Iraqi government to do what it can to
complete even basic tasks such as supplying reliable electricity and water to the country's 26 million people.
The Guardian (UK, 01/03) meanwhile suggests that a decision not to renew
the reconstruction program would leave Iraq with the burden of tens of
billions of dollars in unfinished projects, and an oil industry and
electrical grid that have yet to return to pre-war production levels.
The Washington Post (01/02) further writes that in two of the most crucial
areas, electricity and oil production, relentless sabotage has kept output
at or below prewar levels despite the expenditure of hundreds of millions
of American dollars and countless man-hours. Oil production stands at
roughly 2 billion barrels a day, compared with 2.6 billion before March
2003, according to US government statistics. The national electrical grid has an average daily output of 4,000 megawatts, about 400 megawatts less than its prewar level. Iraqis nationwide receive on average less than 12 hours of power a day. For residents of Baghdad, it was six hours a day last month, according to a US count, though many residents say that figure is high. McCoy cites a poll conducted earlier last year that found less than 30 percent of Iraqis knew that any reconstruction efforts were
underway. The percentage has since risen to more than 40 percent, McCoy
said.
In other developments, The Associated Press (01/02) reports that Iraq's
main Sunni Arab group made an unprecedented trip north to see the Kurds and agreed Monday for the first time on broad outlines for a coalition
government -- possibly opening a way out of the political turmoil that has
gripped the country after disputed elections.
The International Herald Tribune (01/03) meanwhile notes that the Iraqi
oil minister resigned Monday as gasoline shortages worsened and official figures for December showed that oil exports remained at or near their lowest point since the war began in March 2003. The oil minister, Ibrahim Bahr al-Uloum, quit after being placed on leave for condemning government price increases that tripled the cost of gasoline last month, setting off protests and long lines at the nation's gasoline pumps.
Source: The World Bank |
| |
| |
| |
|
