Monday, August 27, 2007

Whose Economic Policy

It is not only the political process in Iraq that is a failure due to American hegemonic influence. It is also the Iraq economy that is suffering from America's hegemonic policies. And as usual America failed to win the hearts and minds of the Iraqi's before making its puppet government apply its economic agenda.

An economic expert said that the political change in Iraq was accompanied by a change in principle of Iraq's economic vision, but details of the economic reforms are not yet complete. He noted that community involvement in the formulation of economic policy requires a democratic approach be followed by the State, involving concerted efforts of the concerned community of civil society organizations, university professors, the private sector, economic specialists and others in drafting of an economic vision.

Manaf Al-Saiyigh, expert at the Iraqi Center for Economic Reform, added that in the absence of this interaction between society and government any policy will suffer from a lack of understanding in society, and could lead to opposition and rejection.

Al-Saiyigh noted the existence of other policies with significant economic impacts such as privatization, reform of governmental supports, and implementation of the investment law, which doubtless will arouse strong reactions.

IMF advises Iraq to shore up reconstruction, oil investment

For the first time in 25 years, the International Monetary Fund (IMF) has advised Iraq to increase the pace of reconstruction and investment, mainly in the oil sector.

"Directors commended the Iraqi authorities for keeping their economic programme on track by strengthening economic policies and making progress in structural reforms, despite an unsettled political situation and a very difficult security environment," said the IMF in a statement Tuesday summarizing its Executive Board assessment on Iraq's economic performance.

"The expansion of oil production is lagging, and that inflation, while on a downward path, remains high, reflecting in large part continued shortages, notably of fuel products," added the statement.

Oil majors to meet with the Iraq Government at the world's leading energy summit for Iraq

All attending Iraqi Ministries will be outlining the requirements for their relevant sectors in front of the senior corporate audience, before holding private consultations with some of the pre-eminent operators within the global energy sector.

These best-in-breed operators and companies will be represented at board level in order to build the relationships that will be crucial to the future of the Iraqi energy sector and include the likes of BP, Exxon, ConocoPhillips, Chevron, Lukoil, Statoil, Marathon Oil, Total, Shell, Kuwait National Petroleum, Annadarko, Schlumberger, ABB, ONGC, General Electric, Cummins Power, Mitsui, Aegis, ArmorGroup, Janussian, Control Risks Group, Unity, Hart, Olive Security, GardaWorld and Triple Canopy.


All attending Iraqi Ministries will be outlining the requirements for their relevant sectors in front of the senior corporate audience, before holding private consultations with some of the pre-eminent operators within the global energy sector.

These best-in-breed operators and companies will be represented at board level in order to build the relationships that will be crucial to the future of the Iraqi energy sector and include the likes of BP, Exxon, ConocoPhillips, Chevron, Lukoil, Statoil, Marathon Oil, Total, Shell, Kuwait National Petroleum, Annadarko, Schlumberger, ABB, ONGC, General Electric, Cummins Power, Mitsui, Aegis, ArmorGroup, Janussian, Control Risks Group, Unity, Hart, Olive Security, GardaWorld and Triple Canopy.


Analysis: Kurd oil law drives Iraq oil

The KRG has already signed contracts with small companies to explore for and develop its oil and gas, a move derided by Baghdad for allegedly overreaching its authority. The Kurds are also keen on breaking the nationalized oil sector open to a free market, a prerogative so controversial it is a major stalling factor of the federal oil law and a move the oil unions have threatened to strike to prevent.

To ensure passage of the constitution, its authors left parts vague. Arguments over the federal oil law are in many ways rooted in the mixed interpretations of the constitutional articles applying to Iraq’s oil, which are the third-largest reserves in the world. It calls for the central government to work with the oil-rich regions and provinces in “the management of oil and gas extracted from present fields” and “formulate the necessary strategic policies to develop the oil and gas wealth in a way that achieves the highest benefit to the Iraqi people.”


Iraq lowers light crude oil price for USA and increases it for Asia and Europe

An Iraqi official announced that Iraq lowered the official selling price of Basra light crude oil destined to be exported to the USA. In the meantime it raised the same which is destined to be delivered to Asian and European countries.


George Bush was correct. America is not Nation Building in Iraq and it is doing a lousy job of colonialisation as an Empire.

MR. RUSSERT: Richard Engel, I, I quoted your conversation with Prime Minister Maliki to Senator Warner, saying that Sadr, the leader of the Shiite militias, is of the same school.

MR. RICHARD ENGEL: Mm-hmm.

MR. RUSSERT: Joe Klein in Time magazine wrote this, that “US Ambassador Ryan Crocker” said, “‘The fall of the Maliki government, when it happens, might be a good thing.’” And then Klein asks, “But replace it with what?” Half of Maliki’s Cabinet has abandoned his government. Are his days numbered?

MR. ENGEL: His days are certainly numbered. This government is going to collapse. The problem is, it’s going to take several months to form a new government. And there’s a very likely and real possibility that you could have a series of unstable governments that come and then collapse, sort of like a parliamentary system you may have had in Italy in the 1980s. And that weak political structure is not one that is suitable for Iraq’s problems. I think we need to totally change the, the rules of the game and change the political structure in such that the president or the prime minister has much more authority. This idea of a power-sharing government, while it may be the pinnacle of democracy, is not one that is strong enough to get the—help Iraq get over its very real problems.

MR. RUSSERT: Tom Ricks, you write this, and we’ll end on a literary note. “Shakespeare’s tragedies have five acts, and I fear we have not yet seen the beginning of Act IV.” What’s Act IV and V?

MR. RICKS: Well, Act III is the Petraeus phase. Act IV, I think, would be the spreading of the war, the next phase, maybe the post-American phase. And Act V will be the regional consequences. I think the point is Iraq, I think, is going to be much more difficult for this country than the Vietnam War was.

MR. RUSSERT: Why?

MR. RICKS: Because we could walk away from Vietnam. And it was bad for the Cambodians, bad for many Vietnamese, but we could wash our hands of it. I think Iraq is not going to be so easy to get out of. We have stepped into something in the middle of a economically vital region for the entire world.

Because America's Military Industrial Complex is attempting to privatize a State Capitalist economy in order to pay off it's war debt.

Iraq Resconstruction Teams Struggle to Sustain Grassroots Projects

As security improved in Anbar province, U.S. Provincial Reconstruction Teams (PRTs) -- some military-led, some commanded by State Department specialists -- moved to restore Ramadi's connection to the national power grid. Now 80 percent of residents have regular power, according to Col. John Charlton, an Army commander in the province.

The electricity somewhat benefited the area's state-owned businesses -- cement is the major product -- but widespread hirings failed to materialize, according to Marine Corps Maj. Gen. Walter Gaskin, senior commander in Anbar. "The biggest employer is still the army."

Despite disappointing results, PRTs like those in Ramadi remain at the forefront of the U.S. and coalition strategy in Iraq. All told, there are dozens of reconstruction teams: Their number has doubled since the beginning of "surge" operations in December. PRTs in safer areas include just a few people, others in more dangerous regions are manned by hundreds of soldiers with heavy weapons. The idea is to work with local employers and government officials to shore up basic infrastructure and institutions and get people working, in hopes that grassroots improvements might somehow spread and trickle up to the higher levels of Iraqi government, where sectarian squabbles have resulted in gridlock.

"Decentralization of [Iraqi] government services is one major area of emphasis for us," Reeker says.



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