Special Report: Iraq - Writing off the past
Iraq’s ability to provide security remains one of the biggest obstacles to attracting foreign investment to help with its long-term reconstruction plan.
In the seven weeks since US troops withdrew from Iraq’s cities, hundreds of Iraqis have died in a fresh wave of violence.
Truck bombs and mortar attacks killed at least 95 people and wounded more than 500 in Baghdad on 19 August. As a result of these attacks, confidence in Baghdad’s ability to provide security is understandably fragile, despite government assurances that it can and will quell the unrest.
Until it does, fear of further attacks will continue to hamper efforts to rebuild Iraq and dissuade foreign investors from coming to the country in large numbers. Iraq’s predicted $16bn budget deficit for this year is also forcing the government to make deep cuts in public spending at a time when large infrastructure projects are badly needed.
But Baghdad does have a plan to boost government spending, the central plank of which is its $66bn ‘national investment strategy’ to use future oil revenues as collateral for bank loans to finance infrastructure projects.
With national elections planned for December, there is a chance that this grand strategy will be sidelined, as Iraq’s politicians focus on their campaigns.
The government needs to provide enough security to allow for a successful election, but after that it will have to push ahead with its national investment strategy again, to allow for the long-term rebuilding of Iraq.
Have your say
You must sign in to make a comment.
Share
Readers' comments (1)
Anonymous | 27-Sep-2009 10:21 pm
This is not an accurate description of Iraq. The whole country should not be painted with the same brush. I have just spent ten days in Iraq doing business with the people of the south and had no fear of being killed , indeed I felt as comfortable doing business, eating at restaurants and driving around the streets as I do in my native country Australia. I actually felt less secure in south Lebanon where the continued presence of the UN tropps makes everybody feel anxious. Please be more specific and don't put down people who dont deserve it. They just want to get on with their lives and rebuild a beutiful country.
Unsuitable or offensive?