Pentagon Freezes Iraqi Reconstruction Funds

[Ramo]

http://www.boston.com/business/globe/articles/2003/12/30/pentagon_freezes_iraq_funds_amid_corruption_probes/

The Pentagon's decision to delay Iraqi reconstruction is another setback for a process already hobbled by political insecurity and, increasingly, concerns over corruption and misconduct. The success of the US-led bid to remake Iraq politically depends largely on efforts to reverse the country's chronic unemployment by repairing it economically. But lawmakers in Washington and businesspeople in Iraq say the bidding process lacks transparency and favors a growing class of monopolists and oligarchs that could overwhelm the country's infant regulatory framework.

Interesting..., I didn't expect that.

I think this is a good thing despite slowing down the alleviation of Iraq's unemployment; as in a few months reconstruction contracts will hopefully be handled much more fairly with more contracts going to Iraqi firms, etc., reducing the unemployment problem much more than if Shrub kept running the show.

In addition, greater unemployment in the short term could have a benefit of giving the unions as well as Sistani et al. more leverage in pressuring us into taking more free, democratic steps for Iraq in the next several months.

[Bosh]

From a few articles I've read on Iraqi business there seems to be a real rise of a Comprador class (ie people who're making profits supplying stuff for foriegners and related work and who use these profits to branch out) that doesn't bode well...

[Spiffor]

Originally posted by Boshko
From a few articles I've read on Iraqi business there seems to be a real rise of a Comprador class

Before ringing the alarm, we need to know the absolute amount of Compradors. It is very possible the dramatic rise happens simply because the country is opened to foreigners again.
Now, if the absolute amount of Compradors is higher than what would be normal in such an economy, we really need to worry indeed

But then again, it wouldn't be any surprising that the riches of the Iraqis go to western pockets

[Whaleboy]

[Ned]

Well the new Iraqi government shouldn't have any problem with finances after we have learned that Saddam, an oligarch? himself, stashed 40 billion in Swiss, German and Japanese banks.

By the way, Ramo, that link to the article is seems to be out of date.

[Ramo]

40 billion? Where are you getting that number?

And sorry about that link. Let's try it again:

http://www.boston.com/business/globe/articles/2003/12/30/pentagon_freezes_iraq_funds_amid_corruption_probes

Apparantly there's a scripting problem that creates a space where it shouldn't be for some odd reason. So just copy and paste and then delete the space.

[Ramo]

From a few articles I've read on Iraqi business there seems to be a real rise of a Comprador class (ie people who're making profits supplying stuff for foriegners and related work and who use these profits to branch out) that doesn't bode well...

Yeah, it seems like Chalabi's buddies are poised at taking over large chunks of the Iraqi economy.

[chequita guevara]

Originally posted by Ramo
Yeah, it seems like Chalabi's buddies are poised at taking over large chunks of the Iraqi economy.

Oooh, now there's a surprise.