THE MIDDLE EAST

Want to Save Iraq? Invest.

The best way to stabilize Iraq is by helping its economy. And if America doesn't, others will.

By Paul Brinkley | NEWSWEEK
Published Dec 31, 2008

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  • Posted By: Investorq @ 03/19/2009 3:06:58 AM

    All show and no go. Based on the date - this guy is just trying to get grandfathered into the Obama administration and apparently its all about what he is done. No its not all about the economy anymore - we missed that a long time ago. Its a about a political problem that we are paying the price for. Forcing institutions into a county is akin to a frontal assault. As a professional investor, hearing the US Government trying to coax the private sector to fix a policy mess is laughable. If you read this officials bio, you'll note he was part of the tech bubble hype and how much value was destroyed there? Where is the A-TEAM, our country needs seasoned players? I hope Obama cleans house of all these sycophants for some real talent that will get things done.
    From Another Exasperated American

  • Posted By: Investorq @ 03/19/2009 3:03:07 AM

    All show and no go. Based on the date - this guy is just trying to get grandfathered into the Obama administration and apparently its all about what he is done. No its not all about the economy anymore - we missed that a long time ago. Its a about a political problem that we are paying the price for. Forcing institutions into a county is akin to a frontal assault. As a professional investor, hearing the US Government trying to coax the private sector to fix a policy mess is laughable. If you read this officials bio, you'll note he was part of the tech bubble hype and how much value was destroyed there? Where is the A-TEAM, our country needs seasoned players? I hope Obama cleans house of all these sycophants for some real talent that will get things done.
    From Another Exasperated American

  • Posted By: divemaster56 @ 01/06/2009 11:01:26 PM

    Excellent. Brinkley is correct and we should all support him! As a veteran of Iraq he is right on spot. I would assist him if he would have me.

  • Posted By: olivercpearce @ 01/06/2009 9:40:05 AM

    Brinkly is right, U.S. firms need to invest in Iraq as it is a lucrative market, but Iraq needs to attract membership from around the world, as it is doing, so as not to rely on the U.S. I have been to a number of Iraq economic focused events in London over the past 18 months, and optimism is high, but there is real fear that security gains made under the 'surge' could quickly be reversed.

    Added to this is widespread corruption and a fear of the private sector by poltiicans and members of the public. Legislation is slow to be passed, and even slower to be implemented. The investment law is not even active. These things matter to Western investors, however private sector and state firms from the Arab world, Asia Pacific, Turkey, Iran and China are investing heavily in non-oil projects, such as infrastrucutre, and construction (real estate, hospitals).

    In terms of agriculture, Brinkly cannot be so optimistic. Dersetification and horrific droughts have ravished the lands. Dam projects in Iran and Turkey are drying Iraq up as we speak, and equipment is outdated. Tens of thousands of farmers have joined the police and army in order to survive. However, the government seems to be addressing the problem, with big projects planned, as well as microfinanance and other such loan intiatives organised by the state run agricultural bank and the U.S. army. Iraq is heavily depended on food imports, but does have a farming knowledge and arabale land, so has potential. But how this potential is addressed remains to be seen.

    There are many highly skilled gradudates in Iraq who have not fled, but there is a massive brain drain in important oil and gas and public sector areas that will affect the economy as a whole, not to mention crippling power shortages (Iraq only produces 40% of estimated demand, and billion dollar contracts recently signed with GE and Siements will take 12-18 months to implement). Iraq is a huge opportunity for those brave enough to take the plunge, but at a time when major U.S. firms who won American government contracts in the past are moving out, it looks like the investment Brinkley wants won't be coming from where he wants.

    For more on business in Iraq check out http://arabcomment.com/category/business-world

  • Posted By: Jimbok @ 01/04/2009 8:23:28 PM

    Iraq has come along way, Lets look of the things that has pass and whats coming. The ICI (International Compact act also known as the Marshall Plan) was pass in May of 2006 since then the ISX (Iraqi Stock Exchange) has seen tremendous growth. The FIL (foreign investment law) has pass and allow foreign investment alot of great opportunities for foreign investment. Then next thing is seeing the lifting of Article VII of the UN that impose sanctions on Iraq before the War which strip them of their soveignty. Also the Debt forgiveness of the Paris Club which will forgive Iraq its past debt of the previous Saddam dictatorship. However their is about 20 billion that Iraq owes of non-Paris club members which if they forgive them will only benifit both countries. SOFA has pass which gives Iraq the added security needed for 2-3yrs while they take back control of their own country. Also more important will be the passing of the HCL law (Hydrocarbon Law) Once this is pass you will have Oil companies flocking to their country and increasing the production of their oil which is know for having the 2nd largest oil reserves in the world. All of this being said it looks to me that their next step is to increase the value of the NID (New Iraqi Dinar) so the people can increase their purchasing power and will help them pull themselves out of poverty. I personally see Iraq becoming the Dubai in the very near future. I guess these are the things the Mainstream media does not tell the American people of the Great accomplishment that the current Administration has done.
    I believe this article is the start of the more positive things to come.

  • Posted By: motown67 @ 01/03/2009 6:35:13 PM

    Iraq's economy is shambles. After the war the U.S. tried to privatize the state run economy, which largely failed. They closd down state run businesses which were the main employer and most of them never re-opened. That led to massive unemploment. Iraq also has very few tariffs so cheap imports, especially from Iran, China, Syria, and Turkey flooded the country causing farms and businesses to close. The lack of security also put a strangle hold on Iraqi businesses. The U.S. also cut subsidies to Iraqi farmers, again driving many out of business. The oil industry is the only thing keeping the economy going and its hobbling as well. Exports have hardly changed since the 2003 invasion. The infrastructure is broken down. The article also claims that Iraq has many well trained professions. That's not true anymore as most have fled the country with only a trickle coming back. For more see: musingsoniraq.blogspot.com

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