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CIAO DATE: 6/5/2006
Iraqi Economic Reconstruction and Development
Onur Ozlu
April 2006
Abstract
The US aid effort in Iraq has not accomplished most of its sectoral goals, and more importantly, has not effectively initiated the reconstruction of the country's economy. After three years of struggle, the expenditure of more than $ 20 billion US aid funds, $ 37 billion Development Fund for Iraq (DFI) - UN accumulated from the oil for food program's revenues and the seizure of bank accounts- and death of thousands of US and other coalition soldiers and tens of thousands of Iraqis, Iraq is producing less oil, has less electricity and less water than it did during the Saddam period. After studying the modern Iraqi economic history as a background, this work analyzes why.
Insurgency has been a major obstacle to an effective reconstruction. However, shortcomings of the US aid planning and execution indicate that even if there was not an endemic insurgency in Iraq, the reconstruction would still be ineffective.
