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The Continuing Saga Of The Candidate Banning In Iraq

The story of the Iraqi Accountability and Justice and Election Commissions’ banning of 500 candidates from the March 2010 voting for alleged Baathist ties has taken a few new turns. First, Prime Minister Nouri al-Maliki has finally come out in favor of the ban. He said that the decision of the Accountability and Justice Commission should be adhered to. He also commented that the process should not be politicized, which ignores the fact that the Commission members have used it as a partisan tool since its inception in 2003, and that its head, Ali al-Lami, is running as a candidate for the Iraqi National Alliance. Second, the Election Commission is debating whether just the 400 politicians are barred from participating in the balloting or all their parties as well. As Reidar Visser of the Norwegian Institute of International Affairs points out, there is no legal basis in the constitution or election law that mentions blocking entire parties from running. Of course, the Accountability and Justice Commission’s members haven’t even been appointed by parliament, but everyone is going along with their decisions, so legality may not matter in this situation. Third, a document has emerged that allegedly shows that Saleh al-Mutlaq, the head of the Iraqi National Dialogue Front and the most prominent politician banned, had contact with Iraqi intelligence in 2002. This was supposedly used in the Accountability and Justice Commission’s ruling against him. There is no reporting on whether the document is real or not, and again, given the circumstances, may not matter. Fourth, Mutlaq and all those banned can appeal their cases to a 7-member board of judges that was just created a few days ago. There is a concern that they may not be able to go through all the cases before the March 2010 balloting however, which may exclude candidates even if they are ultimately found innocent. Finally, there is news that the Accountability and Justice Commission may not be finished and could demand that a total of 1,200 candidates be blocked from running.

It was hoped that the 2010 parliamentary vote would be a continuation of the 2009 provincial elections where nationalist parties did much better than ethnosectarian ones, and Sunnis came out in high numbers. This in turn, would usher in a new wave of politicians to replace a group of lawmakers that have achieved very little in their four years in office, and are very unpopular as a result. The decisions of the Accountability and Justice and Election Commissions however have not only marked a return to sectarian politics, but also threatened to undermine the legitimacy of the 2010 balloting, along with bringing into question the legality of the entire Iraqi political process. Unless some institution challenges the chicanery going on, this fiasco will only continue, and could get worse.

SOURCES

AK News, “Electoral commission discusses the issue of excluded entities and candidates,” 1/17/10

Roads To Iraq, “Three Sunni candidates for the presidency, Zebari to the Vice-President,” 1/17/10

Sly, Liz, “Iraqi prime minister backs ban on 500 election candidates,” Los Angeles, 1/17/10

Visser, Reidar, “The Bloc That Has No De-Baathification Worries,” Iraq and Gulf Analysis, 1/17/10
- “Constitutional Disintegration (Part III): The IHEC Is Making Up the Law,” Iraq and Gulf Analysis, 1/15/10

Iraq Could Become Game Changer In OPEC

In mid-December 2009 the Organization of Petroleum Exporting Countries (OPEC) held its annual meeting in Angola. Besides agreeing to keep oil prices at their current level of between $70-$80 a barrel, Iraq was the other hot topic of debate.

After Iraq completed its second bidding round on its oil fields earlier in the month, Iraq Oil Minister Hussein Shahristani has been claiming that Iraq could reach 12 million barrels a day in capacity. That would rival Saudi Arabia, which currently has the largest capacity and is the largest oil producer in the world. The Oil Minister came into the OPEC conference claiming that Iraq has been denied its fair share of oil output in the past because of wars and international sanctions. He warned that was about to end, and that OPEC should reconsider how it calculates its quotas by taking into account a country’s development needs. He said that he expected some changes by 2011.

If Iraq does reach its potential, it has the ability to drastically affect the petroleum organization. Iraq has been exempt from OPEC’s quotas since it invaded Kuwait in 1990. Now it wants to export as much as it can because it desperately needs the money to rebuild. That could flood the market and undermine OPEC’s control over prices. Given this, Iraq could force compromises on quotas, ignore them, or leave OPEC altogether. It could also challenge the group’s leader, Saudi Arabia, which has given Iraq the cold shoulder since the U.S. invasion because it fears Shiite rule and Iran’s influence.

This could be a huge step in Iraq returning to the international stage. Baghdad was once a leading capital in the Arab world, but after 2003, Iraq was so caught up in internal divisions and civil war that it lost its place. Not only that, but all of the regional players have become involved in Iraqi politics, mostly to the detriment of the country. Iraq’s new oil deals, if successful, could give the nation the leverage it needs to once again be a player in the Middle East, but that’s still a big if as its petroleum industry has some massive hurdles to overcome before it can produce as much as the Oil Minister wants it to. It is a change though to talk about Iraq influencing others rather than it being the other way around as has been the norm since the overthrow of Saddam.

SOURCES

Agence France Presse, “No More Gestures To Saudi Arabia – Iraqi PM Maliki,” 5/28/09

Amies, Nick, “Iraq oil auctions cause concerns over stability in Gulf hierarchy,” Deutsche Welle, 12/23/09

Blas, Javier, “Iraq to challenge Opec on ‘fair share’ of output,” Financial Times, 12/22/09

>What Do The New Oil Deals Mean for The Kurds?

>In mid-December 2009 the Iraqi Oil Ministry carried out its second round of bidding on oil fields by international companies. Winning offers were made on seven of the ten fields up for auction. Afterward Oil Minister Hussain Shahristani said Iraq could reach eleven million barrels a day in capacity in six years, which could make it one of the largest producers in the world. This may turn out to be a major setback for the Kurdistan Regional Government (KRG), and its own petroleum policy.

Since 2003 the KRG has been hoping that its oil reserves would give it greater autonomy, and perhaps eventually independence. They signed their first oil deal with a Turkish company in January 2003, and then finalized over twenty others in the following years. None of these went through the Oil Ministry. Most of these deals were for exploration, but with Iraq’s oil production at below pre-invasion levels, Kurdistan believed that Baghdad would eventually have to accept their oil policy and allow them to export. The KRG also attempted to foster closer ties with Turkey and Europe, offering to export oil directly to the former, and trying to get involved with the proposed Nabucco natural gas pipeline to the latter. If these deals succeeded than Kurdistan would be connected to the international energy trade, could put more pressure on Baghdad to accept its energy policy, and gain greater autonomy from the central government. Some believed that this would give the Kurds the self-sustainability and influence they would need to declare independence sometime in the future.

All of these goals are now in jeopardy because of the Oil Ministry’s second bidding round. With international companies finally agreeing to Baghdad’s terms, and Iraq’s hopes of becoming one of the largest oil exporters in the world, there is no reason for the central government to give into the Kurds’ demands. The Oil Ministry has always vigorously protested the Kurds’ actions, and blacklisted any petroleum corporations that do business with them, leaving only small businesses investing there. They and the KRG still hope that Baghdad will eventually allow them to export because no government will turn down money, but that’s becoming less and less likely now. In fact, the Kurds may be the biggest loseWeight Exercisers if Iraq’s oil potential is finally tapped.

SOURCES

AK News, “Iraq’s oil and gas assets are shared: Barzani,” 11/11/09

International Crisis Group, “Iraq and the Kurds: Trouble Along the Trigger Line,” 7/8/09
- “Oil For Soil: Toward A Grand Bargain On Iraq And The Kurds,” 10/28/08

Lando, Ben, “In the theater of oil, the politics of Iraq,” Iraq Oil Report, 12/17/09

Yackley, Ayla Jean, “Iraq’s new oil deals seen weakening Kurds’ hand,” Reuters, 12/17/09
- “UPDATE 2-Kurds say Iraqi oilfield auction is being rushed,” Reuters, 12/10/09

What’s In The Future For Iraq?

Iraq is entering its seventh year since the U.S. invasion. Many things have changed in that time period, from the chaos that followed the collapse of the state after Saddam was overthrown, to the civil war that erupted, to the Surge. At the end of 2009 three Iraq analysts, Sam Parker of the United States Institute for Peace, Michael Hanna of the Century Foundation, and Reidar Visser of the Norwegian Institute of International Relations, wrote pieces speculating on what lay ahead for Iraq. All three agree that politics is the main forum for disputes within Iraq now, but don’t see much hope for the country’s elites to overcome their differences any time soon.

Sam Parker in his article “Is Iraq Back?” for Current History, and Michael Hanna in “Transitional state” in the Abu Dhabi newspaper The National start off by talking about Iraq’s current political situation. Both believe that politics has replaced violence as the main way groups in the country now resolve their problems. This started in early 2005 when some militants first began turning on Al Qaeda in Iraq, which would eventually snowball into most of the insurgency switching sides and giving up the fight to join the Anbar Awakening and the Sons of Iraq. Sunnis also greatly regretted boycotting the 2005 elections, which isolated them from local and national governments. In the 2009 provincial elections, Sunni turnout was very high as a result, and deaths have taken a sharp drop since then as a result. This process will continue in the 2010 vote, and has led Iraq from being a failed state to a fragile one.

What the central government now faces are three large and daunting problems, the first of which is sectarianism. Parker believes that this is now more about identity than religious differences, as Iraqis tend to vote for candidates of their own community. That means any future government will have to continue to include representatives of each of the major groups, the Kurds, Shiites, and Sunnis. These large groups however, are breaking up into smaller factions. The Shiites for example, ran on one large list in 2005, the United Iraqi Alliance, but in 2010 will be competing in two lists, the State of Law led by Prime Minister Nouri al-Maliki, and the National Alliance made up of the Supreme Islamic Iraqi Council and the Sadrists. Reidar Visser of the Norwegian Institute of International Relations in “COIN to Nowhere? Lesson from Iraq, Questions for Afghanistan” adds that he believes that these sectarian divisions have solidified rather than weakened. For example, while Maliki’s State of Law tried to create new cross-sectarian alliances after the 2009 elections and attempted to reach out to Sunnis and former Baathists, he was later stopped by criticisms by the other Shiite parties, pressure from Iran, and the Obama administration, which continues to stress a grand bargain between the three major groups. He then agrees with Parker and Hanna that any new Iraqi government will look and operate very much like the old one as a result.

The ethnosectarian groups also have long-standing differences over things like federalism versus centralism, oil policy, and the Arab-Kurd dispute. Hanna writes that there have been no serious efforts to deal with any of these issues, and that any new government is likely to be just as divided as the current one. Many of these problems have their origins in the 2005 constitution, which was drafted while the Iraqi state was weak and the sectarian war was just about to take off. The Arab-Kurd divide prevents any major changes to the document, leading to more deadlock. Hanna doesn’t believe that these divisions will lead the country back to civil war, and oddly adds that not dealing with them right now may be the best thing for Iraq right at the moment. He’s afraid that any move towards majority rule, and away from consensus could do more harm than good because the country’s weak institutions may not be able to deal with winners and loseWeight Exercisers. Visser has written extensively arguing the opposite, that the Iraqi system of consensus and quotas within the government should be ended because it only maintains the sectarian divisions.

The paralysis in Baghdad means that more mundane issues like basic governance, services, the displaced and refugees, corruption, jobs, poverty, etc. can’t be addressed. Technical issues like boosting oil production, and election laws for example get endlessly delayed because of the larger disputes between the ethnosectarian groups. The lack of development and the Arab-Kurd divide also allows militants to continue their attacks in Iraq.

All three analysts bring up important issues for Iraq’s future. Iraq is no longer a failed state as it once was. It is gaining back both its sovereignty and domestic standing. Violence is also down to its lowest level since the 2003 invasion, and the struggle for political power through peaceful means is now paramount. The inability of Baghdad to deliver on many basic needs however, its corruption, and sectarianism continue to eat away at its standing with the public. The continued factionalization of Iraq’s three major groups also means that it will be harder rather than easier to put together a new government and get things done. Parker and Hanna point out that this makes Iraq not much different from many other Third World countries who not only struggle with development, but also power sharing and ethnic differences. The problem is that public dissatisfaction with a government that seems dysfunctional can undermine a nascent democracy, and lead to a return to autocracy or worse, and that may be Iraq’s largest dilemma in the long-term.

SOURCES

Hanna, Michael, “Transitional state,” The National, 11/26/09

Parker, Sam, “Is Iraq Back?” Current History, December 2009

Visser, Reidar, “COIN to Nowhere? Lessons from Iraq, Questions for Afghanistan,” Iraq and Gulf Analysis, 12/1/09

>Iranians Planned Kidnapping And Held British Captives Taken In Iraq

>On December 30, 2009 British computer technician Peter Moore was released from captivity by the Iranian backed League of the Righteous in return for the freeing of their leader, Qais Khazali. Moore and four British bodyguards, Alan McMenemy, Alec MacLachlan, Jason Swindlehurst, and Jason Creswell, were originally kidnapped from the Iraqi Finance Ministry building in downtown Baghdad on May 29, 2007. The Guardian claims that not only was this an Iranian organized operation led by their Revolutionary Guards Qods Force, but that the British hostages were held in Iran for most of their two and a half year captivity.

The events surrounding the kidnapping are a complicated one beginning with a series of American raids against Iranian operatives working within Iraq. In 2006, President George Bush okayed the killing and capturing of Iranians in Iraq who were supplying weapons and training to Shiite militias. In December 2006 that led to the arrest of General Mohsen Chirazi, the number 3 man in the Iranian Revolutionary Guards Qods Force, which is in charge of Tehran’s Iraq policy. That was followed by a speech by President Bush in January 2007 where he said that the U.S. would stop Iran’s interference in Iraqi affairs. Later, on January 11, five Iranians were arrested in Irbil, Kurdistan. The Americans actually missed their targets, Mohammed Jafari, the deputy of Iran’s National Security Council, and General Minojahar Frouzanda, the intelligence chief of the Revolutionary Guards, when Kurdish peshmerga stopped U.S. forces at the Irbil airport. Tehran retaliated by leading a raid on the Karbala Provincial Joint Coordination Center in conjunction with the League of the Righteous that led to the deaths of five U.S. soldiers in January. In March 2007, U.S. and U.K. forces detained the League’s leaders Qais and Latih Khazali in Basra in March 2007.

Qais Khazali was one of the leading figures in the Sadr movement when Moqtada’s father, Ayatollah Mohammed Sadeq al-Sadr, created it in the 1990s. Qais helped keep the movement alive underground after Saddam killed the elder Sadr. When Moqtada emerged as one of Iraq’s new leaders after the 2003 invasion, Qais was one of his top lieutenants. He would split and then rejoin Moqtada several times before creating his own group, the League of the Righteous in 2006. That year he was also selected to lead the Special Groups that Iran was creating to gain more direct control of Shiite gunmen in Iraq.

Iran planned the May 2007 raid on the Finance Ministry as part of the tit for tat exchange with the United Sates, while the League of the Righteous wanted hostages to gain the release of the Khazali brothers. 80-100 members of the League drove up to the Ministry’s buildings in SUVs in Baghdad, and kidnapped the five Britons in just about 15 minutes. Iraqi intelligence officers from the Defense Ministry who happened to be in the Ministry at the time told the Guardian that they followed the kidnappers to Sadr City where the captives were kept for one day before being transferred to Iran. They passed this information to the Defense Ministry who did nothing. In Iran, the Britons were moved around to several locations. General David Petraeus confirmed this in a recent interview with the BBC where he said he was 90% sure that Tehran held the captives for a time. All negotiations for the release of the hostages occurred in Qom, Iran, but the British Foreign Office refused to directly talk with them, which greatly complicated things.

Almost two years later, Iraq, England, the U.S., Iran, and the League worked out a release plan with Lebanon’s Hezbollah acting as a middleman. In March 2009 a deal was cut whereby the Americans would release all of the League of the Righteous members they held including Laith and Qais Khazali in return for the British captives. In that month a video was released of Moore, followed by the freeing of Laith Khazali. After that U.S. prisons were emptied of some 300 League followers they held under the guise of an Iraqi reconciliation program, along with some of the top Qods Force members that were arrested in 2006-2007, in return for the bodies of Jason Creswell, Jason Swindlehurst, and Alec MacLachlan. Alan McMenemy has yet to be released, but it’s believed that he is dead as well. Sources told the Guardian that the Iranians killed all four bodyguards because for one, they were not considered important since they were only security men, and two to show that they were serious to the British government. The process finally ended with the release of Peter Moore and Qais Khazali. Some American military officers were against this deal, but the Status of Forces Agreement signed between Washington and Baghdad at the very end of the Bush administration in December 2008 requires the U.S. to release all the detainees they hold unless they have broken Iraqi law.

The kidnapping and release of Moore, MacLachlan, Swindlehurst, Creswell, and McMenemy mark the end of one period of post-Saddam Iraq. Washington and Tehran were involved in a covert war for influence within Iraq after the 2003 invasion. The U.S. focused upon Iran’s Qods Force and their support for Special Groups like the League of the Righteous. The U.S. tried to kill or capture as many militiamen and Qods Force operatives as they could, but interference by Iraqi officials meant that this effort could only go so far. The smashing of Shiite militias by Prime Minister Nouri al-Maliki’s offensives in 2008, along with Iran’s greater interest in political influence through support of Shiite parties in the 2009 and coming 2010 elections, means that their military policy has been put on the back burner. The League even renounced violence in 2009, and briefly flirted with running in the upcoming vote, before withdrawing in early December. What that means for the League is unknown. Qais Khazali is said to still have sway with many Sadrists, which has made Moqtada very worried about his leadership, but its too late for them to run as a party in 2010, which would greatly limit their influence if they wished to join Iraqi politics. There’s a good chance that the League will fade from the scene just as the military confrontation between Iran and the U.S. in Iraq has.

SOURCES

Chulov, Martin, “Shia cleric’s release by US forces provided key to Peter Moore’s freedom,” Guardian, 12/30/09

CNN, “U.S. raid on Iranian consulate angers Kurds,” 1/11/07

Cochrane, Marisa, “The Fragmentation of the Sadrist Movement,” Institute for the Study of War, January 2009

Cockburn, Patrick, “The botched US raid that led to the hostage crisis,” The Independent, 4/3/07

Fordham, Alice, “Hostage Peter Moore’s fate tied to that of Laith and Qais al-Khazali,” Times of London, 12/31/09
- “Peter Moore freed after US hands over Iraqi insurgent,” Times of London, 12/31/09

Hines, Nico, “Peter Moore: 31 months of Iraqi captivity,” Times of London, 12/30/09

Lake, Eli, “GIs Raid Iranian Building in Irbil,” New York Sun, 1/12/07

Linzer, Dafna, “Troops Authorized to Kill Iranian Operatives in Iraq,” Washington Post, 1/26/07

Mahmood, Mona, O’Kane, Maggie, Grandjean, Guy, “Bush threats and an $18bn secret: why Iran’s kidnap squad struck,” Guardian, 12/31/09

Roggio, Bill, “US releases ‘dangerous’ Iranian proxy behind the murder of US troops,” Long War Journal, 12/31/09

Woodcock, Andrew and Johnson, Wesley, “Petraeus ‘90% certain’ that UK hostage was in Iran,” Independent, 12/31/09

Wright, Robin and Trejos, Nancy, “U.S. Troops Raid 2 Iranian Targets in Iraq, Detain 5 People,” Washington Post, 1/12/07

>Will New Oil Deals Provide Jobs For Iraqis?

>Iraq recently completed the second round of bidding on its oil fields, which will hopefully usher in the return of international petroleum companies to Iraq that will bring in much needed investment and know how. This round went much better than the first with deals for seven of the ten fields up for auction. Iraq’s Oil Minister Hussain Shahristani believes that Iraq could reach 12 million barrels a day in capacity in six years as a result, which would make it a rival to the world’s largest producer Saudi Arabia. With such high expectations, many Iraqis, especially in southern Iraq where most of the oil resides, are hoping that this wealth will trickle down in the form of jobs and better services.

Currently southern Iraq has some of the poorest sections of the country despite the huge petroleum reserves. A recent report by the government’s Central Organization for Statistics and Information Technology, found that 49% of the population in Muthanna and 41% in Babil lived in poverty, the highest rates in Iraq. Residents of Dhi Qar told Agence France Presse that they didn’t expect much from the new oil deals, feeling that the best jobs would go to those that had political connections or paid bribes. In contrast, the Italian head of Dhi Qar’s Provincial Reconstruction Team, U.S.-funded groups that are aimed at improving the political and economic development of Iraq at the local level, believed that there would be plenty of job opportunities, and the complaints about corruption were overblown. Provincial officials in Basra also expressed similar optimism.

If jobs do appear, they will have to be from spin-offs such as construction and services, because its estimated that Iraq will only need 40,000 new oil workers by 2015. That’s a drop in the bucket when compared to the 250,000 young Iraqis who enter the job market each year. In Wasit for example, the sole foreign petroleum company currently operating in Iraq, the China National Petroleum Corporation (CNPC), only hired 450 Iraqis since it started working there in late-2008. They have also been accused of damaging farmland that has set off a wave of protests and small-scale sabotage against the corporation.

The problem as ever is that petroleum is not a labor-intensive industry. There will be a flurry of construction early on to improve the oil fields, which could offer opportunities to Iraqis. After that, probably in the best case, the increased revenues from higher exports will give Baghdad the necessary funds to improve services to placate the public. Otherwise the new oil deals will just give people another excuse to complain about their government.

SOURCES

Agence France Presse, “Southern Iraq town hopes for jobs boom after oil auction,” 12/17/09

Aswat al-Iraq, “COSIT: Unemployment, poverty drop in Iraq,” 12/13/09

BBC, “Iraq oil capacity ‘to reach 12m barrels per day,’” 12/12/09

Gunter, Frank, “Liberate Iraq’s Economy,” New York Times, 11/16/09

Al Jazeera, “Iraq’s oil wealth eludes the poor,” 11/4/09

Yackley, Ayla Jean, “Iraqi oil deals mean reams of steel, miles of pipes,” Reuters, 12/10/09

>United Nations Human Rights Report On Iraq

>The United Nations Assistance Mission for Iraq (UNAMI) released its latest human rights report for Iraq covering the first half of 2009. The U.N. noted the decrease in violence in Iraq, but that there were still deaths everyday in the country. More importantly, it recorded continued institutional abuses in the justice system, and reminders of the old regime.

The number of deaths and unidentified bodies found are down greatly. In the last half of 2008 for example, 434 people were found dead in the streets, compared to 210 in the first six months of 2009. There were still daily attacks, but the U.N. made an important observation that it is becoming increasingly difficult to tell political violence from ones involving crime, especially because many gangs also work as militias and insurgents. The major targets in Iraq are the security forces, government officials, professionals, Sons of Iraq (SOI) members, and tribal leaders. Two generals were killed and one escaped a car bombing during the first half of 2009, along with four SOI leaders killed or wounded in four areas in Diyala.

Iraq’s minorities are also targets. Yazidis, Sabeans, Shabaks and Christians claim that their numbers have been drastically reduced because of the violence, with many becoming refugees. Yazidis say their population went from 500,000 before the war to 300,000 now. Sabeans reported 35,000 followers in 2003, and 7,000-8,000 now. There were 1.4 million Christians in the 1987 census, and they now believe there are only 500,000-800,000. All of these groups complain about being arrested by the Kurdish security forces, and being pressured to vote for pro-Kurdish parties.

With the dramatic decrease in militant activity, cultural and institutional abuses are gaining more prominence. UNAMI has been focusing upon women’s issues for the last year or two, concentrating upon the Kurdistan region. The U.N has found continued honor killings and suicides due to abuses there. Few of these cases are ever reported to the police, as they are considered family matters. Journalists also say they face regular harassment by the security forces and politicians’ bodyguards. One NGO reported 64 cases of abuse in 3 days in Baghdad, Basra, Babil, and Anbar. The Kurdistan Regional Government (KRG) has also arrested and convicted journalists for criticizing the authorities.

Most importantly the U.N. reports that Iraq’s justice system remains overwhelmed by the number of detainees, and its reliance upon confessions leads to widespread abuses. From January to June 2009 the number of prisoners held by the government increased from 27,466 to 29,871. Detainees are regularly held for long periods of time without charges or seeing a lawyer. Torture and beatings are common, and this includes against children held. That led to a series of protests by prisoners in June 2009 against corruption, lack of trials, and abuses in Maysan and Qadisiyah provinces. That same month, the Interior Minister announced that 43 police officers were going to be prosecuted for abuses. Similar conditions and treatment are also prevalent in Kurdistan. UNAMI interviewed people who were held for 5 years or more in the region without charges or trials, while noting that the KRG has begun a program to renovate and improve conditions in its prisons.

Finally, the authorities are finding remains of the Saddam era. In May and June 2009 dozens of mass graves were found in Qadisiyah, Najaf, Basra, Karbala, and Tamim. Most of those contained hundreds of Kurdish victims of Saddam’s Anfal campaign, while two sites were found in Karbala that had Kuwaiti prisoners of war that were killed during the Gulf War. The Ministry of Human Rights believes that they may be 270 unopened mass graves throughout the country.

Iraq remains a troubled nation. The insurgency has been largely defeated, but there are still terrorist attacks everyday that continue to take a human toll. With the fighting largely over, other problems are coming to the fore including overcrowding and abuses in Iraqi prisons and the justice system, lack of rights for women, and limits on press freedom. This shows that Iraq remains a fragile, developing state, with a large terrorist threat.

SOURCES

United Nations Assistance Mission for Iraq, “Human Rights Report 1 January – 30 June 2009,” 12/15/09

>Oil Production Down in Nov. 09, But Exports Up

>The latest numbers for Iraq’s oil industry are out, and they show that while production declined in November 2009, exports actually increased. Last month, Iraq produced an average of 2.36 million barrels a day of petroleum, while exporting 1.99 million barrels a day. In October Iraq produced an average of 2.50 million barrels, and exported 1.89 million barrels.

Iraq’s oil industry has never had steady output, and constantly goes up and down. So far this year, Iraq is average 2.39 million barrels in overall production, the second highest since 2003, while exporting 1.91 million barrels, marking a post-invasion high. Both are below marks set by the Oil Ministry and 2009 budget however. The Ministry wanted to achieve 2.50 million barrels a month this year, which was only achieved in September and October. The 2009 budget called for 2.00 million barrels in exports each month. That only happened in July, 2.08 million barrels, and August, 2.00 million barrels. This has led to a deficit, which is going to continue into next year, especially because the new budget calls for 2.15 million barrels of exports per day. Iraq’s economy is still largely state-run, and relies upon oil for almost all of its revenue, so these deficits are holding up reconstruction and development of the country. The first two rounds of bidding on Iraq’s oil fields will not help in the short-term either as the new production is not likely to come on line for several years.

Monthly Averages of Iraqi Oil Production/Exports in Millions of Barrels Per Day

2003 2004 2005 2006 2007 2008 2009
Jan. 2.44/1.53 2.10/1.36 1.73/1.05 1.66/1.30 2.24/1.93 2.15/1.91
Feb. 2.27/1.38 2.10/1.43 1.83/1.47 2.08/1.50 2.39/1.93 2.32/1.77
March 2.43/1.82 2.09/1.39 2.10/1.32 2.08/1.58 2.38/1.93 2.37/1.81
April 2.38/1.80 2.14/1.39 2.14/1.60 2.14/1.50 2.40/1.88 2.37/1.83
May 0.3/0.0 1.88/1.38 2.10/1.30 2.13/1.51 2.03/1.64 2.60/1.96 2.41/1.90
June 0.675/0.2 2.29/1.14 2.17/1.37 2.30/1.67 2.00/1.47 2.52/1.96 2.43/1.96
July 0.925/0.322 2.20/1.40 2.17/1.55 2.22/1.68 2.07/1.71 2.54/1.85 2.48/2.08
Aug. 1.44/0.646 2.12/1.11 2.16/1.50 2.24/1.68 1.91/1.69 2.50/1.70 2.48/2.00
Sep. 1.72/0.983 2.51/1.70 2.11/1.60 2.23/1.65 2.3/1.90 2.37/1.65 2.50/1.95
Oct. 2.05/1.14 2.45/1.54 1.91/1.23 2.26/1.55 2.34/1.91 2.37/1.69 2.50/1.89
Nov. 2.10/1.52 1.95/1.32 1.98/1.16 2.10/1.44 2.38/1.88 2.40/1.88 2.36/1.99
Dec. 2.30/1.54 2.16/1.52 1.92/1.07 2.15/1.45 2.42/1.93 2.35/1.73
Yr. Avg. 1.44/0.795 2.25/1.47 2.07/1.36 2.11/1.50 2.11/1.66 2.42/1.84 2.39/1.91



SOURCES

Bureau of Near Eastern Affairs, “Iraq Status Report,” U.S. Department of State, 12/16/09

Special Inspector General for Iraq Reconstruction, “Quarterly Report to the United Sates Congress,” 10/30/09

>Iraq Still Has Problems Spending Its Money

>The new Special Inspector General for Iraq Reconstruction report to Congress was released at the end of October 2009. It notes that Iraq is still having problems spending its budget. By June 2009 50% of Iraq’s $58.6 billion budget had been released, but only $16.4 billion, 27.9%, had been spent as of that month. $1.6 billion of that was for capital projects that are investments in infrastructure and services. The provinces had $16.4 billion, and only spent 30% of that during the same time period.

80% of the 2009 budget is for operational costs such as salaries, pensions, and the food ration system. Of the money spent in the first six months of the year, 90.3% came from the operational budget. That’s because from 2005 to 2008 Iraq’s spending increased each year and the ministries and agencies went on a hiring spree. In 2005 for example, there were 1.2 million government employees. By 2008 that had more than doubled to 2.8 million. Last year the country was also flush with money due to high oil prices and doubled most salaries for public employees. Now Iraq has no money to cover those costs because the global recession has caused a drop in the oil market, which is the nation’s main source of revenue.

Since Iraq got its official sovereignty back in 2005 its budgetary expenditures have gone up and down, with the majority of spending going to operational costs. In 2005 Iraq did its best, spending 73% of its $30.2 billion budget. Then followed 67% in 2006, 65% in 2007, and 69% in 2008. Barely any of the capital budgets were spent during those years, while the majority of the operational budgets were. In 2005 91% of the operational budget was spent, compared to 23% for the capital budget. In 2006 it was 83% operational versus 19% capital, 2007 it was 80% operational versus 28% capital, and in 2008 Baghdad did its best job spending 39% of its capital budget. Iraq’s major ministries responsible for security and services did an even worse job. In 2005 they spent 14% of their budgets, in 2006 13%, 2007 11%, and 2008 23%.

Iraq is now facing the triple pressures of reduced American and international aid, low to moderate petroleum prices, and increasing government costs. The bureaucracy, centralized control, and lack of trained staff has gotten no better since 2005, which are some of the main reasons why expenditures have so many problems. What that’s leading to is a bloated government, with limited money for development to raise the standard of living for its public.

Iraq’s Budget Expenditures
2005 73% of total budget, (4) 91% of operational budget, 23% of capital budget
2006 67% of total budget, 83% of operational budget, 19% of capital budget
2007 65% of total budget, 80% of operational budget, 28% of capital budget
2008 69% of total budget, 39% of capital budget

Budget Expenditures By Security and Services Ministries
2005 14%
2006 13%
2007 11%
2008 23%

SOURCES

Cockburn, Patrick, “Collapse in Iraqi oil price shatters hope of recovery,” Independent, 3/20/09

Department of Defense, “Measuring Stability and Security in Iraq,” June 2009

Special Inspector General for Iraq Reconstruction, “Quarterly Report and Semiannual Report to the United States Congress,” 1/30/09
- “Quarterly Report to the United States Congress,” 10/30/09

United States Government Accountability Office, “IRAQ Key Issues for Congressional Oversight,” March 2009
- “Iraqi Revenues, Expenditures, and Surplus,” August 2008
- “Progress Report: Some Gains Made, Updated Strategy Needed,” June 2008

>U.S. Reconstruction Coming To An End

>Since the invasion of Iraq in 2003 the United States has promised the country $52.8 billion in reconstruction funds. That was the largest rebuilding effort in American history. Now this program is expected to end by 2014.

Of the $52.8 billion made available to Iraq, $43.57 billion of it has actually been obligated to specific projects, and $39.54 billion has been spent. The Obama administration has asked for $800 million for the 2010-2011 Fiscal Year. There is also $1 billion in supplemental funding for 2010 and $1.5 billion in 2012. The reconstruction effort is already winding down as only $58 million of the $1 billion in 2010 money has been obligated as of September 2009, and only $300,000 has been spent. That’s largely the result of the beginning of the withdrawal of U.S. forces. With less troops out in the field and the planned drawdown of the Provincial Reconstruction Teams, there are fewer opportunities for new projects to be planned. The Special Inspector General for Iraq Reconstruction (SIGIR) estimates that by 2012-2014 all of the money currently in the pipeline for Iraq will run out. After that the U.S. will continue to provide aid, but not in the large amounts that it has in the past.

The largest chunk of reconstruction funds ended up going to security. In total, $24.52 billion was allocated for various security endeavors, with $20.72 billion actually being spent. Creating a new Iraqi Army is considered the one success of the U.S. effort. There are 245,000 Iraqi soldiers, and over 400,000 police. They now have control of all of Iraq’s 18 provinces, are in the lead of the country’s counterinsurgency program, and the Army is considered competent enough to handle internal security. The police are more open to political and local influences, thousands have not been trained, and are still considered a work in progress. Both forces remain almost completely dependent upon the U.S. for logistics and procurement however, and Iraq is not capable of protecting itself from outside threats.

In comparison, $21.2 billion was spent on the economy and government. $12.36 billion was allocated for infrastructure, $7.28 billion for governance, and $1.56 billion for the economy. Of that, $18.83 billion has actually been spent. The sectors that got the most money were electricity, $5.16 billion, water and sanitation $2.74 billion, government capacity $2.50 billion, oil and gas $2.06 billion, and developing democracy and civil society $2.03 billion.

There is still over $11.6 billion in on-going projects. Baghdad has the most with $2.92 billion, followed by $543.46 million in Basra, $362.23 million in Tamim, and $1.11 billion across the country. In terms of sectors, there is $5.07 billion in electricity projects, $3.08 billion in water and sanitation, $1.77 billion in oil and gas, $1.27 billion in transportation and communication, and $467.97 million in governance and infrastructure.

Reconstructing Iraq’s infrastructure and government has run into many problems. While things like electricity production is at an all time high, it is still not meeting demand. There are also millions of dollars worth of projects that are either not operating at capacity or have been abandoned because Iraqis cannot staff, supply, or afford them. Most importantly, just over half of the money got diverted to security rather than developing the country. 

Overall, the SIGIR believes that the U.S. failed in this endeavor because of a lack of pre-war planning and coordination, bad contracting practices, and building projects that Americans wanted, not Iraqis. Another major problem was that the lack of security derailed many projects, and led to huge cost overruns. That’s seen in the fact that as the reconstruction effort winds down, more money was spent on the Iraqi military and police than the economy or government. There are some successes like the Iraqi Army, but many continuing problems like the lack of adequate services. The U.S. invasion ended the dictatorial rule of Saddam, but the $52.8 billion reconstruction effort is leaving behind a rather typical, dysfunctional Third World country.

Status of Major U.S. Reconstruction Funds

Area Sector Allocated Obligated Expended
Security Equipment $7.29 bil 6.82 bil 6.03 bil
Training $6.11 bil $5.68 bil $5.45 bil
Infrastructure $5.81 bil $5.55 bil $4.84 bil
Sustainment $2.55 bil $2.41 bil $2.17 bil
Rule of Law $1.50 bil $1.48 bil $1.27 bil
Related Activities $1.27 bil $1.15 bil $0.97 bil
Subtotal $24.52 bil $23.09 bil $20.72 bil
Infrastructure Electricity $5.16 bil $4.99 bil $4.86 bil
Water and
Sanitation		 $2.74 bil $2.63 bil $2.47 bil
Oil and Gas $2.06 bil $1.92 bil $1.91 bil
General
Infrastructure		 $1.25 bil $1.24 bil $1.24 bil
Transportation and
Communication		 $1.15 bil $1.09 bil $0.99 bil
Subtotal $12.35 bil $11.88 bil $11.47 bil
Governance Capacity
Development		 $2.50 bil $2.29 bil $1.91 bil
Democracy and
Civil Society		 $2.03 bil $2.04 bil $1.66 bil
Public Services $1.93 bil $1.91 bil $1.73 bil
Humanitarian
Relief		 $0.82 bil $0.82 bil $0.75 bil
Subtotal $7.28 bil $7.06 bil $6.04 bil
Economy Economic
Governance		 $0.82 bil $0.80 bil $0.74 bil
Private Sector
Development		 $0.74 bil $0.74 bil $0.57 bil
Subtotal $1.56 bil $1.54 bil $1.32 bil
TOTAL $45.72 bil $43.57 bil $39.54 bil

Remaining Infrastructure Projects by Province

Province Electricity Water and
Sanitation		 Oil and
Gas		 Transporta-
tion and
Commun-
ication		 General
Infra-
structure		 Total
Baghdad $1,504.22 mil $755.31 mil $40.6 mil $282.17 mil $341.68
mil		 $2,923.97 mil
Basra $543.46 mil $238.32 mil $558.55 mil %171.8 mil $8.39 mil $1,520.52
mil
Tamim $362.23 mil $42.87 mil $187.39 mil $21.09 mil $8.47 mil $622.05
mil
Dhi Qar $106.67 mil $399.69 mil $0.43 mil $21.42 mil $13.06 mil $541.26
mil
Salahaddin $311.19 mil $59.51 mil $71.52 mil $65.75 mil $7.37 mil $515.36
mil
Anbar $251.58 mil $188.88 mil - $70.15 mil $3.92 mil $514.53
mil
Ninewa $118.74 mil $126.87 mil $0.08 mil $66.06 mil $6.97 mil $318.72
mil
Iirbil $102.54 mil $201.67 mil $0.08 mil $5.07 mil $2.46 mil $311.82 mil
Diyala $80.66 mil $143.47 mil $2.89 mil $23.79 mil $6.24 mil $257.05 mil
Muthanna $15.02 mil $189.79 mil $0.07 mil $19.12 mil $3.87 mil $227.87 mil
Babil $121.65 mil $47.63 mil - $36.01 mil $3.49 mil $208.78 mil
Najaf $72.79 mil $60.84 mil - $14.26 mil $4.43 mil $152.31 mil
Qadisiya $86.78 mil $30.46 mil - $21.75 mil $2.65 mil $141.63 mil
Maysan $76.31 mil $20.26 mil $0.06 mil $14.06 mil $6.32 mil $117.01 mil
Wasit $45.38 mil $30.21 mil - $19.18 mil $10.23 mil $105.01 mil
Karbala $46.99 mil $39.0 mil - $4.88 mil $1.58 mil $92.45 mil
Dohuk $61.4 mil $8l.34 mil - $0.93 mil $7.63 mil $78.3 mil
Sulaymaniya $49.03 mil $15.28 mil - $2.98 mil $1.06 mil $68.35 mil
Nationwide
& Regional		 $1,115.1 mil $487.18 mil $916.14 mil $418.14 mil $28.16 mil $2,964.71 mil
TOTAL $5,071.73 mil $3,085.58 mil $1,777.81 mil $1,278.6 mil $467.97 mil $11,681.69 mil

 

SOURCES
Cordesman, Anthony, “Assessing the Readiness of the Iraqi Security Forces,” Center for Strategic and International Studies, 8/12/09
Special Inspector General for Iraq Reconstruction, “Hard Lessons,” 1/22/09

- “Quarterly Report to the United States Congress,” 10/30/09