Economic Stability
The administration has stated that the creation of a competitive private sector within a democratic political system is one of its primary goals for Iraq. Although near-term economic assistance will focus on humanitarian and reconstruction needs, fostering long-term economic stability will require fundamental changes in institutions and laws that underpin market economies. Based on experience with other economic transitions, this transition is likely to face substantial challenges and will take a long time. The interim administration had begun paying pensions and financing emergency construction projects.
Building a sustainable market economy in Iraq will likely be a long-term effort. Iraq's centralized economic and political structure will require fundamental changes similar to those that are taking place in the countries of the former Soviet Union. The most immediate concern is Iraq's physical reconstruction including building roads, schools, and power plants. Another immediate concern is Ira's external debt and its war and reparations resulting from the 1990 invasion of Kuwait.--estimated to be as much as $400 billion. The United Nations has also begun distributing funds from the oil for food escrow.
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
