Who Lost Iraq?
June 29, 2004
By PAUL KRUGMAN
The formal occupation of Iraq came to an ignominious end
yesterday with a furtive ceremony, held two days early to
foil insurgent attacks, and a swift airborne exit for the
chief administrator. In reality, the occupation will
continue under another name, most likely until a hostile
Iraqi populace demands that we leave. But it's already
worth asking why things went so wrong.
The Iraq venture may have been doomed from the start - but
we'll never know for sure because the Bush administration
made such a mess of the occupation. Future historians will
view it as a case study of how not to run a country.
Up to a point, the numbers in the Brookings Institution's
invaluable Iraq Index tell the tale. Figures on the
electricity supply and oil production show a pattern of
fitful recovery and frequent reversals; figures on
insurgent attacks and civilian casualties show a security
situation that got progressively worse, not better; public
opinion polls show an occupation that squandered the
initial good will.
What the figures don't describe is the toxic mix of
ideological obsession and cronyism that lie behind that
dismal performance.
The insurgency took root during the occupation's first few
months, when the Coalition Provisional Authority seemed
oddly disengaged from the problems of postwar anarchy. But
what was Paul Bremer III, the head of the C.P.A., focused
on? According to a Washington Post reporter who shared a
flight with him last June, "Bremer discussed the need to
privatize government-run factories with such fervor that
his voice cut through the din of the cargo hold."
Plans for privatization were eventually put on hold. But as
he prepared to leave Iraq, Mr. Bremer listed reduced tax
rates, reduced tariffs and the liberalization of
foreign-investment laws as among his major accomplishments.
Insurgents are blowing up pipelines and police stations,
geysers of sewage are erupting from the streets, and the
electricity is off most of the time - but we've given Iraq
the gift of supply-side economics.
If the occupiers often seemed oblivious to reality, one
reason was that many jobs at the C.P.A. went to people
whose qualifications seemed to lie mainly in their personal
and political connections - people like Simone Ledeen,
whose father, Michael Ledeen, a prominent neoconservative,
told a forum that "the level of casualties is secondary"
because "we are a warlike people" and "we love war."
Still, given Mr. Bremer's economic focus, you might at
least have expected his top aide for private-sector
development to be an expert on privatization and
liberalization in such countries as Russia or Argentina.
But the job initially went to Thomas Foley, a Connecticut
businessman and Republican fund-raiser with no obviously
relevant expertise. In March, Michael Fleischer, a New
Jersey businessman, took over. Yes, he's Ari Fleischer's
brother. Mr. Fleischer told The Chicago Tribune that part
of his job was educating Iraqi businessmen: "The only
paradigm they know is cronyism. We are teaching them that
there is an alternative system with built-in checks and
built-in review."
Checks and review? Yesterday a leading British charity,
Christian Aid, released a scathing report, "Fueling
Suspicion," on the use of Iraqi oil revenue. It points out
that the May 2003 U.N. resolution giving the C.P.A. the
right to spend that revenue required the creation of an
international oversight board, which would appoint an
auditor to ensure that the funds were spent to benefit the
Iraqi people.
Instead, the U.S. stalled, and the auditor didn't begin
work until April 2004. Even then, according to an interim
report, it faced "resistance from C.P.A. staff." And now,
with the audit still unpublished, the C.P.A. has been
dissolved.
Defenders of the administration will no doubt say that
Christian Aid and other critics have no proof that the
unaccounted-for billions were ill spent. But think of it
this way: given the Arab world's suspicion that we came to
steal Iraq's oil, the occupation authorities had every
incentive to expedite an independent audit that would clear
Halliburton and other U.S. corporations of charges that
they were profiteering at Iraq's expense. Unless, that is,
the charges are true.
Let's say the obvious. By making Iraq a playground for
right-wing economic theorists, an employment agency for
friends and family, and a source of lucrative contracts for
corporate donors, the administration did terrorist
recruiters a very big favor.
http://www.nytimes.com/2004/06/29/opinion/29KRUG.html?ex=1089514579&ei=1&en=7224ecb80b28d21d
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