U.S. to Iraq... Once this 18.6b runs out, you're on your own

'Marshall Plan' for Iraq Fades

Once the $18.6 billion for reconstruction is spent, the nation might have to rely on private investment. 'No pain, no gain,' a U.S. official says.

BAGHDAD ?- After more than 2 1/2 years of sputtering reconstruction work, the United States' "Marshall Plan" to rebuild this war-torn country is drawing to a close this year with much of its promise unmet and no plans to extend its funding.

The $18.6 billion approved by Congress in 2003 will be spent by the end of this year, officials here say. Foreign governments have given only a fraction of the billions they pledged two years ago.

With the country still a shambles, U.S. officials are promoting a tough-love vision of reconstruction that puts the burden on the Iraqi people.

"The world is a competitive place," Tom Delare, economics counselor at the U.S. Embassy, said this month during a news briefing. "You have to convince the investor that it is worth his while to put his money in your community."

An embassy spokeswoman later said that the Bush administration was not abandoning the Iraqi reconstruction effort. It "remains committed to helping build Iraq and continues to assess needs on the ground," she said. No decisions on future funding requests have been made, she said.

But embassy and reconstruction officials outlined a program of private investment and fiscal belt-tightening by the new Iraqi government as the long-term solution to the country's woes, even if that causes short-term suffering for Iraq's people.

"No pain, no gain," Andy Wylegala, whose job at the embassy is to help Americans do business in Iraq, said at the same briefing. "It's a very difficult procedure to pass through. But when I look from my side, I see it as a long-term, very favorable development."

After touring Baghdad early this month, Sen. Jack Reed (D-R.I.) questioned the new direction.

"I think we're fooling ourselves if we think we can simply just pass this on to the Iraqi people immediately or to the international community," Reed said. "We've got to continue our efforts…. That requires money."