BlogWood: MT Archives

Problems on the imperialistic front

Krugman on problems in Iraq:

Why was it predictable that Iraq would go wrong? The squandered victory in Afghanistan was an obvious precedent. But the character flaws in the Bush administration that led to the present crisis were fully visible in the months that followed 9/11.

It quickly became apparent that President Bush, while willing to spend vast sums on the military, wasn't willing to spend enough on security. And 9/11 didn't shake the administration's fanatical commitment to privatization and outsourcing, in which free-market ideology is inextricably mixed with eagerness to protect and reward corporate friends.

Sure enough, the administration was unprepared for predictable security problems in Iraq, but moved quickly — in violation of international law — to impose its economic vision. Last month Jay Garner, the first U.S. administrator of Iraq, told the BBC that he was sacked in part because he wanted to hold quick elections. His superiors wanted to privatize Iraqi industries first — as part of a plan that, according to Mr. Garner, was drawn up in late 2001.

Meanwhile, the administration handed out contracts without competitive bidding or even minimal oversight. It also systematically blocked proposals to have Congressional auditors oversee spending, or to impose severe penalties for fraud.

Cronyism and corruption are major factors in Iraq's downward spiral. This week the public radio program "Marketplace" is running a series titled "The Spoils of War," which documents a level of corruption in Iraq worse than even harsh critics had suspected. The waste of money, though it may run into the billions, is arguably the least of it — though military expenses are now $4.7 billion a month. The administration, true to form, is trying to hide the need for more money until after the election; Mr. Cordesman predicts that Iraq will need "in excess of $50-70 billion a year for probably two fiscal years."

More on corruption, waste, and mismanagement within the CPA can be found in Jason Vest’s enlightening description of a leaked CPA memo here.

Developing this theme, the memo asserts that the U.S. "share[s] culpability in the eyes of ordinary Iraqis" for engendering Iraq's currently cronyistic state; since "we appointed the Governing Council members . . . their corruption is our corruption." The author then notes that two individuals—names again redacted—have successfully worked to exclude certain strains of Shia from obtaining ministerial-level positions, and that for this "Iraqis blame Bremer, especially because the [CPA] Governance Group had assured Iraqis that exclusion from the Governing Council did not mean an exclusion from the process. As it turns out, we lied. People from Kut [a city south of Baghdad recently besieged by Shiite forces loyal to Muqtada al Sadr], for example, see that they have no representation on the Governing Council, and many predict civil war since they doubt that the Governing Council will really allow elections."

Fanning the embers of distrust is the U.S.'s failure to acknowledge that the constituencies of key Governing Council members "are not based on ideology, but rather on the muscle of their respective personal militias and the patronage which we allow them to bestow," according to the memo's author. Using the Kurds as an example, he reveals that "we have bestowed approximately $600 million upon the Kurdish leadership, in addition to the salaries we pay, in addition to the USAID projects, in addition to the taxes which we have allowed them to collect illegally." To underscore the point, the author adds that he recently spent an evening with a Kurdish contact watching The Godfather trilogy, and notes that "the entire evening was spent discussing which Iraqi Kurdish politicians represented which [Godfather] character."

And here’s the text of the actual memo.