The Iraqi Impasse: Sustaining Economic Reconstruction During War-Time
Abstract
Economic recovery is important for
stability and peace in Iraq. The Iraq
Study Group proposed financial
aid to Iraq of around $5 billion
annually, while President Bush has
increasingly stressed the importance
of job creation in that country.
Unfortunately, significant economic
progress in Iraq is unlikely unless
part of a comprehensive strategy is
designed to overcome several forces
currently impeding reconstruction
and economic recovery: (a) the
growth and dynamics of the shadow
or informal economy, (b) the
deterioration in social capital, and
(c) the evolving relationship between
tribes, gangs and the insurgency. The
dynamic interrelationship between
these factors is causing a downward
economic spiral. Progress in one or
two areas alone will not be capable
of generating significant economic
gains. All of these factors need to be
addressed.
Rights
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