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US Treasury sees 'window of opportunity' for Iraq economic reform
AFX News Limited
US Treasury sees 'window of opportunity' for Iraq economic reform
02.29.08, 3:58 PM ET
WASHINGTON (Thomson Financial) - Iraq's government has made real progress on economic reform over the last year, and with better security now has a chance to make much more progress improving the standard of living of its people, a senior US Treasury official said today.
'There is a window of opportunity on the economic reform side that has been created by the security improvement,' Undersecretary of Treasury for International Affairs David McCormick told reporters in a briefing after returning from two days of meetings with Iraqi economic officials in Baghdad. Now, it is 'critical that they seize the opportunity on the economic side,' he said.
Over the past year, for example, headline inflation has fallen below 2 pct from more than 65 pct at the end of 2006. The government has also signed a new economic program and stand-by lending agreement with the International Monetary Fund. It sets out economic benchmarks but does not provide immediate loans.
The IMF said 'despite difficult conditions, Iraq has made progress toward stabilizing the economy,' but that the economic outlook 'hinges on improved security.' The 2008 program includes maintaining lower inflation and expanding infrastructure projects in electricity, water, sanitation, education and health care.
McCormick emphasized that US Treasury technical assistance will focus on what officials call 'budget execution' as the key reform goal ahead. That is a somewhat euphemistic way of referring to the fact that Iraq has lacked even the basic administrative ability to spend the oil revenue or aid accumulating in the government accounts, and lacked any reasonable accounting system to prevent massive portions of what it did spend from being diverted by corruption.
But McCormick said Iraq has made enough progress that there is a shift from reconstruction to development and toward building governing and banking capacity. Treasury also plans on doubling its assistance staff in Iraq to 24.
McCormick would not accept the wording, but he did seem to be describing a situation in which, despite ongoing stalemate at the political level, there are bureaucrats in the government who still manage to make progress on some basic economic issues.
One particular political stalemate, the inability to pass an oil revenue distribution law, does remain a significant barrier to economic reform and progress in the average Iraqi's standard of living, McCormick said.
dennis.moore@thomson.com+dennis.moore@thomson.com
dem/pik/wash
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http://www.forbes.com/feeds/afx/2008...fx4716520.html
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Junior member
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This is great Wre. I hope we can soon cashin...Woooohoooo
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look at the date 02-29-08?????
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Member
Great post Wrebiejo! I like this statement: "Treasury also plans on doubling its assistance staff in Iraq to 24" (forbes.com, 2010). Let's us keep fingers and toes crossed this happens soon and look like that may be the case based on that article and a few others. If they can get that Oil Revenue Distribution Law passed, I am sure that would help also IMO.
LOL---Sorry, not into plagerism is why I referenced it.
Reference Link: http://www.forbes.com/feeds/afx/2008...fx4716520.html
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Great article W! I can always count on my angel to come through. God bless ya darlin.
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Good stuff..thanks for passing it along.
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