This article, via MIke via Harpers Magazine writer Naomi Klein, is a really disturbing account of war profiteering. It all makes sense when you consider how many “copntractors” and Outside business people have been the victims of kidnappings, beheadings, and hostage taking.
Baghdad Year Zero (Harpers.org)
Immediately after the nominal end of the war, Congress appropriated $2.5 billion for the reconstruction of Iraq, followed by an additional $18.4 billion in October. Yet as of July 2004, Iraq’s state-owned factories had been pointedly excluded from the reconstruction contracts. Instead, the billions have all gone to Western companies, with most of the materials for the reconstruction imported at great expense from abroad.
Bremer seems to be the CEO of the Iraq “reconstruction”, which , as we have heard, isn’t proceeding according to plan
L. Paul Bremer, who led the U.S. occupation of Iraq from May 2, 2003….. before the fires from the “shock and awe” military onslaught were even extinguished, Bremer unleashed his shock therapy…..Joseph Stiglitz, Nobel laureate and former chief economist at the World Bank, describes Bremer’s reforms as “an even more radical form of shock therapy than pursued in the former Soviet world.”
The tone of Bremer’s tenure was set with his first major act on the job: he fired 500,000 state workers, most of them soldiers, but also doctors, nurses, teachers, publishers, and printers. Next, he flung open the country’s borders to absolutely unrestricted imports: no tariffs, no duties, no inspections, no taxes. Iraq, Bremer declared two weeks after he arrived, was “open for business.”
One month later, Bremer unveiled the centerpiece of his reforms. Before the invasion, Iraq’s non-oil-related economy had been dominated by 200 state-owned companies, which produced everything from cement to paper to washing machines. In June, Bremer flew to an economic summit in Jordan and announced that these firms would be privatized immediately. “Getting inefficient state enterprises into private hands,” he said, “is essential for Iraq’s economic recovery.” It would be the largest state liquidation sale since the collapse of the Soviet Union.
But Bremer’s economic engineering had only just begun. In September, to entice foreign investors to come to Iraq, he enacted a radical set of laws unprecedented in their generosity to multinational corporations. There was Order 37, which lowered Iraq’s corporate tax rate from roughly 40 percent to a flat 15 percent. There was Order 39, which allowed foreign companies to own 100 percent of Iraqi assets outside of the natural-resource sector. Even better, investors could take 100 percent of the profits they made in Iraq out of the country; they would not be required to reinvest and they would not be taxed. Under Order 39, they could sign leases and contracts that would last for forty years. Order 40 welcomed foreign banks to Iraq under the same favorable terms.
Sounds like the Bush plan for America….gut the government workers and “blockages” to “free enterprise” (those damn “safety and health and environmental regulations that keep them from making better profits, so they can send them “trickling” up….I mean down.)
These developments present a challenge to the basic logic of shock therapy: the neocons were convinced that if they brought in their reforms quickly and ruthlessly, Iraqis would be too stunned to resist. But the shock appears to have had the opposite effect; rather than the predicted paralysis, it jolted many Iraqis into action, much of it extreme.