US and international efforts in Iraq were likely to take "years and not months" to help Iraq meet its potential, US officials told the Senate’s Foreign Relations Committee on its second hearing on post-conflict Iraq, held June 4, 2003, reported the official Washington File.
Alan Larson, the State Department's Undersecretary for Economic, Business and Agricultural Affairs told the senators that Iraq itself would share the cost of its own development. "Among the sources of revenues available are $1.7 billion in invested Iraqi assets, the found assets in Iraq which currently total roughly $600 million, and one billion dollars of unallocated Oil for Food money that will be deposited in the development fund for Iraq," he said.
"Together these assets represent a substantial down payment on Iraq's future, but the administration of Iraqi assets will require full transparency and a high degree of political sensitivity," cautioned Senator Richard Lugar, committee chairman.
The hearing focused primarily on the Bush administration's assessment of the potential costs and length of America's direct involvement in Iraqi reconstruction. "As we move into the expensive and complicated process of rebuilding Iraq, Americans will want to know that their money is being spent effectively and that other nations are contributing a fair share," said Lugar.
The UNDP, World Bank, and the United States will be taking a leading role in pulling together an initial meeting on Iraq reconstruction issues in New York on June 24, Larson informed lawmakers. "While this meeting is not a pledging session, it will set in motion a process of collaboration in assessing needs and in mobilizing the resources to meet those needs."
Treasury Department's Undersecretary for International Affairs John B. Taylor underscored the challenge and commitment needed to modernized Iraq's economy. "In 1979, Gross Domestic Product (GDP) in Iraq was $128 billion. In 2001 it had declined to about $40 billion. And income per capita has plummeted, the people have been impoverished, and this is during a period when the world economy has expanded," Talyor told the Senate Foreign
Relations Committee.
"There is no doubt success will be very expensive and it will take years and not months," Undersecretary for Defense Dov S. Zakheim said, emphasizing, however, the importance Iraq's entry into the world community of stable, democratic nations.”
"Over 1.5 million workers and pensioners have received salaries and emergency payments. Our financial experts in Baghdad report that Iraqis and other observers consider this act alone to be a turning point in the mood of many in the city. These payment have enabled Iraqis to return to work to run the railroads, to teach school children, and to help in the payment of other Iraqis," Taylor said. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
