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Sat., Nov 22, 2008 / Dhul-Qi`dah 24, 1429

News > Asia & Australia

Financial Meltdown Bites Iraqis

By Afif Sarhan, IOL Correspondent

Aid donations for thousands of displaced Iraqis have dropped over the gloval financial crisis. (IOL photo)

BAGHDAD — Every morning, Muhammad Raja'a goes to aid workers at a local Iraqi non-government organization to get his monthly aid on which his family depends.

But to his surprise, he is told that the NGO has no enough aid for him and other displaced Iraqis.

"They told us that the economical crisis worldwide would have a direct impact on their aiding," Raja'a told IslamOnline.net on Saturday, November 22.

"We are terrified by the possibility of losing their support which is essential under the high levels of unemployment and displacement in Iraq."

A financial firestorm swept the US in September after the collapse and financial woes of a number of Wall Street giants.

The crisis impacted the flow of aid donations for thousands of displaced Iraqis, leaving local NGOs struggling to cope with the demand.

"We believe that about 40 percent of donations to Iraq might be cut off," said Mark Campbell, a London-based economical analyst.

"In fact, out of record talking's with donors and sponsors have shown this worry and possible lack in fund for investments and aid support."

Campbell expects the aid projects to be the hardest-hit by the financial meltdown.

"In my point of view, donations to aid projects in Iraq will have a great impact on its development," he said.

"It will be an inevitable situation as economical crisis is already affecting the major potencies worldwide and as a consequence, those countries who depend essentially from their donations, will find affected by the decrease in support."

Nightmare

Aid donations for thousands of displaced Iraqis have dropped over the gloval financial crisis. (IOL photo)

Many local and international NGOs have already shelved aid projects for poor Iraqis over the financial crisis.

"We cannot take the risk to start a new project without the certain that we will continue receiving support for it next year," an official at the International Committee of the Red Cross told IOL, requesting anonymity.

"We are aware that many of these projects are essential for Iraqis but it would be much worse starting and leaving it after a couple of month, resulting in a chaotic situation.

The official says the Iraqi government has appealed for more aid support for displaced Iraqi families.

"Although, under actual economical circumstances, I believe that not so much can be done and we will have to watch and fear the probable conditions that we will have to fight next year."

The Iraqi government has sought to get answers from NGOs about their expectations of aid donations for the coming year.

"But everyone just say that have to wait to see how things will work out under the actual crisis worldwide, and only after that they can give us some information about aid support," said Waleed Abdullah, senior official in the Ministry of Labor and Social Affairs.

"We don't receive direct support from NGOs and donors but we are cleaver enough to know that the government cannot cope with the demand alone and we need their support to give a better live to thousands of Iraqis."

Sharon Critoph, communication coordinator of NGO Coordination Committee in Iraq (NCCI), warns of a "nightmare" in Iraq over the dropping aid donations.

"Losing funding means that the Iraqi population, already living under very dire conditions all over the country, will lose a neutral and impartial support and assistance," she said.

"More problems in third countries normally means more problems in richer countries: increasing migrations, ethnic/cultural tensions abroad and at home, deteriorations of situations in key countries that produces wealth, and goods for the richer.

"Our recommendation to donors is not to cut aid money at all as this will have to be paid back more expensively in the future."

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