Meltdown Hits Iraq's Reconstruction

Iraqi officials blame the global financial meltdown and dwindling investments for the slowing reconstruction process. (IOL photo)

But the promises were never translated into actions.

"We don't have proper clean water and power," Jubair, a resident at Baghdad's Al-Sadr district, told IslamOnline.net.

"Even our monthly food ration had its quality diminished to cut expenses, however, the money left was never used in function of the population.

"There aren't jobs, many are still displaced and there isn't one Iraqi who saw a reconstruction project ended," he said.

Jubair said the government always finds excuses not to fulfill its promises of completing reconstruction projects in the war-torn country.

"Since the invasion they are promising to improve our living condition," he said.

"It is time for us to urge for our rights. If we don't go to streets and force the government to look after us, they will always keep searching for their own benefits."

Despite improving security conditions, Iraq's reconstruction process has hit a stalemate.

Iraqi officials blame the global financial meltdown and dwindling investments for the slowing reconstruction process.

"We cannot blame alone the international crisis for the low investments in projects for reconstruction, especially those related to basic services," said Leith Abdel-Azize, a senior official in the Ministry of Reconstruction.

"But it (crisis) gave its impact on our economy and now it might get worse if a huge budget isn't approved.

"The United States is the main supporter of our stability and any crisis that involves their economy will have direct impact in Iraq," he said.

"Their soon withdrawal will force the government to spend much more on security and as we witnessed before, some reconstruction projects might be delayed again."

Dilapidated

Open sewages, lack of potable water and decadent health infrastructure have become a normal thing in Baghdad. (IOL photo)

Iraqis accuse the government of not paying enough attention to improve their living conditions.

"My only income is on the ground mixed with dust," said Human Wakil, 38, a shopkeeper in Ramadi, whose shop was destroyed during US military operations in the city.

"To make things worse, we don't have clean water in our neighborhood and electricity is a dream.

"Where is all that money that was allocated for reconstruction projects after invasion? Why it hasn't been used in our benefit?"

Bashier Fuaad, a resident at Sadr district also blasted the government.

"They are just paying attention to their pockets, prestige and power," he told IOL.

"Where are the Iraqi people in all this process?"

It is easy to see the delay in the country's reconstruction by a simple walking at Baghdad streets.

Open sewages, lack of potable water, few hours of electricity and decadent health infrastructure have become a normal thing in the capital.

"People don't eat security or politics," said Waef Abdel-Kareem, professor of economics at Baghdad University.

"Iraqis are waiting six years for improvements in their lives and now they have to suffer the results of this international economic crisis without receiving anything in exchange."

He said the government has allocated huge sums of money for security issues.

"Salaries improved but basic services didn't show any step up," he said.

"Surviving in Iraq is the same of surviving at any jungle, without basic services and running away from predators."

Mismanagement

Experts blame the Iraqi government for mismanaging its financial resources.

"Oil production has decreased considerably in the past months and less income is observed by the Oil Ministry from where comes the major wages of Iraq's economy," Othman Muhammad al-Malaika, an economist and consultant, told IOL.

Iraq has no other income rather than its oil revenues.

Industry and agriculture have been forgotten since the US invasion and no investments have been channeled in the two fields.

Farmers are also complaining that the government is not offering enough support and the country has to import almost everything.

"It is a sign that Iraq is late in investing in other sources of incoming and if they don't take serious from now, a chaotic situation will be reported soon," said Malaika.

The Iraqi parliament has been debating a proposal of nearly $63 billion budget, which can prevent an economical crisis.

But experts cast doubts that the new budget will help alleviate the impact of the crisis as questions still remain on where the money allocated for reconstruction since the 2003 invasion was spent.

"Since 2004, the Iraqi government has said that a huge sum of money, around US $25 billion, has been allocated to projects but no results have been seen yet and the money seems to have been standing in banks at US or disappeared in corruption cases," said Malaika.

"If the government just spends its money on security, takes loans, and doesn't prepare itself for a more complicated future, what is going to happen when the crisis takes uncontrolled levels?"

Abdel-Kareem, the economics professor, agrees.

"Under the economic international crisis, the Iraqi government raised salaries of most of its employees and now have to overcome its deficit of money to pay them," he said.

"Sometimes, I ask myself if the government knows what they are doing and what can happen if oil prices drop and they cannot keep paying them as much as they do today, causing crisis inside each family."