DUBAI, 24 September 2003 — The US-backed drive to offer Iraq’s businesses to foreign buyers as quickly as possible will help cut the huge cost of occupation but has angered Iraqis who fear they will lose out.
Sweeping economic reform measures unveiled at meetings of world financial leaders here on Sunday will allow foreign ownership in every industry except natural resources.
US officials, keen to deflect domestic criticism of Bush’s request of $20 billion for reconstruction and advance their vision of Iraq as an engine for democracy and capitalist growth in the Middle East, said it was an alluring market.
“You can make money in a country like Iraq,” a US official involved in the reconstruction effort said after the announcement at the International Monetary Fund and World Bank meetings in Dubai. “You don’t have to have everything be perfect to make money,” he said.
Some Arab experts argue that attracting foreign investment is the only way to lift the battered Iraqi economy off its knees. But the surprisingly broad measures, which end an era of economic domination by Saddam Hussein and his socialist Baath party, drew the ire of many Iraqis who fear the unbridled competition could destroy their livelihoods.
“We don’t want to end up working for the foreigner,” said Baghdad-based Sabah Ghaidan, who was not reassured by the recent award to his contracting firm of a $1.5 million contract to repair a highway bridge hit during the war.
Many Iraqis, who have a long-held animosity toward Israel, fear opening the door to foreign companies may allow Israeli firms into the country.
“We are an Arab country and now the Israelis will come and buy our industry and banks,” said Izzideen Shawki, financial advisor in privately-owned Commercial Bank of Iraq.
Iraqi delegation leader Adil Abdul Mahdi said the Governing Council had no plans to officially recognize Israel, while other officials sought to reassure financial leaders their capital would be in safe hands.
“In terms of those who risk their capital in the market, there is definitely going to be a firm policy of equitable treatment for all,” said Iraqi Trade Minister Ali Allawi.
