Sunday, January 07, 2007

Economic Action To Be Part Of Iraq Package

Counterinsurgency can only be successful when an appropriate formula of political, economic and military action is put into operation as part of a coherent strategy.

The package that is going to be presented with the administration's troop surge idea -- despite a new focus on economic action -- completely fails in the area of political action, i.e. putting forward a program which will defuse violence by rallying the population towards a peaceful future.

During its two-month interagency review, the Bush administration has struggled the most to come up with proposals to jump-start the stalled political process in Iraq, according to U.S. officials and Western diplomats. The fate of the revised strategy will be determined as much by new movement on Iraq's combustible political front as by success on the battlefield, administration officials said. ...

The centerpiece of the political plan is the creation of a national reconciliation government that would bring together the two main Shiite parties with the two largest Kurdish parties and the Sunni Iraqi Islamic Party, according to Iraqi and U.S. officials. The goal is to marginalize Moqtada al-Sadr, the leader of the largest and most powerful Shiite militia and head of a group that has 30 seats in parliament and five cabinet posts.

To ensure participation of Sunni moderates, the Bush administration is pressing the Maliki government to take three other major steps: Amend the constitution to address Sunni concerns, pass a law on the distribution of Iraq's oil revenue and change the ruling that forbids the participation of former Baath Party officials.

The three major economic options on the table would revive dormant state-owned industries, launch a micro-finance program to give small loans to generate new businesses and expand a U.S. Agency for International Development stabilization program.

A fourth option would add major funds to a short-term work program to hire Iraqis to clean up trash or do repairs after U.S. and Iraqi troops secure neighborhoods. This Pentagon-run program is a way to lure unemployed men who had joined militias back into the mainstream economy, at least briefly, with the U.S. intention that Iraq would eventually spend its own money to create permanent jobs.

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