Official reports progress in Iraq's reconstruction (some "good news")

[sabra]

http://www.dcmilitary.com/army/pentagram/10_63/national_news/40534-1.html

Official reports progress in Iraq's reconstruction

Over the past three years Iraq has witnessed a tremendous boom in reconstruction and economic development, the U.S. director of the Iraq Reconstruction Management Office said.

"It's useful to remember where we were in 2003 with liberation," Ambassador Daniel Speckhard said during a press conference in Baghdad Friday. "In 2003, Iraq had the highest debt ... as a share of gross domestic product in the world. And today about two-thirds of that debt has been written off as a result of the support by the international community."

Iraq's per capita income had fallen from around $4,200 per person in 1980, which at the time was higher than Spain, to $500 per person in March 2003, he said. Today it stands at $1,200 -- "a significant advancement in a very short time," Speckhard said.

...


"If you look out into the streets, ... you'll see a very vibrant economy," Speckhard said. "People (are) buying consumer and durable goods -- refrigerators, air conditioners, televisions and so forth."

To back up his claim he presented Howard Kaloogian's photo: :-) :sarcasm:

[NanceGreggs]

1. Yuppers!

"... refrigerators, air conditioners, televisions and so forth."

Too bad there isn't a sufficient flow of electricity to make those items work on a regular basis.

[xdeathstarx]

4. That's why

There's an electricity problem in the first place.

Because of the economic boom, power is sapped like never before. Even though the power output is higher than pre-war levels.

[BR_Parkway]

8. Do you have a source that shows power output is higher now? We like

to deal in facts here, posting links to your source material is always good to add to the discussion.

[enigma000]

11. It's about the same according to this report

Electricity Production (average megawatts; prewar estimate: 4,000)
Feb. 2004 - 4,100
Feb. 2005 - 3,600
Feb. 2006 - 3,700

What is causing much of the problem is the proliferation of foreign electrical goods in Iraq - TVs, Satellite Dishes, air conditioners, etc.

More interesting info:
http://www.brookings.edu/views/op-ed/ohanlon/20060319.htm

[BR_Parkway]

13. According to your Brookings Inst. source , it's down about 10% from Feb 04

so the original poster was incorrect.

The country's economy continues to disappoint. Although it had a fairly quick recovery in 2003 and early 2004, when gross domestic product was restored to Saddam Hussein-era levels, violence and instability have prevented much further progress. And while subsidies for gasoline and some other goods, which have been costing the Iraqi government about $10 billion a year, or a third of gross domestic product, have been reduced, projections that the country's economy will grow by 10 percent a year for the rest of the decade look increasingly suspect. Current growth sputters along at less than 5 percent despite sky-high prices for oil exports. Most utilities (except telephones and Internet services) are still performing below Baathist-era levels. Unemployment remains very high.

They also report this:

Household Fuel Availability
percent of estimated need)

Feb. 2004 - 88
Feb. 2005 - 84
Feb. 2006 - 55

without any explanation if they are including electricity as fuel in that calculation

The other part that made me doubt his version was that there are no electronics manufacturers posting sales gains of any significance that would have gone hand in hand with

Considering the Brookings Institute RW leanings, even the cons are having trouble reporting the 'good news'

[Roland99]

2. Easier to get per capita up when there's less "capita"

[ShockediSay]

10. but there're lots of jobs in security

with lotsa new openings every day!

[PATRICK]

3. Did they just use the Istanbul

setting from another whole time and angle just because the mighty propaganda machine can't stop it own mistakes in time????

Wow. How do we find out if more of these fake photo shoots are going to turn up in the Great Wurlitzer? Is there a way of googling specific images or do we just have to do it the hard way?

As some mentioned, the small embarrassment of the first fake shot was part of a larger scheme to spread this propaganda far and wide. But this is plain stupid even for stupid people.

[Barrett808]

5. "We remain committed to continuing our reconstruction efforts"

Even though we're essentially done with "reconstruction." Only intended to "jump-start" it, ya know.

[UpInArms]

6. USAToday: U.S.: Iraq on own to rebuild (3/23/06)

http://www.usatoday.com/news/world/iraq/2006-03-23-iraq-rebuild_x.htm

3/23/2006 11:09 PM

BAGHDAD — The head of the U.S.-led program to rebuild Iraq said Thursday that the Iraqi government can no longer count on U.S. funds and must rely on its own revenues and other foreign aid, particularly from Gulf nations.

"The Iraqi government needs to build up its capability to do its own capital budget investment," Daniel Speckhard, director of the U.S. Iraq Reconstruction Management Office, told reporters.

The burden of funding reconstruction poses an extraordinary challenge for a country that needs tens of billions of dollars for repairing its infrastructure at the same time it's struggling to pay its bills. Iraq's main revenue source — oil — is hampered by insurgent attacks on production facilities and pipelines, forcing the country to spend $6 billion a year on oil imports.

Iraq's deputy finance minister, Kamal Field al-Basri, said it was "reasonable" for the United States to sharply cut back its reconstruction efforts after spending about $21 billion. "We should be very much dependent on ourselves," al-Basri said in an interview.

Anthony Cordesman, a Middle East expert at the Washington-based Center for Strategic and International Studies, called the U.S. reconstruction effort "a dismal failure. It hasn't met any of its goals. It's left a legacy of half-built projects, built to U.S. standards, which Iraq doesn't have the capability to maintain."

...more...

US: Halliburton's Performance Worsens under Second Iraqi Oil Contract

These documents show that between July 2004 and July 2005, Halliburton 's performance under RIO 2 repeatedly received scathing critiques:

• Intentional Overcharging: The PCO board evaluating Halliburton 's request for award fees found that Halliburton repeatedly overcharged the taxpayer, apparently intentionally. In one case, "ost estimates had hidden rate factors to increase cost of project without informing the Government." In another instance, Halliburton "tried to inflate cost estimate by $26M." In yet a third example, Halliburton claimed costs for laying concrete pads and footings that the Iraqi Oil Ministry had "already put in place."

• Exorbitant Costs: The PCO reported that Halliburton was "accruing exorbitant indirect costs at a rapid rate" and that Halliburton 's "lack of cost containment and funds management is the single biggest detriment to this program." The oversight contractor found a "lack of cost control … in Houston, Kuwait, and Iraq." In a partial review of the RIO 2 contract, DCAA auditors challenged $45 million in costs as unreasonable or unsupported.

• Inadequate Cost Reporting: The PCO found that Halliburton "universally failed to provide adequate cost information," had "profound systemic problems," provided "substandard" cost reports that did "not meet minimum standards," and submitted reports that had been "vetted of any information that would allow tracking of details." The oversight contractor complained about "unacceptable unchecked cost reports."

• Schedule Delays: Halliburton 's work under RIO 2 was continually plagued by delays. According to the PCO, Halliburton had a "50% late completion" rate for RIO 2 projects. Evaluations by the award fee board noted "untimely work" and "schedule slippage."

• Refusal to Cooperate: PCO evaluations described Halliburton as "obstructive" with oversight officials. Despite the billions in taxpayer funds Halliburton has been paid, the company's "leadership demonstrated minimal cooperative attitude resolving problems."

[fshrink]

7. Not even able to reconstruct our own cities.

Incompetence allied with greed, stupidity and core dishonesty will only produce two things: profit and chaos. Everywhere it reigns.

[gratuitous]

9. So some paper got shuffled, some numbers were massaged

And hey presto! It's a recovery and rebuilding! What else are we to make from this statement:

"In 2003, Iraq had the highest debt ... as a share of gross domestic product in the world. And today about two-thirds of that debt has been written off."

In other words, the wealth of Iraq is no longer just being used to pay interest to creditors. We had to spend half a trillion dollars and thousands of lives to make that happen? Wouldn't a polite phone call have done the trick? "Say, IMF. I know Iraq is into you for a lot, but they're really in a jam right now. What say you just write off everything more than, oh, say five years old? You're never going to get it paid back, and maybe you could use the credit against your adjusted gross income. Maybe you'll qualify for a refund next year? Thanks; you're a peach. My best to Mrs. IMF and the kidsies."

[nevergivein]

12. Infuriating!

Wow! How crazy can people be? Oh yes, people are just flocking to the stores to get all sorts of consumer goods. Maybe they could open a Costco or Best Buy there. That's what counts, right. Just a reminder: Here's an article about the corruption found by the US audit from the reconstruction effort.

http://www.manticeye.com/article.php?id=753_0_2_0_C