The Nation: Big Bucks in Iraq (the Wal-Marting of Iraq)

[Paschall]

In early October, Iraq's US-appointed Governing Council awarded the country's first mobile phone licenses to three companies from the Middle East. The decision was widely interpreted as a signal that Paul Bremer's Coalition Provisional Authority (CPA) was expanding its contracting base beyond US corporations like Bechtel and Halliburton to give local companies a break. In particular, analysts pointed out that the networks will be using a technology known as GSM, used widely in Europe and the Middle East, rather than the rival CDMA technology developed by Qualcomm of San Diego for North America and Asia. Qualcomm, joined by Lucent Technologies and South Korea's Samsung, even complained to the Financial Times that the bidding process "was designed to exclude CDMA from the beginning."

But any concerns about a US shutout from Iraq's telecom market were grossly exaggerated. The biggest winner in Iraq's largest foreign investment deal since the US invasion turned out to be Motorola, the US electronics giant. Motorola has had a long relationship with US intelligence and was saved from financial disaster three years ago when the Pentagon, in a deal brokered by one of Bremer's top advisers, leased Motorola's Iridium global satellite network; that network later became the backbone of the US military's communications system in Iraq and Afghanistan. ...

The story illustrates how the financial and trade policies the Bush Administration is pursuing in Iraq are not only benefiting well-connected US corporations but are also slowly integrating Iraq into the global economy and transforming its largely state-run economy into a captive market for foreign multinationals. ...

The blueprint for Iraq's economic future was unveiled by Iraq's US-appointed finance minister, Kamel al-Gailani, on September 21. The new laws, drafted by the CPA, allow foreign investors to own 100 percent of any Iraqi asset except oil and real estate and to remit profits and royalties when they choose. ...

The 100 percent ownership rules are needed to attract foreign firms to a country where security and basic services are in question {says a US official working with CPA}. "If you can't have majority ownership, you won't invest," he says. "But are US firms going to get a distinct advantage? No question about it."

http://www.thenation.com/doc.mhtml?i=20031110&s=shorrock

Why am I not surprised? Seems lack of security and basic services are the perfect pretext for the Wal-Marting of Iraq.

(Hadn't seen this article from Oct. 23 posted. Mods, if it's a dupe, please delete.)

[izzie]

1. Teapot' Doom' would be the name to use here.

We have shock and awe and Iraq get Greed and Doom.How can we change their culture over night? From a country that has always had a govt. to care for most of their needs to capital ruling the day. Will be interesting.