Article points out impact of economic "Shock Therapy" in Iraq.

[Armstead]

A British perspective, but applies to us as well.


Published on Tuesday, October 28, 2003 by the Guardian/UK
The Seeds of Iraq's Future Terror
Free Market Shock Therapy Must not be Imposed by the Occupiers

by Shirley Williams

http://www.commondreams.org/views03/1028-07.htm

EXCERPT:
....Even while serious fighting continues, the economic destiny of the country is being decided - not by the Iraqis themselves, but by the occupying powers and the US-appointed governing council, almost half of whom are exiles.

On the initiation of Paul Bremer, the US head of the Coalition Provisional Authority, a new law, order 39, came into force last month. It permits complete foreign ownership of Iraqi companies and assets (apart from natural resources) that have hitherto been publicly owned, total overseas remittance of profits and some of the lowest corporate tax rates in the world. In short, Iraq's economy has been put up for sale.

...It is extraordinary to hear a Labour (albeit New Labour) government endorsing such economic shock therapy. An extreme market model proved disastrous in post-Soviet Russia, where half the population fell below the poverty line. In Iraq, the effects are already being felt. Rather than repair the Baghdad telephone exchange, which the coalition bombed, the elitist decision has been made that Iraqis should rely on foreign-owned mobile phone networks. Press reports indicate that Iraqi hospitals, once famed as the best in the region, now face plans for privatization.

MORE

[Brucey]

1. Complete foreign ownership of Iraqi companies...

Now it is clear why we had to invade and occupy. We have found the weapons of mass destruction, and they are us.

[NJCher]

2. illegal

Legality of this is in doubt, according to report on NPR this a.m.


Cher

p.s. great meme, Brucey

[Armstead]

3. It's institutional looting

The public systems of the Iraquis are theirs -- not ours. If at some point when they are over the Shock and Awe of having their nation bombed and invaded they decide to folloiw a "free marketr" model, that ought to be their decision. It should not be imposed on them not when they are unable to set those policies for themselves.

[charlie]

4. In January

Bremer's killing the free food distribution, a relief operation that the UN deems one of the best in the world. Bremer calls it "dangerously socialistic." His advisors have counseled against it, but Bushies don't listen to expert advice. So, watch for rioting and stepped-up numbers of attack after Xmas.

[Armstead]

5. It's be just like Russia and Eastern Europe

If we force Iraq into a "free market" model and dismantle their safety net, it will only lead to the growth of black markets, criminal oligarchies and a backlash of resentment that breeds unrest and terroristic Islamic fundamentalism.

This is the real scandal of what we're doing there.

[Armstead]

6. kick

[Armstead]

7. That was only one

Technical glitch.