One Year Anniversary Of Musings!

June 17 was the one-year anniversary of Musings On Iraq. I obviously got into the blogging game late. I’d been reading and writing about Iraq since 2002, but I only posted on message boards and comment sections. I never knew how easy it was to start a blog until last year.

This is obviously a labor of love, which takes up a lot of my free time after teaching and taking care of the family. You don’t know how many complaints I hear from them about working on Musings. I guess it’s all worth it. I’d especially like to thank all the loyal readers. I hope more will check out the site, but this is a bad time, since Iraq is becoming the “forgotten war.” The U.S. is likely to be heavily involved there for the next decade so I should have enough to write about in the future. Thanks to everyone that stops by. - Joel

Iraqis Unwilling To Maintain Their Army

Nearly every official report on Iraq’s security forces notes that they do not have the ability to supply and support themselves. Few if any details however, are ever given on what exactly this means. In April 2009 the Special Inspector General for Iraq Reconstruction (SIGIR) conducted an audit on the U.S. military’s effort to build up the Iraqi Army’s logistics capabilities. The SIGIR found that the Iraqi Defense Ministry has refused to take responsibility of the maintenance program created by the Americans, has not sent soldiers to be trained in these duties, and that the Iraqi Army cannot operate independently as a result.

Beginning in early 2005 the U.S. command in Iraq began working on Iraq’s supply system. The goal was to allow the Iraqi Army to act autonomously without U.S. support. The program focused upon maintenance, supply, transportation, and health services. The plan has gone through six phases, two of which are still operating. In total the program has received $682.2 million in funding, $572.0 million of which has been spent. The orders for the plan were never clear, they have been changed 161 times, there was little oversight, and has not been supported by the Ministry of Defense. The result is that costs have increased $420.5 million, and are expected to go up an additional $60 million until the last order expires in January 2010.

The SIGIR audit focused upon Orders 3, 5 and 6. Order 3 was started in May 2005 and completed in June 2007. It set up ten maintenance facilities, one for each Iraqi Army division. The order was also to provide training for Iraqi soldiers so that they could operate the bases. Order 5 was a follow up to provide training and maintain the ten facilities. It was supposed to end on May 31, 2009, but has been extended to November 30, 2009. Order 6 was for maintenance on 8,500 HUMVEES that were transferred from the Americans forces to the Iraqis. It is due to expire on July 6, 2009, but will be extended until January 6, 2010.

The three orders have faced daunting challenges since they began. On the American side, the U.S. never assigned enough personnel to oversee the orders, which could have led to corruption and waste. Many of the benchmarks were unclear, changed, or never followed. For example, 80% of the Iraqi vehicles were to be operational at all times, but this was never enforced. Order 3 and 5 had no details on how they were to be evaluated as successful or not. The U.S. has also transferred eight of the 10 maintenance facilities to Iraqi control, despite the fact that the Defense Ministry has not accepted responsibility for them. There is no agreed upon process for the handover of these bases, yet they are happening anyway. The Iraqi Army also only sent one class of soldiers to be trained. Many of them lacked the education for the training. That is not uncommon. An on-going Iraqi Army audit has found that 24% of the force is not qualified for their jobs, and that 15% are illiterate. This is mostly blamed on the Americans drive to increase the security forces as quickly as possible, which emphasized quantity over quality. Most of the soldiers that did show up for training complained about not getting paid for weeks, and quit before they were finished. The Defense Ministry has not sent any new soldiers since then. That was the major reason why Order 5 was issued when Order 3 ended, and why the U.S. military is looking to extend Order 5 and 6 as well.

In the end, the Special Inspector General does not believe that the Iraqi Army has improved at all under this program. There is no evidence that the Iraqi forces are any more capable of maintaining their equipment now than when the plan began in 2005. The main reason is that the Defense Ministry has given no support to the effort at all. That leaves the Iraqi armed forces almost completely dependent upon the Americans for their logistics. The two existing programs have already been extended, and will probably be again and again until Baghdad does something about this problem. This will likely be another cause for the U.S. military and the Iraqi government to ask President Obama to maintain a residual force in Iraq after the December 31, 2010 deadline for all combat troops to be withdrawn from Iraq. The Iraqi security forces still don’t have the equipment to protect themselves from outside threats. The SIGIR audit shows that they can’t even sustain their counterinsurgency campaign without the Americans as well.

SOURCES

Arraf, Jane, “Iraqi Army: almost one-quarter lacks minimum qualifications,” Christian Science Monitor, 5/22/09

Department of Defense, “Measuring Stability and Security in Iraq,” March 2009

Special Inspector General for Iraq Reconstruction, “Quarterly Report to the United States Congress,” 4/30/09
- “Security Forces Logistics Contract Experienced Certain Cost, Outcome, and Oversight Problems,” 4/26/09

Trying To Revive the United Iraqi Alliance

Almost as soon as the new provincial councils were named after the January 2009 elections, campaigning began for the January 2010 parliamentary vote. One major move afoot is an attempt to revive the United Iraqi Alliance (UIA). The UIA was once the dominant force in Iraq’s legislature, but quickly broke apart in 2007. Several Shiite parties, including the Sadrists, left the coalition then, and in 2008, an emboldened Prime Minister Nouri al-Maliki began moving away from the group as well. Now there is a drive by both internal and external forces to bring the alliance back together.

The United Iraqi Alliance was a grouping of several different parties, brought together under the urging of Iraq’s leading Shiite cleric, Grand Ayatollah Ali al-Sistani, and Iran. The current Oil Minister Hussain al-Shahristani was tasked by Sistani to put the coalition together in 2004. Iran’s Qods Force of the Revolutionary Guards also played a role providing advisers, printing presses, broadcast equipment, etc. The leading members of the group were the Supreme Islamic Iraqi Council (SIIC) and its allies the Badr Organization and Hezbollah Movement in Iraq, the Dawa Party, and later the Sadrist movement. Together they ran 228 candidates in the January 2005 elections for the transitional parliament, coming away with 140 seats. In April they named Ibrahim al-Jaafari, the head of the Dawa Party, to be Prime Minister. In the December 2005 elections for the permanent parliament, the UIA, this time with a slightly different line-up including the Sadrists, again came out victorious with 128 seats. Months later in April they named Nouri al-Maliki, again of the Dawa Party, the new Prime Minister.

The electoral victories of the United Alliance covered up the fact that the coalition was one of convenience rather than shared vision. As early as December 2005 there were reports of dissatisfaction with the UIA’s performance. On December 9, 2005 the New York Times for example, ran an article where the coalition was criticized for not having a vision for the country, and not appointing qualified people for office. Iraqis were also voicing dissatisfaction with the administration of Prime Minister Jaafari. The lack of coordination within the alliance should’ve been apparent from the beginning as it was made up of so many different parties with different views. The SIIC for example, proposed a nine province Shiite federal region in the south, but the Sadrists who wanted a strong central government opposed this. There were also Shiites in the south that wanted just a Basra, Maysan, Dhi Qar region, and some that wanted Basra federalism. After the December elections, the rivalary between the Supreme Council and Sadrists came to the fore, as they split over naming a replacement for Jaafari. It took them five months to pick Maliki as a compromise candidate.

By 2007 the alliance began to crumble. In March the Fadhila party withdrew its 15 seats. The Fadhila was a breakaway Sadrist movement from Basra that had long disagreed with the Supreme Council over the direction of the south. In April the Sadrists withdrew their five ministers from Maliki’s cabinet, and then boycotted parliament from June to July. By September Sadr had officially withdrawn from the UIA, taking his 30 legislators with him. The Alliance’s control of parliament was greatly reduced by these defections going from 128 to 83.

When campaigning for the January 2009 provincial elections began, it was apparent that the UIA was dead. Most importantly Prime Minister Maliki formed his own State of Law List rather than run with the Supreme Council. Former Prime Minister Jaafari and the Fadhila party also ran independently, while the Sadrists supported two independent groups. That left the SIIC to put forward their own group, the Al-Mihrab Martyr List, as well. When the different parties were forming ruling coalitions, Maliki’s State of Law also attempted to shut the SIIC out, which worked in many provinces.

Now all of the parties are focusing upon the January 2010 parliamentary elections. The Supreme Council is trying to reform itself after its defeat in the 2009 vote. As part of this they are hoping to revive the United Iraqi Alliance by bringing Maliki back into the fold. Iran too is pushing for the UIA to be rebuilt, so that Shiite power is maintained as well as Iranian influence over the leading Iraqi parties. The Prime Minister on the other hand, has everyone guessing as to what he’s going to do. In February 2009 Asharq al-Awsat reported that Dawa wanted to form a new alliance that was more in line with Maliki’s policies of a strong central authority, and better government and services. At the end of May however, he flew to Tehran to meet with SIIC leader and head of the United Alliance Abdul Aziz al-Hakim, who is undergoing cancer treatment there. It’s also been reported that Maliki is willing to rejoin the UIA if he is its leader, and his Dawa Party is given a more prominent role.

The UIA is also in contact with other former members, and may reach out to new ones. According to Al-Sharqiyah TV, the United Alliance has approached the Sadrists, but they appear to be leaning towards the same strategy they took in the provincial vote, backing independents. Ex-Prime Minister Jaafari has also recently commented on the UIA saying that it needs to learn from its mistakes and be more issue oriented. There is also talk of the UIA reaching out to independent Sunnis. That could be an important step for the UIA’s image, as it is most associated with sectarian politics. A member of the Islamic Union of Iraqi Turkmen also said that the UIA will focus more upon national issues and appointing technocrats rather than giving out positions based upon sect.

Whether the UIA will be a major player in the 2010 parliamentary elections all depends upon Prime Minister Maliki. If he rejoins the alliance then it will be a real force in the voting. If he doesn’t, it could very well go down to defeat like the Supreme Council did in the provincial balloting. Maliki’s position is unknown. He could run as part of his State of Law List again. The problem is that while his coalition was the biggest winner in 2009, he only gained two majorities in Baghdad and Basra, and pluralities in the rest. If he is given the leadership of the UIA he could finish much stronger, and be assured of being the kingmaker again as he tried when the ruling provincial councils were being put together. That might also lead to some of the smaller Shiite parties such as Jaafari’s Reform Party to rejoin as they didn’t do as well as they thought in the provincial vote. Iran is also applying a lot of pressure upon Shiite politicians to run together. This fits into their policy of assuring Shiite rule, which Tehran hopes will mean Iraq will not become an enemy again. The future of the UIA therefore, is one of the most important early moves in the campaign for Iraq’s new parliament.

Members of the United Iraqi Alliance In the January 2005 Election
Badr Organization (SIIC)
Center Grouping Party
Dawa
Dawa-Iraq Organization
Fadhila
First Democratic National Party
Future Iraq Grouping
Hezbollah Movement in Iraq (SIIC)
Iraqi National Congress
Islamic Action Organization
Islamic Grouping in Iraq
Islamic Master of Martyrs Movement
Islamic Union of Iraqi Turkmen
Justice and Equality Grouping
Supreme Islamic Iraqi Council
Turkeman al-Wafa Party

Members of the United Iraqi Alliance In the December 2005 Election
Al-Shabak Democratic Grouping
Badr Organization (SIIC)
Center Grouping Party
Community of Justice
Dawa
Dawa-Iraq Organization
Fadhila
Free Iraq
Hezbollah Movement in Iraq (SIIC)
Iraqi Democratic Movement
Islamic Master of Martyrs Movement
Islamic Union of Iraqi Turkmen
Justice and Equality Grouping
Malhan al Mukatir
SadristsSupreme Islamic Iraqi Council
Turkomen Loyalty Movement

SOURCES

Allam, Hannah, Landay, Jonathan, and Strobel, Warren, “Iranian outmaneuvers U.S. in Iraq” McClatchy Newspapers, 4/28/08

Asharq al-Awsat, “Al Maliki Wants An Alternative To The Current Shiite Alliance That Will Support The Central Government And Reject The Sectarian Quota System,” 2/16/09

Associated Press, “Six parliamentary factions to coordinate efforts in Iraqi parliament, lawmakers say,” 6/8/08

Aswat al-Iraq, “Politician calls on UIA to reach out to people,” 6/8/09

BBC News, “Guide to Iraqi political parties,” 1/20/06
- “Iraqi Shias unveil poll coalition,” 12/9/04

Cole, Juan, “Platform of the United Iraqi Alliance,” Informed Comment Blog, 12/31/04

Filkins, Dexter, “Split Veredict in Iraqi Vote Sets Stage for Weak Government,” New York Times, 2/14/05

Hendawi, Hamza and Abdul-Zahra, Qassim, “Iraqi Shiites try to revive sectarian coalition,” Associated Press, 6/8/09

Ignatius, David, “In Iraq’s Choice, A Chance For Unity,” Washington Post, 4/26/06

Kaplow, Larry, “Iraq Steps Out of Iran’s Shadow,” Newsweek, 6/6/09

Katzman, Kenneth, “Iraq: Government Formation and Benchmarks,” Congressional Research Service, 1/31/08

Najm, Hayder, “shiite parties look to renew grand alliance,” Niqash, 6/9/09

Parker, Ned, “Sadr’s bloc quits Iraq’s ruling coalition,” Times of London, 9/16/07

Press TV, “Iraq’s Maliki at Hakim’s bedside in Tehran,” 5/31/09

Reuters, “Small party breaks away from Iraq Shi’ite bloc,” 3/7/07

Rossmiller, Alex, “Fickle Attraction,” American Prospect, 4/11/07

Serwer, Daniel and Parker, Sam, “Maliki’s Iraq between Two Elections,” United States Institute of Peace, May 2009

Shadid, Anthony and Vick, Karl, “Candidate Slate Shows Shiites Closing Ranks,” Washington Post, 12/7/04

Al-Sharqiyah TV, “US troops start withdrawal from Al-Sadr City; Iraq roundup,” BBC Monitoring International Reports, 5/29/09

Visser, Reidar, “Beyond SCIRI and Abd al-Aziz al-Hakim: The Silent Forces of the United Iraqi Alliance,” Historiae.org, 1/20/06

Wong, Edward, “Iraq’s Powerful Shiite Coalition Shows Signs of Stress as Parliamentary Elections Loom,” New York Times, 12/9/05

Worth, Robert, “Iraq’s New President Names Shiite Leader as Prime Minister,” New York Times, 4/7/05

Xinhua, “Sadrist bloc quits ruling Shiite parliament bloc,” 9/16/07

Iraq’s Lack Of Budget Execution

In April 2009 Iraq passed its latest budget. It is larger than the 2008 one, but not as big as originally planned. The increases that individual ministries have received are largely for operational costs that go towards things like salaries and pensions, rather than for investing in the future. Another problem is that the major ministries responsible for revenues and services are still incapable of spending most of their capital budgets. This comes at a time when Iraq desperately needs to boost its growth.

Iraq’s 2009 budget is for $58.6 billion. That’s a 25.8% cut from the original amount of $79.8 billion, but still a 17% increase from the 2008 budget of $49.9 billion. Both Prime Minister Nouri al-Maliki and the Finance Minister Bayan Jabr were against the cuts saying that it would hamper services and the development of the economy, which is still mostly state run. It would have been impossible for Iraq to cover that original amount however. Even with the lower figure, Iraq is still expected to have a $20 billion deficit.

Most of the 2009 budget is for operational costs, with a cut in capital spending. The operational budget is for $45.9 billion, 78% of the total. The capital budget went down from $13.1 billion in 2008 to $12.7 billion in 2009, a 3% cut. In 2008 oil revenues were so large that a supplemental budget was passed, which increased the overall capital budget to $21.1 billion.

With U.S. reconstruction funding coming to an end, Iraq’s capital spending is the largest source of funding for rebuilding the country. Appropriately than, most of this year’s money will go to the Oil, Electricity, Finance, Water, and Industry and Minerals Ministries. Iraq’s Oil Ministry’s capital budget went up slightly from $2 billion in 2008 to $2.2 billion in 2009. The Electricity Ministry on the other hand, will face a 17% decrease in its capital spending from $1.3 billion in 2008 to $1.08 billion in 2009. The Ministry is worried that it won’t be able to increase capacity with that amount, as they originally asked for $7 billion. The Health Ministry will have the largest capital increase at +489%, going from $83.3 million to $408.1 million.

The problem is that Iraq has rarely been able to spend its capital budget. In 2005, when Iraq formally got its sovereignty back from the United States, it only spent 23% of its capital budget. That went down to 19% in 2006, and then up to 28% in 2007. In 2008 Baghdad made a huge leap when it expended 39% of its capital budget. Iraq’s main revenue, budget, and services ministries did worse however. The Oil, Water, and Electricity Ministries for example, appropriated $11.9 billion for capital spending from 2005 to 2007, but only spent $985 million of it. In 2007 Oil and Electricity only expended $1 million each from their capital budgets.

What are skyrocketing instead are the operational budgets. Nearly every ministry will see an increase in that department. The Oil Ministry for example will see a jump from $103.7 million in 2008 to $954.4 million this year in its operational account. The Electricity Ministry’s operational budget will go from $89.1 million in 2008 to $2.31 billion in 2009. The Health Ministry’s will increase from $1.872 billion in 2008 to $3.095 billion in 2009. Most of this money will be spent if Iraq follows its past trends. From 2005 to 2007 it spent $67 billion, 90% of which went to operating costs.

Iraq’s poor budget execution has led to massive surpluses. In 2005 Iraq had a $6.5 billion surplus. That went up to $29 billion leftover from the 2008 budget. The GAO estimated that Iraq built up a $47.3 billion surplus from 2005 to 2008. When parliament was drafting the 2009 budget they believed that they could tap into this money to pay for the expected deficit, but after the bill was passed the Finance Ministry and Central Bank of Iraq let them know that they were not obligated to use the surplus to cover the budget. Baghdad has had to get a loan from the International Monetary Fund instead to cover the difference.

Each year Iraq has passed a larger budget, and each year it has been able to spend more of its money. The major ministries however, are still only spending a measly portion of their budgets, and most of that is going towards salaries and pensions, rather than investing in Iraq’s future. The 2009 budget will pose an additional problem for Iraq, as it still has not earned enough from oil to pay its bills. Many ministries did not get the money they requested either, and each still needs billions. The Ministry of Oil said it requires $25 to $75 billion to reach its target of 6 million barrels per day. The Electricity Ministry estimated that it needs $27 billion over the next 6 to 10 years to meet all of the country’s demand by 2015. The U.S. thinks the actual amount might be twice as high. The World Bank believes that Iraq has to have $14.4 billion to fix its water system. These amounts will largely have to come from Baghdad from now on as foreign investors are still largely staying away, while U.S. and international donations are coming to an end. The inability to spend its capital budget, while operational costs are skyrocketing do not point to meeting these goals anytime soon in Iraq.

Major Revenue And Service Ministries’ Budgets 2008-2009

Oil Ministry
2008: $103.7 mil operational, $2 bil capital. TOTAL $2.103 bil, 16% spent
2009: $954.4 mil operational, $2.2 bil capital. TOTAL: $3.160 bil
2008-2009 Changes: +920% operational, +10% capital

Electricity Ministry
2008: $89.1 mil operational, $1.3 bil capital. TOTAL: $1.389 bil, 12% spent
2009: $2.31 bil operational, $1.08 bil capital. TOTAL: $3.39 bil
2008-2009 Changes: +259% operational, -16% capital

Water Ministry
2008: $109.6 mil operational, $375 mil capital. TOTAL: $484. mil. 48% spent
2009: $168.6 mil operational, $563.5 mil capital. TOTAL: $732.1 mil
2008-2009 Changes: +53% operational, +50% capital

Municipalities and Public Works Ministry
2008: $42.6 mil operational, $416.7 mil capital. TOTAL: $459.3 mil, 22% spent
2009: $479.6 mil operational, $468.2 mil capital. TOTAL: $947.8 mil
2008-2009 Changes: +1125% operational, +12% capital

Transportation Ministry
2008: $121.6 mil operational, $250 mil capital. TOTAL: $371.6 mil, 29% spent
2009: $209.7 mil operational, $324.2 mil capital. TOTAL: $533.8 mil
2008-2009 Changes: +72% operational, +29% capital

Communications Ministry
2008: $14.4 mil operational, $250 mil capital. TOTAL: $264.4 mil, 30% spent
2009: $88.2 mil operational, $216.1 mil capital. TOTAL: $304.3 mil
2008-2009 Changes: +612% operational, -15% capital

Health Ministry
2008: $1.872 bil operational, $83.3 mil capital. TOTAL: $1.956 bil
2009: $3.095 bil operational, $408.1 mil capital. TOTAL: $3.503 bil
2008-2009 Changes: +65% operational, +489% capital

Budget Expenditures 2005-2007

Iraqi Budget Expenditures 2005-2007
2005: $16.151 bil operational, $1.432 bil capital. TOTAL: $17.583 bil
2006: $21.173 bil operational, $1.615 bil capital. TOTAL: $22.788 bil
2007: $23.164 bil operational, $3.434 bil capital. TOTAL: $26.599 bil

Oil, Water, Electricity Ministries’ Capital Appropriations Versus Spending
2005: $3,482 mil appropriated, $373 mil spent
2006: $4,473 mil appropriated, $502 mil spent
2007: $4.034 mil appropriated, $110 mil spent
TOTAL: $11,990 mil appropriated, $985 mil spent

Oil Ministry Spending
2005: $160 mil spent, $49 mil operational, $111 mil capital
2006: $191 mil spent, $48 mil operational, $143 mil capital
2007: $36 mil spent, $35 mil operational, $1 mil capital

Water Ministry Spending
2005: $163 mil spent, $42 mil operational, $120 mil capital
2006: $145 mil spent, $54 mil operational, $91 mil capital
2007: $236 mil spent, $128 mil operational, $109 mil capital

Electricity Ministry Spending
2005: $147 mil spent, $5 mil operational, $142 mil capital
2006: $281 mil spent, $13 mil operational, $268 mil capital
2007: $78 mil spent, $77 mil operational, $1 mil capital

SOURCES

Agence France Presse, “Iraq presidency approves slashed budget,” 4/3/09

Cordesman, Anthony, “The Changing Situation in Iraq: A Progress Report,” Center for Strategic and International Studies, 4/1/09

Department of Defense, “Measuring Stability and Security in Iraq,” March 2009

Special Inspector General for Iraq Reconstruction, “Quarterly Report to the United States Congress,” 4/30/09

United States Government Accountability Office, “IRAQ Key Issues for Congressional Oversight,” March 2009
- “Iraqi Revenues, Expenditures, and Surplus,” August 2008

Open Season On Out-Going Provincial Officials

In January 2009 Iraq conducted its second provincial elections since the U.S. invasion. All of the new provincial councils and governors have been named. As national leaders in Baghdad have been caught up in an anti-corruption fury, so too have these new local politicians. Several have gone after their outgoing peers, but for much different reasons than their counterparts in the capital.

In early June 2009 the new Diyala council issued arrest warrants for the two former deputy governors Razzaq al-Khalisi and Aouf Rahoumi. Both were accused of stealing money. Rahoumi, who belonged to the Iraqi Islamic Party, fled to Germany as soon as he found out about the charges. Khalisi, an independent Shiites, escaped to Kurdistan. The Public Integrity Committee, the main anti-corruption agency in Iraq, believes that the two were involved in stealing up to $130 million from the province. In April the former head of the Diyala council Ibrahim Hassan Bajilan of the Patriotic Union of Kurdistan also had a warrant put out for him. He is allegedly involved with embezzling up to $128 million. The former provincial council was ruled by the Coalition of Islamic & National Forces in Diyala, an alliance of the Supreme Islamic Iraqi Council and the Dawa Party, the Iraqi Islamic Party, and the Kurdish Arabic Turkmen Democratic Coalition – Diyala, made up of the Patriotic Union of Kurdistan and the Kurdistan Democratic Party.

At the same time Salahaddin went after its health director, while the former head of the Karbala council was arrested. On June 8, Salahaddin fired the provincial director of the health department Hassan Zein al-Abedeen Naqi. He was accused of signing fake contracts, making illegal deals over medicine purchases, and housing relatives in Health Ministry buildings. The council said that his case was being sent to the Integrity Committee. On June 1, police arrested the outgoing head of the Karbala provincial council Abdulaal al-Yasseri for corruption as well. The Supreme Islamic Iraqi Council controlled the governorate after the 2005 elections.

Baghdad is currently embroiled in corruption investigations as well. In May 2009 the Trade Minister Abdulfalah al-Sudani was forced to resign, and later arrested. Sudani and his two brothers were accused of misappropriating money meant for the country’s food ration system, the largest in the world. Parliament, and its new speaker Ayad al-Samarraie of the Iraqi Islamic Party forced Sudani’s resignation. Samarraie is intent on increasing the power of the legislature to provide a check on Prime Minister Nouri al-Maliki’s power. Sudani was a member of Maliki’s Dawa Party and reportedly close to the Prime Minister. In response, Maliki has promised a crackdown on corruption as well. It’s likely that he will use this against his opponents in retaliation for Sudani’s arrest.

National and local leaders appear to have different intentions when it comes to corruption. The leaders of the main political parties in Baghdad seem most concerned about obtaining power at each other’s expense. The main struggle now appears to be between Maliki and the Iraqi Islamic Party, which has become the Prime Minister’s main critic. At the provincial level, many politicians are more concerned about getting their governments working. In Diyala for example, the three major parties that ruled the province after 2005 still rule it today. That didn’t stop them from going after some of their own. Politics are so divided in Iraq that it’s likely this difference will continue for quite some time.

SOURCES

Agence France Presse, “Former Iraqi officials accused of corruption flee to Germany via Kurdistan,” 6/10/09

Alsumaria, “Diyala former governor deputies to be held,” 6/10/09

Aswat al-Iraq, “Ex-trade minister appears before Samawa court on corruption charges,” 6/1/09
- “Former deputy governor escapes to Germany following corruption charges,” 6/8/09
- “Karbala provincial council ex-chairman arrested,” 6/1/09
- “Salah el-Din council sacks health official over financial corruption,” 6/8/09

Bakri, Nada, “Iraqi Leader Sees Fraud as a Top Worry,” Washington Post, 5/10/09

Chon, Gina, “Graft Case Against Ex-Minister Splits Iraq Parties,” Wall Street Journal, 6/1/09

Serwer, Daniel and Parker, Sam, “Maliki’s Iraq between Two Elections,” United States Institute of Peace, May 2009

Sly, Liz, “Ex-trade minister arrested after attempting to flee Iraq,” Los Angeles Times, 5/31/09

Baghdad Hoping For Supplemental Budget Later In 2009

World oil prices have slowly crept back up in recent months. A barrel of oil is selling for around $70 per barrel on international markets. Iraq crude sells at a lower price, but it has been going up as well, along with exports. Baghdad is hoping that if the trend continues, the government will be able to pass a supplemental budget later in 2009 that will help alleviate some of the country’s financial problems.

At the beginning of April Iraq passed its 2009 budget. The budget went through three revisions before it was finally passed, and was still expected to run a $20 billion deficit. That was because it was based upon 2 million barrels a day average in exports and a $50 a barrel price, neither of which Iraq was achieving at that time. By May the Oil Ministry claimed Iraqi crude had reached the $50 mark, but was still only selling 1.905 million barrels a day. To make up the difference the Finance Ministry took out a two-year $7 billion loan from the International Monetary Fund.

The budget crunch is being felt already in the provinces. At the end of May, Maysan officials announced that they were going to run a deficit in 2009, and had no new money for development projects. They were looking for outside investment to fund growth. At the beginning of June, IraqSlogger reported a similar situation in Basra. The head of the reconstruction committee there said they too had no money for new projects, and were short about $84 million for what they needed.

With oil prices going up, Baghdad is now more optimistic about its money problems. Prime Minister Nouri al-Maliki recently said that he was hoping that the central government could pass a supplementary budget later this year if Iraqi crude continued to accrue in price. That would hopefully add much needed money to the ministries and provinces, all of which have had to cut their budgets. Of course, there’s also the issue of spending their funds, something Baghdad and the provinces still struggle with.

Iraq needs billions of dollars to improve its governance, services, and economy. U.S. reconstruction is coming to an end, so Iraq is increasingly on its own to provide money for development. The 2009 budget problems then, come at a bad time. Even if Iraq is able to meet its oil production and price goals, it will still be in debt to the IMF, and many of Iraq’s provinces will be left wanting until if and when a supplemental budget is passed. That will mean much needed rebuilding will be delayed.

SOURCES

Abdul-Zahra, Qassim, “Iraq passes sharply reduced budget for 2009,” Associated Press, 3/5/09

Agence France Presse, “Iraq presidency approves slashed budget,” 4/3/09

Aswat al-Iraq, “Finance ministry to sign new agreements with IMF,” 5/27/09
- “Increase in oil exports contributes to budget balance – ministry,” 6/2/09

Iraq Directory, “Maysan province seeks to attract foreign investment to compensate the fiscal deficit in budget,” 5/30/09
- “New supplementary budget with the rise of oil prices,” 6/10/09

IraqSlogger.com, “Basra: Moritorium on New Development Projects,” 6/3/09

Reuters, “As oil prices rise, Iraq nurtures budget hopes,” 6/8/09

One American Attempt At Building Democracy In Iraq Looks To Be Fading

One goal of the United States before it departs Iraq is to leave it a functioning democracy. The U.S. has facilitated four national elections, two provincial, one parliamentary, and a referendum on the 2005 constitution, since the U.S. invasion. In January 2010 Iraq is to have its fifth balloting for a new parliament. Voting is only the most visible form of democracy. Since 2003 the Americans have been building up local councils to give everyday Iraqis a say in their government. These look to disappear however when the U.S. leaves.

The United States Agency for International Development (USAID) was the first government agency in the U.S. to seriously contemplate democracy building in Iraq. It joined the post-war planning in August 2002. The State Department was supposed to be in charge of governance in Iraq after the invasion, but never came up with anything concrete. That left the USAID to create a policy on its own. They wanted to decentralize power away from Baghdad to the local level. Under Saddam, the Baath party was in control of all levels of government. The USAID wanted to break that hold. They wanted to create neighborhood councils that would create jobs, be in charge of reconstruction, and give common Iraqis a say in their government. When they presented their plans to a National Security Council subgroup on humanitarian issues in Iraq, their ideas were rejected. The official stance was the U.S. was not going to be doing nation building in Iraq, and USAID had just crossed that line.

The situation in Iraq after the invasion proved so chaotic, that the U.S. military began implementing some of the USAID’s plans without knowing it. American units wanted Iraqi partners in their area of operation. To find some they began building up local councils across the country. This was done on an ad hoc basis, as there were no orders from above on how to do it. In Mosul for example, General David Petraeus, who was then the commander of the 101st Airborne Division, set up a convention of 270 delegates from the city representing its diverse population, who in turn elected 24 city council members and a mayor. In Najaf, General James Conway of the 1st Marine Expeditionary Force started organizing provincial elections, registering parties, finding candidates, etc. The Coalition Provisional Authority (CPA) had to step in at that point letting the general know that he could not carry out such a large undertaking because Iraq did not have an election law to legalize any voting. Some were far less representative and participatory. In the Karkh district of Baghdad only around 2,500 Iraqis of 30,000-35,000 showed up to vote for their council. In al-Kindi, fifty-five Iraqis elected 12 members to the council there. The U.S. military funded all of the councils they created, but believed that they would eventually hand them over to some other government body. That never happened, as the USAID lacked the money and personnel to deal with them. The U.S. military is still in charge of running these councils to this day.

The USAID was doing a similar job independent of the military. Iraq’s bureaucracy disappeared with the invasion. The tie between Baghdad and the rest of the country was severed in the process. The USAID tried to step in, offering three contracts to companies to create local councils. One company set up 22 offices across Iraq in the spring and summer of 2003 to complete this task. In April, the USAID also allocated $120 million to start local reconstruction that would assist these local groups. $61.7 million was spent in the end on 1,700 projects.

The U.S. military and USAID’s work eventually clashed with the CPA and the fledgling new Iraqi government. By 2005 437 neighborhood, 195 sub-district, and 96 district councils had been created by the Americans. CPA head Pual Bremer wanted to build a democracy in Iraq and decentralize power as well, but was more focused upon the provincial governments than local councils. The councils also ended up clashing with the Iraqi ministries and director generals over priorities and power.

This became more complicated after the two Iraqi elections in 2005. The provincial and parliamentary votes were closed list, meaning Iraqis voted for coalitions, which in turn picked the politicians. This was a blow to the U.S. military and USAID’s effort to empower local forces as the large national parties were in control of the process. The Supreme Islamic Iraqi Council (SIIC) and the two main Kurdish parties, the Kurdistan Democratic Party (KDP) and Patriotic Union of Kurdistan (PUK) came out the major winners in both votes. They too wanted to disperse power outside of Baghdad, but into their hands. As the new rulers of the provincial councils and ministries they too came into conflict with the U.S. created councils over authority. A mid-2006 report by the Americans for example noted that the SIIC and its militia the Badr Brigade had tightened their grip on the provincial governments, and were against any new elections or reforms that would weaken their power. The result was that provinces and ministries largely refused to work with the U.S.-backed local councils.

By the time the Surge started in 2007, the situation had grown no better. Provincial Reconstruction Teams (PRTs) were created to build up local and provincial governance, reconciliation, and reconstruction. They spread out across Iraq and began working with the local and district councils. They still had no real authority in the Iraqi government however. They had a small budget to pay salaries, which they got from the Americans, and some small scale U.S.-funded rebuilding projects, but no real say in ordinances, taxes, larger reconstruction efforts, provincial councils, or Baghdad.

Today it seems like only the U.S. military still considers these councils relevant. Stars and Stripes reported that few Iraqis go to the councils. The Iraqi political parties ignore them as well. If Iraqis want something done they go to the U.S. or Iraqi security forces, sheikhs, or other local leaders. Prime Minister Nouri al-Maliki is also intent upon recentralizing authority in his hands. The attempt to give everyday Iraqis a say in their government was an admirable move. Simply voting does not make a democracy. A culture and norms also have to be created. The local councils were a move in that direction, but they were another sign that the Americans cannot dictate to the Iraqis how to develop their society. For better or worse, the post-invasion Iraqi elites are now in control of this process. That will mean these councils will all but disappear when the U.S. leaves. After all, they will have no more money to run, and have never been able to integrate into the new Iraqi political system.

SOURCES

Special Inspector General For Iraq Reconstruction, “Hard Lessons,” 1/22/09

Warden, James, “Focus turns to matching old, new Iraqi institutions,” Stars and Stripes, 3/1/09
- “Local leaders are making a comeback in Iraq,” Stars and Stripes, 3/2/09