There was a lot of speculation at the exhibition last week in Jordan . ?Iraq Rebuild,? a major exhibition and conference, was held last week in Amman. Scaling up security in order to facilitate building up Iraq?s infrastructure was one of the chief issues of the conference. To grow business and produce an economy that has not thrived in decades takes time and money. “Of course, I’m optimistic about business prospects in Iraq, because frankly we need everything,” said Daoud Mansour, who owns a Baghdad factory producing electronically operated doors. The new Iraqi government needs time to get a strong foot forward. To inspire business confidence, outstanding security issues must be resolved. “I believe that we will begin to see changes in the security situation but we must wait another six to seven months,” Mansour said.
The Brookings Institute, a Washington, DC-based think-tank, released a report last week through their Iraq Index project. The report concluded that little progress has been made to improve security or economic conditions and cited that oil and electrical production continue to lag pre-war levels. Michael O?Hanlon, a Brookings analyst, stated: ?I am actually a bit pessimistic based on the overall message of the data. I think the economy is flat and not much improved from Saddam’s days and think the security environment is also not showing much progress. What gives me some hope is the training program for Iraqi forces as well as the fledgling government. But my hope is modest.?
Another major concern in Iraq is that electric power continues to lag at pre-war levels. Power in Baghdad was available for an average of four hours per day in April. Generation of electricity on a consistent basis is a starting point to look at investing in economic growth. A report released by the US government?s inspector general for Iraqi reconstruction found that a program designed to protect the country?s oil and electric infrastructure had largely failed, and widespread corruption and insurgent attacks were effecting the petroleum industry. Iraq?s oil ministry said corruption in the oil industry was costing the country billions.
Two of the vendors at Rebuild Iraq were Pat and Sandy Boeshart of Lite-Form Technologies in South Sioux City, Nebraska. Interests in their product, a polystyrene insulation for concrete, have been “absolutely overwhelming. Literally hundreds of people, mainly Iraqi construction companies, have been flooding our booth to speak with us,” Pat Boeshart said. As Iraq stabilizes, infrastructure is built, and peace comes, “international business and rebuilding will boom in Iraq,” predicted Jim Vaughn, a manager at American-Iraqi Solutions Group, which does construction, maintenance, and security work in Iraq and employs more than 2,500 people, mainly Iraqis. However, these advancements are going to take time, patience, and continued infusions of money. Vaughn went on to add “Iraq has been out of the global economy for some 30 years, so it’s been in a steep learning process but I believe the Iraqi people will come through.”
Some of the other developments in building a solid infrastructure include:
? a new electronic payments system has been installed at Iraq?s Central Bank, and other banks are expected to be connected by fall,
? the country had more than 6.8 million telephone subscribers in March, more than eight times pre-war estimates., and
? telecommunications has grown due to the widespread availability of cellular phone service.
As with any post-war rebuilding process, time, patience, and money are needed to start reconstruction efforts. Once it starts, businesses will gain confidence and begin to invest in Iraq. There is, however, still a long way to go. Most of all, the country needs to stabilize and embrace peace before civilian contractors can come in and help rebuild the decrepit and war-torn infrastructure.