Billybob
09-22-2003, 04:23 PM
Well look at this. America pays lockheed and other defense corporations BILLIONS to make bombs to drop on Iraq, and now Iraq's entire infrastructure is open to forgn investors. "Forgn Investors" means the United States, by the way. Or do you think that America will let Japanese companies profit from this war?
<<Published on Monday, September 22, 2003 by the lndependent/UK
America Puts Iraq Up for Sale
by Philip Thornton in Dubai and Andrew Gumbel
Iraq was in effect put up for sale yesterday when the American-appointed administration announced it was opening up all sectors of the economy to forgn investors in a desperate attempt to deliver much-needed reconstruction against a daily backdrop of kidnappings, looting and violent death.
It is still likely to feed concerns that Iraq is bng turned into a golden opportunity for profiteering by multinational corporations relying on thr political connections.
Already, the biggest reconstruction contracts have been allocated to American firms such as Bechtel and Halliburton, which have ties to the Bush administration. They were selected behind closed doors, with no opportunity for competitors to present bids.
In an unexpected move unvled at the meeting in Dubai of the Group of Seven rich nations, the Iraqi Governing Council announced sweeping reforms to allow total forgn ownership without the need for prior approval.
The initiative bore all the hallmarks of Washington's ascendant neoconservative lobby, complete with tax cuts and trade tariff rollbacks. It will apply to everything from industry to health and water, although not oil.
But it is still likely to feed concerns that Iraq is bng turned into a golden opportunity for profiteering by multinational corporations relying on thr political connections.
Already, the biggest reconstruction contracts have been allocated to American firms such as Bechtel and Halliburton, which have ties to the Bush administration. They were selected behind closed doors, with no opportunity for competitors to present bids.
Iraq is far from an ideal environment for business, however, and the new initiative seemed calculated to overcome qualms overseas companies have had about the risks to both people and capital.
It remains to be seen whether the prospect of buying into Iraq's most essential services, pricing those services at will and repatriating profits in thr entirety will be a strong enough lure to offset the continuing inability of the US military to make the country secure from resistance fighters and heavily armed criminal gangs.
Wholesale privatization is a dramatic departure from Saddam Hussn's centralized management of the Iraqi economy, which was reasonably successful in capitalizing on the country's oil wealth to build modern hospitals, schools and other infrastructure, at l until the upheavals of the 1980-88 Iran-Iraq war, the 1991 Gulf War and the imposition of United Nations sanctions after that conflict.
One Arab expert said: "There's a fear that privatization of too many things will lead to things bng sold off for a mess of potage." Kamel al-Gailani, the Finance Minister in the provisional government, said the moves would open Iraq to free- market competition that would deliver investment, job creation and long-term economic growth.
"We are providing Iraqi citizens with the freedom and opportunities they were denied for so long under the Baath party to realize thr economic potential," he said. "The reforms will advance efforts to build a free and open market economy in Iraq, promote Iraq's future economic growth, [and] accelerate Iraq's re-entry into the international economy and rntegration with other countries."
The moves presented by Mr Gailani, approved by the US and UK's coalition provisional authority, include:
? 100 per cent forgn ownership in all sectors except natural resources;
? direct ownership as well as joint ventures and setting up branches;
? full, immediate remittance to the host country of profits, dividends, interest and royalties.
Privatization of everything from electricity and telecommunications to pharmaceuticals and engineering could see hundreds of previously state-owned companies sold off.
There will be a tax holiday for the rest of this year, and income and business taxes for investors will be capped at 15 per cent from next year.
Trade tariffs will be slashed to show that Iraq is a "country that embraces free trade". A 5 per cent surcharge will be levied on all imports, other than humanitarian goods such as food, medicine and books, to fund the reconstruction effort.
America defended the decision to offer such a generous package of tax breaks to entice investors. "Capital is a coward," said John Snow, US Treasury Secretary. "It doesn't go places where it feels threatened. Companies will not send employees to places that aren't secure." Iraq's vast oil reserves, the world's largest apart from Saudi Arabia's, would remain in government hands. "They're going to run government finances based on oil revenues," Mr Snow said.
Five months after the overthrow of Saddam, there are no visible signs of reconstruction. Clean water and electricity are still not available to most people and entire nghborhoods are still without phone lines.
Washington is desperately seeking help with footing the $100bn bill it estimates rebuilding Iraq will cost.
? 2003 Independent Digital (UK) Ltd
________
Cheap Glass Pipes (http://glasspipes.net/)
<<Published on Monday, September 22, 2003 by the lndependent/UK
America Puts Iraq Up for Sale
by Philip Thornton in Dubai and Andrew Gumbel
Iraq was in effect put up for sale yesterday when the American-appointed administration announced it was opening up all sectors of the economy to forgn investors in a desperate attempt to deliver much-needed reconstruction against a daily backdrop of kidnappings, looting and violent death.
It is still likely to feed concerns that Iraq is bng turned into a golden opportunity for profiteering by multinational corporations relying on thr political connections.
Already, the biggest reconstruction contracts have been allocated to American firms such as Bechtel and Halliburton, which have ties to the Bush administration. They were selected behind closed doors, with no opportunity for competitors to present bids.
In an unexpected move unvled at the meeting in Dubai of the Group of Seven rich nations, the Iraqi Governing Council announced sweeping reforms to allow total forgn ownership without the need for prior approval.
The initiative bore all the hallmarks of Washington's ascendant neoconservative lobby, complete with tax cuts and trade tariff rollbacks. It will apply to everything from industry to health and water, although not oil.
But it is still likely to feed concerns that Iraq is bng turned into a golden opportunity for profiteering by multinational corporations relying on thr political connections.
Already, the biggest reconstruction contracts have been allocated to American firms such as Bechtel and Halliburton, which have ties to the Bush administration. They were selected behind closed doors, with no opportunity for competitors to present bids.
Iraq is far from an ideal environment for business, however, and the new initiative seemed calculated to overcome qualms overseas companies have had about the risks to both people and capital.
It remains to be seen whether the prospect of buying into Iraq's most essential services, pricing those services at will and repatriating profits in thr entirety will be a strong enough lure to offset the continuing inability of the US military to make the country secure from resistance fighters and heavily armed criminal gangs.
Wholesale privatization is a dramatic departure from Saddam Hussn's centralized management of the Iraqi economy, which was reasonably successful in capitalizing on the country's oil wealth to build modern hospitals, schools and other infrastructure, at l until the upheavals of the 1980-88 Iran-Iraq war, the 1991 Gulf War and the imposition of United Nations sanctions after that conflict.
One Arab expert said: "There's a fear that privatization of too many things will lead to things bng sold off for a mess of potage." Kamel al-Gailani, the Finance Minister in the provisional government, said the moves would open Iraq to free- market competition that would deliver investment, job creation and long-term economic growth.
"We are providing Iraqi citizens with the freedom and opportunities they were denied for so long under the Baath party to realize thr economic potential," he said. "The reforms will advance efforts to build a free and open market economy in Iraq, promote Iraq's future economic growth, [and] accelerate Iraq's re-entry into the international economy and rntegration with other countries."
The moves presented by Mr Gailani, approved by the US and UK's coalition provisional authority, include:
? 100 per cent forgn ownership in all sectors except natural resources;
? direct ownership as well as joint ventures and setting up branches;
? full, immediate remittance to the host country of profits, dividends, interest and royalties.
Privatization of everything from electricity and telecommunications to pharmaceuticals and engineering could see hundreds of previously state-owned companies sold off.
There will be a tax holiday for the rest of this year, and income and business taxes for investors will be capped at 15 per cent from next year.
Trade tariffs will be slashed to show that Iraq is a "country that embraces free trade". A 5 per cent surcharge will be levied on all imports, other than humanitarian goods such as food, medicine and books, to fund the reconstruction effort.
America defended the decision to offer such a generous package of tax breaks to entice investors. "Capital is a coward," said John Snow, US Treasury Secretary. "It doesn't go places where it feels threatened. Companies will not send employees to places that aren't secure." Iraq's vast oil reserves, the world's largest apart from Saudi Arabia's, would remain in government hands. "They're going to run government finances based on oil revenues," Mr Snow said.
Five months after the overthrow of Saddam, there are no visible signs of reconstruction. Clean water and electricity are still not available to most people and entire nghborhoods are still without phone lines.
Washington is desperately seeking help with footing the $100bn bill it estimates rebuilding Iraq will cost.
? 2003 Independent Digital (UK) Ltd
________
Cheap Glass Pipes (http://glasspipes.net/)