ARTICLE: "'Too Many Cooks in the Kitchen': Federal agencies spar while trying to revamp Iraq's food-rationing system," by Rajiv Chandrasekara, Washington Post National Weekly Edition, 19-25 March 2007, p. 6.
ARTICLE: “Farm aid plumps up Iraq funding: Democrats insert $3.7B that’s unrelated to war,” by Ken Dilanian, USA Today, 22 March 2007, p. 1A.
ARTICLE: "International Support Is Sought at U.N. for Iraq Rebuilding Plan," by Warren Hoge, New York Times, 17 March 2007, p. A7.
ARTICLE: "U.S., Iraqis Join In Push to Curb Oil Smuggling: Aim Is to Stem the Flow Of Cash to Insurgents; Corruption Runs Deep," by Yochi J. Dreazen, Wall Street Journal, 15 March 2007, p. A1.
ARTICLE: "Iran Now Plays Expanded Role In Keeping Iraqi Economy Going: Electricity and Trade Tie 2 Lands Closer Together," by Edward Wong, New York Times, 17 March 2007, p. A1.
The story on our ag aid to Iraq is a microcosm of the whole sham that is the interagency process, and--quite frankly--what a disaster it is to have the State Department in charge of Iraq (you thought DoD was bad).
This is classic stuff: the idealists and can-do types in DC constantly overridden by the realists and the not-invented-here types on the ground in Iraq. The former don’t realize what they can’t do and the latter know all too well all too much about all the things that will never--ever--be done in Iraq.
This is the dumb leading the blind.
Regional experts tend to go native, constantly telling you how “that won’t work here” for all these idiosyncratic reasons, while the functional experts assume their one-size-fits-all. Between them there’s almost no one with any serious private-sector experience making all sorts of decisions regarding market and generating business activity. How screwed is that?
Class example starts the story: Commerce wants to end the food rationing in Iraq and move onto something more--CANYOUBELIEVEIT!--more marketized. State has a kitten and freaks out, believing the rationing was essential to continued social stability in Iraq (lots of that going around right now). I guarantee you this: leave State in charge long enough and Iraqis will be on food rations the rest of this century.
The story quotes “economics section” staffers at the embassy decrying the end-of-rations as this incredibly stupid idea that keeps resurfacing every twelve months. My God, we’re four years into this and we’re still keeping everyone on rations?!?!?
Here’s the kicker: almost all of the rations are imported.
Guess what that does to Iraqi agriculture.
Bremer’s crazy idea was “to cut off the rich and provide poor Iraqis with cash so they could buy the food they needed.”
But why treat them like adults when we can suppress market development all these years and keep them in a welfare mentality?
The last poor happened this August. Listen to the craziness proposed by Commerce:
“The [public food distribution system] is wasteful and creates a disincentive to produce,” the document stated. Iraq’s government “should press forward with a program to transfer the supply and distribution to the private sector.”
What kind of crazy talk is that? Don’t we realize that Iraqis never fed themselves until the Americans showed up in 2003? Do we want their ag and service sectors to recover when we could keep them showing up for their rations for many more years? Isn’t this how you rebuild an economy and society after war? Keeping them on rations ad infinitum.
This story is so oddly reported by Chandrasekaran: always approvingly quoting State bureaucrats calling the privatization idea stupid and always presenting the Commerce ideas as “off the reservation.”
State is so incensed about these proposals they’ve actually blocked Commerce officials from interacting with Iraqi counterparts, despite Commerce officials claiming that Iraqi officials want to see this happen (go figure, they don’t want to stay on handouts forever!).
What is the counter State plan? Never mentioned here.
A Rand Corp analyst who headed up the embassy’s own “Joint Strategic Planning and Assessment Office” came up with an even more radical and aggressive plan to torch the hand-out system. It wanted them gone in 38 weeks, which apparently passes for radical to our embassy in Iraq (over six months!).
Even though our ambassador Zalmay Khalilzad listened to this proposal, State officials on the ground led a bureaucratic push to have it killed.
So the embassy people (State, USAID, others) had lots of meetings. Naturally, no Iraqi officials were invited (why bother?).
The result of this big internal review? Stretch the proposal out to 100 weeks--almost two years!
Beautiful stuff:
To the embassy’s economists, saying they wanted to kill the program in two years was an elaborate ploy, the embassy official say. It would get them on the record as favoring major changes, but the timeframe almost certainly meant it would not happen. “Things in Iraq change every six months,” the first embassy official says. “If you say you plan to do something in two years, it means you’ll never do it.”
Need anything else to convince you that State COULD NEVER BECOME THE DEPARTMENT OF EVERYTHING ELSE--MUCH LESS “ANYTHING ELSE”!!!!!!!
Then when you think State couldn’t be more blockheaded, they go out of their way to fight Paul Brinkley on his plan to revive manufacturing in Iraq. Keep them on rations and stop any movement toward job creation.
The complaint? The factories in question were “dinosaurs.”
This is classic Six Sigma thinking on our part: gold-plated modernity or nothing at all. The point is job creation, not ideal positioning of the Iraqi economy in the global marketplace.
But we disband the Iraqi Army and now we’re dead-set against rebranding old state-run enterprises.
In the end, Brinkley gets his way and proceeds.
Meanwhile, we’ve created such an idiotic dependency culture in Iraq that our embassy officials brag that “no Iraqi politician wants to get rid of free food. It’s political suicide.”
Man, that’s a great accomplishment amidst all the sectarian violence and civil war and terrorism: protecting Iraqi politicians from “political suicide.”
Instead, our embassy officials say we’ve wasted so much time on this stupid proposal when so many other better things could have been pursued.
Right, right. Let’s not focus on jobs when a dependency culture is completely in the works. This is classic Official Development Aid mentality: the social worker who never leaves and who destroys local capacity instead of building it. Fukuyama has railed against this like mad in two books, but with diplomats and aid workers running the show, should we expect any better? Two communities who don’t know their asses from their elbows on market creation.
So let’s have another international donor conference--four years into this mess! That’s real progress, along with keeping Iraqis on food rations.
Plus, the bigger the food program, the more pork barreling possibilities back home for the Dems, so everyone’s served by this stupidity: both the brain-dead administration and the greedy opposition party.
Still, some good things to cite, like our ground forces working hard to cut down on the thievery and corruption surrounding the Iraqi oil industry, which accounts for 94% of Iraq’s $32B budget.
This matters plenty, because lots of the stolen oil ends up funding the insurgency to the tune of somewhere north of $25m and somewhere south of $100 million.
Locals are happy to see the Americans boost their presence in the oil industry. As one truck driver put it, “I want coalition forces to guard this place, not the Iraqi army. The Iraqis don’t care about the law.”
Meanwhile, neighboring Iran’s influence in the economy naturally grows:
While the Bush administration works to stop Iran from meddling in Iraq, Iranian air-conditioners fill Iraqi appliance stores, Iranian tomatoes ripen on the windowsills of kitchens here and legions of white Iranian-made Peugeots sit in Iraqi driveways.
Some Iraqi cities, including Basra, the southern oil center, buy or plan to buy electricity from Iran. The Iraqi government relies on Iranian companies to bring gasoline from Turkmenistan to alleviate a severe shortage. Iraqi officials are reviewing an application by Iran to open a branch of an Iranian bank in Baghdad, and Iran has offered to lend Iraq $1 billion.
The economies of Iraq and Iran, the largest Shiite-majority countries in the world, are becoming closely integrated, with Iranian goods flooding Iraqi markets and Iraqi cities looking to Iran for basic services.
After the two countries fought a devastating war from 1980 to 1988, Saddam Hussein maintained tight control over cross-border trade, but commerce has exploded since the American-led invasion of 2003.
Please don’t give me that crap about Iran “winning.” All this economic connectivity will change Iran more than Iraq, and the former will play Poland to the latter’s Russia.
Let the Westoxification begin the old-fashioned way: marketization!
And get the State Department’s social-welfare mentality out of there ASAP.