Iraqis unmoved by call to withdraw food and oil subsidies

[Barrett808]

Iraqis unmoved by call to withdraw food and oil subsidies
By Steve Negus and Dhiya Rasan in Baghdad
Published: June 12 2005 18:09 | Last updated: June 12 2005 18:09

Two years ago, when the pumps ran dry at Iraq's petrol filling stations, angry motorists muttered that Americans were stealing the fuel to drive their tanks.

At the weekend, when the same thing happened, Iraqi motorists grumbled that their own government was attempting to phase out petrol subsidies by stealth.

This shift in conspiracy theories, from the highly improbable to the relatively plausible, comes as Iraq's new leaders launch a drive to explain why economics, not geopolitics, lie behind the country's constant shortages of fuel and electricity.

In petrol station queues, in living rooms and on television, Iraqis argue whether or not subsidies on food and fuel help the poor or cripple the economy.

The latest debate was triggered when regular petrol - sold at the pumps at the heavily subsidised price of 1-2 cents per litre - suddenly disappeared, leaving only an "improved" variety available at 4 cents.

(more)

http://news.ft.com/cms/s/dae7e940-db61-11d9-913a-00000e2511c8.html

[Cocoa]

1. the article leaves out who is calling for the end of subsidies

the World Bank and the market fundamentalists in the Paul Bremer crowd.

It's one of the main reasons for the war, and the masters of that war aren't going to tolerate those socialistic practices.

[Barrett808]

2. Precisely. And it's why the IMF mobsters will fail.

Iraqi labor will shut down plants and/or join the insurgency before they'll let Iraq be privatized.

[oblivious]

3. Funny the authors find it highly improbable Iraqi oil was used by US tanks

It seemed a perfectly reasonable assumption to me.

[Igel]

4. Apparently Abrams tanks take diesel.

I'm not sure what the primary fuel for Iraqi cars is. Probably leaded gasoline.

Might be one reason. Apart from the fact that two years ago the refineries were pretty much shut down.

[oblivious]

5. Oh yes, they were supposedly importing fuel from Kuwait then, weren't they

[Igel]

6. Yeah.

Sort of a surreal condition--invade a country whose only real resource (apart from a people considered prosperous 20 years ago) is oil. And then import oil.

Ironic.

[Barrett808]

7. It would take upward of ten years to develop Iraq's oil in the best case

And in the current circumstances, it will never happen.