Shock-therapy U.S.-led restructuring of Iraqi economy is on shaky ground,

[Khephra]

Top economists are making dire predictions about the Bush administration's plan for a shock-therapy style reorganization of Iraq's postwar economy -- a policy that met with mixed success across eastern Europe after the fall of the Soviet Union a decade ago.

Experts say the U.S. plans, which aim to upend Iraq's closed state-run economy and convert it to one of the most open, capitalist economies in the world, would unleash new waves of unrest in an already strife-weary Iraqi population. International law forbids occupying powers from making such deep changes, they say.

To revive Iraq's wilting economy, U.S. administrators and their Iraqi allies approved a plan to abolish most restrictions on trade, capital flows and foreign investment, allowing, for instance, foreign banks to open branches and buy Iraqi banks. It sets the top personal income and corporate tax rates at 15 percent, while slashing import tariffs to 5 percent.

The new investment law approved last month doesn't address one of the most contentious issues -- privatization of state-owned companies other than those dealing with oil -- that the U.S.-led Coalition Provisional Authority and its Iraqi allies are considering.

more.........

http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/16/international1316EST0499.DTL

[opihimoimoi]

1. The sneaky bastards is attempting to help themselves to Iraqs

wealth by stealth, much like they did to America. They will make the laws that enable them protection while they loot the masses. Pure PUB

[Liberal Veteran]

2. Bush can't even revive the US economy

and he thinks he can revive a war torn country that been has been under sanctions for over a decade?

Jesus Christ!

[teryang]

3. Iraq for sale!

<Given the violence and the uncertain legality of the sales of state enterprises, the only way foreign investors will be enticed to enter Iraq is to be allowed to purchase assets for far less than they are worth, economists say.>

[mbperrin]

4. Heavens, what a shock!

You don't mean that large numbers of American corporations will get even richer, do you?

Who would have thought such a thing?

My!

[ConcernedCanuk]

5. "International law forbids occupying powers from making such deep changes"

. . "International law forbids occupying powers from making such deep changes"

. . oh yah

- we know how much Georgie Boy gives a sh_t about International Law !

- or human decency for that matter

- it's all an oil/money grab

- nothing at all to do with "democracy" or "freedom"

Just My Humble Canuk Opinion

[htuttle]

6. US taxpayers will ultimately pay for all these contracts...

...once a legitimate government takes over in Iraq and nullifies them. Not a single one of these privatization contracts will hold up in international court.

The only entity that will insure investments in Iraq is the US Import/Export Bank. That's your social security money, when you get right down to it. Wanna bet the companies have a guaranteed payment, even if they lose the contracts?

[ze_dscherman]

7. Old neocon plan

This was proposed on the AEI site several months ago. They seem to think Iraq is some kind of laboratory to test their ideology.

But of course this is just a pretense to plunder Iraq even more. Only it just will not work.