Kevin Drum at Calpundit posts on the disarray in the reconstruction plan in Iraq. He focuses on the fact that postwar Iraq has been very different from what was expected by the Administration – many fewer refugees but much more civil disorder and much less enthusiastic cooperation with the occupying powers.

The big problem, though, is lack of commitment.

Kevin Drum at Calpundit posts on the disarray in the reconstruction plan in Iraq. He focuses on the fact that postwar Iraq has been very different from what was expected by the Administration – many fewer refugees but much more civil disorder and much less enthusiastic cooperation with the occupying powers.

The big problem, though, is lack of commitment. In my previous post on this topic, I estimated that the cost for a minimal reconstruction of Iraq (making good the damage and lost production from this war, but not that of the sanctions or the first Gulf War) would be $US25 billion. Bush’s war budget allocated $2.3 billion of which $1.7 billion was for reconstruction and the rest for humanitarian assistance. As this this USAid report shows, the humanitarian money has already been spent, mainly on food aid. The total amount of US Aid, 590 000 tonnes, would cover about two months of Iraq’s normal imports.

The bulk of the reconstruction money has already been awarded, with the biggest bits going to Bechtel and Halliburton. The amount left over (less than $1 billion) would be barely enough for one decent-sized power station or three modern hospitals).

A striking instance of the lack of funds is the $20 one time emergency payment that is supposed to be made to government employees ($20 is worth more in Iraq than it would be here, but not much more, and these people haven’t been paid in months). There are about 500 000 of them so the cost is around $10 million. Even this modest sum is being paid for, not by the occupying powers, but out of Iraqi reserves seized by the US..

It’s not surprising that the occupying powers are keen to get unfettered access to Iraq’s oil – without it, there will be no money to pay even the running costs of the occupation government, let alone reconstruction.