Cartoon: Iraqi puppets
As Iraq dithers on its decision regarding US troop extension beyond 2012, violence only increases in the war-torn nation. The cartoon shows the massive presence US boots have in Iraq, but that the military is simply biding its time as Iraq tears itself apart. Iraqis have increased suicide bombings, targeted their own oil fields and ramped up sectarian violence.
The US has long played puppetmaster in Iraq. All bets are off when the US cuts the strings. Instability and unpredictability are about the only things foreign investors and Iraqi citizens can count on. That will have a detrimental effect on investment and economic recovery for decades to come. Not only that, but a stressed economic system and security situation will only cement corruption in the hands of powerful, oppressive leaders who believe they must resort to force.
The US might have unnecessarily involved itself in Iraq when it went to war there in 2003, and it might leave Iraq’s society and economy even more tangled.
From UPI:
Stuart W. Bowen Jr. said in his quarterly report that June was the deadliest month for the U.S. military in more than two years, with 14 soldiers killed, The Washington Post said. Most of the deaths were the work of Shiite militias, he added.
“Iraq remains an extraordinarily dangerous place to work,” Bowen wrote. “It is less safe, in my judgment, than 12 months ago.”
US should reevaluate Iraq exit after oil attacks
Recent reports that Iraqi insurgents are attacking the oil industry should give the US pause about its planned exit considering the impact these incidents could have on long term economic development.
Joel Wing at Musings on Iraq has a good summary (with links) to the reports. In all, there were five mishaps related to oil in June.
Wing explained that oil accounts for 90 percent of the nation’s revenue. He said insurgents plan such attacks to grab headlines, which leads to recruits, which leads to money, which leads to continued operations.
The constant threat of those attacks lead to unpredictability, and Wing hypothesized that insurgent timing was planned to coincide with the beginning of several foreign oil contracts.
This dynamic will have a tremendously negative effect on Iraq’s economic development potential. In his essay “International Investment and Colonial Control: A New Interpretation,” Jeffrey Frieden explained that site-specific foreign investment during a host country conflict is easier to defend with force — for example, oil fields. But there are some major security concerns ahead of the planned US exit from Iraq. The Iraqi police and army do not appear trustworthy or legitimate to many citizens, which means they cannot be counted on to provide vital security for the nation’s precious oil resources.
Whether this causes investor flight remains to be seen — although that’s doubtful considering every country has oil needs. But it could significantly alter the contracts Iraq receives. Maybe not monetarily, but something may have to give. What that is remains unclear, but one thing is certain — investors won’t like the prospect of their millions of dollars going ablaze.
The attacks on oil have another effect — by crippling the nation’s main breadwinner, the insurgents render the government ineffective. Depleted jobs numbers and oil revenue sends a bad signal to the Iraqi people that their government cannot provide for them. That in turn feeds into insurgent recruiting, as those groups are bankrolled by wealthy people and can offer essential services such as education, food and shelter.
In essence, the attacks on oil encourage civilian dependence on insurgent groups for general welfare. It’s a scenario the U.S. has tried to avoid for years, but one that may still be a factor when it leaves.