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Iraqis have money but lack know-how in spending it
(Agencies)
Updated: 2008-10-25 12:00 BAGHDAD -- Iraq's government has an unusual money problem as much of the world grapples with a credit crunch, it can't spend its oil riches fast enough.
The US is trying to change that by training Iraqi bureaucrats struggling to emerge from a centralized system in which nearly all decisions, from where to build a water treatment plant to which workers would do the job, came from the top. Money also was scarce for more than a decade after the UN Security Council imposed sanctions to punish Saddam Hussein's regime for the 1990 invasion of Kuwait. "Our efforts are devoted to helping the Iraqis spend their own money," said Marc Wall, the US Embassy's coordinator for economic transition in Iraq. "We've zeroed in on it in the last year or two." The issue came to the fore this summer when the US General Accounting Office predicted Iraq could finish the year with as much as a $79 billion cumulative surplus because of oil revenues and unspent funds from previous budgets. The August report drew outrage in Congress, where lawmakers asked why the Iraqis haven't spent more of their own money on reconstruction efforts while US taxpayers shell out some $12 billion a month for Iraq, most for military operations. US and Iraqi officials dispute the GAO figures, arguing they are inflated and do not reflect Iraqi accounting procedures. They also say Iraqi spending on reconstruction is expected to increase by 50 percent from 2007 to 2008. But most agree that major obstacles still include inexperienced bureaucrats, too few Iraqi contractors and a cumbersome approval procedure aimed at curbing corruption. The US Agency for International Development's Tatweer project is designed to train Iraqi civil servants in basic decision-making skills to help them allocate funds and effectively deliver government services such as electricity, water and security. The $339 million program, paid for by American taxpayers, began in July 2006 and is scheduled to finish in January 2011. Instructors include Iraqis, Jordanians, Lebanese and Egyptians, native Arabic speakers who were mostly educated in the United States or other countries. Each earns about $1,500-$1,700 a month. One recent class of bureaucrats from various Iraqi ministries, six men and six women sitting around an oval table, listened attentively as the instructor told them how to diagram a decision tree. The analysis and problem-solving tool is aimed at determining possible sequences of events and their consequences to choose the best investment. But one student raised her hand to ask how, exactly, that would work in Iraq. "We have instability and insecurity. You have to consider the black market," said Shetha Nasser, a 46-year-old engineer at the Water Resources Ministry. Nasser's concerns reflect the myriad problems facing Iraqis as they try to overcome decades of isolation from war, sanctions and centralization. |
