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Iraq
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Restore Economically Critical Infrastructure | 267-001 |
1,494,287 |
127,481 |
|
| Education, Health, and Other Social Services | 267-002 |
185,175 |
|
|
| Expand Economic Opportunity | 267-003 |
135,868 |
365,236 |
230,000 |
| Efficiency and Accountability of Government | 267-004 |
386,074 |
169,417 |
130,000 |
| Program Support and Development | 267-006 |
4,500 |
|
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|
Total (in thousands of dollars) |
2,205,904 |
662,134 |
360,000 |
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The Development Challenge: Misguided economic policies and three wars wrought terrible damage to Iraq's society and economy. Per capita income fell to very low levels, unemployment increased, poverty expanded, and basic services deteriorated along with social indicators in areas such as health and education. The legacy of economic sanctions, such as deteriorated basic infrastructure, poor economic performance, and unemployment, are a significant burden on the general population and challenge to the Coalition and Iraq's Transitional Government. The reconstruction efforts of the Coalition and the Iraqi Interim Government (IIG) have been undertaken in the midst of a growing violent insurgency of former regime elements, foreign fighters, and other enemies of democracy. During the past year, in spite of military successes, the insurgency has intensified, creating an atmosphere unlike any other in which an international donor community has ever attempted such large-scale reconstruction. In an effort to sow fear, create an atmosphere of chaos, and prevent democracy from taking root, foreign-aid workers and Iraqis who work with, or benefit from, reconstruction efforts are intimidated and killed daily, and projects are routinely attacked.
Even absent an insurgency, the transition from authoritarian rule to democratic governance poses considerable challenges to the people of Iraq. During the interim and transitional periods, the disparate ethnic, religious, and sectarian groups of Iraq are challenged to form a common vision for their country based on tolerance and other democratic principles. In this decisive period in history, the people of Iraq will draft their new constitution and develop a new system of governance based on checks, balances, decentralization, and separation of powers. For the first time in decades, Iraqis have the opportunity for free, fair, and transparent voting, to express their views publicly, to debate important issues and policy alternatives, and to have a part in the decision-making process.
Over the past decades, Iraq has deteriorated from a nation with enormous natural resources and a relatively healthy, educated population to a failed nation. Literacy currently stands at only 39% and general health is far below the level in any other country in the region. The highly centralized bureaucracy resulted in inefficient and inequitable service delivery at the local level.
It is in the U.S. national interest to create a stable, democratic Iraq with a free-market economy. If this can be achieved, it will have a far reaching impact on an unstable region with little experience in democracy. Without economic growth and democratic pluralism, the Middle East will continue to be a pool of the disenchanted and disenfranchised - a reservoir of recruits for Al Qaeda and other terrorist and extremist groups.
The USAID Program: When the Coalition Provisional Authority dissolved on July 27, 2004 and the IIG assumed sovereignty, USAID officially announced the opening of its Mission in Baghdad. The USAID Mission works as part of the U.S. Embassy team and contributes to the achievement of overall U.S. Government (USG) objectives in Iraq. Prioritization of reconstruction projects to be funded is done by the Iraq Reconstruction Management Office (IRMO), in conjunction with Iraqi ministries, and within the mandates of USG funding legislation. To implement its activities, USAID collaborates closely with the people of Iraq, non-governmental organizations (NGOs) and private sector partners, the United Nations, and Coalition partners involved with relief and reconstruction efforts. In 2004, USAID implemented assistance programs in agriculture, economic growth, infrastructure, transportation, telecommunications, seaport and airport rehabilitation/operation, local governance, health, education, electricity, water, and sanitation.
Other Program Elements: Several USAID/Washington-funded programs further support achievement of USG objectives in Iraq. USAID's Asia and Near East Bureau provides technical support. The Office for Transition Initiatives implements critical job creation and conflict mitigation activities. The Office of Foreign Disaster Assistance provides assistance to Internally Displaced Persons and the Office of Food for Peace works with the U.S. Embassy to assist the Ministry of Trade's management of the Public Distribution System.
Other Donors: In October 2003, representatives from 73 countries and 20 international organizations met in Madrid, Spain for the "International Donors Conference for the Reconstruction of Iraq." Major pledges totaling approximately $13 billion were received from donor countries including Japan, Saudi Arabia, Kuwait, United Kingdom, Italy, Spain, United Arab Emirates, Korea, Canada, Qatar, and others. This pledged amount also includes significant lending from the World Bank and the International Monetary Fund, and is based on the low end of their potential lending. The World Bank pledged lending between $2.5-4.5 billion, and the International Monetary Fund pledged between $1.7-3.4 billion. With the U.S. contribution of $18.4 billion, the total amount of grants and loans that the international community pledged toward Iraq reconstruction at the Madrid conference was approximately $32 billion.
International support for humanitarian assistance and reconstruction in Iraq is being provided either bilaterally as grants, loans, export credits and guarantees, or assistance-in-kind or multilaterally through international organizations such as the World Bank and United Nations (including through the International Reconstruction Fund Facility for Iraq (IRRF) consisting of separate World Bank and UN Trust Funds). The top three country donors are: the United States with $21 billion in grants (IRRF I & II); Japan with $1.5 billion in grants and $3.5 billion in concessional loans; and the United Kingdom with approximately $1 billion in grants. In addition to the donors listed above, other donors that have pledged significant funding include the European Commission, Australia, Denmark, Sweden, Turkey, the Netherlands, and Norway.
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