Government Payroll Sustaining Iraq Economy As Private Sector Falters

Hampered by years of violence, a decimated infrastructure, a lack of foreign investors and a flood of imports that undercut local businesses, Iraq's private sector, particularly its small non-oil economy, has so far failed to flourish as its American patrons had hoped.

In its absence, the Iraqi government has been sustaining the economy the way it always has: by putting citizens on its payroll. Since 2005, according to federal budgets, the number of government employees has nearly doubled, to 2.3 million from 1.2 million.

The impetus is not only economic: In exchange for abandoning the insurgency that plunged the nation into civil war, many of the 100,000 members of civilian patrols known broadly as the Awakening movement have been promised jobs in the security forces or in reconstruction, though many Sunni Muslim members complain it is not happening quickly enough.

But this growth has not come without problems. Already, a huge wage increase to government workers that was instituted -- but then suspended because of fears that it was pushing up inflation -- has underscored the difficulties of being far and away the largest employer in an unstable country.

Read the whole story here.

Comments

[95flhtcu]

Had any of our "commanders" insisted that all contractors hire local people this wouldn't be such an issue. Instead, all the contractors shipped in labor and materials. Were they concerned that the iraqis would actually care what the finished product looked like? Perhaps they wouldn't want soldiers being electrocuted in the showers and buildings catching fire every other day. Why bother engaging the people that are living there and buying goods and services? That would have been way too intelligent and KBR, Halliburton, Bechtel etc wouldn't get to pocket billions. When we finally focus on the real threat in Afganistan, you cna be sure that they'll all be there too, hands out, even though their perfomance has been an abysmal failure.

[Sundialsvc4]

It's amusing to me to read these stories that try to paint Iraq as "just like America." With all these oh-so American problems. And of course, "the Iraqi government is legitimate."

There's absolutely nothing "legal" or "legitimate" about any part of this ... including this black-comedy effort at "reporting." If you're going to do propaganda, at least learn to do it right.

This is an (illegally) occupied country with more than a million soldiers and mercenaries running amok in it. Period. Its puppet-government might be trying valiantly to be a government, but the entire and total reason for its existence is to Sign Away The Oil And Be Quick About It. Things are "obviously not going according to plan," but that fact never once made those plans "legitimate."

Neither the American people nor any part of the International community should "passively stand aside" and continue to nod-heads at this sort of thing. War is Hell... not A Business.

"Ike was right," and since that man wore F-I-V-E stars on his lapel, he probably knew a few things that we desperately need to know about.

[BobsNotWorking]

The public payroll is just a little hush money to keep the natives quiet while "they" drink Iraq's milkshake.

[BPCentrisAmerican]

Sounds like our economy, except Iraq has a budget surplus, go figure.

[fact finder]

The trolls and Bush nuts can say anything that they want it does not make it true. This article could have been written about just about any country in the World. Can we all say World wide depression? (SEVERE) . Better hope your garden was big enough.

[numbnuts]

With those oil profits start investing in pubic works.
Electricity,water,schools and a better way of life.
If the people have incomes, and a way to support there families things will eventually improve.
It's time for us to get out and let the Iraqi people run things for themselves.
We went in and opened Pandora's box. It's time to let the Iraqis shut it!

[MajorKong]

So much for the neocon dream of creating a libertarian paradise in Iraq.

[957]

The article is mostly bullshit, iraq has a surplus of 80 billion, what are they doing with it, spending less than 10% on rebuilding , and spending it on paying off people , what the hell sort of govermnet did they install over there ? why are they not spending it on paying people to rebuild their infrastructure? Where did that surplus come from in the first place? Blame it on imported goods? Their sitting on vast amounts of oil, and making money from it. America is footing the bill for most everything, why are we still there again?

[thegreatgiginthesky]

Looks like we went there to create a democracy and ended up getting a socialist nation. Notch another "smashing success" up for Mr. B u s h.

[BobsNotWorking]

Went there to "create a democracy"? It just goes to show - if you hear it often enough it starts to sound true.

[Meatball1]

Two comments so far. It is amazing to me that you call socialism in Iraq an American System or even a NeoCON policy! What is failing in Iraq is a democratic congress's policy of making sure that we fail in Iraq by implementing the policies that they would like implemented in America. (And give blame to the conservatives)

You are in charge right now! I say that you are the problem in Iraq. The same thing happened in Vietnamn. You control the media, the congress, public opinion and our school system! The President has to just ride the wave and do what he can.

What matters most to "You People" . Yes, I had the nerve to say "You People"! (I know how you hate that) Is to see America fail as a capitalist society, especially in a war, by politically tying the hands of our President and our Troops! All the while, saying "We Support The Troops"! You cannot bs me! Good luck!

http://www.djgoski.com

[ChristianEcon.com]

Socialism always has to rescue capitalism--or it's hello, third world. Of course a third-world distribution of wealth is just fine with some people: the ultra-rich-getting-richer, and those confused by conservative or Libertarian propaganda.

[Nyland8]

Iraq has been a failure for more than 5 years. Try to keep up with current events. The "failure" of Iraq has been the "success" of the Neo-Conartists. They have all but bankrupted our nation by funneling 2 trillion dollars into an unwinnable occupation, radicalized the populace, cultivated untold graft, cronyism and malfeasance, decimated our military, slaughtered countless innocents, destabilized the entire region ... and all the while, blamed everyone but themselves.

Moreover, the neo-conman's "failure" has been quite deliberate, quite predictable and quite on-schedule.

Why would you continue to carry water for half-a-decade of catastrophically failed policy?

You're either one of them, or a tool.

8

[researcher]

spoken like a true imperialist`

the end is near for your beloved capitalism

been downhill since reagan economics

we are living on borrowed time and money

we borrow from communists, socialists and kings to make reagan economics work

yet you think it is from god

absolute blessing capitalism is self destructing

goes against every universal law that I know of

bet you are one of those evangels that thinks jesus was a capitalist

and america is god's chosen nation

might want to take a peek at who just bought bud for 52 billion

of all things a socialist country

bet that eats at ya

now have a bud and make cindy richer

we are a bankrup country yet folks like you hang on to the delusion

[KOisGod]

To the NeoCONs all the world is a nail, because all they own is a hammer

[ChristianEcon.com]

Ha--well said.

[the964kid]

Sounds like the American system is really taking hold.