Thread: Archive Latest News - Dinar Think Tank - 27/08/08 - 15/01/09

Minister Says Iraq Has No Budget Surplus, Worries over Reconstruction

Interviewee: Bayan Jabr Solagh, Minister of Finance of the Republic of Iraq
Interviewer: Greg Bruno, Staff Writer, CFR.org

The notion that Iraq is sitting on billions of dollars in windfall oil profits as the United States spends $10 billion monthly on operations there has led to complaints recently from both Democratic and Republican lawmakers. An August report by the U.S. Government Accountability Office put Iraq's surplus as high as $79 billion through 2008. Analysts note that such estimates are notoriously difficult to confirm, and that Iraqi and U.S. accounting standards differ markedly.

Iraq's finance minister, Bayan Jabr Solagh, denies that Iraq is holding back any huge surplus of money that could offset U.S. spending. "The surplus or the excess in money that people talk about is money that was not spent [at the time of the GAO report]," the finance minister told CFR.org in an interview. "We are spending it now through the budget process." Solagh also expressed concern more broadly about investment in Iraq and the impact of a continuation of the global financial crisis.

Americans are looking for an answer on the question of Iraqi surplus money. The figure of $79 billion, as reported in an August 2008 U.S. General Accountability Office report, was cited by Senator Obama in his debate with Senator McCain on Tuesday. Why is the U.S. spending so much in Iraq while there is such a huge Iraqi surplus?

This number is not accurate at all. We have at the DFI fund [Development Fund for Iraq] an amount that is not exceeding $22 billion. And this amount is allocated for the supplemental budget for 2008. In this regard there is no surplus. The surplus is only at the Central Bank of Iraq, and it is needed for supporting the Iraqi currency, and it does not exceed $30 billion. It is not surplus; it is the federal reserve. It is the reserve of Iraq. That means we cannot have a fixed currency without it.

But the general criticism, that the U.S. is spending so much money in Iraq while Iraq has extra money, you're saying that's not an accurate criticism?

There is no surplus. I have indicated in my remarks that Iraq needs about $400 billion to rebuild its infrastructure. People do not have drinking water; they do not have sewers; we need all these projects to rebuild Iraq. The surplus or the excess in money that people talk about is money that was not spent. We are spending it now through the budget process.

Can Iraq continue to function without a substantial amount of U.S. financial involvement?

The financial aid that America is giving to Iraq is not to the Iraqi people; it is going to spend on its troops-the salaries, the equipment-but they're not giving the Iraqi citizen this money; they're not giving the Iraqi budget this money. They're spending it on the troops and the costs of the troops. Now Iraq is starting to cooperate with the Americans on specific projects. We allocated $300 million in our budget [last year] and gave it to the MNF-I [Multi-National Force Iraq] to spend it on projects. For that we start to share with the Americans to spend on projects together. Americans, they don't give the Iraqi budget or the Iraqi government any money directly. They spend it on their own military salaries, weapons. This is the money; it's not going to the government.

And some of it is also spent on projects, correct?

It is not like this huge amount; it's a small amount.

In addition to concerns about the amount of money Iraq is spending, American officials have also criticized the pace of Iraqi spending as too slow. I wonder if you could answer those criticisms as well.

We have a real problem with security, and the capability of the ministries. During the Saddam era ... until now, the ministries and the provinces, they don't spend any dollar[s] on any projects. So when we start to spend our money, there is no capability. There is no capacity of these ministries and the provinces to spend money. And the private sector, the foreign private sector, they do not enter Iraq because of the security. [Not] even the Americans. We ask them to come, to enter, [but] they don't care. They don't enter. The problem is the lack of capacity to spend. It's not because we have extra money. And also, the reason the foreign companies are not coming is the security reasons.

It could also be argued that one of the concerns foreign investors have is continued political infighting within Iraq that has slowed, for example, passage of the hydrocarbon bill. Security is improving, and that's very positive. But investors also need to see a stronger central government, a government that's able to ensure a strong regulatory footing. Is that a fair assessment?

In terms of contracts and construction and work, politics is not involved because there are contracts, there is money to be spent, and politics is not a factor. The politics [are] involved in the making of the law.

You've said that Iraq needs more foreign private investment. How is that going to happen? If the money is available, people will come. But what do you think needs to happen for investors to make an investment in Iraq?

There is still fear of the security situation. Those companies have not come up with new solutions, new alternative solutions like what GE [General Electric] did. GE provided the generators, and the Iraqi engineers were provided the service. Those Iraqi engineers will come to America, get trained on [that] equipment, and then go back to Iraq to do the maintenance and the operation. These are the alternative solutions that the foreign companies have not thought of yet. And they need to do that; they need to work on finding a new alternative solution, solutions that go around the question of security.

Are you in New York to try and help them move in that direction?

Yes, I also will be in Washington to have some meetings with the U.S. Chamber of Commerce. [U.S. institutions and foreign investors] can find a solution. No problem. Boeing, for example, when I signed with Boeing, [a] $5 billion [contract] to buy Boeing [airplanes], who will do treatment, for example, or maintenance? We will send our engineers to Washington, or to the United States, they will learn and take it back. There is the solution, all joint venture.

This is a tough time to be making that sort of pitch, as the global financial markets are trembling. Do you see direct effects of this financial crisis rippling into Iraq?

Yes, I am worried, but not now. The real worry is in about six months, if the current financial situation continues, this may affect the oil prices. If the oil prices keep fluctuating, the stock market also will be affected in Iraq and the price of the currency also.

Will the financial jitters scare off investors potentially?

The foreign investors should come to areas like Iraq that have not been affected with the current financial turmoil. Iraq does not have a financial crisis now. However, there is a financial crisis here. In other words, investors should come to the safe haven. I am only speculating that Iraq will be affected, but I'm not 100 percent certain that Iraq will be affected.

It's possible that Iraq will weather the storm?

Yes. The influence or the effect that we may get is only if oil prices fluctuate and the currency market fluctuates. In terms of the oil, we can increase our production or we can decrease it. We can control that, but we don't have control over the currency market.

Clearly there are some great things Iraq has accomplished. In budgetary terms, you've increased your 2009 budget to $79 billion. You've passed a supplemental focusing on food aid, focusing on assistance to Iraqis. Talk about some of the new priorities that you have set with these new allocations.

The $79 billion budget has a deficit of roughly $18 billion, and this will be covered by the surplus that some politicians talk about. We emphasize on the investment. We allocated about $18 billion for investment capital. The second is to improve the living conditions. One of the measures that we took is the increase of the salaries that we already did. We will try to decrease the support and the subsidies of the food basket. We will replace it by cash.

http://www.cfr.org/publication/17512...pe%3Dinterview

Egyptian technical delegations to Iraq

Egypt’s Premier Ahmed Nazif agreed to send technical delegations to Iraq, responding to a request by the Iraqi leaderships in this regard, to help rebuild Iraq, according to the Egyptian newspaper al-Messa (Evening).

“The delegations will work on joint ventures in the fields of power, oil, housing, health and hospitals, in addition to preparing Iraqi staffers,” the paper said on Friday.

During their coming visit to Iraq before the end of this month, the newspaper added, “the Egyptian technical delegations will prepare plans for cooperation in spheres the Iraqi side wants to commence with”.

Egyptian technical delegations to Iraq : Aswat Al Iraq

Basra authorities consider establishing marine city

Basra authorities have started to study an investment project to set up an integrated marine city in Basra, the province’s governor said on Friday.

“The province’s authorities study the project of establishing an integrated marine city which extends from Khour Abdullah, south of Basra, towards the city of Basra,” Mohamed Musbeh al-Waeli told Aswat al-Iraq.

“This is one of the investment projects we seek to realize,” he noted.

“There are several offers presented by international companies to carry out investment projects in the province,” he also said, without further details.

The Shiite province of Basra, 590 km south of the Iraqi capital Baghdad, has five commercial ports and two oil ports: al-Maaqal, established in 1916 by the British forces and handed over to Iraqi authorities in 1937; and Faw, a small port on the al-Faw Peninsula near the Shatt al-Arab waterway and the Persian Gulf.

In the early 1970s, Umm al-Qasr port was built, and in 1974, Khour al-Zubeir and Abu Fallous ports were established on the Shatt al-Arab.
Basra is the cradle of the first civilization of Sumer. The city played an important role in early Islamic history.

The area surrounding Basra has substantial petroleum resources and many oil wells. The city’s oil refinery has a production capacity of about 140,000 barrels per day (bpd).

Basra is in a fertile agricultural region, with major products including rice, maize corn, barley, pearl millet, wheat and dates as well as livestock.

A network of canals flowed through the city, giving it the nickname “The Venice of the Middle East” at least at high tide.

Basra authorities consider establishing marine city : Aswat Al Iraq

Iraq PM: Negotiations will be carried out with brothers in Kurdistan Reg to solve problems

The Iraqi Prime Minister Nuri al-Maliki paid a visit to the holy city of Najaf yesreday. He visited the tomb of Imam Ali Ben Abe Taleb then headed to meet Ayatollah Sayed Ali al-Sistani.

“Our meeting comes in the light of the political and security achievements and to make his eminence aware of the endeavors deployed in carrying out the building and services projects”, al-Maliki said.

He stressed that the security pact with U.S has reached to final stages and that the negotiations are going on regarding some suspended issues as the immunity.

“Negotiations will be carried out with the brothers in Kurdistan region in order to solve some problems according to the constitution”, he added.

The Iraqi Premier welcomed the Arab openness on Iraq which followed the achievements of the Government of the National Unity.

http://pukmedia.com/english/index.ph...=6919&Itemid=1

President Talabani arrives in Baghdad

President Jalal Talabani arrived in Baghdad today. A number of the PUK Politburo members along with organizational and government officials were at the Sulaimani International Airport to see him off.

A private source told PUKmedia correspondent that Kurdistan region President Massud Barzani will head to Baghdad later to hold crucial meetings on the suspended issues between Baghdad and Erbil.

http://pukmedia.com/english/index.ph...=6925&Itemid=1

Min of Finance...Deliver lecture at the American Council on Foreign Relations

Delivered Finance Minister Baqir Jabr Al-Zubaidi, a lecture on the Iraqi economy and how to invest in Iraq, the U.S. Council on Foreign Relations in New York attended by a number of investors and major U.S. companies and global economic institutions American World.

Zubaidi reviewed the need for the Iraqi market to investors, especially the "United States of America for the advancement of age and at the infrastructure, stressing "the Iraqi government's keenness to accommodate all international companies to directly invest in all economic sectors and service in Iraq that the Iraqi arena to accommodate these companies." He stressed that "that the new Iraqi investment law has provided a good ground to invest in it in addition to the signing of the Convention on the mica Iraq, which guaranteed the rights of foreign investors in Iraq.

Adding" Iraq is a rich country with a great wealth contribute significantly to the welfare of its people and work the content And the possibility of international companies through a partnership with Finger Alguin the Iraqi private sector to implement the terms of the strategic projects that Iraq needs to establish energy and transport, electricity, health, housing, such projects require the expertise of major global companies which rely upon Iraq to contribute to the process of reconstruction.

And heard The minister made inquiries to representatives of American companies Gentlemen World on how to cooperate with the Iraqi private sector and the Minister explained the mechanism adopted to cooperate with the Iraqi private sector and its readiness to cooperate in all fields is noteworthy that the council is the highest the Council for International Relations in New York and Ihoudy support of the U.S. government.

http://translate.google.co.uk/transl...hl=en&ie=UTF-8

Politicians to file: Parliament may have differences of Article 50 refers to new knots
Parliament may consider today a proposal for new legislation fair to minorities

Was unable Iraqi parliamentary blocs to form a clear legal representation to ensure the religious and national minorities in the next provincial elections, after the adoption of the electoral law and to delete the article on the representation of minorities it.

He called on representatives of the political blocs to "exploring the best formula possible and appropriate" and to submit a proposal for new legislation today, Saturday, with students as Faili Kurds (Kurdish Shiites) and minority inclusion in the law.

Observers believe that the renewed differences between the blocs Alaniaibp on Article 50 will take perhaps become more acute after the fall of Parliament on the issue of Kirkuk in the controversy, dispute lasted several months, while calling for the parliamentary blocs to resolve the issue of minorities, but the current indicators show the opposite.

The Deputy Sami Alaterci member of the Kurdistan Islamic Union that the issue of minorities may also be complicated where there is far more than was raised in that subject and us do not have any real statistics, the number among minorities and Parliament therefore needs to clarify the mechanism in order to give them real numbers proportional representation and participation in political decisions Kmmthelon It is not necessary to have more than one voice. He Alaterci that the proposals that have been developed in favor of giving the first Christians Alaesidein 3 and 2 seats and this will also problematic or second offering is to give minorities one seat at least in areas where both were present on the electoral votes or not, and the third is to collect the balance in minority votes and a vision As if they get a chair and have not given even half the votes in the conservative chair.

The House of Representatives that would not reach any solution that is the legal aspect needs to be some time especially since provincial elections law can not hold any amendment is problematic clamp is a dispute and the question of whether they are representing the Shabak religion or nationality they have to determine that Council Deputies dealing with religious minorities and the screen are not a minority say they are religious nationalism, Muslim and here they are Muslims or Arabs, it means they have to resort to for example, the United Iraqi Alliance, stresses the clamp to determine who they are.

In this context, parliamentary sources refused to disclose the identity of the agency file (AFP) that the coalition of Kurdistan and the Supreme Council are pushing to marginalize the role of the Shabak and other minorities in order to win votes in the election battle ahead and this is clear from the opposition and non-indifference and scorn on the course of discussions on the issue of minorities.

The Deputy Representative Christian Yonadam we rejected in parliament earlier in the use of minority electoral paper by some of the forces that seek to marginalize the role of minorities, however, he did not mention the names of these powers, except to say: everyone must respect the privacy of Iraqi minorities Cam We respect the privacy of others, we We have a history as long proud history of others.

In his view, Dhafir al-Ani, a member of the Accordance Front, which was the way to deal with Article 50 is unfortunate and is shameful because they were not informed and does not reflect the nature of the general orientation of most parties and political forces, whether inside or outside parliament. Alani says that there is consensus Iraqis need to preserve the rights of all components Aljtmaip let alone components that constitute the indigenous population of Iraq, adding that the democratic system found to ensure that rights are not to perpetuate domination of the majority and minority rights dedication can not say there is a democratic regime in Iraq.

The parliament now trying to pass a new law on minorities to ensure their right to provincial elections manner commensurate with the counting of them in Iraq.

For his part, warned the Iraqi deputy of Osama Najifi strife has caused all minorities after a large number of Christians to the killings and displacement, he Najifi local government and security forces in Nineveh province, responsible for what is happening to Christians demanding the leadership of Nineveh to the need to provide full protection for all Minorities in the province.

He called the sons of Minorities Najifi to adhere to their rights and defend and not to give opportunity for forces that want to dominate and control them through intimidation and terror.

The Iraqi Council of Representatives had voted in the September 24 of last month for a law on provincial elections, but canceled the Article 50 of the Act, which guarantees the right of the Iraqi minorities in the proportional representation (quota). The House of Representatives met with a range of protest and organized minority in demonstrations demanding the restoration of stabilizing article in the law.

http://translate.google.co.uk/transl...hl=en&ie=UTF-8

U.S. official: Washington agrees to schedule withdraw its troops from Iraq

The high-level U.S. official close to negotiations airspace Security Agreement between Baghdad and Washington that the U.S. side agreed to the dates mentioned by Prime Minister Nuri al-Maliki for the withdrawal of U.S. troops to bases within the end of June next withdrawal from Iraq fully in the 31 December First/Dec. 2011.

The official, who spoke on condition of anonymity told The Associated Press that the United States is firmly convinced that the security situation that must be Faisal in determining when to withdraw its troops from Iraq, but could accept any other formula in the draft. For their part, Iraqi officials said the Associated Press that U.S. forces leave could be delayed if the Iraqi government demanded that their survival.

http://translate.google.co.uk/transl...hl=en&ie=UTF-8

Jordan's Ambassador to Iraq, provides credentials next week

Iraqi Ambassador to Jordan Saad Alehiani adopted the Jordanian ambassador to Iraq, Nayef Alzeidan submitted his credentials to the Iraqi government next week.

The Alzeidan was sworn in before King Abdullah II, the country's ambassador to Iraq early last July, pending the submission of his credentials to Iraqi President.

With regard to the return of Iraqis residing in Jordan to their country Alehiani said that the Iraqi Embassy in Amman started to fly the return of Iraqis living in Jordan and who wish to return home, stressing that their presence in Jordan of "temporary".

He said the Embassy of Iraq has so far conducted two trips by road from Jordan to the return of a number of Iraqis go home with next Monday a new journey, noting that the flights will start between the two countries to this end.

Translated version of http://www.radiodijla.com/cgi-bin/news/news_item.pl?id=2008-10-11%2009:22:39

Talabani Party expelled four leaders called for Change

The political bureau of the Patriotic Union of Kurdistan led by Iraqi President Jalal Talabani "the expulsion of four advanced cadres" in the wake of demands for a change in party leadership..

The party statement obtained by AFP, a copy of which was that the Political Bureau decided Talabani attended on Friday night, "the expulsion of four cadres advanced by the creation of a forum within the The party claims changes in union leadership".

The statement said that "This group wants to stage a coup in the form of leadership in the party, The coup on the legitimacy of the elected bodies by members of the Federation in the Conference".

Referred to the four cadres are the leaders of the Patriotic Union of Kurdistan Britain.

The statement last night that the meeting discussed preparations for the convening of the Conference Third of the Patriotic Union of Kurdistan,and complete the program functions of the committees and party policy Until late this year..

The four form a bloc last week as the "backbone" stressing that the party is "in Threaten the continuity of organizational difficult "and carrying the responsibility of the current leadership, demanding that Resignation.

It consists of the leadership of the forty people, including 16 members of the Political Bureau.

The Patriotic Union of Kurdistan, one of the two main Kurdish region, Over the turmoil in the almost two years ago when he resigned the second man in the party Nushirwan Mustafa and a group of members of the Political Bureau..

Mustafa has been submitted his resignation because of "ideological differences" with Talabani.

According to media reports, and high-level party sources that the expulsion of this group of Cadres is an extension of these differences.

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well, well, well!