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View Full Version : Hmm... maybe there is some good in Iraq...


Malachi151
18th September 2003, 05:56 PM
Few Iraqis have heard of the "resource curse," the scholarly term for the economic and political miseries of countries with abundant natural resources. But in Tayeran Square, where hundreds of unemployed men sit on the sidewalk each morning hoping for a day's work, they know how the curse works.

"Our country's oil should have made us rich, but Saddam spent it all on his wars and his palaces," said Sattar Abdula, who has not had a steady job in years.

He proposed a simple solution instantly endorsed by the other men on the sidewalk: "Divide the money equally. Give each Iraqi his share on the first day of every month."

That is essentially the same idea in vogue among liberal foreign aid experts, conservative economists and a diverse group of political leaders in America and Iraq. The notion of diverting oil wealth directly to citizens, perhaps through annual payments like Alaska's, has become that political rarity: a wonky idea with mass appeal, from the laborers in Tayeran Square to Iraq's leaders.

American officials have projected that a properly functioning oil industry in Iraq will generate $15 billion to $20 billion a year, enough to give every Iraqi adult roughly $1,000, which is half the annual salary of a middle-class worker.

No one suggests dispensing all of the money — and some say the government cannot afford to give up any of it — but there have been proposals to dispense a quarter or more.

Leaders of the American occupying force have endorsed the oil-to-the-people concept and said recently that they plan to discuss it soon with the Iraqi Governing Council.

The concept is also popular with some Kurdish politicians in the north and Shiite Muslim politicians in the south, who have complained for decades of being shortchanged by politicians in Baghdad.

"Giving the money directly to the people is a splendid idea," said one member of the Governing Council, Abdul Zahra Othman Muhammad, a Shiite from Basra who leads the Islamic Dawa party. "In the past the oil revenue was used to promote dictatorship and discriminate against people outside the capital. We need to start being fair to people in the provinces."

When oil wealth is controlled by politicians in the capital, one result tends to be the resource curse documented in the last decade in academic works with titles like "The Paradox of Plenty," "Does Oil Hinder Democracy?" and "Does Mother Nature Corrupt?"

I got this from another messge board and don't know the origional news source. If they do really do something like this my ideas of the restructuring of Iraq wil change. I would definately support this.

EvilYeti
18th September 2003, 06:20 PM
Originally posted by Malachi151

I got this from another messge board and don't know the origional news source. If they do really do something like this my ideas of the restructuring of Iraq wil change. I would definately support this.

It does sound wonky at first, but if you think about it makes some economic sense. Economies need some sort of primer to get them started, giving every Iraqi a monthly stipend could provide just such an impetus.

If we could figure out a way to get the Iraqis to buy stuff from us it could help our economy as well.

Anyone know if there is a WallMart is Kirkuk?

Malachi151
18th September 2003, 06:47 PM
Originally posted by EvilYeti


It does sound wonky at first, but if you think about it makes some economic sense. Economies need some sort of primer to get them started, giving every Iraqi a monthly stipend could provide just such an impetus.

If we could figure out a way to get the Iraqis to buy stuff from us it could help our economy as well.

Anyone know if there is a WallMart is Kirkuk?

Its not crazy at all, it is actually what the Iraqi Communist Party has propsed for 50 years there, because of this I assumed that this would never ben considered, because it is part of the agenda of the communist party of Iraq, but if it is being considered then that means that we are workign with the communist party of Iraq, which is actually the oldest political party in Iraq. This would be very good news in many ways. The Iraqi Communist Party is moderate and promotes a secualr democratic government, actually they are one fo the most advanced and well structured Democratic Communist parties in the world. I assumed that there would be no cooperation with them, but perhaps I was wrong on that account.

Charlie Monoxide
18th September 2003, 06:54 PM
Interesting idea that gets my support. Unfortunately the Iraqi citizens will have to get in line behind Bush & Co (paying for the war), Haliburton, and other westerners.

Charlie (open a Disneyland in Baghdad) Monoxide

Gem
18th September 2003, 09:58 PM
Doesn't Lybia uses its oil money to fund its schools?

As for giving the profits of selling the oil, I think it should only be a temporary solution. It would definatly increase spending, but we'd have to watch out for inflation. And we'd have to make sure people wouldn't live on this forever. They need to get a job.

I would also consider lending out no-interest money to people who start businesses. Money they can use to buy merchandise, pay for the building or machinery or staff.

It could also fund infrastructure projects, like power plants, roads, etc.

And what could they do with all those saddam palaces lying around? Sell them, or even turn them into luxury hotels. (Anyone interested in investing in this project?:p )

Gem

Malachi151
19th September 2003, 04:58 AM
Ever since the Ba'ath Party took power Iraq has used its oil profits to provide free education for everyone up through the University level, citizens paid virtually no taxes, and everyone received free healthcare. None of that is new. After the sanctiosn went on though most of that stopped.

Landis
19th September 2003, 08:15 AM
Giving out stipends for oil is nothing new. The US has been doing exactly that for years. When the Alaskan oil pipeline was put on line back in the 70's, every native born Alaskan was guaranteed an annual payout. This continues today, and if we go ahead with drilling in the Northern Preserves of Alaska, the pay out will only get bigger.