
The U.S. has been busting its butt in Iraq, and now, to the chagrin of Democrats and Republicans alike, it seems like
Iraq will yield an oil-fueled surplus of up to $79 billion by the end of this year, according to a report by the Government Accountability Office, the non-partisan organization that is the so-called "congressional watchdog."
Why is that a bad thing? Well, only a tiny fraction of that is actually going toward reconstruction within the country. Meanwhile, the American budget remains deep in the red - we'll rack up roughly
a $500 billion deficit in 2009, the highest dollar amount ever (breaking the 2004 record) - at the same time that we
continue to spend scores of billions of dollars on ... yup, Iraq reconstruction.
Statement of Senators Carl Levin, Democrat of Michigan, and John W. Warner, Republican of Virginia, who requested the GAO report:
"The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects," Mr. Levin, who is chairman of the Senate Armed Services Committee, said in a joint statement with Mr. Warner. "It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves. We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank."
Fine. But what's the cause of the massive amount of unused funds? Apparently, it's Iraq's molasses-slow bureaucracy and general managerial incompetence, according to the the New York Times story.
(It's a little perverse: Iraq sits on their huge profits, and we're racking up unprecedented levels of debt, spending huge amounts of tax money on Iraq reconstruction and
simultaneously boosting Iraq oil profits with our fuel consumption. That's seriously screwy.)
That view, however,
doesn't fly with a U.S. diplomat in Iraq.
The official said the new report from the U.S. Government Accountability Office, an independent watchdog, captured only part of the picture when it said Baghdad was failing to spend on reconstruction, leaving much of the task to Washington.
"The impression that somehow the Iraqis are sitting back on these huge growing balances doesn't really fit what's happening," the official in Baghdad said, speaking to reporters on condition of anonymity.
...
The U.S. official said he hoped bureaucratic changes to facilitate contracts and authorise spending would help Iraqi officials get money out the door. "They are looking for ways to de-bottleneck their own expenditures," he said.
Under close scrutiny from the United States and the international community, he said the government's effort to improve budget execution "is actually a positive story."
Diplomatic, for sure. I mean, listen, I don't usually get bothered by too much in the news, but this kind of irritates me. What are we, Iraq, your petrodaddy? Get it together!
Labels: iraq