WASHINGTON D.C.—The Open Society Institute today said that the White House request for another $87 billion for postwar reconstruction should not be approved without increased accountability for U.S. activities in Iraq.
Iraq Revenue Watch, a program of the Open Society Institute (OSI) that monitors Iraq's oil industry, called on Washington to tell the American people its plans for Iraq, how much the military occupation will cost, and about moves to secure financial and military contributions from others.
The White House has asked Congress for $21 billion towards rebuilding efforts, with the bulk of the $87 billion allocated for military occupation. The latest estimates, however, say that restoring Iraq’s infrastructure, oil production facilities, and healthcare and education systems will cost more than $100 billion.
The administration earlier made claims that oil revenues would pay for Iraq’s reconstruction, but was unprepared for the many challenges—terrorist attacks, outdated infrastructure—that have frustrated efforts to restart the oil industry. At an estimated $12-$20 billion a year, oil revenues will barely pay for the cost of operating an Iraqi government, much less cover basic services such as water and electricity.
The White House’s recent appeal drives home that the postwar period in Iraq has been far more difficult and expensive than the administration predicted," said Svetlana Tsalik, director of Revenue Watch. "But the White House continues to mislead both the Iraqi and American people."
OSI recommends that the administration enlist U.S. allies in Iraq’s reconstruction, granting their requests for greater transparency in the management of Iraqi assets and a timeline for the prompt transition to full Iraqi self-governance.
In addition to setting a date for Iraqi sovereignty, the Coalition Provisional Authority must also take steps to include Iraqis in the transition process. Despite White House claims to the contrary, Iraqis have been all but excluded from all levels of policymaking. "To create a stable, independent Iraq, Iraqis themselves must help shape the future of their country," said Isam al Khafaji, the Baghdad-based director for Iraq Revenue Watch.
Al Khafaji added: "The administration’s current policy will not bring about sustainable democratic change in Iraq. A new strategy—one that includes full Iraqi participation, transparent budgeting, and increased international support—is needed to prevent Iraq from slipping into chaos."