OxBlog

Saturday, March 22, 2003

# Posted 11:06 PM by Ariel David Adesnik  

IRAQ'S ENRON: The NYT has an in-depth report on the administration's plans to give American corporations the exclusive right to bid on reconstruction contracts for Iraq. While there are good reasons to believe that the private sector can get the job done more efficiently than either the US government, the UN, or the NGO community, the political and economic risks of a market-based strategy are tremendous.

As Enron demonstrated, American corporations are no strangers to massive fraud. If scandals emerge, the administration will be hard-pressed to defend itself from charges that corporate interests are running US foreign policy.

Even worse, American corruption may alienate the people of Iraq while also ensuring that dishonest business practices become part and parcel of the political culture in postwar Iraq. While the Bush administration has never been a fan of strong corporate regulations, that is it's only hope of ensuring that Iraq becomes a prosperous democracy rather than a failed state run by organized criminals.
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