Iraq – the Opportunity and the Problem

However despite the achievements there are significant problems, some of which have been highlighted already, but it is important to understand the likely out-turns of what is going on in this re-emerging economy. There are a few facts that, in my view, are driving what you are seeing in Iraq now; these are:

The Shiite-Sunni divide has been a fact in Iraq that has never gone away. Facts, so the expression goes, are stubborn things and 1,300 year-old facts are especially stubborn. The US must bear some of the blame for encouraging and playing a part in managing a coalition of Maliki and Allawi and excluding the Sadrists from this Government – it was understandable but silly and this is a large part why we are seeing this violence. For a fuller explanation it is worth visiting the website of historiae.org, a direct outlet for historical research on topical issues in world politics and reading their view of the role played by Christopher Hill, the US Ambassador in Iraq.

The US troop withdrawal was set in motion 3 years ago but it was the process which was more interesting than its outcome. Maliki was seen to be in favour of then against the withdrawal and then used it as an opportunity to set-up Allawi, for a fall. A critical element in the stability and growth of the country was turned into a political battlefield.

The US military pulling out does not mean that the US will have a reduced presence – the US Embassy will continue to have an astonishing 15,000 and 16,000 staff in Iraq and about 5,000 armed contractors guarding them. This will be the USA’s largest diplomatic presence in the world.

From an oil and gas industry perspective, Exxon-Mobil’s decision is interesting; this is a company which does analysis and assessment very well, they picked 6 of the most sensitive blocks that were possible to pick for their very public venture into Kurdistan. When Maliki started talking to the US Government about Exxon’s presence this turned from a commercial decision to a political / security one. It was a good call by Exxon and they may well get away with the decision – and probably flush out a couple of other big oil majors into moving into Kurdistan .

3 Responses to Iraq – the Opportunity and the Problem

  1. cehona 18th January 2012 at 20:11 #

    So IQD speculation is Finish ... NO GO!

  2. Windy 7th February 2012 at 17:18 #

    I agree that there are opportunities and problems in Iraq. But as a country after war, I think more opportunities than problems here. If Iraq people can confront such difficulties, I think here is a bright future for this country.I [advertising removed] wish a bright future in Iraq.

  3. Muhammad Al-Waeli 7th March 2012 at 14:43 #

    I agree with Windy. And I think that this 'halt' in the rebuilding process is not due to anything but political differences and interference from outside and inside. Iraq's Government needs to become stronger, regardless of who is leading it. The real reason that nobody wants to spell out why things are on hold in Iraq is this: internal and external forces simply don't agree on the current Iraq leadership for many reasons. No support is therefore provided when support is mostly needed. And therefore all is on halt. Let Iraq be lead by somebody who pleases the international and internal forces, and you'll see. What the people want and whom they voted for is not relevant anymore.

    This is, as I believe, the sad reality about Iraq. And I think that the future will prove this.