Bean Counting in Baghdad: Debt, Reparations, Reconstruction, and Resources
Abstract
The Iraqi economy is in complete shambles. Even worse, the population is burdened with up to $400 billion in debt, reparations, and contractual commitments made under Saddam Hussein's regime. This article examines the fiscal challenges facing the country over the next decade. Even on the assumption of considerable debt forgiveness and foreign aid, it appears impossible to meet the government's operating and reconstruction costs without some sort of privatization of the oil sector. The sections that follow examine Iraq's fiscal challenges and possible financial strategies over the next decade. What options are available under United Nations Security Council (UNSC) Resolution 1483, and the resolutions coming out of the May 2003 G-8 Finance Ministers' meetings? Which strategies seem best from the perspective of Iraq's reconstruction? Under reasonable assumptions, will there be enough money to reconstruct the economy and revitalize the oil industry? The following topics are addressed: United Nations Security Council Resolution 1483, the G-8 resolutions of May 2003, strategies for reducing foreign obligations, conventional debt forgiveness, odious debt doctrine, the issue of reparations and war-related debt, outstanding contracts, debt servicing priorities, creative debt conversions, and privatization of the oil sector.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2003
- Accession Number
- ADA484821
Entities
People
- Robert E. Looney
Organizations
- Naval Postgraduate School