Neoliberalism in a Conflict State: The Viability of Economic Shock Therapy in Iraq
Abstract
The quotes above are reflective of the expectations and frustrations experienced by both Americans and Iraqis over the future course of Iraq's economic system. For many in the Bush administration the answer is quite simple: free markets, increased globalization and reduced government interference in the marketplace -the basic neoliberal [4] economic agenda- are the ticket to rapid Iraqi economic recovery and prosperity. For many Iraqis, even some in key ministries, neoliberalism, especially in its "shock therapy" form, is just another reckless western experiment imposed on the country for reasons that are unclear. Even in the early summer of 2003 the neoliberal debates were coming to the fore: The big debates will be between those in Washington who want to press ahead with a dogmatic neoliberal approach and those in the field who see the necessity often for political reasons, to go step-by step, acknowledging a large amount of uncertainty about what institutional changes are necessary or even desired by the Iraqis. On the Iraqi side, advocates for the adoption of an Islamic economic system will be more and more vocal if the neoliberal reforms do not show quick dividends.[5] The sections below examine the evolution of neoliberalism in Iraq since the summer of 2003. What aspects of the neoliberal agenda were introduced into the country? What are their strengths and limitations? Based on this assessment, several conclusions are drawn concerning the applicability of the neoliberal reforms in the Iraqi context.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2004
- Accession Number
- ADA521633
Entities
People
- Robert E. Looney
Organizations
- Naval Postgraduate School