Wednesday, April 14, 2004

Iraq's postwar oil exports exceed $7.5 billion

The boys at Reuters have an article about Iraq's oil revenues. I think this is good news that doesn't get enough play in the media. I also think that there should be more information on the projects that have been funded by this oil revenue. For as much as the global community was able to put together for aid to Iraq, eventually they will have to pay their own bills.

In my opinion, the money should be used to pay first for security. This above all other things must be taken care of first. Only when there is security on the ground and in the streets will foreign investment come into the country with any speed. Iraq is a large market and countries and companies will be fighting each other tooth and nail to build the infrastructure for the Iraqis.

Secondly, the revenues must be used for infrastructure improvements that are not taken care of by foreign investment. This would include educational facilities, irrigation, and transportation facilities. All of these are important for the future of Iraq's economic improvement.

I like the fact that there is some transparency in account the oil revenues go into. And the boys from Reuters are sure to point that out:

"Under a May 2003 U.N. Security Council resolution, the Coalition Provisional Authority is required to deposit all the proceeds of Iraqi oil exports into the fund. The resolution was intended to ensure Iraq's secretive U.S.-led civil administration was not engaged in any dubious practices in marketing Iraq's oil and using the money for reconstruction."

Yeah, one would hate to think that there would be any dubious uses of oil revenues...

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