Iraq’s IMF Loan

by JOSHUA FRANK

The International Monetary Fund (IMF) approved a $685 million loan for Iraq on December 24. Now the country’s war torn economy will be fully integrated into the global economy-indefinitely. The reconstruction of Iraq will soon be open to even more industrialized nations and interests.
Iraq will not be sovereign or independent in the near future, even if President Bush says so. The country’s financial future will instead be dictated by a new colossal economic occupation, complete with ground forces, tanks, foreign military bases and the like-all thanks to the United States, Britain and the IMF.

The new loans will soon be the focus of Iraq’s future "economic stability". Of course, the desire to capitalize on war’s misfortunes is at the heart of this occupation, as well as the IMF’s gracious assistance. This is undoubtedly what the Bush administration and their allies have wished for all along.

"This arrangement will underpin economic stability and help lay the foundation for an open and prosperous economy in Iraq," Treasury Secretary John Snow said in an announcement shortly after the loan was approved. Translation: Iraq will soon be open for business.
Now that the IMF will be able to dictate how best Iraq can pay back its ever increasing debt, putting its recovery in the hands of others, while the US reaps the benefits. If it’s to pump millions more barrels of oil every year, Iraq will be forced to do it. And in fact, increased oil production is at the heart of the IMF’s plan for Iraq.

In a statement released last week by the IMF, the institution reported that Iraq’s new government planned to allocate resources next year to expanding oil production as part of a broad economic scheme put forward by the IMF, with the hope of putting Iraq’s economy on an upward trajectory. In other words, Iraq will be forced to start drilling for more oil.

And of course democracy will never be truly attainable or even really wished for by the IMF and their wealthy investors-the country will just become another playing ground for imperial endeavors and capitalist greed. So much for independence, for no country is truly free and democratic when placed under the boot of the industrialized world. Markets consistently undermine democracy when motivated by self-interests, and Iraqi citizens are not likely to benefit in any real terms under the IMF’s new loan package, which will be divvied out over the next 15 months.

Don’t believe for a minute that Iraq will be able to shake off globalism’s ravenous greed anytime soon-even if US troops are redeployed. Capitalism’s tentacles are now fully attached to Babylon, as if they weren’t already, and the oil will be flowing shortly. Even if US troops are redeployed, or god forbid, brought home, the occupation of Iraq will nonetheless continue.

JOSHUA FRANK is the author of the brand new book, Left Out!: How Liberals Helped Reelect George W. Bush, which has just been published by Common Courage Press. You can order a copy at a discounted rate at www.brickburner.org. Joshua can be reached at Joshua@brickburner.org.


 

Like What You’ve Read? Support CounterPunch
August 31, 2015
Michael Hudson
Whitewashing the IMF’s Destructive Role in Greece
Conn Hallinan
Europe’s New Barbarians
Lawrence Ware
George Bush (Still) Doesn’t Care About Black People
Joseph Natoli
Plutocracy, Gentrification and Racial Violence
Franklin Spinney
One Presidential Debate You Won’t Hear: Why It is Time to Adopt a Sensible Grand Strategy
Dave Lindorff
What’s Wrong with Police in America
Louis Proyect
Jacobin and “The War on Syria”
Lawrence Wittner
Militarism Run Amok: How Russians and Americans are Preparing Their Children for War
Binoy Kampmark
Tales of Darkness: Europe’s Refugee Woes
Ralph Nader
Lo, the Poor Enlightened Billionaire!
Peter Koenig
Greece: a New Beginning? A New Hope?
Dean Baker
America Needs an “Idiot-Proof” Retirement System
Vijay Prashad
Why the Iran Deal is Essential
Tom Clifford
The Marco Polo Bridge Incident: a History That Continues to Resonate
Peter Belmont
The Salaita Affair: a Scandal That Never Should Have Happened
Weekend Edition
August 28-30, 2015
Randy Blazak
Donald Trump is the New Face of White Supremacy
Jeffrey St. Clair
Long Time Coming, Long Time Gone
Mike Whitney
Looting Made Easy: the $2 Trillion Buyback Binge
Alan Nasser
The Myth of the Middle Class: Have Most Americans Always Been Poor?
Rob Urie
Wall Street and the Cycle of Crises
Andrew Levine
Viva Trump?
Ismael Hossein-Zadeh
Behind the Congressional Disagreements Over the Iran Nuclear Deal
Lawrence Ware – Marcus T. McCullough
I Won’t Say Amen: Three Black Christian Clichés That Must Go
Evan Jones
Zionism in Britain: a Neglected Chronicle
John Wight
Learning About the Migration Crisis From Ancient Rome
Andre Vltchek
Lebanon – What if it Fell?
Charles Pierson
How the US and the WTO Crushed India’s Subsidies for Solar Energy
Robert Fantina
Hillary Clinton, Palestine and the Long View
Ben Burgis
Gore Vidal Was Right: What Best of Enemies Leaves Out
Suzanne Gordon
How Vets May Suffer From McCain’s Latest Captivity
Robert Sandels - Nelson P. Valdés
The Cuban Adjustment Act: the Other Immigration Mess
Uri Avnery
The Molten Three: Israel’s Aborted Strike on Iran
John Stanton
Israel’s JINSA Earns Return on Investment: 190 Americans Admirals and Generals Oppose Iran Deal
Bill Yousman
The Fire This Time: Ta-Nehisi Coates’s “Between the World and Me”
Scott Parkin
Katrina Plus Ten: Climate Justice in Action
Michael Welton
The Conversable World: Finding a Compass in Post-9/11 Times
Brian Cloughley
Don’t be Black in America
Kent Paterson
In Search of the Great New Mexico Chile Pepper in a Post-NAFTA Era
Binoy Kampmark
Live Death on Air: The Killings at WDBJ
Gui Rochat
The Guise of American Democracy
Emma Scully
Vultures Over Puerto Rico: the Financial Implications of Dependency
Chuck Churchill
Is “White Skin Privilege” the Key to Understanding Racism?
Kathleen Wallace
The Id(iots) Emerge
Andrew Stewart
Zionist Hip-Hop: a Critical Look at Matisyahu
Gregg Shotwell
The Fate of the UAW: Study, Aim, Fire