Let’s cut to the chase. Iraq, despite the security issues, is starting to thrive. The International edition of Newsweek reported in their December 25th, 2006 to January 1st, 2007 issue:
- 2 years ago, Iraqi cell phones numbered 1.4 Million. Today there are 7.1 Million.
- 3 years ago, Iraq had 8,000 registered companies. Today there are 34,000.
- GDP in Iraq grew 17% in 2005 and projections are for 13% in 2006.
- Income tax has gone from 45% under Saddam to 15% and Iraqi’s are spending.
To quote some of the article:
Consider some less formal indicators. Perhaps the most pervasive is the horrendous Iraqi traffic jams. Roadside bombs account for fewer backups than the sheer number of secondhand cars that have crowded onto the nation’s roads—five times as many in Baghdad as before the war. Cheap Chinese goods overflow from shop shelves, and store owners report quick turnover. Real-estate prices have risen several hundred percent, suggesting that Iraqis are more optimistic about the future than most Americans are.
That last sentence is quite telling. And all this from Newsweek, which is typically considered a left leaning publication.
So Iraq is thriving. What does this mean? It means that despite what Americans think about the war, the nation is going through some major pains while it grows.
The withdrawal of a certain great power could drastically reduce the foreign money flow, and knock the crippled economy flat.
Could George Bush be right? Could Iraq be a thriving western style nation under the right conditions? We may never find out with the Democrats taking control of both houses. The biggest complaint by the Democrats is that American soldiers are dying.
Some statistics. The number of casualties in 45 months since the war began is 3017. That comes out to just over 800 a year. In the four calendar years from 2001 to 2004 inclusive the average number of road deaths in the USA was over 42,000 a year. But do the car crash safety ratings get the air time that the war in Iraq gets? Not even close. Iraq is in the news every newscast, every day, every week. In my opinion, the war fatigue just caught up with Americans and we can thank the MSM for continuing to report every single death in Iraq numerous times and rarely, if ever, reporting statistics about how the nation has changed and is thriving under new government.
God help the Iraqi people once the Americans leave.
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
Cell phones and GDP growth are brutal ways of saying that Iraq is “developing” or “thriving”. GDP doesn’t account for growing inequeties between Iraqi classes. (You can thank World Bank chair and 2001 Nobel economic Prize winner Joseph Stiglitz for that tid-bit of information)
GDP doesn’t mean that overall people are better off economically. I’d be interested in what their PPP growth looks like between 2003 and 2007.
Secondly, how are less taxes good for a country that is constantly being bombed? Will reconstruction hinge on foreign aid and WB loans? They’ll have to pay them back in the future with more taxes.
I’d say we’ll have a better understanding whether or not Iraq has significantly improved in ten more years.
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
Hey dummy, communism doesn’t mean that people are better off, or that there is any semblance of equality nor justice in a society… but it sounds good and young pretentious kids like the sound of it.
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
It is excellent news actually. Once Iraqis have more to lose, they will tend to become more security conscious all around. Businesses that begin their existence without having to bow to their fascist governments – the usual case in the middle east – will create a greater sense of freedom and independence among the population as a whole. They’ll want to get rid of weapons caches and suicide bombers themselves.
Yes, we will definetly have a better understanding in ten years, but for now – hard choices have to be made by strong leaders, there’s no way around it.
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
dylan (#1) I am with others on this one. I would rather NOT see Iraq be communist or socialist and provide equality to every single Iraqi. If you took the time to read the article in Newsweek, it was pointed out that much of this money comes from those who were hoarding it away for years. They are not afraid to spend it now that the Saddam Hussein regime is over.
Perhaps you might be happier to hear that a portion of the oil revenue Iraq generates will be split out to every citizen in the country. Is that equal enough for you?
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
It looks like they have something to lose other than just their freedom. Now they have more reason to stand up to the Islamists (the people who hijacked Islam for political purposes).
John M Reynolds
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
I didn’t once see communism in dylan’s post, but everyone else sees that as the only other option. It’s called a false dichotomy, people, and it is a sign of (at the very least) a severe lack of creativity. It also shows that no one understands what communism is (or isn’t).
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
Thanks anon. My observation has nothing to do with communism, it means that GDP is simply NOT a good measure of ecomic develoment at the local level.
Wouldn’t we rather see Iraqi PPP rising, meaning that there is a growing middle class and a shrinking lower class, as opposed to the ambiguity of GDP rise all the while more acts of social unrest occur everyday?
It’s not about socialism or communism, it’s about smart ecomomcs and good measures of development. Your beef isn’t with “my” theory about the folly of GDP as a measurement for growth, but with World Bank chairperson (and clearly everyone who comments here knows nothing of the World Bank) Joseph Stiglitz.
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
Growth in Purchasing Power Parity is not a meaningful measure when there is not a free market history, and when the economy is undergoing such upheavals as we see in Iraq.
Estimates of per-capita PPP for 2005 range from $1800 to $3400 on just a quick survey. Other sources decline to give an estimate. Most inidicators show much of the growth probably occurred in 2004 or 2005, with more recent years starting to show some signs of stabilization.
By any fair comparison, Iraqis are much better off today than they were under the corrupt Oil For Food program. But then it’s easy for most people to forget the facts of Iraq under Saddam Hussein.
Notice: Only variables should be assigned by reference in /var/www/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 590
Paul O – Thanks for your stats and the respectful rebuttle.