Democracy and Governance in Iraq
The Development Challenge: Misguided economic policies and three wars wrought terrible damage to Iraq's society and economy. Per capita income fell to very low levels, unemployment increased, poverty expanded, and basic services deteriorated along with social indicators in areas such as health and education. The legacy of economic sanctions, such as deteriorated basic infrastructure, poor economic performance, and unemployment, are a significant burden on the general population and challenge to the Coalition and Iraq's Transitional Government. The reconstruction efforts of the Coalition and the Iraqi Interim Government (IIG) have been undertaken in the midst of a growing violent insurgency of former regime elements, foreign fighters, and other enemies of democracy. During the past year, in spite of military successes, the insurgency has intensified, creating an atmosphere unlike any other in which an international donor community has ever attempted such large-scale reconstruction. In an effort to sow fear, create an atmosphere of chaos, and prevent democracy from taking root, foreign-aid workers and Iraqis who work with, or benefit from, reconstruction efforts are intimidated and killed daily, and projects are routinely attacked.
Even absent an insurgency, the transition from authoritarian rule to democratic governance poses considerable challenges to the people of Iraq. During the interim and transitional periods, the disparate ethnic, religious, and sectarian groups of Iraq are challenged to form a common vision for their country based on tolerance and other democratic principles. In this decisive period in history, the people of Iraq will draft their new constitution and develop a new system of governance based on checks, balances, decentralization, and separation of powers. For the first time in decades, Iraqis have the opportunity for free, fair, and transparent voting, to express their views publicly, to debate important issues and policy alternatives, and to have a part in the decision-making process.
Over the past decades, Iraq has deteriorated from a nation with enormous natural resources and a relatively healthy, educated population to a failed nation. Literacy currently stands at only 39% and general health is far below the level in any other country in the region. The highly centralized bureaucracy resulted in inefficient and inequitable service delivery at the local level.
It is in the U.S. national interest to create a stable, democratic Iraq with a free-market economy. If this can be achieved, it will have a far reaching impact on an unstable region with little experience in democracy. Without economic growth and democratic pluralism, the Middle East will continue to be a pool of the disenchanted and disenfranchised - a reservoir of recruits for Al Qaeda and other terrorist and extremist groups.
The USAID Program: When the Coalition Provisional Authority dissolved on July 27, 2004 and the IIG assumed sovereignty, USAID officially announced the opening of its Mission in Baghdad. The USAID Mission works as part of the U.S. Embassy team and contributes to the achievement of overall U.S. Government (USG) objectives in Iraq. Prioritization of reconstruction projects to be funded is done by the Iraq Reconstruction Management Office (IRMO), in conjunction with Iraqi ministries, and within the mandates of USG funding legislation. To implement its activities, USAID collaborates closely with the people of Iraq, non-governmental organizations (NGOs) and private sector partners, the United Nations, and Coalition partners involved with relief and reconstruction efforts. In 2004, USAID implemented assistance programs in agriculture, economic growth, infrastructure, transportation, telecommunications, seaport and airport rehabilitation/operation, local governance, health, education, electricity, water, and sanitation.
(Excerpted from the 2006 Congressional Budget Justification for Iraq)
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