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					Economic Improvements Needed to 
					Stabilize Iraq 
					 
					by Peter Kenyon 
					 
					Weekend Edition Sunday, February 24, 2008 · U.S. and Iraqi 
					officials hail improvements in Iraq's security, but they say 
					economic improvements  especially job creation  are 
					urgently needed. Government and military spending are 
					picking up, but the private sector still has much catching 
					up to do. 
					 
					Reliable figures are elusive, but according to the U.S. 
					Embassy in Baghdad, the official unemployment rate in the 
					city is 18 percent, and underemployment may be as high as 50 
					percent. 
					 
					For years, officials and analysts have pointed to high 
					unemployment as an economic and a security problem, since it 
					leaves a large pool of idle men available for recruitment by 
					insurgents, militias and other armed groups.  
					 
					With the daily violence well down in many parts of the 
					country, people say jobs programs are finally beginning to 
					gain momentum. 
					 
					At the edge of a huge U.S. military base near Tikrit, north 
					of Baghdad, an Iraqi carpenter-in-training tries his hand at 
					the power saw as an American adviser looks on. 
					 
					Under a program called "I-Biz," the military is beginning, 
					nearly five years after the invasion of Iraq, to train 
					Iraqis to be plumbers, electricians and carpenters.  
					 
					Once certified, they can either set up shop in the hometowns 
					or get a job with KBR, the major U.S. contractor. Most 
					choose the latter option. 
					 
					Munif Munawer, 29, says the pay isn't great, but when a 
					neighborhood leader known as a mukhtar told him the 
					Americans would help him learn a trade, he seized the 
					opportunity. 
					 
					"I was unemployed for a long time. We used to be shepherds. 
					This is much better. When the mukhtar said there were jobs 
					for Iraqis on the base, I said yes," Munawer says. 
					 
					In Baghdad's massively fortified Green Zone this weekend, 
					the Iraqi-American Chamber of Commerce and Industry finally 
					launched its "Buy Iraqi First" initiative. A previous 
					attempt in 2004 had to be cancelled due to insurgent 
					violence. 
					 
					Chamber CEO Raad Omar says "the sky's the limit" in terms of 
					needs in Iraq, but the atmosphere is better than it has been 
					in years.  
					 
					Omar's goal is to create $500 million in new Iraqi business 
					activity and 10,000 jobs this year. He says that is not as 
					ambitious as it sounds when you consider how much work is 
					currently being outsourced. 
					 
					Take KBR, for example. The company does about $500 million 
					worth of business in material for the coalition forces. All 
					of it is imported from Dubai. This is work that Iraqis could 
					do, he says. 
					 
					Kais Ghazi, 30, owns Al-Eban Construction with his brother. 
					The company has rebuilt police stations, hospitals and 
					offices shattered during the invasion or its anarchic 
					aftermath. 
					 
					Ghazi says the challenges include working around roadside 
					bombs and getting loans from dysfunctional banks, but the 
					worst problem by far is corruption. 
					 
					The civil society group Transparency International ranks 
					countries according to a series of corruption criteria. Last 
					year, Iraq came in 178th, out of 179.  
					 
					Ghazi says the Planning Ministry was a nightmare under 
					Saddam Hussein and not much has changed. 
					 
					"Unfortunately, the problem is still happening, even after 
					the fall of the old regime  the first thing is always the 
					payoff. The official says how much are you going to pay me, 
					then we can discuss the contract," Ghazi says.  
					 
					Abd Alzahra al-Hindawy, a spokesman for the Planning 
					Ministry, says corruption is a problem, but it's a two-way 
					street. 
					 
					"I will not deny these problems; for sure there are 
					corruption cases. Unfortunately, there are some contractors 
					who also want to get contracts illegally, so there is 
					corruption from that side as well," he says.  
					 
					The Chamber of Commerce's Omar says right now, the needs 
					vastly outweigh the resources. But he takes heart from 
					developments over the past few years, including those in 
					Kurdish northern Iraq, where security is better. 
					 
					Anxious American politicians, homesick U.S. forces and their 
					families, and millions of Iraqis are hoping that Omar is 
					right, and that Iraq's future holds  if not peace and 
					prosperity  at least basic services and jobs for the 
					able-bodied Iraqis now sitting at home or on street corners, 
					waiting for anyone to pay them to work.  
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