Progress in rebuilding Iraq is badly in need of money, as the country is far from meeting U.S. goals for electricity, oil and water, Comptroller General David M. Walker told Congress today.
Walker heads the Government Accountability Office, Congress' investigatory arm, and the picture he offered to the House national security subcommittee was not encouraging.
More international cooperation is needed to rebuild Iraq, he said. More money is badly needed, and Walker added, "it is unclear how Iraq will finance its reconstruction needs." And by almost every measurement, the country's infrastructure still has serious problems.
Chairman Christopher Shays, R-4th District, who like Walker recently returned from Iraq, tried to find bright spots in Walker's 32-page report and two hours of testimony.
Shays noted that the political situation in Iraq has improved tremendously since the U.S. toppled former leader Saddam Hussein three years ago.
He compared Iraq to the United States in the late 19th century. "Iraq has an easier chance to become a viable country than the U.S. had," Shays said, as he noted the struggle the U.S.' founders endured before creating a stable government.
But even Shays, who has visited Iraq 12 times since the war began and remains a steadfast supporter of the U.S. effort, expressed concerns about the nation's future.
"Their progress has been large," he said, "but it could blow up in their face. If they don't get at the corruption and make some inroads, they fail."
While corruption is a serious problem, Walker said, Iraq's troubles go well beyond any simple solution.
As of last month, his study found, oil and electricty production were still well below pre-war levels, and U.S. reconstruction goals for oil, electricity and water have still not been met.
Among his findings:
• Oil: Before the war, Iraq produced 2.6 million barrels per day. The U.S. goal was 3 million barrels a day, and Iraq currently produces about 2 million barrels per day.
• Electricity: Before the war, Iraq generation capacity was about 4,300 megawatts. The U.S. goal was 6,000 megawatts; current capacity is 4,092 megawatts, down from a peak of 5,387 megawatts in July 2005.
• Water: Pre-war capacity is unknown, but the United States aimed to provide 2.5 million cubic meters of water a day. Instead, about 1.1 million cubic meters are being produced.
Walker offered several reasons for the problems, starting with the sectarian strife that continues to rock the country. Since 2004, he found, attacks against the U.S. coalition, Iraqis and infrastructure went up 23 percent.
And, he found, "despite coalition efforts, insurgents continue to demonstrate the ability to recruit, supply and attack coalition and Iraqi security forces."
But there are other reasons the rebuilding is lagging. One is corruption. The State Department has found that about 10 percent of refined fuels in Iraq are diverted to the black markets and about 30 percent of imported fuels are smuggled out of Iraq and sold for a profit.
Walker also found that Iraqis are not equipped to operate the different components of the infrastructure. While Shays and others praise last week's agreement on a prime minister, Walker noted that key ministries have yet to be filled, and Iraq still needs workers to run day to day operations.
Even if security and corruption problems cleared up, there is still a huge question of money -- where it comes from and whether enough can be raised from outside Iraq. The Senate is considering this week a plan to authorize more aid to help rebuild and secure Iraq, but Walker warned far more money is needed.
"International donors are relucant to commit additional funds until security improves," he said, "and Iraq accounts for the donors previous contributions."
And Iraq itself is unlikely to be able to finance its own needs soon, unless it raises its domestic oil prices -- and if it does that, it could make oil too expensive for its citizens.
Democrats pounced on these findings, saying they confirmed what they've suspected for years. "The Bush administration has bungled the reconstruction in Iraq in many ways," said Rep. Christopher Van Hollen, D-Md.
Even Shays had his doubts. He continued to defend administration policy, saying "I am convinced premature withdrawal of our military will guarantee failure," and saying no one should be talking about timetables.
"I believe we must replace our withdrawal mindset with a mindset that appreciates what our military, State Department and others have accomplished in Iraq," he said.
But even he was concerned about the pace of reconstruction. "I question," Shays said, "whether the American people have staying power if they don't see real progress."
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