Iraq has started making deals with the big oil companies. This is good news for a country that is struggling to find money for schools and transportation infrastructure. If Iraq can ever get its shit together it now possesses some enormous advantages over other regional powers. Of course, it has the worlds third largest oil reserves, but it also now has an alliance with the United States and a liberalized western style economy, weak and frail though it may be. If Iraq lets the big oil multinationals do their thing, the country could be in for an economic windfall like nothing ever seen before.
The reason for this potential windfall has every thing to do with the US led invasion of the country. The oil industry has been loosed from the chains of state control. This is a competitive advantage that cannot be under estimated. Most oil development in the troubled middle east is controlled by state owned conglomerates who are corrupt and inefficient. By allowing oil super powers like Exon, BP and Royal Dutch Shell to develop the country's oil resources Iraq could steer clear of these endemic pitfalls that have so hampered the growth of an Arab middle class.
Now, I know hundreds of thousands of civilians have been butchered as a result of the US occupation of Iraq, and it would be naive for American's to think that Iraqis will be immediately grateful for the huge amount of money our country spent in taking vengeance on the Islamic world for 9/11, but, imagine if you will a wealthy and democratic Iraq aligned with the US. What a game changer that would be in Middle east, and indeed, world politics. As the Iraqis out competed their neighbors the would inadvertently pressure despotic nations like Iran and Saudi Arabia into governmental reforms through soft economic power.
Now, obviously, the middle east is a long way from deliverance. But, if Iraq can show the foresight to allow foreign oil companies to operate without government interference, and the whererwithall to root out and destroy corruption, it could rise like a phoenix from the ashes to become the dominant regional power in the middle east, and drag the rest of the middle east kicking and screaming into the 21st century.
Thanks Tim. Your comment was great! I could not have waved a Pres. Bush flag any better than that. To all those stupid liberals who said no to war, were against war for oil and revenge, and hated Bush this above comment is all I need to say to you. In the end it will all make for a better Iraq, lower oil prices, and put pressure back on Iran. The Iraq war, occupation and rebuilding of the country did open the country's oil up to be competed on by the super powers of the industry. Now they will have the technology to be a major oil producer again, but this time under a democratic government inspired by the US. Now instead of Iraq's oil money being spent by Saddam to genocide the Kurds to the North, build mansion after mansion, or make chemical and biological WMDs the money can be used to build school, roads, and hospitals. OMG its amazing how one is a good thing and the other is not. And the credit of the transformation of Iraq from bad to good (or enemy to ally) is all for Pres. Bush. Now I think both Bush Presidents can take some of this credit, as can the US taxpayers for funding the war. Thanks again Tim for the great comment. I only wonder if while you wrote it if you stopped to think how could it be that these total transforming changes could be occurring to a MidEast country such as this? Did you ever come to realize that this might have been Bush's plan the entire time? I will accept your apologies anytime you are ready.
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