The Need For An Activist Global Citizenry

As the U.S. military prepares to begin withdrawing its forces from Iraq in substantial numbers following the January 2010 national elections, many questions remain concerning the political, economic and security status of the country. 

Politically, Iraq remains significantly divided on the issue of Sunni integration into the government and military as well as how much autonomy the Kurds should have, particularly in the area of energy investment and export policies. Kirkuk stands out as the most obvious potential fault line for conflict but the complexities of the situation extend far beyond this contested territory. 

Economically, Iraq remains beholden to foreign debtors and, according to most accounts, will need to depend on foreign investors for the technological expertise needed to increase its energy production capacity to optimum levels. The low price of oil has also made it difficult for the Iraqi government to budget for such immediate tasks as training and expansion of the Iraqi security forces, making foreign investment in its energy sector a potentially necessary, albeit unattractive option.  Among Iraqis, the idea of international oil companies returning to Iraq is widely greeted with deep suspicion and in some circles with militant hostility given the companies’ history of exploitation.  

International oil companies can play a positive role in bringing stability to the country by increasing revenue that can be used for economic development.  Without proper oversight from interested governments however, Iraq is likely to end up in a similar situation as Nigeria, where government corruption and environmental impunity on the part of international oil companies has resulted in an insurgency that has succeeded in cutting up to 25% of oil production in the country.

U.S. officials and their counterparts in Europe, Russia, China and Japan should be encouraged to support transparency and parliamentary oversight of the contract negotiations.  Oil comprises over 90% of the Iraqi national budget and therefore it cannot be left to a small handful of officials in the executive branch, largely insulated from Iraqi public opinion, to sign contracts with foreign companies without oversight from the legislature.  The current contest of wills between officials in the two branches will set an important precedent for the future.  Ultimately, pressure from the citizens of foreign governments including the United States will be critical to ensuring that a positive example is set rather than a policy of expedience in the area of energy investments.  

(For background information on the political contest between the Iraqi executive and legislative branches, visit http://www.iraqoilreport.com/)