DUBAI, United Arab Emirates — Iraq lurched toward the global free-market economy Sunday, announcing a program to establish an era of investment-friendly capitalism that would tell the world that the occupied country is building "a strong foundation for the future," Finance Minister Kamel Keylani said.
The centerpiece of the initiative, which comes after approximately three decades of state-run socialism, is to open all sectors of Iraq's economy -- except oil -- to foreign investors. They would be allowed to own 100% of those operations and would enjoy low taxes and virtually no government-imposed restrictions, Keylani said in one of several speeches Sunday to groups attending the 2003 meetings of the International Monetary Fund and World Bank governors.
The minister, who was appointed by the governing council created under the U.S.-led coalition occupying Iraq, said that oil, which accounts for nearly all of Iraq's potential revenue, will remain in the hands of Iraqis. That includes both exploration and production, according to Keylani and other Iraqi officials, who were in Dubai to also solicit loans or donations for their rebuilding effort.
The new development plan came as violence against American soldiers continued. Two Americans died in a mortar attack on Abu Ghraib prison and a third was killed in a roadside bombing. That brought the death toll in Iraq of U.S. military personnel to at least 303; more than 1,275 service members have been wounded since the war began March 20.
Cautioning that Iraq's economy and infrastructure had been destroyed by ousted President Saddam Hussein and his Baath Party regime, Keylani told the assembled financial and political leaders that it could take years to turn things around in Iraq, even though the changes will begin immediately.
"I ask for patience, patience not just from Iraqis but from the international community," Keylani said. "Iraq has suffered for a long time, and all of us want progress. But we must build a strong foundation. We cannot build an economy overnight.
"An extraordinary opportunity stands before us," Keylani continued. "Not just for Iraq, but for the world."
The legal weight of the proposals and the willingness of foreign banks and insurance companies to back ventures in Iraq remained unclear, particularly with the ongoing violence against U.S. troops and their allies, said Iraqis and U.S. Treasury Secretary John W. Snow.
