The Hand-Over That Wasn't
Officially, the U.S. occupation of Iraq ended on June 28, 2004. But in reality, the United States is still in charge: Not only do 138,000 troops remain to control the streets, but the "100 Orders" of L. Paul Bremer III remain to control the economy.
These little noticed orders enacted by Bremer, the now-departed head of the now-defunct Coalition Provisional Authority, go to the heart of Bush administration plans in Iraq. They lock in sweeping advantages to American firms, ensuring long-term U.S. economic advantage while guaranteeing few, if any, benefits to the Iraqi people.
The Bremer orders control every aspect of Iraqi life -- from the use of car horns to the privatization of state-owned enterprises. Order No. 39 alone does no less than "transition [Iraq ] from a
Although many thought that the "end" of the occupation would also mean the end of the orders, on his last day in Iraq Bremer simply transferred authority for the orders to Prime Minister Iyad Allawi -- a 30-year exile with close ties to the CIA and British intelligence.
Further, the interim constitution of Iraq, written by the U.S.-appointed Iraqi Governing Council, solidifies the orders by making them virtually impossible to overturn.
A sampling of the most important orders demonstrates the economic imprint left by the Bush administration: Order No. 39 allows for: (1) privatization of Iraq's 200 state-owned enterprises; (2) 100% foreign ownership of Iraqi businesses; (3) "national treatment" -- which means no preferences for local over foreign businesses; (4) unrestricted, tax-free remittance of all profits and other funds; and (5) 40-year ownership licenses.
Thus, it forbids Iraqis from receiving preference in the reconstruction while allowing foreign corporations -- Halliburton and Bechtel, for example -- to buy up Iraqi businesses, do all of the work and send all of their money home. They cannot be required to hire Iraqis or to reinvest their money in the Iraqi economy. They can take out their investments at any time and in any amount.
Orders No. 57 and No. 77 ensure the implementation of the orders by placing U.S.-appointed auditors and inspector generals in every government ministry, with five-year terms and with sweeping authority over contracts, programs, employees and regulations.
