In America’s foreign policy, free market rhetoric often goes hand-in-hand with calls for the protection of human rights.  So it would seem like Iraq and Afghanistan, where we’ve been installing liberty for quite a few years now, should be prime targets for major economic projects.  But when Iraqi state coffers are filling up with unspent oil revenues and American soldiers are on the front lines of economic development with small cash payments, there is a disconnect that could use a few quick fixes.  After all, major infrastructure projects still need building in the countries we are supposed to be rebuilding, and Iraq continues to expand its government bureaucracy instead of its private sector.  So here’s a shot at what needs trying:

1.  A joint U.S.-Iraqi business redevelopment project committee to encourage, receive, and review business plans from Iraqi citizens and companies that are majority Iraqi-owned.  This committee, funded 50-50 from Iraqi and U.S. government funds, could provide seed grants and be responsible for following up to see how the grants have been used, with the goal of developing larger investment sources for these native-Iraqi projects.

2.  A jointly-funded microlending facility administered by a reputable NGO that would, for the first period of its work, cooperate closely with the U.S. Army to take advantage of servicemembers’ real knowledge of the way things — and people — work in Iraq. 

3.  An expansion of Export-Import Bank credit projects for U.S. businesses willing to invest not only in exporting U.S. commodities, but in major infrastructure projects as well. 

4.  An informational/media strategy that brings home to Iraqis and others in the Middle East the benefits of U.S. and U.S.-led investments, including with special programming, using Iraqi documentary filmmakers, that would be shown on the U.S. Arabic-language television channel, Al-Hurra.

The Bush Administration should use the time it has remaining in office to spark projects like these in both Iraq and Afghanistan so that, in the event that the countries stay relatively peaceful, the next president can ramp up economic development efforts.

Ned Hodgman

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