One Hunderd Orders

Category: Middle East, World Affairs Topics: Iraq Views: 5444
5444

The Hand over that wasn't: How the Occupation of Iraq Continues

The U.S. occupation of Iraq officially ended on June 28, 2004 , in a secret ceremony in Baghdad . Officially, "full sovereignty" was handed from the Americans to the Iraqi Interim Government. But it was clear from the start that this was sovereignty in name, not in deed. First, there is the continued military occupation: 138,000 U.S. soldiers and Marines, plus 20,000 troops from other countries and an estimated 20,000 contractors, all fully under U.S. control and immune to Iraqi laws. Equally debilitating, however significantly less well reported upon, is the continued political and economic occupation by the Bush administration and its corporate allies. 

The most important tools being used by the Bush administration to maintain varying degrees of economic and political control in Iraq are the 100 Orders enacted by L. Paul Bremer, III, head of the now defunct Coalition Provisional Authority (CPA) before his departure. It was thought that the "end" of the occupation would also mean the end of the Orders. Instead, in his final Order enacted on his last day in the country, Bremer simply transferred authority for the Orders over to the new Prime Minister, Iyad Allawi. For his part, Allawi--a thirty-year exile of Iraq with close ties to both the CIA and British Intelligence Services--is considered America 's new man in charge of Iraq . 

Bremer also ensured the implementation of the Orders by stacking every Ministry with U.S.-appointed authorities with five-year terms--well into the period of the new, elected government, which is to take office by the end of this year. 

The Orders are exercised pursuant to the Iraqi interim constitution, the Transitional Administration Law (TAL). The Annex to the TAL states that the Orders can only be overturned with the approval of the president, the two vice presidents and a majority of the ministers. 

But the Annex also denies the interim government from taking "any actions affecting Iraq 's destiny" beyond the election of an Iraqi government. The identical sentence appears in UN Security Council Resolution 1546, which outlines Iraq's transition to "sovereignty." Thus, while Allawi may succeed in overturning a few less far-reaching Orders if for no other reason than to demonstrate his independence from the Americans, it is beyond his authority to change any fundamental laws. 

And, as Bremer said about the Orders, "You set up these things and they begin to develop a certain life and momentum on their own--and it's harder to reverse course." 

It is difficult to over-state how far-reaching the Orders are. As described in Order #39 on Foreign Investment, the Orders are intended to do no less than "transition [ Iraq ] from a ... centrally planned economy to a market economy." This goal is explained in greater detail by BearingPoint, Inc., the Virginia based corporation that received the $250 million contract to facilitate this transition. The contract states: 

"It should be clearly understood that the efforts undertaken will be designed to establish the basic legal framework for a functioning market economy; taking appropriate advantage of the unique opportunity for rapid progress in this area presented by the current configuration of political circumstances... Reforms are envisioned in the areas of fiscal reform, financial sector reform, trade, legal and regulatory, and privatization." 

The (New and Improved) Bremer Orders 

A sampling of the most important Orders demonstrates the economic imprint left behind by Bremer: 

Order #39 allows for the following: (1) privatization of Iraq's 200 state-owned enterprises; (2) 100% foreign ownership of Iraqi businesses; (3) "national treatment" of foreign firms; (4) unrestricted, tax-free remittance of all profits and other funds; and (5) 40-year ownership licenses. Thus, it allows the U.S. corporations operating in Iraq to own every business, do all of the work, and send all of their money home. Nothing needs to be reinvested locally to service the Iraqi economy, no Iraqi need be hired, no public services need be guaranteed, and workers' rights can easily be ignored. And corporations can take out their investments at any time. 

Order #40 turns the banking sector from a state-run to a market-driven system overnight by allowing foreign banks to enter the Iraqi market and to purchase up to 50% of Iraqi banks. 

Order #49 drops the tax rate on corporations from a high of 40% to a flat rate of 15%. The income tax rate is also capped at 15%. 

Order #12 enacted on June 7, 2003 and renewed on February 24, 2004, suspends "all tariffs, customs duties, import taxes, licensing fees and similar surcharges for goods entering or leaving Iraq, and all other trade restrictions that may apply to such goods." This led to an immediate and dramatic inflow of cheap consumer products, which has essentially wiped out all local providers of the same products. This could have significant long-term implications for domestic production as well. 

Order #17 grants foreign contractors, including private security firms, full immunity from Iraq 's laws. Even if they do injure a third party by killing someone or causing environmental damage such as dumping toxic chemicals or poisoning drinking water, the injured third party can not turn to the Iraqi legal system, rather, the charges must be brought to U.S. courts under U.S. laws. 

Order #77 established the Board of Supreme Audit and named its president and his two deputies. The Board oversees inspectors in every Ministry with wide-ranging authority to review government contracts, audit classified programs, and prescribe regulations and procedures. 

Order #57 created and appointed an inspector within every Iraqi Ministry with five-year terms who can perform audits, write policies, and have full access to all offices, materials, and employees of the Ministries. 

Then there are the approximately 200 mostly U.S. and other international advisers who will remain embedded as consultants in every Iraqi Ministry well after the official occupation has ended. 

Clearly, the Bremer Orders fundamentally altered Iraq's existing laws. For this reason, the Bremer Orders are also illegal. Transformation of an occupied country's laws violates the Hague regulations of 1907 (the companion to the 1949 Geneva conventions, both ratified by the United States), and the U.S. Army's Law of Land Warfare. Indeed, in a leaked memo, British attorney general, Lord Goldsmith, warned Tony Blair that "the imposition of major structural economic reforms would not be authorized by international law." 

Following the Money 

The U.S. will also exert significant control over Iraq by holding the strings to the largest purse in the country for the foreseeable future. 

In June 2004, the U.S. General Accounting Office reported that the CPA had spent virtually all of Iraq 's money but relatively little of its own since the end of "active engagement." 

There are two primary pots of money earmarked for Iraq's reconstruction. The largest is the approximately $24 billion of U.S. taxpayer money appropriated by Congress last year. The second is known as the Development Fund for Iraq (DFI) worth about $18 billion. This is primarily money from Iraq's oil revenues and was controlled by the CPA until authority for the fund was handed over to the new Interim Government on June 28. 

While the CPA controlled the DFI, it spent approximately $13 billion from the fund. On the other hand, it only spent about $8.2 billion of the U.S. appropriation. Thus, the DFI is almost out of money, while the U.S. appropriation has hardly been touched. Control of this money now shifts to John Negroponte, the new U.S. Ambassador to Iraq . In addition to the largest pot of money in Iraq , Negroponte will exercise control over one of the largest embassies in the entire world with some 1,500 employees with offices throughout Iraq . 

Pay for the Reconstruction 

Reconstruction is the one thing that the U.S. is obligated under international law to do in Iraq . U.S. taxpayers have pledged billions of dollars toward this effort. However, the New York Times reported on June 30, 2004 , that fewer than 140 of 2,300 promised construction projects are even under way in Iraq and there have been widespread reports about waste, fraud, and abuse in the projects that have started. 

Supplies of electricity and water are no better for most Iraqis, and in some cases are far worse than they were before the invasion. In fact, UN special envoy Brahimi said upon leaving Iraq that after security, the lack of reliable electricity is the number one problem facing Iraq today. Drinking water throughout the country is in a crisis state, with some villages having no access to water while larger cities receive water approximately 50% of the time--leading to vast outbreaks of cholera, diarrhea, nausea, kidney stones, and death. Destroyed bridges continue to create monstrous bottlenecks in many parts of the country. Iraq 's horribly overburdened hospitals need electricity, water, and sewage to function. Hospitals also need the medicines and medical supplies that are in woefully inadequate supply. 

With few reconstruction projects underway, and with Bremer's rules favoring U.S. corporations, there has been little opportunity for Iraqis to go back to work, leaving nearly two million unemployed one and a half years after the invasion. Attempts by the Bush administration to reverse this have been minimal, at best. Only three months after Bremer pledged that 50,000 Iraqis would find jobs at construction sites before the formal transfer of sovereignty, fewer than 20,000 local workers are employed. 

Compounding these problems is the ongoing security situation, which has slowed reconstruction and vastly increased the costs. Even Iraqis who may have initially welcomed the ouster of Hussein have become enemies of an occupation that increasingly reveals its true objectives: U.S. political and economic exploitation and dominance. This is one reason why U.S. contractors report that as much as one out of every three reconstruction dollars is going toward security costs rather than rebuilding. 

End the Occupation 

The Bremer Orders are both immoral and illegal and must be repealed to allow Iraqis to govern their own economic and political future. Given the Bush administration's failure to quickly, fairly, or transparently allocate U.S. reconstruction funds, and the complete lack of oversight of the CPA's depletion of nearly all of the DFI, the remainder of U.S. reconstruction funds should be turned over to full UN authority until free and democratic elections are held in Iraq, at which time the money should be turned over to the Iraqis themselves. 

Reconstruction of Iraq should be based on rebuilding the economy to maximize fulfilling the long-term needs of Iraqis. All contract processes should be completely transparent and accessible to Iraqis. The awarding of contracts should be done with preference given first to Iraqi companies, experts, and workers. If no Iraqi company is capable of performing necessary work, preference should be given to international humanitarian organizations. If non-Iraqi companies are necessary, contracts must be open to global competition and profit margins held as low as possible by using fixed fees. Oversight must be immediate, independent, transparent, and thorough. 

The U.S. needs to extricate itself from Iraq in every way other than the provision of money to pay for the reconstruction--done by and for Iraqis--and to pay for a truly multinational (non-US.) peacekeeping force to bring the stability required both for reconstruction and for truly free and democratic elections. The occupation must end. 

Antonia Juhasz is a Project Director at the International Forum on Globalization and a Foreign Policy In Focus scholar. She is a Project Censored Award recipient and co-author of Alternatives to Economic Globalization: A Better World is Possible, 2 nd Ed. Her articles have appeared in publications such as The New York Times, The Cambridge University Review of International Relations Journal, and the Johannesburg Star.

Source: Foreign Policy In Focus


  Category: Middle East, World Affairs
  Topics: Iraq
Views: 5444

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Older Comments:
AAAHMED FROM UK said:
Actually HA, "Abdullah hakim" is not a Muslim, he's an American pretending to be a Muslim thinking his retarded rhetoric will be taken seriously by us.
What an absolute imbecile this putrid apologist terrorism and empire is.
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HUDD FROM CANADA said:
This is an answer for Tony. I am for the article by the way. Tony, I wonder on a perpetual question to which I find no answer, "what makes people spiritually and mentally blind?" Shoot me, I can't tell! However, your comment proves just that(among other things like, mediocrity, intellectual shallowness and plain cretinism). Lead me through your process of "rationale", it sounds like an oxymoron applied to your system of thinking! Anyway, try to make me understand your patern of reasoning and if you succeeded I promice you I will support your cause! Do we have an accord? Supposing you agreed, I will proceed. Your comment:"However, rebuilding Iraq is turning into a financial mess due to security. The occupation can not end until the country is secure." Supposing you were right, my question to you is:"Who caused the insecurity and lawlessness mess in Iraq?" We must both agree that none else but USA, did Iraq under Sadam had these kind of problems? Since USA is the cause of the status quo, she must pull out from Iraq unconditionally and without delay. Your next comment:"Why not focus on dealing with the suicide bombers and the like instead of what the US policy is." The answer is simple, since USA produced this kind of reaction in the Mideast by her policy and invasion of a sovereign country it will not stop unless US really changes her policy and ends occupation right away. Your next:"Once the country is secure we can (from all sides) work towards a truley independant Iraq." It won't happen, pal, you need to be brain-dead to even dream of that, if you can't realize on your own why, you must be retarded. I give you a clue, ask yourself, where did it work after WWII? This kind of "achievement" was ended with Japan. Never ever worked again, not in Korea, nor in Viet Nam or any other US aggression in the post WWII world! Ask yourself why, if you can't answer that, go back to the basics of politics. Your next:"Hopefully a democratic model, but what ever works for them."
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TONY FROM US said:
I think that you bring up some very good points in the article. However, rebuilding Iraq is turning into a financial mess due to security. The occupation can not end until the country is secure. The interim government (that you disagree with) will remain until the country is secure. Do you see a pattern? Why not focus on dealing with the suicide bombers and the like instead of what the US policy is.

Once the country is secure we can (from all sides) work towards a truley independant Iraq. Hopefully a democratic model, but what ever works for them.
As long as human rights are seen to, and religious preferance is not the issue, I believe the international community will support the country.
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H.A. FROM YATHRIB said:
Here are the people with whom sir Hakim is eating FREEDOM FRIES. Let me quote some of his friends to illustrate their thinking....

"We should invade [Muslim] countries, kill their
leaders and convert them to Christianity."
Columnist Ann Coulter, National Review Online, Sept.13, 2001

"Just turn [the sheriff] loose and have him arrest every Muslim that crosses the state line." Rep. C.Saxby Chambliss (R-GA), chairman of the HouseSubcommittee on Terrorism and Homeland security and Senate candidate, to Georgia law officers, November 2001

"Islam is a religion in which God requires you to send your son to die for him. Christianity is a faith where God sent his Son to die for you." Attorney General John Ashcroft, interview on Cal Thomas radio, November 2001

"(Islam) is a very evil and wicked religion wicked, violent and not of the same god (as Christianity)." Rev. Franklin Graham, head of the Billy Graham Evangelistic Association, November 2001.

"Islam is Evil, Christ is King."

Sir, Hakim, I hope your stomach is full by now...

Salom!
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H.A. FROM YATHRIB said:
Mr. Abdullah Hakim is very funny. He (Sir Hakim) is trying to be the WEST'S PATRIOTIC BOY...even trying harder to surpass America's smart boy, Bush jr. I wish him well...He is obviously a freedom-loving person. I have no objection if he tries to take advantage of it.

He seems to say that NO MUSLIMS ever objected to Saddams brutalities...but I got questions for him... WHERE HECK WERE YOU, SIR HAKIM? Aren't you a Muslim? WERE YOU TOO AFRAID TO GO TO IRAQ and confront Saddam? HOW COME I NEVER HEARD YOUR VOICE when Saddam was in power? Post your dated pictures/Videos with Saddam or your visits to Iraq protesting against Saddam, if you have done so.
You, sir Hakim, need to wake up. I strongly believe that the AMERICAN PIE (materialism) is driving ur raitional mind irrationale.

Also, he is trying to appear as a pious/good Muslim, starting with Bismillah etc etc....but Doesn't he know that good Muslims need to speak for both sides and not take sides; & one needs to speak the truth even if the truth goes against himself/herself or even against one's sweetheart(s).

You can figure out that...I,H.A., is a screw up; I am going to go to hell. OK. That's fine with me. I have high affinity for heat. I am a heat-loving and not a freedom-loving person. I am allegic to freedom.

In his other posts, Sir Hakim said the U.S. is so nice that it is even allowing illeterate Muslims in. Yeah it is partially true, but Muslims are not the only illiterate ones coming to the United States.

Does sir Hakim really know the true definition of literate people? Let me give him a hint...Literate people don't have a society of nudes... they don't say that more you expose...the more civilized you r...& they don't start war based on LIES and kill so many of its own citizen to take revenge for DADDY and to kill/capture 1 person, Saddam
NO DISRESPECT. I gotta go....I need to mix "FREEDOM" and spaghetti and FEDEX IT TO PUPPET ALWAAI...He is very hungry for freedom in Ir
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YAHYA BERGUM FROM USA said:
Also, Order #39 appears to contradict Donald Rumsfeld's assertion that Iraq's oil belongs to The People of Iraq.
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DR. SIMON PETERSON FROM USA said:
I am simply appaled and horrified beyond words at what my country and my fellow Americans have done to the people of a country that never done anything to deserve this unforgivable conduct by not just Americans in uniform but even American doctors, nurses and medics who were all complicit in the torture and murder. The following latest news from the New England Journal of Medicine is a fantastic eye opener. I am afraid we Americans are no less than the Nazis of Germany - if not worse:
http://content.nejm.org/cgi/content/full/351/5/415
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PIA JOHANSOHN FROM STOCKHOLM, SWEDEN said:
The American misadventures in Iraq and Afghanistan will go down as the most notorious events in human history where one nation led by the lies and deception of a crusading Judeo Christian group, massacred, murdered, sodomised, tortured, raped, maimed and destroyed entire generations in their unending lust for oil, their almost maniacal quest to convert all to Christianity and to eclipse the ever expanding religion of Islam and civilize a people whom, historically, they themselves have never understood or accepted and hence treated with contempt and disgust, if for nothing else, because they are either not of the right religion, or worse, not of the right colour. In my readings of Islam I read somewhere predicted by the Islam's prophet Mohammed, that there will come a time when the worlds power will be in the hands of ignorant, incompetent, brutal people who will spread their corruption and misery all over the world. A time when every thing good will be regarded as bad and those espousing right conduct will be ridiculed as fools, whilst evil will be pursued with great vigor and passion-ironically in the very name of God, when their actions and words could never be more farther and more removed from God. Seeing America for what it is, witnessing in my time what the State of Israel has done to the world, indeed to the United Nations, which has has been reduced merely to a tool for the corrupt and cruel, I can say with absolute certainity, that we are living that very event foretold. If I have understood the sayings correctly, I think the coming years will be worse than present. As this period yet to pass was described as a time marked with great bloodshed and injustice. But eventually those on the right path will regain victory over evil but only after much bloodshed. The news clip from the Rolling Stones puts it aptly:

http://www.rollingstone.com/politics/story?id=6388256&pageid=rs.Home&pageregion=single7&rnd=1091216021626&has-player=true&version=6.0.11.7
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ABDULLAH HAKIM said:
BISMILLAH. IT IS AMAZING HOW TRUTH IS MIXED WITH UNTRUTH TO COME UP WITH MISLEADING CONCLUSIONS.
LET'S TAKE A FEW EXAMPLES. ORDER 39 WHICH PRIVATIZES IRAQ'S 200 STATE-OWNED ENTERPRISES.
VERY VERY GOOD ORDER WHEN ONE CONSIDERS THAT SADDAM HUSSEIN HAD CREATED A STALINIST STATE
9NO MUSLIM EVER OBJECTED TO THAT) IN WHICH ALMOST EVERY STATE-OWNED ENTERPRISE(WITH THE EXCEPTION OF OIL)WAS SUFFERING ANNUAL LOSSES FOR 30 TO 35 YEARS AND TOP JOBS WERE DISTRIBUTED TO FRIENDS, RELATIVES AND BAATHIST POLITICAL CRONIES. NO MUSLIM EVER OBJECTED TO THIS WHOLESALE THEFT
AND CRONYISM. LETS TAKE ORDER 57 WHICH CREATED AN INSPECTOR WITHIN EVERY IRAQI MINISTRY WITH 5-YEAR TERM. WHAT'S WRONG WITH THIS?? EVERY FEDERAL AGENCY IN AMERICA HAS AN INSPECTOR GENERAL
TO PROSECUTE FRAUD, WASTE AND ABUSE AND THE POSITION REQUIRES CONFIRMATION BY CONGRESS. EVEN THE SECRETARY OF THE DEPARTMENT HAS NO CONTROL OVER THE INSPECTOR GENERAL. THIS IS THE HIGHEST TRADITION OF PUBLIC ADMINISTRATION IN ORDER TO
FERRET OUT THEFT AND MISAPPROPRIATION INPROCUREMENT AND OTHER MATTERS WHERE TAXPAYERS MONEY EXCHANGES HANDS. YET ORDER 57 IS DESCRIBED AS THOUGH IT WERE SOMETHING ILLEGAL OR IMMORAL.
SHAME. GOD BLESS AMERICA WHICH IS TRYING TO BRING MODERNISM TO A COUNTRY EXISTING IN THE 8TH CENTURY.
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YAHYA BERGUM FROM USA said:
Lieutenant Colonel Alan King, an officer in charge of relations between tribal sheikhs and the U.S. Army, was quoted by Patrick Graham in the June 2004 edition of Harper's as saying that Saddam Hussein began a major building program in Ramadi and Fallujah, hiring locals as small contractors. King explained that money poured into the region and today earth moving and transportation are what construction and garbage collection are to some Italian communities in New York. The article is titled "Beyond Fallujah: A year with the Iraqi resistance."

It would seem then that the resistance movement is not only fueled by Abu Ghraib but also by the efforts of "corporate America" to muscle in on the local action. It appears that the costliest of campaigns in wars are often waged for the pettiest of reasons. Are such efforts in fact essential to the process of democratization? Perhaps the Bushiites (Bushhabbis?) might wish to consider the benefits which accrue from paying tribute - rather than extracting it - in cases of those whose cooperation it may seem logical to seek.
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ABDUL AZZIZ FROM USA said:
Salaam-

...

If the US does not leave troops to secure the country ... then who will ensure the common muslims in the land have security?

If the US does not appoint authorities for a period of time... then who will run those government posts?

This Ummah is drunk with pride and ego and blind from the reality of what it will take to bring Iraq and it's people out of what Saddam had it in.

YOU AN I, yes this whole Ummah sat silently and one our hands while Saddam ruled the Iraqi land and people like a demon posessed.

Of course the presence of US or any western government in a Muslim country is shameful and unbecomming .... BUT WHAT IS THE ALTERNATIVE????

It's not like the Arab countries in the mid-east have some sort of solution...or are willing to do anything to help the Iraqi people.

I don't see any alternative solution offered BESIDES the self-rightous blowing up INNOCENT Iraqi's as they try in vein to kill a US soldier.

The Iraqi's deserve better...and as shameful as it is a reality...the only chance they have for betterment at this moment in time is dealing with the Kufar that currently holds the power in their lands.

Of course the holier than thou, rightously guided amoungst our ranks will disagree and argue otherwise.....BUT THEY HAVE NO SOLUTION!
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KHADIJAH AMATULLAH FROM USA said:
Is this really surprising? If people truly thought that full sovereignty really meant that, then the people are blind to history. Did you really think Bush would hand over control so easily? You had to know that there was something wrong when he actually handed over power 2 days before the deadline.
As far as the infastructure and basic needs of the people. That is also not a surprise. I do not know if the pipeline to Israel is mentioned as a project, but it is fully repaired. I have that on authority from a Israeli professor that is pro-Palestinian. The pipeline is not being utilized as of yet, but it is guarded and repaired. This was done while women and children do not have medicine or water. The priorities are always the same. Capital. Human life seems to be insignificant to the bottom line. Of course, it is illegal but who is going to stand against the US. We have freedom of speech here, but people are getting thrown out of their jobs for speaking against Bush and his administration. Linda Ronstadt is an example. She was not allowed to finish her singing dates in Las Vegas because of her vocalizing her support for the movie Farenheit 9/11. If our country can mute our own citizens that are guarenteed the right of free speech, then what do we really think that the Iraqis will receive? Our laws of freedom are only words on paper. People are not as free here as they think. Go to the library and get books, out of curiosity, on topics of the world's situations and see how fast you become a target of an investigation.
Was Saddam Hussain a tyrant? Yes. But are the ones that claim to be knights in shining armor any better? No. I pray for the Iraqi people to one day be free, along with the Palestinians.
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