1. The Lessons We Choose to Draw
- Author:
- Paul J. McKinney
- Publication Date:
- 08-2023
- Content Type:
- Special Report
- Institution:
- Center for Contemporary Arab Studies (CCAS)
- Abstract:
- In September 2003, just a few violent months after the Bush administration proclaimed major combat operations had ended, the Coalition Provisional Authority (CPA) – the US-led civilian body charged with administering occupied Iraq – organized a two-day workshop in Baghdad to identify best practices for countries transitioning from state-led to market economies. Seeking to draw lessons that may be applicable to Iraq, the CPA invited former ministers and finance officials from Central and Eastern European countries to share their experiences. Evidently impressed by Poland’s “shock therapy,” in which Warsaw introduced a drastic neoliberal package during the country’s emergence from Soviet domination in the early 90s, the CPA appointed the former Polish finance and prime minister responsible for those reforms, Marek Belka, to head the CPA’s Office of Economic Policy. With Belka at the helm, lessons learned from Poland’s transition would be universalized and superimposed onto Iraq, with little regard to contextual factors. Iraq was, after all, seen as a blank canvas upon which the West could project its own visions. Zealously driven by a belief that markets are the most efficient way to organize a society and, by extension, to optimize individual freedom, the CPA issued what can only be described as the economic equivalent to the U.S. military’s “shock-and-awe” campaign. Within a year, the CPA issued an astoundingly high number of Orders to build the new neoliberal state. Some of the most notable included, for example, selling about 200 state-run enterprises, eliminating the right to unionize in most sectors, outlawing labor strikes, opening Iraq’s banks to foreign ownership and control, mandating a regressive flat tax on income, lowering the corporate rate to a flat 15%, eliminating taxes on profits repatriated to foreign-owned businesses, and even prohibiting Iraqi farmers from re-using “protected” varieties of genetically modified seeds.
- Topic:
- Security, Markets, Reform, and Iraq War
- Political Geography:
- Iraq and Middle East