Section[ Appendix - The 8 Strategic Pillars
Title[ Pillar 5 - Help Iraq Strengthen Its Economy
Strategic Pillar Five
Help Iraq Strengthen Its Economy
STRATEGIC OBJECTIVE: Iraqi government policies and legal framework support a market
economy and robust private sector-led growth.
Status: Iraq has enormous economic potential, with an educated, young, and skilled work force and vast
natural resources. But Iraq is struggling to reach its economic potential due largely to decades of
dictatorship and neglect. Unemployment is high, which fuels popular dissatisfaction and may generate
sympathy for the insurgency among some Iraqis. Changing these economic realities will require tough
reforms, political will by the Iraqi government, a shift in expectations by the Iraqi people, and the help of
the international community. Despite these challenges, Iraq's economy is growing, supporting new
businesses every month. Through persistent diplomatic and financial efforts, Iraq is getting control of its
once-enormous debt burden. Inflation remains in check, and the international financial institutions have
expressed their confidence that Iraq is on the right track.
The United States is helping Iraq achieve this objective through the following lines of action:
- Helping Iraq to improve its fiscal management and transparency
- Encouraging pro-market oriented reform and the achievement of a stable macroeconomic
environment
- Supporting the development and implementation of laws and institutions that encourage sustained
economic growth
- Encouraging the removal of regulations and termination of practices that obstruct private sector
growth in Iraq
- Providing technical assistance to aid the rapid improvement of Iraq's business climate and Iraq's
accession to the World Trade Organization
- Assisting the Iraqi government in strengthening its banking and financial system
- Supporting the revitalization of agriculture and other productive sectors to diversify a single-
resource-based economy
" The success of building the new Iraq includes the process of political change, which in Iraq is
well on the way with the elections and inclusive government, and now a constitutional commission
leading to the new constitution and referendum later in the year. But also an economic dimension, for
reconstruction and creating opportunity and hope for the Iraqi people"
- Deputy Secretary of State Robert Zoellick, July 2005
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