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    Middle East
     Jul 11, 2009
Page 2 of 2
The US takes to the shadows in Iraq
By Michael Schwartz

degrading further the Iraqi road system, already in a state of disrepair, by closing useable thoroughfares. Paradoxically, it has also allowed insurgents to plant roadside bombs with the assurance of targeting only foreigners. Such an incident outside Falluja illustrates what have now become Obama-era policies in Iraq:
The Americans were driving along a road used exclusively by the American military and reconstruction teams when a bomb, which local Iraqi security officials described as an improvised explosive device, went off. No Iraqi vehicles, even those of the army and the police, are allowed to use the road where the attack occurred, according to residents. There is a checkpoint only 200 yards from the site of the attack to prevent unauthorized vehicles, the residents said.
It is unclear whether this road will be handed back to the Iraqis, if

 

and when the base it services is shuttered. Either way, the larger policy appears to be well established - the designation of segregated roads to accommodate the 1,000 diplomats and tens of thousands of soldiers and contractors who implement their policies. And this is only one aspect of a dedicated infrastructure designed to facilitate ongoing US involvement in developing, implementing, and administering political-economic policies in Iraq.

Whose military is it?
One way to "free up" the American military for withdrawal would, of course, be if the Iraqi military could manage the pacification mission alone. But don't expect that any time soon. According to media reports, if all goes well, this isn't likely to occur for at least a decade. One telltale sign of this is the pervasive presence of American military advisors still embedded in Iraqi combat units. First Lieutenant Matthew Liebal, for example, "sits every day beside Lieutenant Colonel Mohammed Hadi", the commander of the Iraqi 43rd Army Brigade that patrols eastern Baghdad.

When it comes to the Iraqi military, this sort of supervision won't be temporary. After all, the military the US helped create in Iraq still lacks, among other things, significant logistical capability, heavy artillery, and an air force. Consequently, US forces transport and re-supply Iraqi troops, position and fire high-caliber ordnance, and supply air support when needed. Since the US military is unwilling to allow Iraqi officers to command American soldiers, they obviously can't make decisions about firing artillery, launching and directing US Air Force planes, or sending US logistical personnel into war zones. All major Iraqi missions are, then, fated to be accompanied by US advisors and support personnel for an unknown period to come.

The Iraqi military is not expected to get a wing of modern jet fighters (or have the trained pilots to fly them) until at least 2015. This means that, wherever US air power might be stationed, including the massive air base at Balad north of Baghdad, it will, in effect, be the Iraqi air force for the foreseeable future.

Even the simplest policing functions of the military might prove problematic without the American presence. Typically, when an Iraqi battalion commander was asked by New York Times reporter Steven Lee Myers "whether he needed American backup for a criminal arrest, he replied simply, 'Of course'". John Snell, an Australian advisor to the US military, was just as blunt, telling an Agence France Presse reporter that, if the United States withdrew its troops, the Iraqi military "would rapidly disintegrate".

In a World Policy Journal article last winter, John A Nagl, a military expert and former advisor to General David Petraeus, expressed a commonly held opinion that an independent Iraqi military is likely to be at least a decade away.

Whose economy is it?
Terry Barnich, a victim of the previously discussed Falluja roadside bombing, personified the economic embeddedness of the occupation. As the US State Department's Deputy Director of the Iraq Transition Assistance Office and the top adviser to Iraq's Electricity Minister, when he died he was "returning from an inspection of a wastewater treatment plant being built in Falluja".

His dual role as a high official in the policy-making process and the "top advisor" to one of Iraq's major infrastructural ministries catches the continuing US posture toward Iraq in the early months of the Obama era. Iraq remains, however reluctantly, a client government; significant aspects of ultimate decision-making power still reside with the occupation forces. Note, by the way, that Barnich was evidently not even traveling with Iraqi officials.

The intrusive presence of the Baghdad embassy extends to the all-important oil industry, which today provides 95% of the government's funds. When it comes to energy, the occupation has long sought to shape policy and transfer operational responsibility from Iraqi state-owned enterprises of the Saddam Hussein years to major international oil companies. In one of its most successful efforts, in 2004, the US delivered an exclusive $1.2 billion contract to reconstruct Iraq's decrepit southern oil transport facilities (which handle 80% of its oil flow) to KBR, the notorious former subsidiary of Halliburton. Supervision of that famously mismanaged contract, still uncompleted five years later, was allocated to the US Inspector General for Iraq Reconstruction.

The Iraqi government, in fact, still exerts remarkably little control over "Iraqi" oil revenues. The Development Fund for Iraq (whose revenues are deposited in the Federal Reserve Bank of New York) was established under United Nations auspices just after the invasion and receives 95% of the proceeds from Iraq's oil sales. All government withdrawals are then overseen by the UN-sanctioned International Advisory and Monitoring Board, a US-appointed panel of experts drawn mainly from the global oil and financial industries. The transfer of this oversight function to an Iraqi-appointed body, which was supposed to take place in this January, has been delayed by the Obama administration, which claims that the Iraqi government is not yet ready to take on such a responsibility.

In the meantime, the campaign to transfer administration of core oil operations to the major oil companies continues. Despite the resistance of Iraqi oil workers, the administrators of the two national oil companies, a majority bloc in parliament, and public opinion, the US has continued to pressure the al-Maliki administration to enact an oil law that would mandate licensing devices called production-sharing agreements (PSAs).

If enacted, these PSAs would, without transferring permanent ownership, grant oil companies effective control over Iraq's oil fields, giving them full discretion to exploit the country's oil reserves from exploration to sales. US pressure has ranged from ongoing "advice" delivered by American officials stationed in relevant Iraqi ministries to threats to confiscate some or all of the oil monies deposited in the Development Fund.

At the moment, the Iraqi government is attempting to take a more limited step: auctioning management contracts to international oil companies in an effort to increase production at eight existing oil and natural gas fields. While the winning companies would not gain the full discretion to explore, produce, and sell in some of the world's potentially richest fields, they would at least gain some administrative control over upgrading equipment and extracting oil, possibly for as long as 20 years.

If the auction proves ultimately successful (not at all a certainty, since the first round produced only one as-yet-unsigned agreement), the Iraqi oil industry would become more deeply embedded in the occupation apparatus, no matter what officially happens to American forces in that country. Among other things, the American embassy would almost certainly be responsible for inspecting and guiding the work of the contract-winners, while the US military and private contractors would become guarantors of their on-the-ground security. Fayed al-Nema, the CEO of the South Oil Company, spoke for most of the opponents of such deals when he told Reuters reporter Ahmed Rasheed that the contracts, if approved, would "put the Iraqi economy in chains and shackle its independence for the next 20 years".

Who owns Iraq?
In 2007, Alan Greenspan, former head of the Federal Reserve, told Washington Post reporter Bob Woodward that "taking Saddam out was essential" - a point he made in his book The Age of Turbulence - because the United States could not afford to be "beholden to potentially unfriendly sources of oil and gas" in Iraq. It's exactly that sort of thinking that's still operating in US policy circles: the 2008 National Defense Strategy, for example, calls for the use of American military power to maintain "access to and flow of energy resources vital to the world economy".

After only five months in office, the Obama administration has already provided significant evidence that, like its predecessor, it remains committed to maintaining that "access to and flow of energy resources" in Iraq, even as it places its major military bet on winning the expanding war in Afghanistan and Pakistan. There can be no question that Washington is now engaged in an effort to significantly reduce its military footprint in Iraq, but without, if all goes well for Washington, reducing its influence.

What this looks like is an attempted 21st century version of colonial domination, possibly on the cheap, as resources are transferred to the Eastern wing of the Greater Middle East. There is, of course, no more a guarantee that this new strategy - perhaps best thought of as colonialism lite or the Obama Doctrine - will succeed than there was for the many failed military-first offensives undertaken by the Bush administration. After all, in the unsettled, still violent atmosphere of Iraq, even the major oil companies have hesitated to rush in and the auctioning of oil contracts has begun to look uncertain, even as other "civilian" initiatives remain, at best, incomplete.

As the Obama administration comes face-to-face with the reality of trying fulfill General Odierno's ambition of making Iraq into "a long-term partner with the United States in the Middle East" while fighting a major counterinsurgency war in Afghanistan, it may also encounter a familiar dilemma faced by 19th century colonial powers: that without the application of overwhelming military force, the intended colony may drift away toward sovereign independence. If so, then the dreary prediction of Pulitzer Prize-winning military correspondent Thomas Ricks - that the United States is only "halfway through this war" - may prove all too accurate.

A professor of sociology at Stony Brook State University, Michael Schwartz is the author of War Without End: The Iraq War in Context (Haymarket Books), which explains how the militarized geopolitics of oil led the US to dismantle the Iraqi state and economy while fueling a sectarian civil war. Schwartz's work on Iraq has appeared in numerous academic and popular outlets. He is a regular at TomDispatch.com. An audio interview with him on the situation in Iraq is available by clicking here.) His email address is ms42@optonline.net.

(Copyright 2009 Michael Schwartz.)

(Used by permission Tomdispatch)

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