Beyond the Iraq Study Group: The Elusive Goal of Sustained Growth

Since its release in early December 2006, the Iraq Study Group’s (ISG) military, political and diplomatic recommendations have generated wide-spread discussions. Unfortunately, the country’s economic recovery has received considerably less attention. Yet the country’s economic situation is quite dire. The ISG correctly notes that: (a) instead of meeting a target of 10 percent growth for 2006 only 4 percent was attained, (b) inflation is above 50 percent, (c) estimates of unemployment range from 20 to 60 percent, and (d) foreign investment is less than 1 percent of gross domestic product. In many regards the economic situation today has deteriorated from that under Saddam. In short “Too many Iraqis do not see tangible improvements in their economic situation.”[1]