The Corporate-U.S. Takeover of the Iraq Economy

Bremer was in charge from May 6, 2003 to June 28, 2004. He had complete legislative, executive and judicial authority over Iraq. Bremer had four decades of corporate and government experience, working with Kissinger as managing director of Kissinger and Associates, as well as working in government with George Shultz and Donald Rumsfeld.

Prior to the invasion, Bearing Point received a $250 million contract from US AID to develop a blueprint for the remaking of Iraq's economy into a 'free-market' economy friendly to U.S. corporate interests. Bremer's job was to implement the Bearing Point plan. Juhasz points out that while there may have been an inadequate military plan, there was in fact a plan for the takeover and remaking of the economy of Iraq.

Bremer had the power to create laws by issuing "binding instructions or directives." Bremer issued 100 Orders, Juhasz in 2005 interview describes some of the key orders:

"Order No. 39 allows for: (1) privatization of Iraq's 200 state-owned enterprises; (2) 100% foreign ownership of Iraqi businesses; (3) "national treatment" — which means no preferences for local over foreign businesses; (4) unrestricted, tax-free remittance of all profits and other funds; and (5) 40-year ownership licenses.

"Thus, it forbids Iraqis from receiving preference in the reconstruction while allowing foreign corporations — Halliburton and Bechtel, for example — to buy up Iraqi businesses, do all of the work and send all of their money home. They cannot be required to hire Iraqis or to reinvest their money in the Iraqi economy. They can take out their investments at any time and in any amount.

"Orders No. 57 and No. 77 ensure the implementation of the orders by placing U.S.-appointed auditors and inspector generals in every government ministry, with five-year terms and with sweeping authority over contracts, programs, employees and regulations.

"Order No. 17 grants foreign contractors, including private security firms, full immunity from Iraq's laws. Even if they, say, kill someone or cause an environmental disaster, the injured party cannot turn to the Iraqi legal system. Rather, the charges must be brought to U.S. courts.

"Order No. 40 allows foreign banks to purchase up to 50% of Iraqi banks.

"Order No. 49 drops the tax rate on corporations from a high of 40% to a flat 15%. The income tax rate is also capped at 15%.

"Order No. 12 (renewed on Feb. 24) suspends "all tariffs, customs duties, import taxes, licensing fees and similar surcharges for goods entering or leaving Iraq." This led to an immediate and dramatic inflow of cheap foreign consumer products — devastating local producers and sellers who were thoroughly unprepared to meet the challenge of their mammoth global competitors."

Full interview at: http://democracyrising.us/content/view/180/164/.