Many references in the index of the newish book by James Mann, "Rise of the Vulcans: The History of Bush's War Cabinet, " to, "Oil Resources."
Behind the War on Iraq RESEARCH UNIT FOR POLITICAL ECONOMY
Three themes stand out in Iraq's history over the last century, in the light of the present U.S. plans to invade and occupy that country. First, the attempt by imperialist powers to dominate Iraq in order to grab its vast oil wealth. In this regard there is hardly a dividing line between oil corporations and their home governments, with the governments undertaking to promote, secure, and militarily protect their oil corporations. http://www.monthlyreview.org/0503rupe.htm
Given how often oil pipelines are blown up in Columbia, the continuing domination of the rest of Afghanistan outside Kabul by warlords (though a few have been kicked out of office by Karzai, recently), unrest in the other 'stans, and another oil pipeline fire in Iraq in the last few days, I think all the insurance in the world from Lloyds or the Overseas Private Investment Corporation wouldn't be enough to protect the pipelines.
http://www.usembassy-amman.org.jo/FTA/wayne.html
>...Remarks by Assistant Secretary E. Anthony Wayne
Panel Discussion at American Arab Anti-Discrimination Committee
Convention
June 7, 2002, 4:15 PM
>...Worldwide, foreign direct investment flows are now $200 billion a year, 4 times the level of ODA -- official development assistance. Countries
Such as Brazil, China and Poland saw the benefits of dramatic increases in domestic investment and FDI during the 1990's. By studying how the positive results were achieved in those countries, the Arab World can move forward into an era of unprecedented economic growth.
Opportunities in the Arab World
There are many characteristics -- besides vast energy reserves – that make the Arab World a place in which people want to invest.
-- With a population of 300 million, about the same as the U.S., and annual per capita income of more than $2000, the Arab World is a potentially large market.
-- Growth rates have been similar to those in South Asia and Latin America -- up 3.1 percent in the late 1990s.
-- The savings rate in the Arab World between 1996-2000 was 25 percent, higher than any other region except East Asia and the Pacific. And this is one of the regions least burdened by debt service.
American companies have been large investors and reliable partners in the Arab World for several decades. Today tens of thousands of Americans reside and work in this geographically diverse and strategically important region. They are there now because of opportunities the area provides; they will remain there in anticipation of economic reforms that will promote private sector development and form the basis of a policy environment conducive to investment.
Several countries -- Egypt, Jordan, Morocco, Saudi Arabia, for example -- have been among those countries passing new laws, creating new investment promotion agencies, and making changes in the regulatory environment to encourage investment. Frankly, while there has been progress, much more needs to be done -- on transparency, non-discrimination, the regulatory environment, trade liberalization, leveling the playing field with—to make the region competitive with investment opportunities offered elsewhere.
Privatization programs have been undertaken in some countries in key sectors, including utilities, manufacturing, hotels and transportation, which has led to increased foreign investment. At the same time efforts have been made to expand and improve capital markets.
The region's integration into the world community is also being advanced through trade. Many in the Arab World understand the benefits of trade liberalization, especially the importance of lower tariffs, open markets, and IPR protection and improved investment protection.
-- Nine countries in the Arab World are members of the WTO and four are observers on the path to accession.
-- The Gulf Cooperation Council recently agreed to form their customs union by 2003 and they seem to be on track.
-- In December 2001 the U.S.-Jordan Free Trade Agreement (FTA) went into force. This agreement will eliminate tariff and non-tariff barriers for virtually all products within 10 years.
-- Just over a year ago, on May 30, 2001, the U.S.-Bahrain bilateral investment treaty (BIT) entered into effect. The U.S. also has BITs with Morocco and Egypt and we expect the U.S.-Jordan BIT to enter into force very soon.
Challenges in the Arab World
This is a good start, but more needs to be done. Even with many impressive changes in regulatory structures, the amount of private capital flowing to the region has only been about 2 percent of the amount going to developing countries overall. Since the mid-1980's, the ratio of FDI to GDP has hovered just above 0.5 percent annually -- significantly below that in fast growing regions. By comparison, the Asia region has for years attracted FDI at more than 1 percent of GDP per year.
A key to change is expansion of basic infrastructure and services that will support private sector growth and keep Arab investment at home. Estimates of Arab capital invested abroad range from $350 billion to $670 billion, with $500 billion being a commonly accepted figure. The capital markets remain underdeveloped in the Arab world.
Improvements in the investment climates of Arab nations will attract money from abroad and will help keep more of money at home, and expenditures on education, training, job creation, rule of law programs and investment in new industries will help to invigorate and to diversify national economies. Strong domestic economies contribute to the creation of opportunities for our businesses to work cooperatively in the region to ensure our mutual prosperity.
Let me also take note of the importance of ensuring a welcoming climate for U.S. investment. While those who call for a boycott of U.S. products are in the minority, they do create an impression that the Arab World is not hospitable to foreign trade and investment. We are pleased that business leaders, government officials, religious figures, academics and journalists from the region have already publicly opposed the campaign to boycott U.S. products.
USG [U.S. Government] Programs Supporting Trade and Investment in the Arab World
We in the U.S.G. are prepared to work with the Arab World to help develop institutions to expand trade by developing efficient customs regimes, trade financing mechanisms and export promotion services. As you know, the U.S. government has a number of agencies, programs and activities that encourage and support U.S. investment in the Arab World.
-- The Overseas Private Investment Corporation (OPIC) provides insurance, finance and investment funds. Since 1974, OPIC has committed nearly $4.5 billion in political risk insurance and finance support to the Arab World. Recently, for example, in Algeria, OPIC provided $200 million in political risk insurance to cover a gas-processing venture.
-- Another USG agency that helps support investment is the Export-Import Bank (EXIM), which guarantees loans, makes loans for purchases, and provides credit insurance against non-payment for political or commercial risk. EXIM does business in many Arab countries; Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Yemen, Saudi Arabia. Its exposure in Saudi Arabia is more than $2 billion, while in Algeria it is close to $2 billion. Algeria was one of EXIM's most dynamic markets last year.
-- The Trade and Development Agency (TDA) funds feasibility studies, consultancies, training, and other project planning services. TDA has supported projects in telecommunications, energy development, and minerals extraction. In 2001, TDA named Morocco, which has 18 ongoing TDA activities, as its country of the year.
-- The Agency for International Development (AID) whose assistance in Egypt, Jordan, Lebanon, Morocco, and West Bank and Gaza totals more than $1 billion a year, has several programs to encourage investment. In Egypt, programs include assistance to help encourage privatization and Develop the IT industry. In Jordan, programs include help with special Economic zones (Qualifying Industrial Zones). In Morocco, AID has worked closely with the Moroccan Government to develop an investment reform program that has streamlined investment rules and procedures. AID's 2003 budget request for the Middle East increases attention to legal and regulatory reform programs that foster competition and business investment.
-- The Commercial Law Development Program (CLDP) of the Commerce Department provides assistance in three Arab countries -- Algeria, Egypt and Tunisia -- on intellectual property protection, competition policy, trade remedies and electronic commerce. In Egypt, the CLDP has also worked on government procurement and standards, and has provided technical assistance for WTO accession in Algeria.
-- The U.S. National Energy Policy is supportive of initiatives of Saudi Arabia, Kuwait, Algeria, Qatar, the UAE, and other suppliers to open up their energy sectors to foreign investment. Saudi Arabia's Gas Initiative alone is expected to require $25 billion in foreign investment.
-- The State Department, our Embassies abroad and other Government agencies engage in an extensive dialogue with Arab governments aimed at improving the investment and business climates. Such support includes assisting where an American company or citizen is involved in an investment or business-related dispute or advocating for projects on behalf of U.S. business. For example, in Morocco, officials from State and Commerce advocated successfully on behalf of CMS Energy Corporation to build and operate a $1.3 billion power project at Jorf Lasfar in central Morocco, the largest U.S. investment in the country, which will produce 1,320 megawatts of electricity.
-- In addition, the American Chambers of Commerce (AmChams) in the Arab World, which are not USG agencies, also help to increase investment and trade relationships with the United States. Amchams make a difference, advocating for policies that promote economic reforms and encourage increased trade and investment.
In Closing
Let me note in closing that in early March, President Bush announced that he was asking Secretary Powell to launch a new initiative aimed at increasing economic and educational opportunity throughout the Middle East. Supported by existing and new programs, the initiative will focus on three areas established by the President as priorities at the UN Conference on Financing for Development in Monterrey:
-- Effective ways to encourage economic policy reform and support the private sector; -- Development programs aimed at improving educational opportunity;and -- Efforts to strengthen civil society and the rule of law.
We are hopeful that the U.S. Congress will include funding for an initial installment of this initiative in the FY '02 budget supplemental currently under consideration.
We look forward to working with you, as well as Arab Government officials, and with other business people from the U.S. and this region, to find ways to meet the challenges of furthering our trade and investment relationship with the Arab World to our mutual benefit.
End transcript
Anyone else, btw, following the developing Oil for Food scandal?
http://washingtontimes.com/upi-breaking/20040407-060818-6213r.htm
>...WASHINGTON, April 7 (UPI) -- U.S. officials told a Senate panel Wednesday that officers in Saddam Hussein's government skimmed $10.1 billion from the U.N. Oil-for-Food program.
Michael Pugliese