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Iraq

Answer

The international community is providing support to the Iraqi Government to help rebuild Iraq and improve the quality of life for its people. At the Madrid Conference in October 2003, 37 bilateral donors, the European Community, the World Bank and the International Monetary Fund (IMF) pledged a total of US$32 billion for Iraq's reconstruction. Since 2003, the amount pledged for Iraq's reconstruction has risen to over $40 billion. As of October 2005, over US$14 billion of these pledges has been spent.The UK pledged £544 million for humanitarian and reconstruction work in Iraq, of which more than £350 million has been spent to date. DFID's programme of assistance this year, focuses on macro-economic reform, strengthening Iraqi institutions at the centre of government and in the south, improving power and water supplies in the south, strengthening Iraqi civil society and encouraging broad participation in the political process. Reconstruction activities in Iraq are also funded by the Ministry of Defence (MOD), the Foreign and Commonwealth Office (FCO), and the Global Conflict Prevention Pool for Iraq (jointly funded by MOD, FCO, and DFID).The following table provides details on the other major international aid programmes in Iraq.

	Major international aid programmes
United States	The US has approved more than $28 billion for Iraq's reconstruction. This is being spent on programmes in a wide range of sectors including power, water and sanitation, oil production, transport, health, education, civil society and the training and equipping of Iraqi security forces.
Japan	Japan has fully committed US$1.5 billion of grant assistance to Iraq and is currently in discussion with the Iraqi Government on the use of its US$3.5 billion concessional loan programme which will focus on medium-term infrastructure projects.
World Bank	The World Bank has pledged a minimum of US$3 billion in lending to Iraq. An interim Strategy Note on World Bank assistance to Iraq was recently approved, and outlines the bank's support over the next two years, including the implementation of a US$500 million International Development Assistance concessional loan programme. The World Bank is also implementing projects under the International Reconstruction Fund Facility for Iraq (see below).
IMF	The IMF has pledged to provide over US$2.5 billion in lending to Iraq. In September 2004, the IMF Board approved US$436 million of Emergency Post-Conflict Assistance (EPCA). The main goals under the EPCA are to maintain economic stability, lay the groundwork for future economic reform, and begin the process of restoring Iraq's fiscal and external debt sustainability.
International Reconstruction Fund Facility for Iraq (IRFFI)—United Nations and World Bank Trust Funds	Bilateral donors have channelled over US$1 billion into the IRFFI, which is managed jointly by the UN and World Bank. Funded through IRFFI, the UN and World Bank have delivered £69 million school textbooks, rehabilitated schools, provided vaccines, conducted extensive training programmes, provided humanitarian relief, and supported the elections. DFID contributed £70 million to the IRFFI in 2004.
European Commission	The EC has allocated over €500 million for humanitarian and reconstruction assistance, and is currently focusing on improving basic education, health services, and employment opportunities. The EC has also contributed funds and expertise to the constitutional process and the elections.
Australia	Australia has allocated over US$90 million for reconstruction assistance focussing on support to the agriculture sector, trade reform, electricity and police training.
Canada	Canada has allocated over US$222 million for humanitarian and reconstruction assistance, mainly channelled through multilateral programmes.
Denmark	Denmark has allocated over US$85 million focusing on human rights, rule of law and police, infrastructure, agriculture and humanitarian assistance.

The Iraqi Government are leading on the reconstruction and development of Iraq and have presented a National Development Strategy outlining its reconstruction priorities. The Iraqi Government co-ordinates their own and international reconstruction funding by means of Sector Working groups that meet regularly in Baghdad, chaired by Iraqi Ministries with support from the United Nations, the World Bank and a range of donors. Iraq has huge potential, and increasingly, oil sales, tax revenues and foreign investment will be able to finance reconstruction costs, so that Iraq will rely less on external donors.In spite of the obvious challenges, reconstruction is continuing and progress has been made. For example, there has been continued economic growth, power generation is higher than before the conflict, more Iraqis now have access to drinking water and sewerage systems, thousands of healthcare and education facilities have been rehabilitated, transport and telecommunications systems are improving and civil society groups and the media are flourishing and finding ways of engaging in the political process.

Secondary information

Type

Written question

Reference

25339; 439 c470-2W

Session

2005-06

Subjects

Development aid International assistance Iraq Reconstruction Foreign aid

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk