Zalmay Khalilzad, the US Ambassador to Iraq, presents an optimistic take on the new Iraqi draft oil law in this Washington Post op ed.
Here is his summary of the law's benefits:
· [The draft law] Reaffirms that oil and gas resources are owned by all the people of Iraq and contains a firm commitment to revenue-sharing among regions and provinces on the basis of population.
· Establishes a predictable framework and processes for federal-regional cooperation that demonstrate the government's commitment to democracy and federalism.
· Creates a principal policymaking body for energy -- the Federal Council on Oil and Gas -- that will have representatives from all of Iraq's regions and oil-producing provinces.
· Ensures that all revenue from oil sales will go into a single national account and that provinces will receive direct shares of revenue, thereby significantly increasing local control of financial resources.
· Establishes international standards for transparency and mandates public disclosure of contracts and associated revenue and payments. This is essential to build confidence in the new political order and to counter corruption.
As I explained in my post on the oil deal, I have several major reservations about it, and am therefore not as optimistic as Khalilzad is. Moreover, Khalilzad's official position probably precludes him from publicly expressing any reservations he might have. Nonetheless, I do agree that the law is an important step forward relative to the status quo.
Related Posts (on one page):
- Kurdish Leader Urges Decentralized, Free Market Policy on Iraqi Oil:
- Zalmay Khalilzad on Federalism and the New Iraqi Oil Law:
- Oil Money and Federalism - Assessing the New Iraqi Oil Deal:
I prefer that approach because it gives the people an incentive to keep their government honest and also encourages them to invest in expanding oil production
Now, a damning peer review has come to the conclusion that the Lancet’s study has “no scientific standing”—and may in fact be fraudulent.
Well, knock me over with a feather.
Could 650,000 Iraqis really have died because of the invasion?
I had the over/under for a completely ontuse off-topic post about Iraq from some partisan at 5 posts.... and AntonK swoops in at post #2..... YES!
Back to the topic at hand, it sounds great. I've heard many things that sound great come from Iraq. But rules are good only if they're enforced. The situation there is no longer within our ability to control, and barely within our ability to moderate. Once Iraq has the ability to govern, then plans like this become useful.
Until then, this is as speculative as property rights on the moon.
Inquiring minds want to know...
Khalilzad points out that Iraq's oil will be controlled the iron fist of a "central body called the Federal Oil and Gas Council" which will have "a panel of oil experts from inside and outside Iraq."
He left out the fact that some of these "oil experts" will in fact be executives and representatives of American and other Western oil companies.
In other words, the Bush-backing oil barons will now have an official stranglehold on the oil of Iraq.