Iraq's economy is booming!

[Aristophanes]

Blood and Money

In what might be called the mother of all surprises, Iraq's economy is growing strong, even booming in places.

By Silvia Spring
Newsweek International

Dec. 25, 2006 - Jan. 1, 2007 issue - It may sound unreal, given the daily images of carnage and chaos. But for a certain plucky breed of businessmen, there's good money to be made in Iraq. Consider Iraqna, the leading mobile-phone company. For sure, its quarterly reports seldom make for dull reading. Despite employees kidnapped, cell-phone towers bombed, storefronts shot up and a huge security budget—up to four guards for each employee—the company posted revenues of $333 million in 2005. This year, it's on track to take in $520 million. The U.S. State Department reports that there are now 7.1 million mobile-phone subscribers in Iraq, up from just 1.4 million two years ago. Says Wael Ziada, an analyst in Cairo who tracks Iraqna: "There will always be pockets of money and wealth, no matter how bad the situation gets."

You can read the whole thing here

Comments?

[Last Roman]

I'd worry about gaining some stability in everyday life before the economy. Though, perhaps, a booming economy will help lead to a more stable Iraq.

[danzig]

I'd worry about gaining some stability in everyday life before the economy. Though, perhaps, a booming economy will help lead to a more stable Iraq.

Well with a growing economy comes quality of life improvements so in theory it would work in the long run as more people stand to *lose* what they have aquired by continuing conflict. Of course the problem is its ethnic/religious based which unfortunately usually overtakes any other desire/need/want.

[Aristophanes]

I'd worry about gaining some stability in everyday life before the economy. Though, perhaps, a booming economy will help lead to a more stable Iraq.

The biggest reason for the insurgency, in my eyes, is the unemployment which encourages people, who would otherwise not want to fight, to plant bombs or join militias for a pittance. They need a source of income, and something to allay the boredom. Why not join the holy war?

[Stalins Ghost]

Interesting news - the mobile phone issue is an odd one. In the UK we have enough problems with phone theft and muggings... I wonder what its like with AK wielding militias and thugs roaming the streets. We could do with more evidence besides mobile phone companies mind. Post war zones funnily enough have a chance of letting companies do well though, so long as they can get established.

[Aristophanes]

Interesting news - the mobile phone issue is an odd one. In the UK we have enough problems with phone theft and muggings... I wonder what its like with AK wielding militias and thugs roaming the streets. We could do with more evidence besides mobile phone companies mind. Post war zones funnily enough have a chance of doing well though.

I link to the rest of the article in my original post, just click on 'here' in the first sentence.

[Stalins Ghost]

My bad!

Interesting enough. I guess thats the benefit of being invaded and occupied by the US and other rich nations. They're always willing to pour money into it. It'll be interesting to see how things turn out really. If the military side of things remains as it is though, stagnation will definetly begin to set in. I just hope that the military strategy is given a major rethink in the meantime...

[mib]

Just like Somalia, one of the most free markets in the world, and a fat world of good that did.

[Aristophanes]

My bad!

Interesting enough. I guess thats the benefit of being invaded and occupied by the US and other rich nations. They're always willing to pour money into it. It'll be interesting to see how things turn out really. If the military side of things remains as it is though, stagnation will definetly begin to set in. I just hope that the military strategy is given a major rethink in the meantime...

The Badr militia and Mehdi army are now the two greatest dangers to Iraqi stability: they're both Shia militias, and, it seems, bent on corruption and genocide. The Americans ****ed up big time not killing Sadr when they had the chance, and they, and the Sunnah, are paying for it now. The worst issue is that the Mehdi army and Badr militia are very, very well connected politically: the poison climbs right to the top. Ironically, the Iraqi Prime Minister derives his power from the same people currently undermning his power. So, it's doubtful that the Iraqi government will make any real commitment to reining in the militias. My personal view is that the Americans need to take over all security in Iraq until such time as all the militias are broken and dispersed, with their leadership assassinated or brought to trial.

If America doesn't step up, Iraq's Sunnah neighbours are going to step in to try to mitigate Iran's obvious influence in the country, and to save the minority Sunnah in Iraq.

[Tiwaz]

The Badr militia and Mehdi army are now the two greatest dangers to Iraqi stability: they're both Shia militias, and, it seems, bent on corruption and genocide. The Americans ****ed up big time not killing Sadr when they had the chance, and they, and the Sunnah, are paying for it now. The worst issue is that the Mehdi army and Badr militia are very, very well connected politically: the poison climbs right to the top. Ironically, the Iraqi Prime Minister derives his power from the same people currently undermning his power. So, it's doubtful that the Iraqi government will make any real commitment to reining in the militias. My personal view is that the Americans need to take over all security in Iraq until such time as all the militias are broken and dispersed, with their leadership assassinated or brought to trial.

If America doesn't step up, Iraq's Sunnah neighbours are going to step in to try to mitigate Iran's obvious influence in the country, and to save the minority Sunnah in Iraq.

Showcase trial with american soldiers looking over judge to make sure he gives right sentence? Not to mention taking over Iraq AGAIN... That is not going to go well with population.

Civil war is not going to be stopped with cellphones is my opinion. Economical progress won't stop it anymore, it merely gives more resources to get tools of killing.

Shias and kurds are seeing their opportunity to go for grabbing the cake and sunnis are going to want their "fair" share (as in as much as possible) and until ethnic rivalry and hatred disappears money only fuels the war, it does not end it.

[Farnan]

Not military strategy, but political strategy...

The military situation is governed by the political situation. We almost got Al Sadr before we were told to pull off twice. If he was gone the whole situation would have been much better.

[Erik]

Well, the majority of Iraq is fairly stable.
And most of the economy was destroyed in the war.
Add it the fact that much needs to get rebuild (=job opportunities) and it actually makes sense to see big growth figures.

Europe also experienced huge economic growth in the years after WWII.

But getting the economy back to pre-war levels is probably going to take a very long time, even when it's booming, so it's not really a blessing.

[sephodwyrm]

There's even a positive spin to be put on corruption. Money stolen from government coffers or siphoned from U.S. aid projects does not just disappear. Again, says Farid Abolfathi, a Global Insight analyst, it's the "trickledown" effect. Such "underground activity" is the most dynamic part of Iraq's economy, he says. "It might not be viewed as respectable. But in reality, that's what puts money in the hands of the little people."

Wow...
We should encourage corruption in Iraq!
It leads to economic boom!
The Mafia is the best!
Its interesting how they renamed insurgent cells and organizations as "underground activity" when the situation requires it to be. Insurgents are all experts in money laundering. That's how they pay their fighters. This improved cash flow would mean that there will not only be a chance to be a Shahid in the Jihad against Amerikaners, there will also be money.

[LoZz]

well of course it is booming,

when your at zero the only way to go is up, hell 1% is double the growth of what it was a year or two ago so of course its booming.

anyone who says this justifys all the deaths is a retard, their are more important things then money

[sephodwyrm]

anyone who says this justifys all the deaths is a retard, their are more important things then money

Even when its insurgents earning it.
LOL!
Funny thing is that insurgent activity get renamed as underground activities when there's a need to show that economic growth is a good thing.

[Aristophanes]

Just like Somalia, one of the most free markets in the world, and a fat world of good that did.

I'm afraid you have no idea what the term 'free market' means. 'Free markets' are those where any person interested in contracting or any other economic activity is not subject to arbitrary intervention in his sphere. I'm afraid that Somalia is, has, and will ever be a far cry from that.

[DarkGhost89]

I'm afraid you have no idea what the term 'free market' means. 'Free markets' are those where any person interested in contracting or any other economic activity is not subject to arbitrary intervention in his sphere. I'm afraid that Somalia is, has, and will ever be a far cry from that.

Well Somalia have no government (at least a stable and pernament one), no government, no arbitration.

[Farnan]

Well Somalia have no government (at least a stable and pernament one), no government, no arbitration.

Except for warlords taking what they want...

[Your Lame Sister]

Bush was right!!!


it's always good to have money when your dead!