Costs of Iraqi Reconstruction
The cost of Iraq's
reconstruction will be a drain on many nations, especially the United
States.
Almost 2 billion dollars have already been raised by the United Nations
(most of which has been offered by donor states outside of the United Nations
framework) to help with food, medicine, and other relief products (see Shanker).
This war alone is estimated to cost the U.S.
approximately 1% of its annual GDP.
There is also an estimated 0.3% per annum cost of occupying Iraq
until reconstruction efforts are complete.
While this cost is significant, it may be less than the long-term cost
of containment of the area that was taking place prior to the war. (see Hale)
Over the next decade there will be an estimated $600 billion
reconstruction project (see Gutkin). According to U.S.
officials, Iraqi oil will help pay for this reconstruction. However, Iraq's
oil production is only worth about $25 billion per annum, with a $20-30 billion
cost of restoring output to its 1979 peak of 3.5 million barrels per day. (see Hale)
Many experts believe that the reconstruction effort will
take much longer than American people have been led to believe based on
experience of rebuilding other war-torn places.
Whether the United States
or the United Nations directs reconstruction, the United
States must resign itself to a lengthy and
expensive commitment to rebuild Iraq. This rebuilding effort
could be compared with the Marshall Plan
(rebuilding Europe) that lasted about four years and
cost roughly $220 billion in today's dollars.
(see Abate)
Abate, Tom. "Iraq
reconstruction costly, experts say." Seattle
Post-Intelligencer (April 22, 2003).
Gutkin, Steven. "Saddam's Ouster Doesn't Quell
Suspicion." Seattle
Post-Intelligencer
(April 20, 2003).
Hale, David. "Long-Term Costs and Benefits." The Globalist
(April 22, 2003).
Shanker, Thom. "About $1.7 Billion Raised
for Relief in Iraq." The New York Times (April 22, 2003).