Australian Aid To Iraq Used For Economic Gain?

Report reveals Australian aid to Iraq used for economic gain not humanitarian relief

A report released today by AID/WATCH claims aid sent to Iraq was used to promote Australian commercial interests not humanitarian purposes.

Determining their National Interest: Australia's Economic Intervention in Iraq reveals the role that Australia aid-funded officials played in restructuring Iraqi economy through their involvement in the Coalition Provisional Authority (CPA) - the body which formally oversaw the occupation of Iraq.

Whilst stating their intention to work towards a reconstruction of the Iraqi economy, the CPA devised a series of agreements that ensured Iraqi dependency on foreign markets.

Among the most significant of these agreements was the June 2003 decision to rescind all taxes, duties and tariffs on imports - closely followed by the installation of a flat 15 percent tax on all individuals and corporations.

AID/WATCH claims these actions have left Iraqi farmers struggling to compete yet provided significant benefit for large foreign companies and Australian wheat producers.

Further, the report finds that no Iraqi's were consulted or even presented with the plans enacted by the CPA - which will be very difficult to modify by future Iraqi governments.

Flint Duxfield co-director of AID/WATCH says "the report clearly demonstrates that Australian aid contractors in Iraq had little to no humanitarian mission, but rather sought to ensure that post-conflict Iraq would provide maximum economic opportunities for Australian companies."

Ultimately the report highlights the need for more than just an exit strategy in Iraq - but an explanation as to why Australian aid was involved in restructuring the Iraqi economy in a way which fundamentally fails to support Iraqi people.

Author of the report, Chris Doran commented "Australia played a significant role in forcing a radical, market oriented economic model on Iraq under the military occupation. Australia benefited economically at the direct expense of the Iraqi people, who the Howard government claimed to be helping."

According to AIDWATCH the findings reflect a fundamental problem inherent to Australia's aid program - that it is designed to promote Australian national interest, over and above the humanitarian interests of the country it claims to be supporting.

Says AIDWATCH Co-Director Flint Duxfield: "When the benefits of an intervention such as Iraq go disproportionately to the country providing the funding, we cannot call this money aid."

The report calls for a full audit of Australian aid to Iraq since 2003 - including a comprehensive breakdown of ODA eligible expenditure in Iraq by all government departments

ENDS

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