Iraq

Documents & Texts from America.gov

29 May 2008
Rice Urges More Debt Relief, Development Aid for Iraq

By David McKeeby
Staff Writer

Related:
 • Remarks at The Iraq Compact Conference
 • Secretary Rice Interview with Michael Winiarski of Dagens Nyheter in Stockholm, Sweden

Washington -- Iraq’s improving security conditions are creating an opportunity for nations to help Iraqis make further progress in rebuilding their economy and developing democratic political institutions, says Secretary of State Condoleezza Rice.

“There is still a lot of work to do, but this is a fundamentally different situation than a year ago," Rice said en route to Stockholm, Sweden, May 28. “The international community, the region, perhaps most importantly Iraqis themselves, I think, recognize that this is a state that is here to stay.”

Rice joined more than 500 representatives from dozens of nations and international organizations in the Swedish capital to take stock of Iraq’s progress since May 2007, when U.N. Secretary-General Ban Ki-moon and Iraqi Prime Minister Nuri al-Maliki launched the International Compact for Iraq -- a comprehensive, five-year political and economic recovery package.

Rice described the compact as a bargain between Iraq and the international community, in which Iraq pledged improved security and reforms in exchange for debt relief, aid and technical assistance aimed at getting the country back on its feet after decades of dictatorship. The Maliki government has honored its side of the compact, Rice said, highlighting its recent security successes in Basra, Baghdad, and Mosul; an increasingly active Iraqi parliament working on major reforms; and solid progress toward political reconciliation among the country’s ethnic and sectarian communities.

“After years of enforced isolation under the terrible regime of Saddam Hussein, Iraq is making good progress at integrating itself more fully into its region and to its world,” Rice said, highlighting Iraq’s improving relations with neighbors Kuwait and Saudi Arabia, its recent membership invitation from the Gulf Cooperation Council and progress toward joining the World Trade Organization.

Now is the time for Iraq’s neighbors to reciprocate, Rice said, by forgiving Saddam-era debts, reopening embassies in Baghdad and honoring pledges to offer development support once the security situation improved.

“The Iraqis want to develop not just their hydrocarbon sector, but they’re putting a big emphasis on agriculture, on housing,” Rice said. “Those are areas where I think technical assistance could be very valuable to them.”

Iraq already is dedicating an increasing share of its own resources to economic development, Rice said, but $2.5 billion in new “soft” loans from Japan and the World Bank will enhance revitalizing key infrastructure, utilities and other essential services. With the International Monetary Fund projecting continued economic growth and low unemployment, she added, short-term help to strengthen Iraq’s investment climate by confronting corruption and strengthening legal and banking reforms could reap long-term benefits of improved prosperity and peace in the region.

“The Iraqi people have been unwilling to give in to violent enemies. They have remained dedicated to building their democracy,” Rice said following the meeting. “Faced with the many challenges that they have, the Iraqi people have demonstrated that they deserve the support and commitment of the international community as well.”

A transcript of Rice's remarks in Stockholm is available on America.gov.

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