A new agency has been established to oversee funds for the reconstruction of Iraq, in a move widely seen as an attempt to ease concerns about the Pentagon’s mono- poly over the rebuilding programme.
United Nations and World Bank officials said that the establishment of the agency was intended to give the international community a bigger say in reconstruction.
Until now the Pentagon has had sole authority over the finances for rebuilding Iraq, through a development fund that was recognised by the UN last May.
However, that mono-poly has put off potential Arab and European donors. Several countries are reluctant to be seen as funding the occupation of Iraq, and it was thought they needed additional encouragement ahead of this week’s donors’ conference in Madrid.
The decision emerged from meetings at the UN last week, where there was resistance to donating the billions of dollars sought for Iraq so long as it appeared they would be contributing to a US-led occupation.
”This fund was set up to alleviate some of the queasiness some countries had in giving money directly to the CPA [the Coalition Provisional Authority, a US-led occupation authority], and that is obviously why the Americans had no objection to it,” a diplomat said.
So far, Japan has committed $5-billion over several years for Iraq’s reconstruction, while the European Union has committed $230-million for 2004.
However, the new fund will not be entirely separate from the CPA. — Â