BAGHDAD: During a recent conference in Kuwait, Iraq was only able to raise a fraction of the money it needs for reconstruction, and rather than donations, most of the pledges were in the form of loans and investments to be used beyond the areas liberated from the Islamic State (IS).
The conference, which took place Feb. 12-14, drew participants from 76 countries and regional and international organizations, 51 development funds and financial institutions, and 107 local, regional and international nongovernmental organizations, as well as 1,850 private sector representatives.
Turkey announced it will allocate $5 billion to Iraq in the form of loans and investments. Saudi Arabia will give $1 billion in the form of investment projects and an additional $500 million to support Iraqi exports. Qatar pledged $1 billion in loans and investments, and Kuwait will provide $2 billion in loans and investments for reconstruction efforts. Prime Minister Haider al-Abadi hailed the conference as an unqualified success, according to the state-run Kuwait News Agency, and Mustafa al-Hiti, head of the Iraq Reconstruction Fund, said he was very satisfied with the conference’s results, though others weren’t so sure.
“The real success achieved at the Kuwait conference is that Iraq was able to [present] its cause before the international community and gain its confidence. Iraq has been fighting terrorism on behalf of the world and needs international support for its reconstruction,” Hiti told Al-Monitor.
“Washington has decided to invest huge sums in Iraq, as did many countries and international organizations. [Needing financial help] doesn’t indicate failure by the Iraqi government. Investments show that the world has confidence in the Iraqi security situation and that Iraq is able to host investments involving international efforts and expertise.”
He added, “These are soft loans with low interest rates. Iraq is not obliged to take all of them, and we will choose what we need to serve the 10-year reconstruction plan. … Iraq is a rich country, and in the next few years it could improve its financial situation and dispense with international aid. What happened at the Kuwait conference is just the beginning of the reconstruction project.”