Kathleen Ridolfo
RFE/RL Iraq Report Vol. 6, No. 43
October 16, 2003

As world leaders prepare to attend the 23-24 October donors conference for Iraq, there are signs that the conference may fall short of reaching the UN/World Bank estimate of $36 billion needed for Iraq over the next four years.

According to the Downing Street Web site ( http://www.number-10.gov.uk), the United Kingdom will pledge some 296 million pounds (over $494 million) in new aid over the next two years. This is in addition to the 248 million pounds ($414 million) already pledged to Iraq, bringing the U.K.’s total two-year commitment to 544 million pounds (about $908 million). Spain, another major U.S. ally in the coalition that deposed former Iraqi President Saddam Hussein’s regime, has said that it will pledge 90 million euros ($105 million) for reconstruction. Australia is expected to pledge “in the tens of millions,” but less than 50 million Australian dollars (nearly $34.5 million) at the Madrid conference, smh.com.au quoted government sources as saying on October 15. That contribution is in addition to the 100 million Australian dollars ($69 million) given to Iraq in April. Denmark has pledged $50 million. Meanwhile, Japan has said that it would provide $1.5 billion to Iraqi reconstruction efforts. Japanese media have reported that Japan may announce a pledge on 23-24 October of some $5 billion over the next five years to Iraq. It is the largest single contribution after that of the United States and should account for around 10 percent of the estimated cost of reconstruction.

U.S. President George W. Bush has asked Congress for $20.3 billion in aid to Iraq for next year (see above). And, the European Union has pledged some 200 million euros ($235 million) for 2003-04. Other states are expected to contribute to the rebuilding effort in Iraq, but have remained noncommittal. Sweden has said that it would only offer humanitarian aid as long as the U.S. remained in charge of Iraqi reconstruction, or until the establishment of a sovereign Iraqi government, Reuters reported on October 15. South Korea has said that it intends to make a financial contribution in addition to the 5,000 combat troops already committed to Iraq, but has thus far not disclosed an amount. And Germany, France, and Russia have yet to commit any economic aid to Iraq.

Iraqi interim Trade Minister Ali Abd al-Amir Allawi told Reuters on October 15 that his weeklong Asian tour to secure funds for Iraqi rebuilding has shown positive signs, particularly from Japan and South Korea. Regarding China, Allawi said, “Their response was positive on humanitarian aid but they’re awaiting the resolution of various political issues in the [UN] Security Council before they take a position regarding financial commitments to reconstruction.”

The CPA’s chief fundraiser is former Polish Deputy Prime Minister Marek Belka. He told Reuters in a 14 October interview that he expects the Persian Gulf states to help in the reconstruction effort. “We expect Gulf countries to be active in Madrid and we have unofficial promises they will be,” he said. Belka, who will begin serving as the deputy director of economic development on 1 November, also said that he expects that some countries would contribute by writing off Iraq’s foreign debt incurred under the deposed Hussein regime, which is estimated at about $120 billion including commercial debt. About 45 nations are expected to attend the donors conference.