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In a paper titled, “The Road to Economic Prosperity for a Post-Saddam Iraq,” which is a part of the study, “A Future of a Post-Saddam Iraq: A Blueprint for American Involvement,” authors Ariel Cohen and Gerald P. O’Driscoll argue for the implementation of neoliberal reforms including the privatization of Iraq’s major industries. The document says that poverty in Iraq is a result of Saddam Hussein’s mismanagement, namely Saddam’s decision to nationalize certain industries; Iraq’s war with Iran; the invasion of Kuwait; and Saddam’s refusal to comply with the requirements for the suspension of UN sanctions. The paper’s proposal for jumpstarting Iraq’s economy focuses on privatization of Iraq’s industries and several other neoliberal reforms. To complement this, the authors recommend using the “media and the educational system to explain the benefits of privatization and the changes to come in order to ensure broad public support.” The costs of reconstruction, they suggest, could be paid for with funds generated from the sale of Iraq’s oil. “Iraq’s vast oil reserves are more than ample to provide the funds needed to rebuild and boost economic growth,” the report says. (Beaumont 11/3/2002; Cohen and O'Driscoll 3/5/2003) But in order to generate this amount, Cohen and Driscoll write, the post-Saddam government would probably have to reconsider its membership in the Organization of Petroleum Exporting Countries (OPEC). “Following the demise of Saddam Hussein, it is unlikely that the Saudi kingdom would transfer a fraction of its production quota under the [OPEC] regime to Iraq to compensate for those lost profits and facilitate its rebuilding,” the authors note. “Iraq will need to ensure cash flow for reconstruction regardless of OPEC supply limitations. Combined with the potential privatization of the oil industry, such measures could provide incentive for Iraq to leave the OPEC cartel down the road, which would have long term, positive implications for global oil supply.… An Iraq outside of OPEC would find available from its oil trade an ample cash flow for the country’s rehabilitation.” (Cohen and O'Driscoll 3/5/2003) Cohen will later admit in an interview after the invasion of Iraq that his interest in Iraq withdrawing from OPEC was to destabilize Saudi Arabia (see Early 2005).
The Bush administration completes a 100-page blueprint for post-Saddam Iraq. The document replaces the State Department- and Big Oil- sanctioned plan (see February 2001 and After) with one favored by neoconservatives calling for the privatization of Iraq’s oil reserves and supporting industries as a means to undermine the OPEC cartel and destabilize Saudi Arabia (see Early 2005). It new plan bears strong resemblance to the recommendations that were put forth in a September 2002 Heritage Foundation paper by Ariel Cohen and Gerald P. O’Driscoll (see September 25, 2002). It is also heavily influenced by corporate lobbyists, including Grover Norquist, the outspoken advocate for a flat-tax system. The plan advocates changing Iraq’s tax and copyright law, as well as implementing a variety of other neoliberal reforms. (Cohen and O'Driscoll 3/5/2003; Palast 3/17/2005; Palast 3/21/2005; Palast 4/2005, pp. 74-76)
State Department officials Ariel Cohen and Gerald P. O’Driscoll update their September 2002 paper titled, “The Road to Economic Prosperity for a Post-Saddam Iraq,” (see September 25, 2002) expanding the section which addresses plans for post-Saddam Iraq’s oil industry. The update is apparently a reaction to the State Department’s opposition to the neoconservatives’ proposal to sell off Iraq’s oil fields. They say that despite Secretary of State Colin Powell’s remarks that the “oil of Iraq belongs to the Iraqi people… [and] will not be exploited for the United States’ own purpose…” the US should still provide “guidance to the future government of Iraq on establishing sound economic and trade policies to stimulate growth and recovery.” (Cohen and O'Driscoll 3/5/2003)
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