“‘One well-stocked 7-Eleven could knock out thirty Iraqi stores; a Wal-Mart could take over the country.’”
Here’s a sad article, by Naomi Klein, about the deluded CPA economists who expected to play John Galt in Iraq–designing a “model free market” for cities without a country, lacking reliable electricity and sewage.
Reminds me of the George Orwell line about economists needing an explanatory footnote for the concept of “hunger.”
“In December the union representing oil workers was negotiating with the Oil Ministry for a salary increase. Getting nowhere, the workers offered the ministry a simple choice: increase their paltry salaries or they would all join the armed resistance. They received a substantial raise…Workers fear job loss as a death sentence, and managers, in turn, fear their workers, a fact that makes privatization distinctly more complicated than the neocons foresaw.
“Bremer has failed these young men, and everywhere that he has failed, Moqtada al Sadr has cannily set out to succeed. In Shia slums from Baghdad to Basra, a network of Sadr Centers coordinate a kind of shadow reconstruction…the astronomical rise of the brand of religious fundamentalism that al Sadr represents is another kind of blowback from Bremer’s shock therapy: if the reconstruction had provided jobs, security, and services to Iraqis, al Sadr would have been deprived of both his mission and many of his newfound followers.
“…Hamid Jassim Khamis, the manager of the largest soft-drink bottling plant in the region, told me he can’t find any investors, even though he landed the exclusive rights to produce Pepsi in central Iraq. ‘A lot of people have approached us to invest in the factory, but people are really hesitating now.’ Khamis said he couldn’t blame them; in five months he has survived an attempted assassination, a carjacking, two bombs planted at the entrance of his factory, and the kidnapping of his son.”