Iraq urges donor states to fund rebuilding

IRAQ: Iraq urged international donors yesterday to live up to their promises on funding for reconstruction work, which has been…

IRAQ: Iraq urged international donors yesterday to live up to their promises on funding for reconstruction work, which has been stalled by violence, saying it was the most effective way to fight extremism.

Iraqi delegates speaking at a two-day donors' meeting urged creditors to forgive Baghdad's debt of up to $125 billion as the only way to relieve Iraq of its crushing financial burden.

The meeting in Tokyo brings together officials from about 55 organisations and countries, including some that opposed the US-led war in Iraq, to follow up last year's meeting in Madrid at which donors pledged around $14 billion.

Concerns about security have made donors wary of implementing their pledges, but Iraqi delegates urged them not to falter.

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"Development and stability in Iraq cannot be driven forward through the barrels of guns," Deputy Prime Minister Mr Barham Salih told the donors.

"Assistance and aid in the short term is the key to destroying the causes of terrorism. It is also the only way we can build a sustainable, long-term future for our people," he added. "I say, turn your pledges into firm commitments now.

"For those countries that held back on political or geopolitical grounds, we ask you should not withhold or delay your support any further," he said.

The donors' meeting is the first since sovereignty was handed over to the Iraqi interim government in June.

Among participants are France, Germany and Russia, all of which opposed last year's US-led invasion and have criticised Washington's post-war handling of Iraq. Many parts of Iraq were already secure enough to start reconstruction work, Mr Salih said.

"We are not underestimating the security challenge that Iraq and our people are facing, but at the same time the images of calamity and carnage that you see on television screens do not reflect the reality of Iraq," he said.

The United States, under pressure from rising US casualties and slow reconstruction, is keen for international backing on Iraq, a key issue in the US presidential election campaign.

Only a few hundred million dollars of the $14 billion pledged at the Madrid meeting have been spent, mainly to buy school supplies and help train government workers abroad.

As a result, reconstruction is faltering, with basic infrastructure such as electricity and sewerage systems erratic or nonexistent.

Roads are still unrepaired and many buildings lie in ruins, a situation anti-US forces are exploiting.

Few new pledges are expected at this week's conference.

But Iran pledged $10 million to a trust fund set up by the United Nations and the World Bank that totals just $1 billion - nearly half from host nation Japan.

Rampant violence has raised doubts about plans to hold elections in January, but Iraqi Planning Minister Mehdi al-Hafedh said the polls were crucial to restoring security.

Debt forgiveness is being discussed by the Paris Club of creditor nations and is not formally on the agenda in Tokyo, but the World Bank's top official for the Middle East said it was vital for the reconstruction of Iraq.