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Iraq Compact Review Conference ends with 'new hope'
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09:35, May 30, 2008

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UN Secretary General Ban Ki-moon said that there is new hope that the people and Government of Iraq are overcoming daunting challenges and working together to rebuild their country, after years of war, dictatorship and neglect.

He made the remark at the one day annual review conference of the International Compact with Iraq which was held in Infra City outside Stockholm.


Stockholm final declaration was adopted

In a final declaration, the government of Iraq invited international partners to invest in the future of Iraq and presented its initiative for intergration with the regional and global economy.

The conference welcomed Iraq's six point proposal for a Partnership for Development which includes a co-financing mechanism for new programmes undertaken with international partners and Iraq's adoption of the OECD's Paris Principles on Aid Effectivenss. Iraq has joined the Extractive Industries Transparency Initiative and endorsement of UN Conventions on Anti-Corruption and Torture, says the declaration.

Participants affirmed their support for the Compact and encourage the Government of Iraq to improve its investment environment including passing necessary legislation. Creditors external to the Paris Club were encouraged to consider resolving outstanding debts to Iraq on Paris Club or similar terms.

Participants agree that issues of human development, human rights, reconstruction and economic governance were identified as vital areas of mutual interests over the next year.

They urge the Iraqi government to further consolidate progress in rule of law, promoting human rights, advancing national dialogue and reconciliation.

Participants also reiterated their commitment to support Iraq in their efforts to build a united, federal and democratic country. They also agree to meet every year to have a review on mutual progress and future priorities.

Iraq calls for cancelation of debts and sanctions amid progress

According to Iraqi Prime Minister Noori Kamil Al-Maliki's statement, Iraq has made progress in integrating larger participation in decision-making, enforcing security and stability as well as imposing the rule of law, making economic reforms and increasing people's income.

The International Compact with Iraq was launched last May in Sharm el-Sheikh, Egypt.

It is a five year development plan for Iraq with the support from the International Community.

A report titled A New Beginning -the annual review of progress 2007-2008 states that the security environment in Iraq has improved due to a combination of military and political initiatives. The growing public confidence in security has also led to increased domestic consumption and revival of local business across Iraq. Iraq has also ratified the UN Convention on Anti-Corruption.

According to IMF comments, Iraq's economic development is remarkable. It has reduced its inflation from 36% in 2006 to 16% now.

23 billion out of 75 billion US dollars external debt burden has been settled in 2007-8 while the oil revenue is expected to be 70 billion dollars during 2008, the highest since 2004.

Unemployment number has been halved to 17%.

GDP grow rate in Iraq is expected to be at 8% this year from 1.3 % last year. Per capita income increased to 2100 dollars in 2007 from 465 dollars in 2003.

262 actions have been completed and 142 are currently being addressed, representing progress on 74% of the agreed actions.

However, according to the report, the Iraqi people continue to suffer from acts of terrorism, sectarian violence and criminality. Many endure forced displacement and human rights violations. Essential services are still sorely lacking.

Iraqi Prime Minister Al Maliki said the reason to call for cancellation of debt and UN sanctions is that Iraqi people should be liberated from the old regime and the long term sanction affected Iraqi development.

Iraqi deputy Prime Minister Barham Salih said nevertheless, Iraq is not a poor country. It is rich in oil resources. But it needs technical support, infrastructure construction and capacity building.

The Iraqi deputy Prime Minister said optimistically that ‘failure is not an option' and he hopes that next annual review conference will be held in Baghdad.

China cancelled Iraqi government's debt

Liu Jieyi, Assistant Chinese Minister of Foreign Affairs said China calls for a quick buildup of Iraq's security forces so that they can assume full responsibility for Iraq's national security.

"Reconsiliation holds the key to the reconstruction process and development is the focus of the process in Iraq, " said Liu Jieyi.
China also calls on international community to continue cooperation with Iraq while respecting Iraq's sovereignty and independence.

Liu Jieyi said China has provided Iraq with a grant of 120 million yuan or 15 million US dollars in recent years. China has already cancelled debts owed by the Iraqi government. China will coordinate among Chinese enterprises to reduce or cancel the debts owed by Iraq to them according to the arrangement of the Paris Club.

US Secretary of State Condoleezza Rice praised the current Iraqi government leaders and called on other countries to establish diplomatic relations with Iraq or Iraq to establish embassies in other countries. But security in Baghdad is still a great concern of neighboring and other countries.

Analysts hold that the essential issue in Iraq has great to do with the invasion and occupation of the US troops in Iraq. Without mentioning any kind of withdrawal of the American troops from Iraq, any effort seems to be hard to hold in the long run. Iraq has built up its own security forces to 600,000 while the American troops there stands at 150,000.

Swedish Foreign Minister Carl Bildt said "This is the first truly forward looking meeting on Iraq. "It has been looking forward, but not looking backward."

He said it demonstrates a new level of international community's efforts and engagement in Iraq and the implementation of the UN resolution 1770.

Foreign Ministers, Heads of Organizations and other high-level officials representing some 100 states and organizations met in Stockholm for the First Compact Annual Review.

Also on Thursday there were several small scale demonstrations near Infra City while local media reported that about 1000 people demonstrated in the Stockholm city center against war in Iraq and Afghanistan.

By Xuefei Chen People's Daily Online Correspondent in Stockholm.



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