| Posted by fluffy ® , Oct 06,2003,13:19 | MetroBlab |
Iraq will remain impoverished for years to come because oil will not fund public spending, aid will fall short of what is needed and few companies will want to invest there, a report leaked to Reuters news agency has said.
Even if oil prices are favourable, stability is achieved and debts are largely written off, Iraq's economy will not reach even half the size it was in the 1970s, the US-based Institute of International Finance (IIF) said in a document sent to its members and quoted by Reuters.
The grim predictions come as governments and international agencies meet in Madrid to prepare for an Iraq donors' conference later this month.
Reconstruction costs in Iraq are estimated to amount to at least $75bn but so far pledges stand at $20bn from the US and a mere $230m from the EU.
The IFF - a leading banking body in Washington - did not deny circulating the report quoted by Reuters but refused to comment on its contents.
more;
http://news.bbc.co.uk/2/hi/business/3158348.stm