'Awakening', Sadr Iraqis ready to fight again.

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'Awakening', Sadr Iraqis ready to fight again.

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The success of the US "surge" strategy in Iraq may be under threat as Sunni militia employed by the US to fight al-Qaida are warning of a national strike because they are not being paid regularly.

Leading members of the 80,000-strong Sahwa, or awakening, councils have said they will stop fighting unless payment of their $10 a day (£5) wage is resumed. The fighters are accusing the US military of using them to clear al-Qaida militants from dangerous areas and then abandoning them.

A telephone survey by GuardianFilms for Channel 4 News reveals that out of 49 Sahwa councils four with more than 1,400 men have already quit, 38 are threatening to go on strike and two already have.

Improved security in Iraq in recent months has been attributed to a combination of the surge, the truce observed by Moqtada al-Sadr's Mahdi army, and the effectiveness and commitment of the councils, which are drawn from Sunni Arabs and probably the most significant factor, according to most analysts.

In his speech marking the fifth anniversary of the war George Bush highlighted the significance of what he called "the first large-scale Arab uprising against Osama bin Laden". Iraq, he said, "has become the place where Arabs joined with Americans to drive al-Qaida out."

But dozens of phone calls to Sahwa leaders reveal bitterness and anger. "We know the Americans are using us to do their dirty work and kill off the resistance for them and then we get nothing for it," said Abu Abdul-Aziz, the head of the council in Abu Ghraib, where 500 men have already quit.

"The Americans got what they wanted. We purged al-Qaida for them and now people are saying why should we have any more deaths for the Americans. They have given us nothing."

In Dora, a southern suburb of Baghdad, the leaders of a Sahwa group of 2,400 men said they were considering strike action because none of the 2,000 applicants they had put forward for jobs with the police and military had been accepted.

The Shia-dominated government of Nouri al-Maliki has found jobs for only a handful of the Sahwa fighters.

"We need to get all the Sahwas in the country together and organise a national strike," said Ahah al-Zubadi, leader of 35 Sahwa councils, the largest group in Iraq. "When the areas started to cool down and the situation began to get better the Americans really cooled to us."

In the area south of Baghdad where more US troops have been killed than anywhere else in the country the Sahwa forces have formed the backbone of the surge. The councils first appeared in Anbar province a year ago when tribal leaders turned against al-Qaida and were tempted by offers of cash and jobs from the Americans, attracting many former insurgents to their ranks. Anbar today is one of Iraq's safest provinces.

But the movement's driving force, Sheikh Abdul-Sattar Abu Risha, was killed in September. In Diyala province al-Qaida delivered videos of beheaded Sahwa members to their families to try and stop others working with the Americans.


[url=http://news.yahoo.com/s/ap/20080325/ap_on_re_mi_ea/iraq]Link

BAGHDAD - Iraq's leaders faced their gravest challenge in months Tuesday as Shiite militiamen loyal to anti-American cleric Muqtada al-Sadr battled government forces for control of the southern oil capital, fought U.S. and Iraqi troops in Baghdad and unleashed rockets on the Green Zone.

Armed Mahdi Army militiamen appeared on some Baghdad streets for the first time in more than six months, as al-Sadr's followers announced a nationwide campaign of strikes and demonstrations to protest a government crackdown on their movement. Merchants shuttered their shops in commercial districts in several Baghdad neighborhoods.

U.S. and Iraqi troops backed by helicopters fought Shiite militiamen in Baghdad's Sadr City district after the local office of Prime Minister Nouri al-Maliki's Dawa Party came under attack, the U.S. said. Residents of the area reported intermittent explosions and gunfire in the area late Tuesday.

An American soldier was killed in fighting Tuesday afternoon in Baghdad, the U.S. military said. No further details were released, and it was unclear whether Shiite militiamen were responsible.

Although all sides appeared reluctant to trigger a conflagration, Brig. Gen. Ed Cardon, assistant commander of the U.S. task force operating south of Baghdad, said the situation in the south was "very complicated" and "the potential for miscalculation is high."

The burgeoning crisis — part of an intense power struggle among Shiite political factions — has major implications for the United States. An escalation could unravel the cease-fire which al-Sadr proclaimed last August. A resumption of fighting by his militia could kill more U.S. soldiers and threaten — at least in the short run — the security gains Washington has hailed as a sign that Iraq is on the road to recovery.

The confrontation will also test the skill and resolve of Iraq's Shiite-led government in dealing with Shiite militias, with whom the national leadership had maintained close ties.

Underscoring the serious stakes at play, al-Maliki, a Shiite, remained in the southern city of Basra to command the security operation. Sweeps were launched at dawn to rid the city of militias and criminal gangs that ruled the streets even before the British handed over control to the Iraqis in December.

U.S. and Iraqi officials believe some factions of al-Sadr's movement maintain close ties with Iran, which provides them with weapons, money and training. Iran denies the allegation.

Basra, located near the Iranian border about 340 miles southeast of Baghdad, is the center of the country's vast oil industry. Stability in the city is essential if Iraq is to attract huge investments needed to restore its neglected oil fields and export facilities.

Throughout the day, the sounds of explosions and machine gunfire echoed through Basra's streets as Iraqi soldiers and police fought the Mahdi Army in at least four strategic neighborhoods.

At least 31 people were killed and 88 wounded, according to police and hospital officials, speaking on condition of anonymity because they were not supposed to release the information.

Associated Press Television News video showed smoke rising over Basra, and coalition jets prowling the skies while ambulances raced through the streets.

Iraqi police and soldiers prevented journalists from reaching the areas of heaviest fighting, and it was unclear which side had the upper hand by sundown.

Iraqi military spokesman Col. Karim al-Zaidi acknowledged that government troops were facing stiff resistance.

Residents of one neighborhood said Mahdi Army snipers were firing from rooftops. Others fired rocket-propelled grenades at the troops, then scurried away on motorcycles. Other residents said police fled their posts.

Residents spoke by telephone on condition of anonymity because of fear of reprisals, and their accounts could not be confirmed.

British troops remained at their base at the airport outside Basra and were not involved in the ground fighting Tuesday, according to the British Ministry of Defense. Air support was being provided, but a spokesman would not say if it was U.S. or British planes.

The British had given assurances that the Iraqis could handle security in the city when they withdrew last year.

In Baghdad, several salvos of rockets were fired at the U.S.-protected Green Zone, which houses the American and British embassies. There were no reports of casualties, but the blasts sent people scurrying for concrete bunkers.

Lawmakers from al-Sadr's movement announced that a civil disobedience campaign which began Monday in selected neighborhoods of the capital was being extended nationwide. The campaign was seen as an indication that the Sadrists want to assert their power without provoking a major showdown with the Americans, who inflicted massive casualties on the Mahdi Army during fighting in 2004.

Iraq's national security adviser, Mouwaffak al-Rubaie, was in contact with the Sadrist leadership in hopes of easing the crisis, said a top Sadrist official, Liwa Smeism.

Schools and shops were closed in many predominantly Shiite districts. "All shops are closed in my area except bakeries and vegetable stands," said Furat Ali, 35, a merchant in southwestern Baghdad.

Police also reported fighting between Iraqi security forces and Mahdi militiamen in the Shiite cities of Hillah and Kut, which lies on a major route between Baghdad and the Iranian border.

The showdown with al-Sadr has been brewing for months but has accelerated since parliament agreed in February to hold provincial elections by the fall. The U.S. had been pressing for new elections to give Sunnis, who boycotted the last provincial balloting three years ago, a chance for greater power.

Al-Sadr's followers have also been eager for elections, believing they can make significant gains in the oil-rich Shiite south at the expense of Shiite parties with close U.S. ties.

Sadrists have accused rival Shiite parties, which control Iraqi security forces, of engineering the arrests to prevent them from mounting an effective election campaign.

They also complain that few of their followers have been granted amnesty under a new law designed to free thousands held by the Iraqis and Americans.

"The police and army are being used for political goals, while they should be used for the benefits of all the Iraqi people," said Nassar al-Rubaei, leader of the Sadrist bloc in parliament. "If these violations continue, a huge popular eruption will take place that no power on Earth can stop."
Anyone remember when the Surge was going to cause political reconciliation? Apparently it was handled as incompetently as everything else.
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Post by Shroom Man 777 »

Hooray! Maybe when America stops paying them and giving them guns and stinger missiles, and after America's ditched their country and left it a smoldering miserable ruin, Sadr and his homies can fly an airplane or two (or three) into some big American guvmint buildings too! Hooray!

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Post by K. A. Pital »

You decide to bribe militias, disguising this as Surge success.

Militias decide that you don't pay well enough, threaten violence.

That was the exact course of things someone proposed in a recent thread, and surprisingly fast we have a confirmation: insurgents are not dumb :lol:
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Post by The Spartan »

So as the surge drawdown begins... violence starts to pick back up as the militias/insurgents/terrorists/whoever decide that now they're not in as much danger.

And to add to that, they've apparently figured out that if they rattle their sabers a bit they might be able to wrangle some more cash out of us. I imagine they might also be a bit annoyed if they've figured out we've been paying off their rivals, too. Especially, if they think we're paying their rivals more.
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One word: Danegeld.
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Post by Simplicius »

It's a bit more than just trying to wring more money out of the US.

In a narrow view, the surge succeeded - the 'security window' which was supposed to allow political reconciliation to occur was created, with the fortuitous Mahdi Army cease-fire and the willingness of the Sunnis to be bought off.

The problem is that 'creating political reconciliation in Iraq' is a facile notion, as it implies conditions that don't actually exist - that the central and local governments have the legitimacy and authority to negotiate with disaffected groups; that the various factions are willing to negotiate and compromise; that there is some incentive for them to do so; that the US can act as a power broker.

Factions are the prime causes and underlying forces in Iraq, and they all want the same thing: power and wealth. Naturally, a gain for one faction must come at the expense of some other. This is why the Shiite government is trying to keep the Sunni militias down, and why the Sunnis are adamant that their 80,000-90,000-strong forces remain constituted. This is why ISCI, which dominates the central government and controls a lot of provincial governorships, has fought - and is fighting now - with the Sadrists. This is why Basra has turned into a three-way militia contest and a haven for organized crime, and why there has been such a stink over provincial elections: the Sunnis in the Awakening and the Sadrists stand to gain, while ISCI and the mainstream Sunnis stand to lose. Since the Iraqi government is the country's largest employer and a font of patronage, political influence is key for any party. This, naturally, is also a zero-sum game.

In this environment, political reconciliation is a pipe dream because Iraq's factions aren't after peace and happiness - they're pursuing tangible strategic and material goals. The best outcome is some kind of a bargain struck in which everyone gains some and everyone loses some, but as long as the very existence of the factions remains at stake, compromise is not particularly likely. It doesn't help either that the US, with even its limited influence, still treats Iraq as a unified state facing a series of rebellions, while hindering its own strategic goal by further muddying the factional waters.

Capitalizing on the Anbar Awakening by creating and paying Sunni militias was a good tactical move, as it took a lot of people out of the insurgency game. When most of your enemy are fighting because they're paid to fight, your own wallet can be your best weapon. It was a terrible strategic move, however, because the US has been trying to promote an Iraq unified under a central government. By establishing the Sunni forces, it funded and armed a group that is a natural rival to the Shiites in the central government, and that is loath to disarm and be subsumed into an (as-yet nonexistent) civilian economy not only because the wages are lower (an inducement the US is trying to change) and the jobs available offer little self-satisfaction, but because the existence of Sunni militia is the best guarantee against future Shiite violence. In a region of long memories, the cleansing of just a few years ago is quite fresh on the minds of Sunnis.

The US has thus placed itself in an impossible position. It supports, broadly, rival Sunnis and Shiites, and supports a central government and a force for decentralization. By funding the Sunnis where the Iraqi government will not, the US itself is a force for decentralization, directly undermining its own aims.

There was an interesting post over at the Abu Aardvark weblog proposing a solution to this useless entanglement:
Marc Lynch wrote:So what to do? Brian Katulis and Ian Moss over the weekend argued that "the United States must signal that it will stop its independent funding of the Sunni militias that are part of the sahwa movement, providing ample time for Iraq's Ministries of Defense and Interior to assume financial responsibility. With the price of oil hovering around $110 a barrel, the Iraqi government does not lack the resources to fund these groups on its own." Over the last two weeks I had been privately circulating a similar proposal along these lines, though I had suggested sweetening the pot by offering to compensate the Iraqi government for the expense of hiring the Awakening fighters in order to remove any financial incentives.

The argument basically goes like this. If the Awakenings are not integrated into the national security forces, then there is little hope for political accommodation or for lasting security and the US is effectively trapped. Since all other forms of persuasion seem to have failed, it's time to give Maliki an ultimatum: in two months, payments to the Awakenings will cease. If Maliki gives in, then there may finally be some hope for political accommodation and for overcoming the strategic problems created by the surge - think of it as cashing in the Awakenings chip before it loses its value.

The downside is that if Maliki doesn't go along, dragging his feet and ignoring American advice as usual, then things may well get ugly. But all signs suggest that they will get ugly anyway - and better that they get ugly while the US is at the highest troop levels it will ever have. If Maliki won't do this now, when US troop levels are high and security is relatively better, with the shadow of a new President who likely will not continue to offer an open-ended commitment, then he never will... and everyone should know this. The upside is that if it works, then the next President - whoever it is - will be dealing with a more competent and more effectively sovereign Iraqi state in which the weight of Sunni arms is more vested rather than with an uneasy, violent standoff between heavily armed and mistrustful militias seperated only by American troops.
Whether or not this will work is unclear; it really comes down to whether the concessions asked for by Iraq in the security agreement currently under negotiation give the US enough leverage to oblige the Iraqi government to make concessions to the Sunnis - and also whether the Iraqi government is coherent enough to operate as a government rather than just a patronage machine. The situation has reached the point where something is better than nothing at all; the US cannot afford to sit around trying to keep violence stalemated while it waits for the Iraqis to do something.

The larger problem of events in Iraq being dictated by factional rivalries that operate inside or outside the political system as they see fit is another matter entirely, and one which the US is largely powerless to solve due to the very real limits of its influence with the various factions.
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Sorry that this post is so damned long - this is what I've been working on for the past two months, so I felt I had to share. The short version: the Sunnis aren't trying to wring more cash out of the US; they're trying to preserve the security they enjoy as an armed faction rather than subject themselves to the central government, which distrusts them, and all the Shiite factions, whom they despise as 'Iranians.' Meanwhile, the two big Shiite factions - ISCI, which is aligned with Maliki and holds a lot of power through the central government, and the Sadrists are fighting over oil wealth and political power in the south. The US is stuck in the middle because it has no coherent strategy and can't even admit that it's working at cross purposes to itself.
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Post by Gustav32Vasa »

$10 a day?

Thats not even 6€, how can they be expected to live on that?
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Post by Simplicius »

The International Red Cross gives the average monthly salary across Iraq at only $150 a month, out of which high water and electricity costs must be subtracted. So the militias are actually doing rather well by comparison. It is little surprise that they aren't jumping at the chance to work as civilians.
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Post by The Grim Squeaker »

Gustav32Vasa wrote:$10 a day?

Thats not even 6€, how can they be expected to live on that?
That's a LOT of money for the 3d world. Africa has people living on less than a dollar a day, and these are grown men who can supplement their income.
http://www.indexmundi.com/iraq/gdp_per_ ... (ppp).html

The GDP per capita is 2,900 Dollars a year, the US amount is almost a third more than that, and they can supplement it via other sources of income. It's pretty nice in PPP in other words :)
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Post by Simplicius »

Supplement their income with what, exactly? It is not as if there are a plenitude of jobs available - unemployment could be as high as 70 percent. Unless you recommend that they jump aboard the black market in oil or pursue some of the other means of making money prevalent in Iraq, such as extortion or kidnapping for ransom.

The government has yet to execute even a full 50 percent of its capital budget for any given year; most of Iraq's money is sitting in bank accounts waiting to be spent. So civil service or public works jobs will be slow in appearing.

Furthermore, that "pretty nice" income is largely claimed by essential needs, as I stated earlier. The cost of electricity and water claim a substantial portion of the monthly salary. A family requires about $50 of water in a month, while fees for use of a private generator might run to the same amount. Food health care when available, and any other expenses must be factored in on top of that.
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Post by Edi »

Shroom Man 777 wrote:Hooray! Maybe when America stops paying them and giving them guns and stinger missiles, and after America's ditched their country and left it a smoldering miserable ruin, Sadr and his homies can fly an airplane or two (or three) into some big American guvmint buildings too! Hooray!

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Post by Guardsman Bass »

The government has yet to execute even a full 50 percent of its capital budget for any given year; most of Iraq's money is sitting in bank accounts waiting to be spent. So civil service or public works jobs will be slow in appearing.
I seem to recall the chief of the Iraqi Oil Ministry being a real pinchpenny as well, unwilling to disburse oil revenue for infrastructure construction and maintenance, for example. That might be the only problem with the otherwise good scenario you presented for integrating the Sunni militias into the national security forces. You need someone in charge of the oil production and related government officialdom who is willing to use oil patronage as a tool of national unification (instead of the divisiveness it seems to be inspiring right now).
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Post by Simplicius »

Guardsman Bass wrote:I seem to recall the chief of the Iraqi Oil Ministry being a real pinchpenny as well, unwilling to disburse oil revenue for infrastructure construction and maintenance, for example. That might be the only problem with the otherwise good scenario you presented for integrating the Sunni militias into the national security forces. You need someone in charge of the oil production and related government officialdom who is willing to use oil patronage as a tool of national unification (instead of the divisiveness it seems to be inspiring right now).
Indeed. Though for that, you would need a government whose first instinct is to act for the country's interest rather than for some of its parts.

The matter of oil wealth is pretty well mired - the legislation is held up by the issue of the Kurds' independent deals, while the Shiite haves are openly fighting with the have-nots. Even the matter of provincial elections is subject to disputes over wealth-sharing, as the Sadrists - the have-nots, in oil-poor Baghdad - prefer a strong central government, while ISCI, whose influence in the south makes it a 'have' - would rather see strong provinces, if not an outright separation of the southern part of the country.

The Sunnis' position may or may not be improved by the potential development of the Akkas gas field. If the money is properly doled out by the government, good. If it is withheld, bad. If it goes straight to the Sunnis, it will only help hold them apart as a separate faction.
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Post by The Grim Squeaker »

Simplicius wrote:Supplement their income with what, exactly? It is not as if there are a plenitude of jobs available - unemployment could be as high as 70 percent. Unless you recommend that they jump aboard the black market in oil or pursue some of the other means of making money prevalent in Iraq, such as extortion or kidnapping for ransom.
Farming, animals, livestock. If you're ready to live in a tent or otherwise have housing, and have animals then you can get by pretty well.
This is free money, while most probably can't survive in the "desert", it's still a decent leg up, and 300 dollars a month isn't chump change for a third world country. It's poverty, but it's certainly a good deal better than Africa for example.
The government has yet to execute even a full 50 percent of its capital budget for any given year; most of Iraq's money is sitting in bank accounts waiting to be spent. So civil service or public works jobs will be slow in appearing.
Interesting, I don't doubt you but could you provide a quote on that? Interesting.
Furthermore, that "pretty nice" income is largely claimed by essential needs, as I stated earlier. The cost of electricity and water claim a substantial portion of the monthly salary.

This assumes effective tax gathering, and the use of electricity.
A family requires about $50 of water in a month, while fees for use of a private generator might run to the same amount.
This assumes that the person is the sole provider (Children can gatehr scrap metal or the like, or tend to animals if there are any, or might be put to more unsavoury uses). One third on water and power, leaving 200$ earned for free to spend on food, and other expenses. Still better than poverty in Africa.
Food health care when available, and any other expenses must be factored in on top of that.
Health care? :lol: . What health care, you're an optimistic fellow in that regard.
Still, my perceptions are undoubtedly warped in these circumstances, i'm used to thinking of Bedouin in the context of Arab third world poverty, so feel free to laugh at my errors. (But point them out to me ;)).
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Post by K. A. Pital »

DEATH wrote:This assumes effective tax gathering, and the use of electricity
You have a point - if KW/h statistics are any measure, electricity usage declined like tenfold in Baghdad (and prbobaly the rest of Iraq) dropping down to an almost zero level of usage from 2003 to 2007.

Iraqis really live in the darkness; but that's not really desirable and only means lots more hard work with hands.
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Post by Fingolfin_Noldor »

The most sickening part of all this, is that Iraq's oil is fueling a lot of this nonsense. I would wager that both sides, Sunni and Shia, are using their own country's oil to buy weapons and so forth. Throw in Iran's own agents and war materiel and quite frankly, Iraq has not changed since before the surge. The only difference, is that the territorial boundaries between the two factions are now even more clearly demarcated.
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Post by Wanderer »

Fingolfin_Noldor wrote:The most sickening part of all this, is that Iraq's oil is fueling a lot of this nonsense. I would wager that both sides, Sunni and Shia, are using their own country's oil to buy weapons and so forth. Throw in Iran's own agents and war materiel and quite frankly, Iraq has not changed since before the surge. The only difference, is that the territorial boundaries between the two factions are now even more clearly demarcated.
Not this Iran supplying weapons shit again.

The Iraqis get most of their weapons from the U.S. and there is still a shit load of unexploded ordinance from as far back as the Iran/Iraq war which is dug up, the fuzes replaced and made into an IED.
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Post by Plekhanov »

This is rather surprising, I thought they'd at least continue to pay off the militias till after the next round of elections to give the Republicans as good a chance as possible of holding onto the White House.
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Fingolfin_Noldor
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Post by Fingolfin_Noldor »

Wanderer wrote:Not this Iran supplying weapons shit again.

The Iraqis get most of their weapons from the U.S. and there is still a shit load of unexploded ordinance from as far back as the Iran/Iraq war which is dug up, the fuzes replaced and made into an IED.
This article begs to differ:

http://www.washingtonpost.com/wp-dyn/co ... 00162.html
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Post by K. A. Pital »

Most of insurgent weapons do not come from Iran. Some fraction, sure. A small one, not the majority.
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Post by cosmicalstorm »

I think it's funny when people "accuse" Iran of supplying some weapons to the insurgents in Iraq.
Of course they do, back when this war was getting started all the chickenhawks in Washington were salivating about how American tanks were going to roll in the streets of both Tehran and Damascus within a year or two...
Imagine if China invaded Mexico or Canada, does anyone seriously think America would stay out of that?
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Post by Simplicius »

Iran, like any shrewd third party would, has maintained influence with all of the main Shiite factions in Iraq to one degree or another. Most of ISCI and Dawa sheltered in Iran during Hussein's rule. By all accounts, Sadr's theological studies have taken him to Iran (perhaps to Qom), even though his organization has been generally nationalist in character and rhetoric, to set it apart from ISCI. I have heard that Iran has also provided some support to Fadhila, even though that party is very strongly Basra-centric, both in operations and in ideology. The phrase my boss uses is "equal opportunism," and I think it applies here; Iran is hedging its bets by quietly backing all the horses, so that it will maintain influence no matter what the outcome in the south.
Fingolfin_Noldor wrote:The most sickening part of all this, is that Iraq's oil is fueling a lot of this nonsense. I would wager that both sides, Sunni and Shia, are using their own country's oil to buy weapons and so forth.
The New York Times ran a lengthy article on the degree and extent of corruption around the black market in oil; you may have to register (for free) to read it. In short: yes, black market oil money is funding Sunni insurgents (though it is not their only source of funding), and yes, the Shiites are competing for oil money as well. Not only is Basra rife with criminal activity, but the concerned Shiite parties are now openly fighting for control of the resource and the wealth it brings.

This should come as no surprise: Iraq and oil is like Afghanistan and opium. How can you solve the problems surrounding it when it is far and away the largest single source of illicit (and/or licit) wealth around?
DEATH wrote:Farming, animals, livestock. If you're ready to live in a tent or otherwise have housing, and have animals then you can get by pretty well. This is free money, while most probably can't survive in the "desert", it's still a decent leg up, and 300 dollars a month isn't chump change for a third world country. It's poverty, but it's certainly a good deal better than Africa for example.
In some places, perhaps this is feasible. But what if you are an urban dweller? It's not as if, for example, Mosul is an urban paradise, but nor is it a wilderness where one can set down a plot and raise some livestock with ease. You seem to be thinking of Iraq as largely wilderness or open territory, while I am envisioning the shattered remains of a modern money economy. Perhaps your view is accurate - I have never been there - but my hunch is that you are underestimating the importance of currency. Food, water, electricity, and fuel are all expenses to be considered in any modern country, while Iraq adds its own peculiarities, such as bribery.
This assumes effective tax gathering, and the use of electricity.
Though I have no hard statistics on revenues, Iraq does have some semblance of a tax regime. Iraqis also do use electricity, when they can get it: as of February 2008, demand outstripped supply by 57 percent. In addition to its own national generation, Iraq imports electricity from Iran and Turkey, and where that is not available Iraqis own their own generators (fuel costs) or pay to use someone else's (informal use fees.)
Interesting, I don't doubt you but could you provide a quote on that? Interesting.
The US military's quarterly report Measuring Stability and Security in Iraq - warning, it's a PDF - says:
The GoI’s increased focus on budget execution has produced higher levels of actual capital spending in 2007 than in 2006. According to preliminary Iraqi budget execution data, total capital spending was 45% through October 2007. Furthermore, GoI ministries have executed 47% of their capital budgets through October 2007, more than two and a half times the rate through the same date in 2006.
A Wall Street Journal article, "Baghdad's Strange Dilemma: Flush With Oil Cash, Unable to Spend It", provides the following:
In 2006, the Iraqi central government spent just 22% of its $6 billion capital budget, which is aimed at improving Iraq's infrastructure, while the oil ministry spent less than 3% of its reconstruction money. In 2007, Iraq's own official expenditure reports show ministries had spent 7% of their $10 billion capital budget as of November; officials estimate the final figure will be at least 50%.

Baghdad's coffers are swelling: In three years, the country's foreign-exchange reserves have more than tripled, to over $22 billion. Iraq also has more than $8 billion in bank accounts in New York and Iraq reflecting unused funds from oil-export sales. This is in addition to unspent budget funds.
Finally, Ambassador Charles Ries, who is currently the US Minister for Economic Affairs and Coordinator for Economic Transition in Iraq, gave a talk to which I was privy, in which he said:
The Iraqi government executed only 22 percent of its capital investment budget in 2006. It did better last year. Current, although incomplete and not directly comparable data suggest that the government of Iraq has spent about 60 percent of its 2007 capital investment budget.
No transcript, but you can find the audio here. The relevant quote is at ~9:59. These are all the most current figures I have; and the best we get is that maybe Iraq spent 60 percent this past FY.
This assumes that the person is the sole provider (Children can gatehr scrap metal or the like, or tend to animals if there are any, or might be put to more unsavoury uses). One third on water and power, leaving 200$ earned for free to spend on food, and other expenses. Still better than poverty in Africa.
That is $200 only if you happen to be earning money at a level comparable to a Sunni militiaman. If you are earning less, or if you are among the (more reasonably) 20-50 percent unemployed, you are squeezed much more tightly by the necessities - and lets not forget that, in an economy as lousy as Iraq's, scarcity will be driving up costs across the board.

Looking at the actual conditions the average Iraqi seems to be living in, you would be hard pressed to conclude that they are well off despite the comparison to poorest Africa. A country that is short electricity, potable water, health care, and sewage treatment and is a factional battleground is hardly a place where one can be well off, without some special advantage.
Health care? Laughing . What health care, you're an optimistic fellow in that regard.
Hospitals do actually exist in Iraq, though they are short of modern equipment and qualified and trained personnel. So do private clinics, which happen to cost money to use.
Still, my perceptions are undoubtedly warped in these circumstances, i'm used to thinking of Bedouin in the context of Arab third world poverty, so feel free to laugh at my errors.
While I am far, far from knowledgeable about Iraqi society, I think it is erroneous to compare the situation Iraqis face today with the condition of desert nomads. Iraq, though a hellhole, is not a wasteland, and all of the present chaos and humanitarian crises are taking place amidst the flotsam and jetsam of a destroyed state, a nascent state, and the various human endeavours, such as extortion and black marketeering, which thrive in that unstable condition.
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