By PAUL KRUGMAN
Published: June 29, 2004
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Up to a point, the numbers in the Brookings Institution's invaluable Iraq Index tell the tale. Figures on the electricity supply and oil production show a pattern of fitful recovery and frequent reversals; figures on insurgent attacks and civilian casualties show a security situation that got progressively worse, not better; public opinion polls show an occupation that squandered the initial good will.
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Plans for privatization were eventually put on hold. But as he prepared to leave Iraq, Mr. Bremer listed reduced tax rates, reduced tariffs and the liberalization of foreign-investment laws as among his major accomplishments. Insurgents are blowing up pipelines and police stations, geysers of sewage are erupting from the streets, and the electricity is off most of the time — but we've given Iraq the gift of supply-side economics.
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Checks and review? Yesterday a leading British charity, Christian Aid, released a scathing report, "Fueling Suspicion," on the use of Iraqi oil revenue. It points out that the May 2003 U.N. resolution giving the C.P.A. the right to spend that revenue required the creation of an international oversight board, which would appoint an auditor to ensure that the funds were spent to benefit the Iraqi people.
Instead, the U.S. stalled, and the auditor didn't begin work until April 2004. Even then, according to an interim report, it faced "resistance from C.P.A. staff." And now, with the audit still unpublished, the C.P.A. has been dissolved.
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http://www.nytimes.com/2004/06/29/opinion/29KRUG.html