The Occupation

Economically, how have things gone?
For the middle class, what dominates life is insecurity, as basic law and order have broken down. Many of the wealthiest Iraqis, terrified of kidnapping, have left the country. First the rich went, then the fairly well off. Now you have people leaving who are probably making $300 or $400 a month—not much money. But the lack of any safety, and the lack of jobs, is producing a flight to the neighbouring countries: first Jordan and Syria, now—as they become full up—increasingly to Egypt. Some benefits have accrued to the professional classes: for instance teachers and civil servants, who got practically no money under Saddam, are now getting several hundred dollars a month. A lot of people who stopped being teachers are now going back to the job. But prices have also gone up. If you owned property in Baghdad, values at first increased—though they’ve come down a bit now—because previously there was a ban on non-Baghdadis getting residence in the capital.
Just after the fall of Saddam there was also an enormous influx of cars, particularly second-hand vehicles. But a huge number of these were stolen, and then taken off for sale in Kurdistan or Iran. To cross the street in Kurdish towns became a hazard—you risked your life, with shepherds who’d just bought a car for $600, which had been stolen in Baghdad, driving around, wondering which way to turn the wheel. The initial complete breakdown of all rules led to a certain economic activity. For example, if your car was stolen, you could go to the main stolen car mart, which at that time was in Sadoun Street, and get a reduction if you were trying to buy back your own car. It was very unwise to make a fuss, because the vendors were all armed; and you needed to get there quickly, before it was sold on to Iran, or taken to Kurdistan. This was quite open, and known to everybody—apart, conceivably, from Paul Bremer and the Coalition Provisional Authority. But this upsurge of market activity tended to peter out towards the end of 2003, when people began to realize that the insurgency was getting more and more serious, crime was steadily increasing, and that the Americans had taken over control of various parts of the economy. The incompetence of the us arrivals didn’t help. You would have thought they would at least have got the stock exchange, which had naturally languished under Saddam, going again. But Washington sent in a 24-year-old with strong family connections to the Republican Party. He forgot to renew the lease on the building for it, and there was no stock market for a year. After about six months, Iraqi stockbrokers were so fed up they sounded like Islamic militants in Fallujah.