By Deepa Babington
Reuters, 09 February 2006
HOUSTON - Unemployment in Iraq stands at about 50 percent, kept high by relentless violence and little economic progress since the U.S.-led invasion three years ago, a senior Iraqi official said this week at a meeting with U.S. executives.
The official, who is in the Iraqi planning and development ministry and asked not to be identified by name for security reasons, said more than 60 percent of the country's population depends on government rations to survive.
He was part of an Iraqi delegation touring the United States to attract foreign investment to the war-torn country. They spoke in Houston to a group of business executives.
Despite vast oil reserves and U.S. efforts to rebuild the country, Iraq's economy has faltered amid sectarian violence and frequent insurgent attacks on its infrastructure.
The country's oil exports -- the backbone of its economy -- slumped to 1.1 million barrels per day in January, staying at the lowest level since the 2003 U.S. invasion.
Still, the 40 percent surge in world crude oil prices last year helped boost the central bank's reserves to $8 billion, an Iraqi finance ministry official said.
But prices within the country also rose, resulting in 10 percent to 11 percent inflation last year, the official said.
Violent protests erupted across the country in December when Iraq raised fuel prices as part of economic reforms to reduce costly fuel subsidies.
The finance ministry official said that, instead of increasing fuel prices again, the government may impose fees for car licenses to offset subsidy costs.
"Increasing prices of fuel products is not a popular thing," he said. "People don't like it."
Since the invasion, vehicles have plied Iraq's dusty streets without any laws specifying that they be registered with the government, the official said.
"You can have a car on the street without paying a penny to the government," the official said.
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Citation: Deepa Babington. "About half of all Iraqis unemployed - govt official," Reuters, 09 February 2006.
Original URL: http://www.alertnet.org/thenews/newsdesk/N09355221.htm
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