Boom in Baghdad
Daniel Drezner reports on Iraqi National Council plans for economic liberalization, including 100% foreign ownership of Iraqi concerns in most sectors, and on increasing consumption by Iraqi consumers, here: "The Iraqi free trade zone".
The Economist reports on the reforms, here: "Let's all go to the yard sale".
- "A SHOCK programme of economic reforms signals a radical departure for Iraq. The changes, announced by the country's provisional rulers at the annual World Bank/IMF jamboree in Dubai, could see its battered economy transformed abruptly into a virtual free-trade zone.
"If carried through, the measures will represent the kind of wish-list that foreign investors and donor agencies dream of for developing markets. Investors in any field, except for all-important oil production and refining, would be allowed 100% ownership of Iraqi assets, full repatriation of profits, and equal legal standing with local firms. Foreign banks would be welcome to set up shop immediately, or buy into Iraqi ventures. Income and corporate taxes would be capped at 15%. Tariffs would be slashed to a universal 5% rate, with none imposed on food, drugs, books and other “humanitarian” imports..."
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