Oil Grab in Iraq (Antonia Juhasz and Raed Jarrar)

Created by : Francis Goodwin View profile

A new Iraqi law proposes to open the country’s currently nationalized oil system to foreign corporate control. But emblematic of the flawed promotion of “democracy” by the Bush administration, this new law is news to most Iraqi politicians.

By Antonia Juhasz and Raed Jarrar -- International Relations Center

Feb. 27, 2007 -- While debate rages in the United States about the military in Iraq, an equally important decision is being made inside of Iraq -- the future of Iraq’s oil. A new Iraqi law proposes to open the country’s currently nationalized oil system to foreign corporate control. But emblematic of the flawed promotion of “democracy” by the Bush administration, this new law is news to most Iraqi politicians.

A leaked copy of the proposed hydrocarbon law appeared on the Internet last week at the same time that it was introduced to the Iraqi Council of Ministers. The law is expected to go to the Iraqi Council of Representatives within weeks. Yet the Internet version was the first look that most members of Iraq’s parliament had of the new law.

Many Iraqi oil experts, like Fouad Al-Ameer who was responsible for the leak, think that this law is not an urgent item on the country's agenda. Other observers and analysis share Al-Ameer's views and believe the Bush administration, foreign oil companies, and the International Monetary Fund are rushing the Iraqi government to pass the law.

Not every aspect of the law is harmful to Iraq. However, the current language favors the interests of foreign oil corporations over the economic security and development of Iraq. The law’s key negative components harm Iraq’s national sovereignty, financial security, territorial integrity, and democracy.