Issues & InsightsMonday,
October 27, 2003
To Forgive Is Divine
INVESTOR'S BUSINESS DAILY
Aid: Iraq needs $56 billion to rebuild over the next four years. Donors in Madrid have pledged just $33 billion. Somebody will have to dig a little deeper. We know who.
However you tally it, the Madrid donor conference was a big disappointment. The U.S. has had to bear the military burden in both Afghanistan and Iraq. Now, it's being asked to pay most of the rebuilding tab, as well.
The big problem, as usual, is Europe — Germany and France, to be precise. The European Union, with a GDP that's larger than that of the U.S., has offered a pathetic $235 million to rebuild Iraq.
As bad as that is, it's more than either Germany or France could muster individually. Germany is giving a token $130 million. France has basically offered zero. Zip. Zilch.
Contrast that with Britain, Australia and the financially strapped ex-communist nations that make up the "new Europe." They're coughing up aid and contributing troops.
Why so stingy? Both Germany and France say they have problems with the U.S.' lack of specifics about handing power back to the Iraqis. Of course, that argument is utter nonsense.
They know the U.S. doesn't want to stay in Iraq any longer than necessary. The U.S. has made that clear. No, former allies Germany and France have taken just another opportunity to tweak the U.S.
And why not? These days, being anti-American sells well in Germany, where in a recent poll one in five said they believed the U.S. government was behind the Sept. 11 attack, and in France, where a recent best seller charged the Pentagon blew itself up on Sept. 11.
Yet both nations claim they want nothing more than to see Iraq prosper. If so, Germany, France and Russia should forgive Iraq's debts to them. After all, Iraq owes $383 billion in total debt. With a GDP of just $25 billion, it is by far the most indebted nation on earth. Oil revenue isn't enough to cover it; Iraq is bankrupt.
Much of Iraq's debts were rung up by Saddam Hussein's murderous regime. So Iraqis today are paying for the French mirage fighters and Exocet missiles and German machinery that Saddam bought to oppress them and invade their neighbors.
France, Germany and Russia have repeatedly invoked international law as a reason for opposing the U.S. Well, there's also an international law doctrine known as "odious debts." It says the bills run up by a dictator don't have to be paid by those who survived the dictatorship. And that's exactly the case in Iraq.
That law has been invoked to forgive debts for many nations — including Germany after World War II. Time to do the same for Iraq.