Iraq’s New Business Infrastructure
Iraq’s New Business Infrastructure
Chad R. Davis
Abstract
Even though Iraq is not yet entirely stable, it presents a window of opportunity for the company to be part of the process in rebuilding the country from the ground up. After many years of war and sanctions, Iraq has recovery, reconstruction and development needs across all sectors of its economy. Having business ventures within Iraq itself; regardless of the war torn country’s infrastructure, tremendous prospects of profit, both financially and morally, have still shown promising effects on the company based out of the United States. The important challenges still facing the country also represent opportunities for the company should that view the rewards as worthwhile and believe that risks can be adequately managed. The company must also be prepared to commit to building long term relationships in Iraq for the people and not focus solely on profit. Both the international and the Iraqi private sector will play a catalytic role in the redevelopment of Iraq (U.S. Department of State, 2011).
Given the fact that business is being handled internationally in the war torn country of Iraq, the questions remains the same; especially with the war predicted to end by the end of 2011. However, even with a complete drawdown of U.S. and allied forces from Iraq, the security of doing business in that country, regardless of hostilities, would trump the potential risks to the company’s employees. Furthermore, outsourcing through contractual agreements with Iraq’s newly formed Ministry of Development and Commerce would be an ideal place to start looking at alternatives regarding the company’s business within Iraq itself (U.S. Department of State, 2011).
As with Kellogg, Brown, and Root (KBR) securing a 10 year reconstruction contract in 2009 with the new democratically formed Iraqi government, any hostilities that still take place in the region would be minimal contrary to what is being portrayed through media companies and other various U.S. Governmental documents. In retrospect, with the war drawing to a close for U.S. troops in Iraq, the U.S. Government has set aside $287 billion for U.S. firms to invest in the rebuilding of Iraq’s infrastructure starting in the spring of 2012 for all areas of industry. Therefore, given this information, it only stands to reason that remaining inside Iraq through commercial trading would prove to be more beneficial and profitable opposed to scaling back the company’s interests within that region (Mena-OECD Investment Programme, 2011).
Further security measures can be obtained through the assistance of U.S. Federal Grant funding as well as obtaining