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01/03/2006:

"Bush pulls the plug on Iraq reconstruction"

The Bush administration has scaled back its ambitions to rebuild Iraq from the devastation wrought by war and dictatorship and does not intend to seek new funds for reconstruction, it emerged yesterday.
In a decision that will be seen as a retreat from a promise by President George Bush to give Iraq the best infrastructure in the region, administration officials say they will not seek reconstruction funds when the budget request is presented to Congress next month, the Washington Post reported yesterday.

The $18.4bn (£10.6bn) allocation is scheduled to run out in June 2007. The move will be seen by critics as further evidence of the administration's failure to plan for the aftermath of the war.

A decision not to renew the reconstruction programme would leave Iraq with the burden of tens of billions of dollars in unfinished projects, and an oil industry and electrical grid that have yet to return to pre-war production levels.

The decision is a tacit admission of the failure of the US rebuilding effort in the face of a relentless insurgency. Nearly half the funds earmarked for reconstruction were diverted towards fighting the insurgency and preparations to put Saddam Hussein on trial.

At least $2.5bn earmarked for Iraq's dilapidated infrastructure and schools was diverted to building up a security force. And funds originally intended to repair the electricity grid and sewage and sanitation system were used to train special bomb squad units and a hostage rescue force. The US also shifted funds to build 10 new prisons to keep pace with the insurgency, and safe houses and armoured cars for Iraqi judges, the Post said.
guardian.co.uk