Jostling for Crumbs

While the war in Iraq may be hogging the headlines for now, many are already looking ahead to the peace that will follow, and what it might offer. To be precise, the lucrative business opportunities that will be thrown up by the rebuilding of Iraq.
Indeed, some commentators have flatly stated that the Indian government should back the Bush regime''s actions, in the hope of getting a juicy share of the Iraq pie. Unfortunately, it may not work out quite that way, if American media reports are to be believed. In a recent article, The New York Times put the estimated cost of rebuilding Iraq at between $25 billion and $100 billion. The cost will be borne by the Iraqis, but the money will be controlled and disbursed by the US government. Top priority projects include the rebuilding of Iraq''s only deep-water port at Umm Qasr, rebuilding of two international airports and three domestic ones, ensuring availability of potable water, and reconstruction of power plants, railroads, schools, hospitals and irrigation systems. Only American corporations have been invited to bid for these contracts. Companies in the fray include Kellogg Brown & Root, the engineering and construction arm of Halliburton — where US vice-president Dick Cheney served as CEO from 1995 to 2000. Incidentally, the company also handled the high-speed construction of the infamous Guantanamo prison compound. However, some of its accounting procedures are now under scrutiny by the US Securities and Exchange Commission.
Similarly, an article in the Wall Street Journal stated that deals worth $900 million would be farmed out through USAID to American companies. In short, the reconstruction of Iraq looks like being an American-only bash, with nobody else invited to the party. Of course, there are always sub-contracts. But before Indian companies get their hopes up, they might want to consider that the Americans would certainly want to reward their allies, who squarely stood by them at a time when they faced near-universal censure. So expect British, Spanish and Polish firms to get first preference. Remember, Afghanistan was also supposed to be a potential gold mine for Indian companies. At last count, about 80 per cent of the reconstruction money in Afghanistan was estimated to be going to American companies and NGOs. After all the hype, Indian industry seems to have finally been relegated to way down the queue, jostling for a few crumbs.