Tuesday, February 26, 2008

Moving towards a market economy

Since sanctions began in the early 1990s, Iraq has offered its citizens food via a rationing program. The war, with its attendant corruption and insecurity, has made it difficult to continue the program. Now that food prices around the world are increasing and Iraq has an inflation rate in the double digits, this program is being cut back. At the start of this year, the program was cut back to flour, sugar, rice, oil and milk. In June the program will be available only to the 'needy'.

The World Bank applauds this move to a market economy. I'm not sure that the 25% of Iraqi kids under the age of 5 applaud this; that's how many are under-nourished. Nor do I understand how one has a market economy in a time of war.

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