Comments on: An Oil Trust for Iraq http://seekerblog.com/archives/20061219/an-oil-trust-for-iraq/ Seeking reliable, objective sources on economics, foreign-policy and energy-policy issues. Thu, 20 Nov 2008 23:22:42 +0000 http://wordpress.org/?v=2.3.2 By: Steve D. http://seekerblog.com/archives/20061219/an-oil-trust-for-iraq/#comment-6347 Steve D. Thu, 04 Jan 2007 05:42:54 +0000 http://seekerblog.com/archives/20061219/an-oil-trust-for-iraq/#comment-6347 Hi Dan, Sorry for the slow reply -- we've been relocating to Hobart, Tasmania for the rest of the Pacific NW winter. I agree the oil trust would have been more effective if done sooner. But I still think it is a powerful policy. What could be more effective at propagating a sense of ownership of the new government? And how could the ex-Baathist Sunni bad guys argue [to locals who are protecting them] that the Sunnis have to fight else they'll get none of the oil $$? Today that is a powerful argument. I appreciate your point about operating cash - but designing the transition cash flow solution has always been an issue. It is not different in 2007. My take is the big hurdle is the political will to truly put the people in charge [via taxation]. Given that, the cash flow design is "just" a Wharton problem. Hi Dan,

Sorry for the slow reply — we’ve been relocating to Hobart, Tasmania for the rest of the Pacific NW winter.

I agree the oil trust would have been more effective if done sooner. But I still think it is a powerful policy. What could be more effective at propagating a sense of ownership of the new government? And how could the ex-Baathist Sunni bad guys argue [to locals who are protecting them] that the Sunnis have to fight else they’ll get none of the oil $$? Today that is a powerful argument.

I appreciate your point about operating cash - but designing the transition cash flow solution has always been an issue. It is not different in 2007. My take is the big hurdle is the political will to truly put the people in charge [via taxation]. Given that, the cash flow design is “just” a Wharton problem.

]]> By: Dan tdaxp http://seekerblog.com/archives/20061219/an-oil-trust-for-iraq/#comment-6335 Dan tdaxp Wed, 03 Jan 2007 01:07:24 +0000 http://seekerblog.com/archives/20061219/an-oil-trust-for-iraq/#comment-6335 An oil trust would have made sense as part of a swift return to Iraqi sovereignty sometime in late 2003 or early 2004. However, at this point it would be ill-advised. An oil trust in which the American government had influence would become a tool to buy off terrorist, anti-democratic cells and tribes. At this point, the Iraqi government must be able to fight its civil war against terrorism on its own. It needs whatever cash is available to do that and win, while keeping its loyal citizens well cared for. An oil trust would have made sense as part of a swift return to Iraqi sovereignty sometime in late 2003 or early 2004. However, at this point it would be ill-advised. An oil trust in which the American government had influence would become a tool to buy off terrorist, anti-democratic cells and tribes.

At this point, the Iraqi government must be able to fight its civil war against terrorism on its own. It needs whatever cash is available to do that and win, while keeping its loyal citizens well cared for.

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