Naomi Klein attended “ReBuilding Iraq 2, a gathering of 400 businesspeople itching to get a piece of the Iraqi reconstruction action.”<\/i><\/p>\n
Her write-up is titled Risky Business<\/a><\/i>. Klein reports that insurance companies are taking a pass on what is termed “political risk” insurance, Paul Bremer’s speciality before taking on his new assignment.<\/p>\n In response, the Bush administration has set-up something called Overseas Private Investment Corporation (OPIC) to help their friends overcome this snag in the reconstruction process:<\/p>\n Lempres doesn’t seem too concerned about these possible “expros,” but it’s a serious question. According to its official mandate, OPIC functions “on a self-sustaining basis at no net cost to taxpayers.” But Lempres admits that the political risks in Iraq are “extraordinary.” If a new Iraqi government expropriates and re-regulates across the board, OPIC could be forced to compensate dozens of US firms for billions of dollars in lost investments and revenues, possibly tens of billions. What happens then? <\/p>\n At the Microsoft-sponsored cocktail reception in the Galaxy Ballroom that evening, Robert Dees urges us “to network on behalf of the people of Iraq.” I follow orders and ask Lempres what happens if “the people of Iraq” decide to seize back their economy from the US firms he has so generously insured. Who bails out OPIC? “In theory,” he says, “the US Treasury stands behind us.” That means the US taxpayer. Yes, them again: The same people who have already paid Halliburton, Bechtel et al. to make a killing on Iraq’s reconstruction would have to pay these companies again, this time in compensation for their losses. While the enormous profits being made in Iraq are strictly private, it turns out that the entire risk is being shouldered by the public.<\/p><\/div>\n A note to fans of Klein. I read Risky Business<\/i> in the January 5, 2004 edition of The Nation<\/i>. You can also find her work at No Logo<\/a>, a site I found just recently. It includes information on The Fences and Windows Fund<\/a> launched by Klein<\/a> in September 2002, along with other points of interest.<\/p>\n Naomi Klein attended “ReBuilding Iraq 2, a gathering of 400 businesspeople itching to get a piece of the Iraqi reconstruction action.” Her write-up is titled Risky Business. Klein reports that insurance companies are taking a pass on what is termed … Continue reading