International support for Iraqi reconstruction has been tepid.
International donors pledged $13.5 billion to support reconstruction,
but less than $4 billion has been delivered.
An important agreement with the Paris Club relieved a significant
amount of Iraq's government debt and put the country on firmer
financial footing. But the Gulf States, including Saudi Arabia and
Kuwait, hold large amounts of Iraqi debt that they have not forgiven.
The United States is currently working with the United Nations and
other partners to fashion the "International Compact" on Iraq. The
goal is to provide Iraqis with greater debt relief and credits from
the Gulf States, as well as to deliver on pledged aid from
international donors. In return, the Iraqi government will agree to
achieve certain economic reform milestones, such as building
anticorruption measures into Iraqi institutions, adopting a fair legal
framework for foreign investors, and reaching economic
self-sufficiency by 2012. Several U.S. and international officials told
us that the compact could be an opportunity to seek greater international
engagement in the country.