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Diplomacy of Opportunism

| September 10, 2009
International Voices forum

The relationship between Iraq and Australia is set to reach new heights over the years to come. Australia’s contribution in the form of foreign aid and assistance has been handsomely rewarded with lucrative contracts and potential leverage in future negotiations with Iraq.

In March this year Prime Minister Kevin Rudd met with the Iraqi Prime Minister Nouri Al-Maliki to discuss matters pertaining security, agriculture, trade, public health, training and research, resources and energy. With rebuilding being the main objective, the relationship between Australia and Iraq will flourish.
 
Rudd described these areas as the “six new pillars of the Iraq-Australia relationship”. With Iraq keen to rebuild, Australia is set to gain from its 6 year-long contribution. 
 
Australia had committed last year an assistance package of $165 million, which will increase Australia’s total aid contribution to Iraq to over $360 million. This has included support to public sector governance and training officials in modern agricultural policies and procedures. As part of the Paris Club initiative, Australia also agreed to write-off 80 percent of the debt owed by Iraq – totalling to approximately A$890 million.
 
International Voices forumThe Australian Department of Foreign Affairs and Trade describes Iraq’s key economic challenges as including further increasing oil production and improving service delivery (especially water and electricity). In 2008 crude petroleum was Australia’s single biggest import from Iraq: we spent A$55 million. In the same year Iraq spent almost three times that value on Australian exports. This in itself demonstrates the economic attractiveness of the region.
 
Australia’s key economic challenge is to ascertain what gains can be made for us and how to secure them.
 
Rudd and Al-Maliki’s meeting was also used as an opportunity by our Government to increase bilateral trading between the two countries. As the focus shifts from matters of security to commerce, Australian wheat exports are set to reach amounts not seen since the AWB scandal. Prime Minister Al-Maliki said that Australia’s support in developing the agricultural sector was the most important factor in the memorandum of understanding between the two countries.
 
In a joint press conference Rudd reiterated that the ties that we have with Iraq are “anchored in our commercial and economic ties”. Expanding their economic and commercial relationship with Australia is a testament of the Iraqi Government’s desire to change its foreign policy.
 
“So hats off to Prime Minister al-Maliki for what he’s done, and we’ve, in response to his request to us, are in there, boots and all, working with him on his economic priorities” said Rudd in a recent interview with ABC’s Kerry O’Brien. So, Rudd has commended Al-Maliki for what he has achieved in a very difficult context in a small amount of time. 
 
But Rudd continues to justify the economic purpose for the partnership.
 
The immediate economic benefits generated from rebuilding Iraq are evident. The Australian contracts won within this region in the last four years are estimated to be in the value of A$3 billion. Many lucrative contracts were awarded to US infrastructure and utilities corporations. 
 
This form of opportunistic diplomacy has served Australia well.
 
During his March visit Prime Minister Nouri Al-Maliki, in his address to the Lowy institute, spoke about the contradiction between the wealth in resources and poor living conditions in Iraq. He hoped that through an active partnership with Australia these inherited conditions would improve.
 
In contrast with Australia’s recent controversy over foreign investments in our resource industry, Al-Maliki is welcoming such investments with the attitude that there is plenty of work to be done. This involves developing new and positive relationships between Iraq and the rest of the international community.
 
Given Iraq’s wayward past, it will be interesting to see if the international community will be as receptive; but with the economic benefits so evident and the global financial crisis still in effect, it just may be a carrot worth dangling.
 
 
Sikni Hamka is a graduate student at the University of Sydney. She has been working at the NSW Department of Education and Training for over two years. 


 
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  1. moses

    September 17, 2009 at 7:27 am

     I admire the author’s

    I admire the author’s positive spin and attitude towards future trade with Iraq.

    If we start from the begin, the relationship with Iraq was little more than arms-length transactions involving the former dictator Sadam and crude oil. It then blossomed into an invasion via the USA and Britain to help boost up crude oil reserves for the states.  How does Australia fit into this? Due to our strong ties with the US thanks to the unusually close relationship with former President Bush and PM Howard, we are one in the same.  
     
    This is relevant to future trade with Iraq since we begun this relationship via force. We invaded a country under false pretence (WMD’s) for strategic military positioning, since Iraq is the centre of the Arab world and makes a great location for future invasions into other Arab countries. We then proceeded to rape the country of its natural resources, predominantly oil, and had the audacity to continue to plunder even after it was established that  WMD’s were fabricated by the Bush Administration.  
     
    We then knowingly or inadvertently allowed war atrocities to be committed under the banner inappropriately named “heightened interrogations”
    by Rumsfeld and VP Cheney.  
     
    Eight years on and we have openly participated in the complete destruction of a country that has a history stemming back to Jesus. Once a great nation that made the mighty US sit and take notice, it is now nothing less than carcass of its former self. After eight years and a conservative figure of some 3-4 trillion dollars, Iraq boasts more human casualties per day than the world has ever seen and is also home to the most dangerous streets in the world located in Bagdad.
     
    Eight years on Iraq is far worse off now than it has ever been under Sadam. Granted Sadam was no angel, however the man knew how to control his country. Had we maybe giving the Iraqi people the same respect we give the rest of the world and engaged in vocal dialogue, then maybe Australia today would have more contracts that actually benefit the people and country rather than just our own.
     
    The said “contracts” mentioned in this article are nothing more than defence contracts in which private security firms operate as death squads protecting western interest in Iraq at the expense of the Iraqi people.  
     
    So in terms of the few hundred millions Australia has “invested” in Iraq, it is pittance as to what is required to get this nation to some kind of normality again.
     
    It is also common fact the current PM Al-Maliki is not only a puppet figure head but also holds no actual power in the running of “his” country. I have yet to see him make a decision to benefit his people who are getting slaughtered on a daily basis. After eight years, all the US and colluding countries could offer the Iraqi people is a noted “Green zone” which is said to be the safest region in the entire country. In this “green zone” recently (two weeks) two huge truck bombs were detonated killing over 1000 Iraqis and injuring hundreds more.  These two trucks loaded with explosive material passed through some five to six check points before reaching the centre of the green zone.
     
    The relevance is that Iraq is a country that is out of control and would probably never see the light of day again. The measly millions Australia has pumped into this country is really blood money. The fact Australia has removed the debt Iraq owed us is because PM Rudd knows there is no way Iraq can ever generate a functioning economy. So in accordance with “looking good” PM Rudd has zeroed this debt.