Many questions about the future of Iraq remain unanswered, but while concerns about security dominate the news, a concrete plan for economic recovery and development will also be crucial to ensuring a peaceful, democratic future for the Iraqi people. Revitalization of the petroleum sector--which was expected to provide an economic cushion for post-Saddam reconstruction efforts--has been slower than was hoped, and Iraq’s $120 billion foreign debt will continue to weigh down the Iraqi budget. On Friday, the International Monetary Fund proposed a still-secret plan for debt relief, but will it be enough? France and Germany have been reluctant to agree to forgive the majority of Iraq’s $40 billion Paris Club debt; without their assent, a similar gesture from Iraq’s neighbors (to whom Iraq’s debt is $80 billion) will be unlikely. Adel Abdul Mahdi was appointed minister of finance by interim prime minister Ayad Allawi in June 2004. He previously served as deputy to Abdul Aziz al-Hakim, a former member of the Governing Council. Minister Mahdi joins AEI for a discussion on the Iraqi economy and prospects for the future.
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