PAUL KRUGMAN ON THE CHAOS IN IRAQ

From the New York Times courtesy of Eschaton:

Why was it predictable that Iraq would go wrong? The squandered victory in Afghanistan was an obvious precedent. But the character flaws in the Bush administration that led to the present crisis were fully visible in the months that followed 9/11.

It quickly became apparent that President Bush, while willing to spend vast sums on the military, wasn't willing to spend enough on security. And 9/11 didn't shake the administration's fanatical commitment to privatization and outsourcing, in which free-market ideology is inextricably mixed with eagerness to protect and reward corporate friends.

Sure enough, the administration was unprepared for predictable security problems in Iraq, but moved quickly — in violation of international law — to impose its economic vision. Last month Jay Garner, the first U.S. administrator of Iraq, told the BBC that he was sacked in part because he wanted to hold quick elections. His superiors wanted to privatize Iraqi industries first — as part of a plan that, according to Mr. Garner, was drawn up in late 2001.

Meanwhile, the administration handed out contracts without competitive bidding or even minimal oversight. It also systematically blocked proposals to have Congressional auditors oversee spending, or to impose severe penalties for fraud.

Cronyism and corruption are major factors in Iraq's downward spiral. This week the public radio program "Marketplace" is running a series titled "The Spoils of War," which documents a level of corruption in Iraq worse than even harsh critics had suspected.

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