The Dangers of Economic Shock Therapy in Iraq
Nobel Laureate, economist Joseph Stiglitz, sagely warns against Bush administration plans for economic “shock therapy” (rapid and radical liberalization and privatization) in Iraq. He points out that successful transition to democracy has often been actively hindrered by such an approach. Proponents of shock therabpy in the Coalition Provisional Authority point to Poland, but one semi-success isn’t actually all that encouraging.
It seems to me that anyway the time is passing when the “Washington consensus” crowd will be in a position to impose economic policy on Iraq. In about 4 months there will be some sort of indigenous government and the CPA will be gone, and most Iraqis are frankly socialists.