Iraqi Shareholder Concept

My daughter is a U.S. Army adviser to an Iraqi battalion on her second deployment. I pray that we can resolve Iraq before she deploys a third time. The beauty of the following approach for ending the current impasse in the Iraq Government over the distribution of oil revenues is that it is a largely self-contained, complete, closed-ended, low cost, quick, achievable undertaking with little downside risk. One that would not offend anyone's politics nor interfere with any on-going operation . As my little league coach said 50 years ago, “Get the easy one.”

IRAQ OIL REVENUE DIRECTLY TO IRAQI CITIZENS - BYPASS GOVERNMENT

The Iraqi people can create Iraq, Inc. and convey to it, ownership of all Iraq’s petroleum resources. Each citizen would own one non-transferable share of common stock in Iraq, Inc. The shareholders would elect a board of directors who would manage the company. The company would pay quarterly dividends directly to shareholders. Shareholders would pay taxes. A dynamic would change. The flow of money would reverse. Money would flow from the people to the government rather than flowing from the government to the people.

The immediate advantages would be manifold:

1. End the political impasse about how to divide oil revenue among Iraq’s competing groups.
2. Give Iraqi citizens a vested interest in stopping the sabotage of pipelines.
3. Give Iraqi citizens more power over how their government spends money.
4. Provide some financial security for Iraqi citizens.
5. Empower Iraqi Women
6. End suspicion that the United States is attempting to exploit Iraqi oil.

Follows will be more detailed presentations of the concept including comments from leaders who had been directly involved with the oil revenue distribution issue. The presentation has been favorably received, but the general response was that the Iraq Government would not initiate it. The prospect of a California style national referendum on the issue and serious pressure from the United States may be enough move those Iraq Government leaders who would lose significant power as a result of an Iraq, Incorporated. I recognize that it is a bold move, but it may be a way to resolve the current impasse. Seems doable to me. Certainly less difficult and dangerous than what are doing now.