FUNNY THEY DIDN'T RUN THIS ON THE ANNIVERSARY:

Iraq economy shakes off the shackles of Saddam (Paul Wiseman, 3/28/04, USA TODAY)

Anything goes these days in Baghdad's teeming streets, crowded souks and back alleys. An exhilarating but virtually lawless economy has risen from the ashes of Saddam Hussein's government. Business opportunities are everywhere, but so are corruption and crime.

"The regime is gone," says Osama al-Quraishi, an Iraqi entrepreneur who returned to Baghdad to search for business opportunities after decades in exile in Europe and the Middle East. "There are no restrictions. There are no rules." He predicts Baghdad will soon replace Dubai, in the United Arab Emirates, as the Middle East's commercial center.

Besides crushing human rights, Saddam smothered the Iraqi economy. The dictator, who invaded Iran in 1980 and Kuwait in 1990, ran a war-based economy, diverting resources to the military and starving the rest of the country. Iraq's infrastructure deteriorated; the oil industry alone needs $10 billion to $40 billion of investment to catch up. Saddam and his cronies imposed stiff duties on imports, steered government contracts to loyalists and buried business in regulations. This encouraged a culture of kickbacks and corruption.

"It was a lawless economy governed by one principle: Saddam and the Baathist party took whatever they wanted," says Bill Block, an economist with the U.S.-led Coalition Provisional Authority.

Under Saddam, the shops were silent, the goods available were obsolete or absurdly overpriced, and the cars were clunkers dating back 15 or 20 years. Now that Saddam is gone, signs of bounty are visible everywhere in Baghdad and to a lesser extent in smaller cities such as Mosul and Basra.

The World Bank says Iraq's economy shrank by nearly a third last year after several years of smaller declines. The World Bank projects a sharp rebound in 2004 — growth ranging anywhere from 30% to 70% — and an overall economy worth $17 billion to $22 billion. That would make the Iraqi economy about the size of North Dakota's or Vermont's, which have the smallest output among the 50 states.

Arab's throughout the region are wondering what they have to do to get us to attack them.

Posted by Orrin Judd at March 29, 2004 9:16 AM