IT'S THE ECONOMY, SHI'A:

Iraq's unknown economy (Michael O'Hanlon, January 6, 2008, Washington Times)

After meeting again recently with some of our top economic aid and reconstruction experts on Iraq, I have concluded they continue to do remarkable things at considerable personal risk and hardship in Iraq. Hospitals and electricity plants are being built, transportation infrastructure improved, water and waste treatment plants constructed. But the other striking, and lamentable, fact about our economic efforts in Iraq is that for the most part we don't have the foggiest idea how well they are working. That has to change.

To be fair, some things are known. Inflation is within reasonable bounds. Oil revenues are up quite a bit due to the price of petroleum, even if production has increased only very gradually. Due largely to the improved security environment, electricity production and distribution finally took a substantial step forward in 2007, for the first time since the 2003 invasion. Without even counting the informal electricity sector, which has itself grown, official numbers have increased 10 percent to 20 percent. Cell phone ownership and usage have gone through the roof; national port capacity has increased substantially; the Internet is making real inroads.