Photo taken on Feb. 14, 2018 shows attendees at the ministerial meeting of the Kuwait International Conference for the Reconstruction of Iraq (KICRI). (Xinhua/Borhan Salama)
KUWAIT CITY, Feb. 15 (Xinhua) -- Challenges lie ahead for the reconstruction of Iraq though the international community has pledged 30 billion U.S. dollars to support the war-torn country.
Political leaders and representatives from 76 countries, and 107 regional and international organizations and funds on Wednesday wrapped up a three-day conference for the reconstruction of Iraq after defeating the terror group Islamic State (IS).
Despite the generous international support, the Iraqi reconstruction process still faces grave challenges, including continued IS threat to its security, widespread concerns about corruption and insufficient financial support.
INTERNATIONAL SUPPORT FALLS SHORT OF IRAQI HOPE
The participants pledged a total of 30 billion U.S. dollars to support Iraqi reconstruction at the conference, including 5 billion dollars from Turkey, 2 billion dollars from Kuwait and 1 billion dollars from Qatar.
Iraqi Prime Minister Haider al-Abadi told the conference Tuesday that Iraq could not rebuild without outside help.
"Iraqis feel that the world is with them. As they were victorious against Daesh (IS), they will be, with your support, victorious in the battle of reconstruction," he said.
UN Secretary-General Antonio Guterres said Wednesday that the UN is firmly committed to the reconstruction process in Iraq, while urging the international community to provide comprehensive aid to this country.
Kuwaiti Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, host of the conference, said Wednesday Iraq needs to start an inclusive reconstruction process that would cover infrastructure and other public utilities, a task that cannot be done by Iraq alone.
Kuwaiti Foreign Minister Sheikh Sabah al-Khaled Al-Sabah on Wednesday hailed the success of the conference for showing the clear commitment of the international community to support Iraqi's rebuilding process in the post-IS era.
But the amount of financial support pledged by the international community at the conference still fell short of what Baghdad is seeking.
Iraqi Planning Minister Salman Al Jumaili said on Monday that Iraq needs 88.2 billion dollars to rebuild the devastated areas in Iraq after years of war against IS.
According to a report provided by the minister, the total damage in Iraq by the anti-IS military operations amounted to 45.7 billion dollars. The most affected sectors include housing, power supply, industry and commerce, oil and gas, and transportation.
HIGH RISKS, HIGH RETURNS
The reconstruction projects in Iraq have created many lucrative business opportunities for countries and companies participating in the rebuilding process.
World Bank Group President Jim Yong Kim pointed out that post-IS Iraq is putting many investment opportunities on the table, as the process of reconstruction and development could be efficiently pursued through the private sector.
Indeed, Iraq is offering hundreds of projects in almost every field of its economy, from oil to agriculture, with an aim to attract international investors.
"Iraq is open for investors," said Sami al-Araji, chairman of Iraq's National Investment Commission, on Tuesday at the conference.
In an interview with the media, Nizar Nasser Hussein, head of the legal department at the commission, said the latest version of the Iraqi law does not distinguish between foreign and Iraqi investors, adding that investors would be given lease contracts for 50 years, renewable for a similar period.
"Investors will also be exempt from customs duties and income tax for 10-15 years," he said.
Sami al-Araji said that investors in Iraq will find "high risks, but high returns."
CHALLENGES AHEAD FOR IRAQI RECONSTRUCTION
Iraq declared victory over IS in December 2017, after Iraqi forces, backed by the U.S.-led coalition, regained control of large parts of the country seized by the group in mid-2014.
However, the reconstruction of Iraq after years of war against terrorism faces grave challenges, including the IS intreat.
Despite the loss of major regions it used to control since 2014, IS still poses threat to Iraq's security and the businesses that will take part in the reconstruction.
Terror bombings and suicide attacks have never stopped in Iraq since the war against IS started.
Al-Abadi pointed out that Baghdad was looking forward to turning a new page in its history, while admitting that grave challenges still lie ahead, citing ineffective legislation and corruption as impediments to its economic growth.
Lise Grande, UN humanitarian coordinator for Iraq, said failure to help Iraq could lead to renewed instability.
"If the international community doesn't help the government of Iraq to stabilize these areas (devastated by the war) the gains against Daesh could be at risk," she said.
At the foreign ministers meeting of the international coalition against IS held on Tuesday in Kuwait, U.S. Secretary of State Rex Tillerson said that IS remains a threat despite the liberation of the areas from IS rule, stressing the need to provide financial support for Iraq and Syria to make sure IS could never be able to return.
He warned that IS still has the capacity to re-emerge in the liberated territories to pose a serious threat to the stability of the region, and elsewhere in the world.
The concerns about corruption in Iraq have also been raised by many countries and businesses, though Baghdad promised to tackle the problem.
"We will not stop fighting corruption, which is not less than terrorism. In fact, it was one of the reasons for the rise of terrorism," al-Abadi said Wednesday.
Iraq took measures last week to simplify the procedures for investments, al-Abadi said, adding that his government had also ratified international agreements on protecting investments.
