Members of the International Community Pledge $30 in New Aid for Iraq

At a recent press conference , the United Nations marked the start of the implementation phase of the International Compact with Iraq. The Compact represents a "partnership aimed at consolidating peace and pursuing violence-torn Iraq's political, economic and social development over the next five years," according to a press release issued by the United Nations. The UN's Special Advisor on the Compact, Ibrahim Gambari, announced that members of the international community have pledged $30 billion in debt relief and new assistance for Iraq. Negotiations over the Compact recently came to a successful close after talks held in Egypt.

A host of international organizations and countries have been involved in negotiations over the terms of the Compact. The World Bank, United Nations, International Monetary Fund, and Arab Development Bank and a number of prominent nations joined together in a process that began last July. The United Nations has said that the Compact calls for the Iraqi government to "pursue a programme of economic, political and security reforms, as well as a strong pledge to continue to promote national reconciliation". The international community will lend a hand only if Iraq can meet its commitments under the Compact.

United Nations Secretary General Ban Ki-moon has been cited as saying that, "A peaceful, prosperous and unified Iraq is not only good for Iraqis, but also for its neighbours and the international community as a whole." A number of nations appeared ready to heed the Secretary General's call to action. The United States reportedly pledged $10 billion in aid, the United Kindom $400 million, South Korea $200 million, Denmark $35 million, Spain $22 million, Australia $28 million, and Iran pledged $10 million in new grants and $1 billion in loans. The Compact also aims to bolster efforts to help meet the basic needs of Iraq's people.

Iraq's national debt is estimated to be around $50 billion, according to Gambari. In addition to the $30 billion in new pledges for Iraq, the Iraqi government is reportedly engaged in debt negotiotians with Saudi Arabia, Kuwait, and Bulgaria. Each of those country's appeared willing to consider a degree of debt forgiveness and relief. But negotiations between Iraq and Saudi Arabia have been complicated by the fact that each country has a different figure for the total debt owed.

Gambari addressed concerns about providing aid to an Iraqi government plagued by econonomic and political instability, and widespread security problems. "There are two possibilities: you can wait until everything is perfect before you come in, or you can try to encourage the Government of Iraq to honour their own commitment on all the aspects, which, in our view, will also contribute to the security situation and lower the level of violence," he said.