Commentary

The cut and thrust over Iraqi oil

Even before Hussein disappeared, the discussion began over how to govern the new Iraq, and what would become of its oil resources. The sensible near consensus is that the oil needs to be privatized. I don’t see how we can expect to unleash Iraq’s economy and give Iraqi’s an alternative to terrorism if we don’t. The Adam Smith Institute embedded its case for privatizing Iraqi oil in an overall plan for restructuring the Iraqi economy. My own argument for privatizing Iraqi oil was part of a case for creating and supporting property rights in Iraq to get the economy on the right foot. Researcher’s from Heritage made the most oft-cited case for privatizing Iraqi oil. An interesting blog in favor of Heritage’s proposal and adding some subtlety to it was posted on a site opposing the war in Iraq. Naturally, calls for privatizing the oil fields has generated fierce opposition and fine rhetorical duel. The hysterical socialist opposition to privatization sees it all as part of a US-led plot. A slightly more reasonable critique is based on fear of corporate power.