By Admin1 (admin) (pool-151-196-115-42.balt.east.verizon.net - 151.196.115.42) on Tuesday, May 25, 2004 - 6:57 pm: Edit Post |
Peter McPherson says Success in Iraq is critical for U.S.
Peter McPherson says Success in Iraq is critical for U.S.
MSU PRESIDENT: Success in Iraq is critical for U.S.
He was in nation in the early stages
By TOM CARR
Record-Eagle staff writer
TRAVERSE CITY - The U.S. has no alternative to succeeding in building a new government and free economy in Iraq, Peter McPherson, recent financial coordinator for the Iraq reconstruction, said Thursday.
"Our success or failure will have an impact on dealing with terrorists in general," he said before some 250 people at an international affairs forum at Northwestern Michigan College.
McPherson was appointed by the Bush administration to rebuild the Iraq economy and banking system.
He spent five months getting the process started, including instituting a new currency. His position expired in October as originally scheduled.
McPherson, also president of Michigan State University, declined to comment on recent developments in Iraq, including the raid on the home of Ahmad Chalabi, formerly supported by the Pentagon.
"It wouldn't be appropriate for me to comment," he said. "I left in October."
He also declined to say how the prisoner abuse scandal will affect U.S. efforts there.
"It's absolutely imperative that the prison abuse issue be dealt with firmly," he said.
The U.S.-imposed June 30 deadline for handing over power there must be observed, McPherson said.
"We've stated it so many times, we have to stick with it," he said. "It will be a bumpy road, but I don't think there's a lot of options."
When McPherson arrived in Iraq, most of the shops and factories were closed and had been looted, he said.
He said looting took more of a toll on the country than the fighting did.
"The war itself created relatively little devastation," he said.
The government held $100 million worth of "Saddam dinars" - currency bearing Saddam's picture - and the banks held $1 billion.
To get the economy moving, the reconstruction team began paying the 1.3 million government employees, regardless of whether they were currently working.
"We began to get some economic activity and the shops began to open up," he said.
Later, they designed a new currency with the help of Iraqis. They had citizens return Saddam dinars for the new currency.
McPherson said the oil wealth and relatively educated populace there will help them to sustain their own economy.
"If we can get this to work, in five years, you'll see substantial progress," he said. "In 10 or 15 years, you'll see a different Iraq."