On Eve of Petraeus Testimony, Expert Cites Iraq's Urgent Need for Political Power-Sharing and Swift Action on Oil Legislation

FOR IMMEDIATE RELEASE

WASHINGTON, D.C.—Iraq expert Yahia Said of the Revenue Watch Institute today warned that Iraq's development depends on the creation of a political dialogue that includes all Iraqis, and on the timely resolution of the country's oil law conflicts.

	RWI's Yahia Said (right) testifies before the Senate Foreign Relations Committee, with witnesses Nir Rosen (far left) and Dr. Stephen Biddle.

"Nowhere is the gridlock caused by sectarian politics more evident than in the discussion of Iraq's oil legislation," explained Said, Revenue Watch Institute director for the Middle East and North Africa.

"Together with fair local elections, a resolution to Iraq's oil law conflict is the key to unlocking Iraq's development potential," he told Senators last Wednesday, in a committee briefing scheduled to prepare members for testimony tomorrow by General David Petraeus on the prospects for Iraq.

The national oil ministry has sought to maintain key aspects of the central government's role managing Iraq's oil, while adding some transparency and regional power-sharing mechanisms. The Kurdistan Regional Government, meantime, has favored greater liberalization and decentralization, spurred by mistrust in the national government and in centralization that could foster corruption and discourage revenue sharing.

During the past several years, the Revenue Watch Institute has advised policy-makers in the U.S. and Iraq on the drafting and negotiation of oil legislation. A fragile compromise seemed within reach in early 2007, but continued suspicion and an accumulation of disputed details sidelined the negotiations. Kurdistan created its own Oil and Gas Act and signed independent contracts with 15 oil companies. The oil ministry has declared the Kurdish contracts illegitimate and is conducting its own negotiations with the oil industry.

In his Senate testimony, Mr. Said explained that while the U.S. military surge was meant to create an environment for dialogue, the political process seems to be heading in the opposite direction.

"Rather than broadening the conversation and opening the doors for compromise, the forces that dominate the government are using the lull in violence to consolidate their hold on power," said Mr. Said.

Leaders now face a moment of opportunity. The re-emergent bureaucrats, the Sadrists and other groups from outside the Green Zone need to be introduced into the political process in a meaningful and non-violent way, through free, fair and timely elections.

"Without prospects for peaceful political succession, public distrust in government will only deepen, and issues like constitutional review and the oil law, that define Iraq's future success, will remain in limbo," said Mr. Said.

Download and read the complete testimony submitted by Yahia Said to the Senate Foreign Relations Committee ...

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The Revenue Watch Institute promotes the responsible management of oil, gas and mineral resources for the public good. With effective revenue management, citizen engagement and real government accountability, natural resource wealth can drive development and national growth. RWI provides the expertise, funding and technical assistance to help countries realize these benefits.