Making funds a little more interesting
The US should not send aid to Iraq in the form of grants, but rather in the form of low interest loans. Our country has never shied from loans or even borrowing from ourselves. We are rich in resources and we use those to fuel our country and economy – we then use those booms to repay our loans. In theory, anyway. We have a huge debt. Yet we, being one of the most generous countries and populaces, are always giving grants and aid to foreign countries.
Iraq is a resource-rich country. We’re not talking a country devoid of wealth opportunity. The only sensible thing we can do is to make our aid to them a loan. A low-interest loan is a good way to help the country get on its feet without being tyrannical. Also, the low interest rate would make it much more likely to be paid in full in a reasonable period. At the same time, we could use the income from the money we’ve invested in the country to pay off some of our debt. We’re already investing American blood, resources, and wealth into freeing Iraq; I think expecting more than just a safer democracy in the region is not much to ask. A small return on the monetary investment is just a good business strategy.
Does the loan officer you always work with care about you? If you’re in a small town like me, then chances are they do. What about your investor? But you still pay them for their services, right? I think taking interest for the money we’ve invested in them as well as expecting full repayment of funds loaned is not rude or heartless. We do not care any less about them. I think it’s just smart business.
Besides, I’d rather Iraqis retain pride in the matter. Arabic businessmen are very shrewd and work on pride, just as businessmen/women of any nation. Knowing that the country is repaying a loan leaves them less kowtowed to the US in the end. I know in Foreign Policy World, having a nation owe you something is a good thing, but I think letting this nation retain some pride is a more worthwhile achievement and will keep our relations much healthier in the long-term. Loans say “formal.” Grants say “sugar daddy,” if you’ll pardon the expression.
Therefore, based on what I know of the Iraqi culture and my (admittedly limited) knowledge of the situation, the US should loan rather than grant the Iraqi government rebuilding funds.