AdTI's Fossedal: Transfer Iraq's oil to Iraq's people

AdTI's Fossedal: Transfer Iraq's oil to Iraq's people BBC Radio, World Business Report Interview with Sally Hardcastle April 12-13, 2003 April 12 -- Tocqueville chairman emeritus Gregory Fossedal appeared on the BBC's "World Business Report" today to discuss rebuilding Iraq. Fossedal described a proposal he and others have made that Iraq's oil be distributed "directly to the people of Iraq" through a voucher or in the form of a payout to an individual retirement account. The proposal has reportedly attracted interest in the U.S. and British governments. Among the implementation problems are a fear of placing "encumbrances" on Iraqi resources that may be desired by the U.S., United Nations, or others to fund Iraqi reconstruction, and Iraq's sizeable (approximately $380 billion) government debt. Nevertheless, Fossedal said, "from an investment perspective, having the oil in the hands of a broad base of owners would not be a negative, and might even be a plus. This would make it more difficult for outside governments, or even a future Iraqi government, to make capricious changes in management." As well, he noted, there might be security benefits to the war on terrorism. "Imagine you are a terrorist trying to recruit supporters within Iraq or elsewhere in the Arab world... Your job would be much more difficult if the issue of the alleged U.S.-British desire to control Iraq's oil had been taken off the table." "And the oil fields would be a much less attractive target, if they were owned by the people. Any strike against them would be a strike directly at the people of Iraq, rather than against Western overlords who had seized them." Fossedal praised both the Bush and Blair Administrations for their speed on Iraqi reconstruction. "It's been almost as fast as the 'rolling start' achieved by the coalition military," he said. "President Bush has gone out of his way to say that this oil belongs to the people of Iraq," he noted. "Our proposal is just one way to bring that transfer into effect. There are many others possible -- the important thing is for the oil to be turned over to its owners at some point, hopefully sooner rather than later." Left in the hands of well-meaning officials at the United Nations, or even a U.S.-British-led temporary administration, "may prove addictive. Government bureaucrats from all countries love a revenue stream." Fossedal's April 2 article making the proposal for Iraqi oil privatization, from his syndicated column on global investing, is available at the United Press International web site, www.upi.com. A transcript of Fossedal's interview with the BBC's Sally Hardcastle will be made available on the Tocqueville web site later this month

AdTI's Fossedal: Transfer Iraq's oil to Iraq's people
BBC Radio, World Business Report
Interview with Sally Hardcastle
April 12-13, 2003

April 12 -- Tocqueville chairman emeritus Gregory Fossedal appeared on the BBC's "World Business Report" today to discuss rebuilding Iraq.

Fossedal described a proposal he and others have made that Iraq's oil be distributed "directly to the people of Iraq" through a voucher or in the form of a payout to an individual retirement account.

The proposal has reportedly attracted interest in the U.S. and British governments. Among the implementation problems are a fear of placing "encumbrances" on Iraqi resources that may be desired by the U.S., United Nations, or others to fund Iraqi reconstruction, and Iraq's sizeable (approximately $380 billion) government debt.

Nevertheless, Fossedal said, "from an investment perspective, having the oil in the hands of a broad base of owners would not be a negative, and might even be a plus. This would make it more difficult for outside governments, or even a future Iraqi government, to make capricious changes in management."

As well, he noted, there might be security benefits to the war on terrorism.

"Imagine you are a terrorist trying to recruit supporters within Iraq or elsewhere in the Arab world... Your job would be much more difficult if the issue of the alleged U.S.-British desire to control Iraq's oil had been taken off the table."

"And the oil fields would be a much less attractive target, if they were owned by the people. Any strike against them would be a strike directly at the people of Iraq, rather than against Western overlords who had seized them."

Fossedal praised both the Bush and Blair Administrations for their speed on Iraqi reconstruction. "It's been almost as fast as the 'rolling start' achieved by the coalition military," he said.

"President Bush has gone out of his way to say that this oil belongs to the people of Iraq," he noted. "Our proposal is just one way to bring that transfer into effect. There are many others possible -- the important thing is for the oil to be turned over to its owners at some point, hopefully sooner rather than later."

Left in the hands of well-meaning officials at the United Nations, or even a U.S.-British-led temporary administration, "may prove addictive. Government bureaucrats from all countries love a revenue stream."

Fossedal's April 2 article making the proposal for Iraqi oil privatization, from his syndicated column on global investing, is available at the United Press International web site, www.upi.com. A transcript of Fossedal's interview with the BBC's Sally Hardcastle will be made available on the Tocqueville web site later this month