
Bruce Bailey, Baghdad-7 ePRT, administers a microgrant to a local metal fabricator in Hawr Rajab, November 14, 2007. In addition to growing his business, the fabricator received an order to build an aluminum table for Hussen Jowd, an Arab Jabour butcher who also received an ePRT microgrant. (U.S. Army photo by Jason Stadel.)
South Baghdad economy booming again
FOB Kalsu, Iraq, Friday, 06 June 2008
By Sgt David Turner
When Capt. Shawn Carbone first took a good look at the south Baghdad area economy, he found it similar to his studies of America during the Great Depression of the 1930s.
“Most of the historically strong businesses were gone, said Carbone, economics team leader for the Baghdad-7 embedded Provincial Reconstruction Team. “The owners had left; packed up. The businesses were shut down and there was mass unemployment across the board.”
There were many reasons for the economic troubles of Iraqis in the area which 2nd Brigade Combat Team, 3rd Infantry Division, took control of in June 2007. The basic lack of security forces left a gap which al-Qaeda terrorists filled, using the area as a base. Farms and businesses were damaged and violence caused many to flee – some of whom have yet to return. Sectarian strife heated up following the 2005 elections, which left many in the area without a voice in government. Basic service needs, such as electricity and water, went largely unmet. Until security was restored, citizens felt isolated.
Carbone saw an opportunity to help turn things around. His training in economics at Niagara University, in his hometown of Niagara, N.Y., prepared him for the task of helping the citizens of south Baghdad Province.
“It’s rewarding because it’s an experiment in economics,” Carbone said. “This is from the ground up. It’s much like our depression-era economics. I’ve actually sent e-mails to my professors, asking them their opinions on some of these things, and researched books on depression-era economics.”
After security was established, the biggest obstacle to economic recovery, said Carbone, was the centralized nature of the economy in the past. Local industries such as a chicken hatchery, a poultry processing plant and a meat processing facility, for example, received inputs from and sold their goods to the Iraqi government at set prices.
“Cooperation is the biggest thing. From where I sit, these businesses are complimentary,” Carbone said. “But they never had a capitalist society, which is all about bringing down costs.”
Now the government is in a state of transition and moving toward free trade.
“Everyone is going through the change,” Carbone said. “Some of the government systems are not yet in place, but that’s where we’re heading.”
In an effort to revive the local economy, the Baghdad-7 ePRT worked in conjunction with 2nd BCT Civil Affairs, using money as their main tool. Armed with U.S. Department of State and U.S. Agency for International Development funds, Soldiers and civilians on the Baghdad-7 ePRT looked for projects which would benefit the community as a whole. Civil affairs Soldiers used their battalion’s bulk funds to stimulate individual small businesses through a series of $2,500 microgrants. Though most of the projects focused on agriculture, which dominates the local economy and employs the largest percentage of people, other avenues were explored as well.
Major Douglas Betts, commander of Company A, 415th Civil Affairs Battalion, said Soldiers on the ground identified who could best use the grants.
“The troop commanders and company commanders are all very smart guys,” Betts said. “They know what they’re doing, and they know what’s best for their areas.”
Microgrants were given to businesses ranging from chicken farms to internet cafes. Most recently, a women’s beauty parlor opened up in Arab Jabour, something that would have been impossible in that area until recently.
Betts said Soldiers have found other creative ways to involve women in business. One example he gave was women’s sewing cooperatives, which grew out of women’s committees looking for ways to employ themselves and raise revenue for their causes.
“Capt. [Trista] Mustaine in the ePRT did a great job with sewing co-ops. That’s a new one to me,” Betts said.
“One [co-op] that I know is basically made up of war widows,” Betts said. “These ladies want to do something for orphans and school children. They are actually making clothes and selling them. I thought that was pretty original.”
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