(C/REL USA, AUS, CAN, GBR, NZL) KUDOS FOR

C O N F I D E N T I A L STATE 111446

SIPDIS

E.O. 12958: DECL: 10/28/2034
TAGS: PINR ECON EFIN EIND ELAB PGOV IZ
SUBJECT: (C/REL USA, AUS, CAN, GBR, NZL) KUDOS FOR
REPORTING ON IRAQ PROVINCIAL ECONOMIC DYNAMICS
(C-IA9-01805)

REF: A. REO HILLAH 212076353

B. REO HILLAH 210857703

C. REO HILLAH 211774789

D. REO HILLAH 212442915

E. REO HILLAH 212553232

F. REO HILLAH 212333000

G. REO HILLAH 211731241

H. REO HILLAH 213049664

Classified By: ELISSA G. PITTERLE, DIRECTOR, INR/OPS. REASON: 1.4(C).


1. (C/REL USA, AUS, CAN, GBR, NZL) WASHINGTON ANALYSTS
CONTINUE TO MONITOR AND ASSESS THE STATE OF THE IRAQI ECONOMY
AT THE LOCAL, PROVINCIAL, AND NATIONAL LEVEL. WE READ WITH
INTEREST REF PRT CABLES AND APPRECIATED THE LEVEL OF
GRANULARITY ON THE STRATEGIC THREATS FACING BABIL'S ECONOMY,
INCLUDING HOW STATE (GOI) PARTICIPATION AND INTERVENTION
HINDER BROAD-BASED ECONOMIC GROWTH, THE CONDITION OF SPECIFIC
STATE-OWNED ENTERPRISES, THE GENERAL MALAISE OF THE
AGRICULTURE AND MANUFACTURING SECTORS, THE EXTENT TO WHICH
PRIVATE INVESTORS AND LOCAL BUSINESS PERSONS HAVE DIFFICULTY
NAVIGATING BUSINESS REGULATIONS, AND THE ABILITIES OF
BUSINESS PERSONS TO OVERCOME SUCH IMPEDIMENTS. AS DEMANDS
FROM POLICYMAKERS FOR ANALYSIS ON ECONOMIC DEVELOPMENT AT ALL
LEVELS CONTINUE TO INCREASE, THIS TYPE OF
REPORTING--ESPECIALLY INFORMATION ON THE STRATEGIC ECONOMIC
DECISIONS BY BOTH PROVINCIAL AND NATIONAL LEADERS AND
SPECIFIC "ON THE GROUND" FACTS OF LOCAL BUSINESSES AND
INVESTOR INTEREST--ARE EXTREMELY VALUABLE. FURTHER ECONOMIC
REPORTING FROM POST OR PRTS, TIME AND RESOURCES PERMITTING,
WOULD BE MUCH APPRECIATED; SEVERAL QUESTIONS OF PARTICULAR
INTEREST ARE LISTED BELOW. MANY THANKS, AND REGARDS FROM
WASHINGTON.


A. (U) WHAT ARE THE BUYING PATTERNS OF BABIL RESIDENTS? DO
THEY HAVE A PREFERENCE FOR PURCHASING LOCAL GOODS? WHAT ARE
THE PROSPECTS FOR MANUFACTURING TO INCREASE JOBS IN THE
PROVINCE?


B. (U) WHAT ARE THE PROSPECTS BABIL CAN ESTABLISH A
HOSPITALITY INDUSTRY TO ACCOMMODATE SHIA-MUSLIM PILGRIMS?


C. (U) WHAT PORTION OF BABIL RESIDENTS RELY ON PRIVATE
ELECTRICITY GENERATION? HOW WELL EQUIPPED ARE LOCAL
TELECOMMUNICATION COMPANIES AT PROVIDING SERVICES TO THE
BABIL POPULACE?


D. (U) HOW MUCH OF BABIL'S ECONOMY IS DRIVEN BY
NATIONAL-LEVEL POLICIES? HOW MUCH DOES GOVERNMENT SPENDING
CONTRIBUTE TO THE GROWTH OF THE ECONOMY?


E. (U) HOW MUCH OF BABIL'S ECONOMY IS DRIVEN BY THE LOCAL
GOVERNMENT?


2. (U) PLEASE CITE C-IA9-01805 IN THE SUBJECT LINE OF
REPORTING IN RESPONSE TO THE ABOVE QUESTIONS.
CLINTON