Secretary of State visits Iraq
21 December 2007
Related page: Iraq
country profile
 The Secretary of State for
International Development, Douglas Alexander, has visited Iraq for the first
time, seeing for himself the role that DFID is playing in both
Basra and Baghdad.
His trip came as Basra prepared to return to Provincial Iraqi
Control (PIC). Basra is the last of the
four provinces held by the British since
the 2003 conflict to transfer responsibility for security to Iraqi-led forces.
Working to bring security and stability to Basra
During his trip, the Secretary
of State addressed the Basra Development Forum,
which was attended by Iraqi Prime Minister Nouri al-Maliki and Deputy
Prime Minister Barham Saleh. Mr Alexander paid
tribute to the courage, commitment and dedication of those British and Iraqis
who have been working tirelessly to bring progress and stability to the
country’s second largest city. He went on to say that rebuilding Basra calls for more than
just spending on infrastructure, with security and stability the
key to ongoing economic success.
 As Iraq's economic gateway, Basra accounts for around 70%
of the country's oil reserves and has its only deep sea port. It was the first
province in Iraq to set in place a Provincial Development Strategy (PDS),
something that the Secretary of State believes lays the foundations for even
greater economic progress, making use of regional, national and international
expertise.
Mr Alexander said: “We
all know that rebuilding Basra after decades of neglect and under-investment,
and the terrible toll brought by recent fighting, will require more than
spending on infrastructure.
“Economic growth in Basra will
take time, but this city’s illustrious past shows what is possible. Basra has a
great history as an academic centre, with a wealth of natural resources, and is
ideally located on the Shatt al-Arab.
“Basra is ready to enter a new
phase of its development. Together with clear support from the international
community, there are many reasons to be optimistic that a brighter future lies
ahead.”
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New initiatives for Basra
 As well as being an important
milestone for the military, the handover
is also significant for the DFID-funded
Basra Provincial Reconstruction Team (PRT), as it means there will be greater
emphasis on the work carried out on economic development, the rule of law and
governance.
To help Basra reach
its full potential, a raft of new economic initiatives is being undertaken by
the PRT in partnership with the national and provincial governments. They
include a Basra Investment Promotion Agency (BIPA), the launch of the Basra
Development Fund (BDF) and an overarching Basra Development Commission (BDC)
which will be supported with advice from international business leaders.
The UK will commit about £1,000,000 in start-up costs for
the initiatives and will provide ongoing technical assistance. The initiatives
will help to improve the investment climate and will implement programmes to
stimulate private sector development in Basra, with the expectation that all
three institutions will be operational by March 2008.
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Visiting Baghdad
 Following his visit to Basra, the Secretary of State flew
to Baghdad where he met with DFID staff and held discussions with the US
Commander in Iraq, General David Petraeus, the UK Ambassador to
Iraq, Chris Prentice, and UN representatives.
Mr Alexander noted how much DFID has achieved
in an environment where security remains a major challenge and a broken politics
at the centre undermines the basic functioning of government, limiting the
potential to attract investment and achieve economic growth. He also emphasised
the need for more work in the future, across the UK Government, to ensure
economic development in Iraq. DFID's participation in the forthcoming process to
update the UK's strategy in Iraq reflects this need.
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