A Mixed Bag

StrategyPage has good Iraq news...and bad. First, the good:

More towns in Iraqi's "wild west" are being pacified. The usual drill is not another Fallujah, but a government official meeting with local tribal and religious leaders, where an offer is made. Iraqi and American troops are coming. Neighborhoods that support the government will see little or no fighting as a search is made for weapons, bombs and the like. Neighborhoods that wish to resist will be hit hard. By now, everyone knows how smart bombs work. Increasingly, Sunni Arab leaders are being told, by their followers, that all this violence is not worth it. After Saddam fell, Sunni Arabs continued to believe in fantasies. For the last two years, the collective delusion was that the Americans had no stomach for guerilla war, and the Kurds and Shia Arabs could never get a government together. Today, Sunni Arabs who can get away on a little vacation, go north to the Kurdish north, or south to Shia Basra. In both places you can sit in an outdoor cafe without fear of a suicide bomb going off down the street. The Kurds and Shia have more jobs, more reconstruction and less crime. The Sunni Arabs don't want to live in their own mess any more. They don't want to live in a combat zone, especially while the Kurds and Shia are not.

Now, the bad:

The biggest obstacle to economic revival is not terrorism, but corruption. For example, over a third of Iraq’s potential oil revenue is lost to corruption and theft. . . .

Iraq may be free of Saddam, but it is not yet free of the corrupt practices that allow someone like Saddam to take power, and keep it. While much is made of the terror Saddam used to keep Iraqis in line, we forget that he often used corruption, and the willingness of too many Iraqis to take the money and look the other way. The corruption has gotten so bad, especially the oil thefts, that the government is planning on firing several hundred thousand government workers. The money simply isn't there to pay them. The money, instead, is in the pockets of local criminals, or foreign bank accounts belonging to corrupt officials. Until Iraq can confront and conquer this enemy, they will not be able to enjoy the benefits of their oil wealth.