Iraq: Impact of the Saner io ns
BOaoberlWO
The UN sanctions areaavy toll on Iraq's economy.
imports of food and industrial goods have baan slashed by roughlyercent compared with pracriaia levels.
--Practically all of Iraq'a foreign aaaota hava boon frosen, severely limiting Baghdad's ability to pay for Imports even if it finds sallars willing to circumvent the sanctions.
embargo has cut offercent of Iraqi oil exports since tha invasion and is costing Baghdad at5 billion each month (at preinvaalon prices) in foregone revenues.
sanctions have brought most of Iraq'a dovelopmsnt projectsirtual halt. (OJ
everely reduced access to foreign raw materials,goods, and machinery is leadingteady decline In Iraqi industrial activity and is probably undermining Baghdad's efforts to offset lost food imports with increased agricultural output.
of imported lubricants, spare parte, and chemicals are hampering machinery operations and causing production difficulties at refineries, petrochemical plants, and probably water purification facilities.
faces developing shortages of ball bearings, batteries, tires, and plastics.
plowing and planting are likely to be hamperedhortage of spare parts for the0 tractors and other agricultural machinery. (U)
The sharp reduction in imports is also causing Iraqi consumers toteady rise in hardship"
--Baghdad began rationing rice, flour, potetcas, beans, powdered milk, sugar, tea, cooking oil, aoap, and detergent in early September. The regime reduced ration amounts by SO percent in mid-September and added bread to its rationinq program.
DATEDCTNOO
rations provideay according to Patrickrominent us scholar. Iraqis have had to pay highly inflatedcosts of some basic commodities bavaercent since thesupplement their diats.
--Iraqi Health Ministry officials announced plans in mid-October to dispense medicines used for treating cardiac diseases and other serious illnessesard system.
--Rationing of gasoline and motor oil beganctober, according to Iraqi press reporting. Taxi drivers are allowed onlyallons of gasoline per week.^
Although there are no tangible indications that Saddam is concerned about the stability of his regime, touqher times loom ahead.
--Shortages of imported chemicals for water purification could leadharp rise in the incidence of dysentery and other waterbome diseases.
average minimum temperature in Baghdad isegrees Fahrenheit in November,nlikely to heighten an already sharp level of concern about the sanctions among Iraqis.
Uncra&sjfied
FOR RFIEASE DATE:0
Original document.
Comment about this article, ask questions, or add new information about this topic: