By Phillip Hamrock For BA 516 Marketing & Management August 5, 2008

 Marketing the Iraq war  Costs of Invading Iraq  Costs of Iraq Reconstruction  Reconstruction Projects  Discussion 8/5/20082

 Initial cost estimate  $50 Billion - Bush administration’s estimate to oust Saddam, restore order, & install a new government  $93 Billion – Congressional Democrat estimate 8/5/20083

 Defense Department PR Contracts  $100 Million worth of contracts to PR company Rendon Group from  Provided media with images, stories, etc.  Authorized to use false information  Analysis of on-going marketing marketing 8/5/20084

 $600 Billion  Total funds allocated for Iraq operations through FY08  $3 Trillion  As estimated by Nobel laureate Stiglitz.  Includes: Arms, provisions, recruitment bonuses, disability claims, medical treatment, reconstruction, re-arming military to pre-invasion levels.  Financed by borrowing, not taxes  Cost of not invading? 8/5/20085

US Reconstruction Program  $30-45 Billion  Iraq Relief Reconstruction Fund (IRRF)  Commanders Emergency Response Program (CERP) 8/5/20086

 IRRF  $18 Billion  Allocated by US congress in 2003  Rebuild Iraqi infrastructure, damaged by neglect, sanctions, and war  90% obligated – slow due to inspections, contract requirements 8/5/20087

 CERP  Small scale, urgent humanitarian reconstruction projects  Money as a weapon  Execute quickly, employ many Iraqis, benefit Iraqi people, highly visible 8/5/20088

 International Reconstruction Fund Facility for Iraq  26 donor nations  $1.4 Billion 8/5/20089

 Former chairman of International fund said reconstruction efforts are largely doomed to failure.  “Reconstruction is difficult enough in a relatively pacific environment…In this environment it is almost impossible.” – Micheal Bell, /5/200810

 Corruption, cost overruns, and security concerns plague redevelopment efforts  Many “successful” projects no longer operational  Recent federal inspection sampled 8 “successful” projects, 7 no longer operating as planned  $12M worth of generators, $9M no longer working 8/5/200811

 Iraq Police Academy  $75 Million complex  US taxpayer funded  Army Corps of Engineers is “client”, Iraqi subcontractors carry out construction  Potential fraud  Substandard materials and methods 8/5/ *NY Times

 Better use of Iraq reconstruction funds?  $140 Billion needed to repair deficient US bridges 8/5/200813

8/5/200814

 NY Times,  The Economist,  Rolling Stone,  Rendon Group, 8/5/200815