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By Phillip Hamrock For BA 516 Marketing & Management August 5, 2008
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Marketing the Iraq war Costs of Invading Iraq Costs of Iraq Reconstruction Reconstruction Projects Discussion 8/5/20082
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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
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Defense Department PR Contracts $100 Million worth of contracts to PR company Rendon Group from 2000-2004. Provided media with images, stories, etc. Authorized to use false information Analysis of on-going marketing marketing 8/5/20084
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$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
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US Reconstruction Program $30-45 Billion Iraq Relief Reconstruction Fund (IRRF) Commanders Emergency Response Program (CERP) 8/5/20086
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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
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CERP Small scale, urgent humanitarian reconstruction projects Money as a weapon Execute quickly, employ many Iraqis, benefit Iraqi people, highly visible 8/5/20088
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International Reconstruction Fund Facility for Iraq 26 donor nations $1.4 Billion 8/5/20089
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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, 2007 8/5/200810
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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
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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 8/5/200812 *NY Times
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Better use of Iraq reconstruction funds? $140 Billion needed to repair deficient US bridges 8/5/200813
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NY Times, http://www.nytimes.comhttp://www.nytimes.com The Economist, http://www.economist.com/http://www.economist.com/ Rolling Stone, http://www.rollingstone.com/http://www.rollingstone.com/ Rendon Group, http://www.rendon.com/mission.phphttp://www.rendon.com/mission.php 8/5/200815
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