by phillip hamrock for ba 516 marketing & management august 5, 2008
TRANSCRIPT
By Phillip HamrockFor BA 516 Marketing & ManagementAugust 5, 2008
Marketing the Iraq warCosts of Invading IraqCosts of Iraq
ReconstructionReconstruction ProjectsDiscussion
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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
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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
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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?
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• US Reconstruction Program
$30-45 Billion Iraq Relief
Reconstruction Fund (IRRF)
Commanders Emergency Response Program (CERP)
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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
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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
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International Reconstruction Fund Facility for Iraq 26 donor nations $1.4 Billion
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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
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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
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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
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*NY Times
Better use of Iraq reconstruction funds? $140 Billion needed to repair deficient
US bridges
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NY Times, http://www.nytimes.com
The Economist, http://www.economist.com/
Rolling Stone, http://www.rollingstone.com/
Rendon Group, http://www.rendon.com/mission.php
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