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108th Congress

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The Rebuilding of Iraq Should Reflect the True Spirit of the Marshall Plan

President Bush has called his plan for the reconstruction of Iraq "the greatest financial commitment of its kind since the Marshall Plan." However, his plan differs significantly from the historic plan implemented by the United States following World War II.

Unlike the current Iraq Supplemental Appropriations bill, the Marshall Plan was not an unconditional grant from America’s taxpayers – it required the recipient countries to match our funding dollar-per-dollar, and nearly 10 percent of the aid was in the form of loans. Neither was it a blank check. The U.S. share of the Marshall Plan in current dollars was about $88 billion spread over 4 years– almost exactly the same amount that has been requested by the president for Iraq for a period of mere months.

That is why I introduced H.Res.404, a resolution expressing the sense of the House that in the true spirit of the Marshall Plan, we need to change the implementation, management and oversight of the reconstruction of Iraq to increase transparency in the effort, make full use of our experts in the Department of State, help the Iraqi people achieve self-governance, and expand the role of our allies in supporting the Reconstruction of Iraq. I hope you will join me in becoming an original cosponsor of this important legislation which focuses on the following:

  • Transparency of Reconstruction Management: The resolution suggests that the management of reconstruction plan be administered by the State Department. The emergency supplemental bill passed by Congress in April gave the president sole authority to spend $2.48 billion, and he subsequently waived the normal competitive bidding process for contracts. This will help ensure an open bidding process, and also encourage local procurement and local management in Iraq whenever possible.
  • Makes the State Department the Lead Government Entity: In the past, the State Department and USAID have taken the lead on reconstruction and post-conflict aid; today, those agencies and their experience in these areas have taken a backseat to the Pentagon. This resolution suggests that the creation of Iraqi Reconstruction Coordinator at the level of Undersecretary be established within the Department of State reporting directly to the Secretary of State.
  • Priorities Set by Iraqi Leadership: The Marshall Plan required 16 European countries to organize and produce a rational, multilateral approach to their common economic problems. This resolution will ask the Secretary of State to work with the governments of other countries to establish an Iraqi Reconstruction Council to set donor priorities and foster regional economic cooperation.
  • Accountability: Funding for reconstruction will be contingent on a detailed and comprehensive presentation to Congress by the Administration and the Coalition Provision Authority consistent with a plan proposed by the president to restore freedom, self-rule and democracy in Iraq.
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