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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