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Subject: Desperate Times in Iraq; U.N. Embargo Spawns Shortages, Despair<By Trevor
Date: Sat, 7 Nov 92 08:40:52 EST
Message-ID: <5.1992Nov7.084053@AmeriCast.com>

Desperate Times in Iraq; U.N. Embargo Spawns Shortages,
Despair<By Trevor Rowe=Special to The Washington Post=

BAGHDAD, Iraq, Nov. 6 - The United Nations economic embargo im-
posed on Iraq more than two years ago continues to wreak havoc on
the economy, creating what U.N. officials describe as a serious
food shortage and sowing a mood of desperation among many Iraqis.

Unable to keep up with the spiraling inflation rate that di-
plomats estimate at anywhere from 300 percent to 4,000 percent,
Iraqis have seen the buying power of their salaries crumble. "I'm
one of 18 million. All our dreams have been shattered," said a
30-year-old geologist as he strolled through Baghdad's Shourja
market, looking at ordinary but unaffordable goods on display.

A U.N. official, citing a recent study, said there is a 25 per-
cent shortfall in the basic food needs of average Iraqis, with
government food rations covering 50 percent and salaries another
25 percent. The result, he said, has been an increase in illness
and death, particularly among children and the elderly.

UNICEF officials say anecdotal evidence suggests that child mor-
tality rates are higher today than last year, when a Harvard
University study found that it had risen from 25 per 1,000 before
the Persian Gulf War to 92 per 1,000. "The effects of sanctions
on health is devastating," said Sigdigh Ibrahim a UNICEF program
officer.

While there are no independent studies, the Iraqi government
claims a total of 118,583 people over age 5 died as a result of
sanctions in the year ending last August. In addition, Baghdad
claims that 61,442 children 5 and under died in the same one-year
period.

Ordinary Iraqis at a Baghdad market made clear in conversations
through a government interpreter that they are unable to cope
with the economic situation.

"I earn 200 dinars a month, and a can of infant formula that
would feed my children for this period costs 180 dinars," com-
plained an office worker as she shopped for food. Nearby sat a
woman selling small packages of infant formula.  A mother of
eight, she said she could not afford to give the formula to her
own children and was forced to sell it to survive.

Still, diplomats say that there has been no indication of a pub-
lic outcry in the capital, where President Saddam Hussein main-
tains a tight grip on power. Publicly, virtually all Iraqis blame
the United Nations and particularly the United States for pursu-
ing the sanctions policy against their country. They accuse
President Bush of wanting ordinary Iraqis to suffer.

But one shopper at a local market, when asked if he blamed the
Iraqi government, replied in the affirmative. Then, out of
earshot of an Information Ministry representative escorting a re-
porter, he added: "What can we do? All we can do is trust in Al-
lah."

Underlying the explosive inflation rate is a government decision
to print money despite the fact that the embargo on purchases of
Iraqi oil has halted foreign exchange earnings. The official rate
of conversion is 3 dinars for $1, but the rate on the black mark-
et is said to fluctuate anywhere between 20 and 30 dinars to the
dollar.

The result has been to make imported food products unaffordable
for many Iraqis. Recently the government ordered a ban - set to
become effective Nov. 20 - on 157 imported luxury items - in
part, to keep foreign exchange in the country and shore up the
faltering dinar.

Among the proscribed items are tea, cigarettes and some medical
equipment relating to heart problems, diabetes and high blood
pressure. The measure also prohibits selling imported clothing,
and numerous stores are holding last-minute sales that have led
to a temporary drop in prices for some items.  The measure is
also a means of forcing Iraqi merchants to buy and sell domestic
goods. After the government reportedly ordered about 40 merchants
executed for alleged price gouging in a year's time, the cost of
imported goods has grown even higher as other traders ceased ac-
tivity out of fear of incurring official wrath.

Compounding the shortage of imported goods is a tightening of
controls on the Jordanian border following U.S. claims that the
border had become too porous. The stricter enforcement of sanc-
tions means many items continue to soar in value. "I used to pay
25 dinars for (a set) of tires. Now, I pay 4,000," said an an-
guished car owner. But it is the cost of everyday staples that
has most hurt ordinary Iraqis.

While monthly salaries average between 200 and 300 dinars, consu-
mers have to pay 20 dinars for a pound of meat. Rice has gone
from 1 dinar for 10 pounds before the war to 4 dinars a pound to-
day. "Beans are a luxury now," complained a Baghdad housewife,
citing a price of 11 dinars a pound.

Sanctions were imposed on Iraq by the United Nations on Aug. 6,
1990, in an effort to force it to withdraw from Kuwait. Under the
sanctions, most normal trade with Iraq is barred, though coun-
tries are allowed to sell medicine, food and other essentials to
Baghdad.

Although Iraqi troops were pushed out of Kuwait early last year,
subsequent Security Council resolutions stipulate Baghdad must
take additional measures before the embargo is ended. Iraq, among
other things, must scrap all of its weapons of mass destruction
and agree to obey resolutions on long-term monitoring of the
country, something the United Nations says it has failed to do.
Baghdad says it has complied with the majority of U.N. demands
and should get a partial lifting of sanctions in return.

In an effort to help Iraq pay for additional food and medical
aid, the Security Council authorized Baghdad to sell $1.6 billion
in oil. However, Baghdad has refused to do so, arguing that over-
sight mechanisms would violate its sovereignty. Instead, it has
used whatever remaining foreign exchange in its possession to buy
food and limited medical supplies.

"Before the war, basically all medical supplies were available,
but now a lot of people aren't getting care, people with with
heart disease, diabetes who need assorted drugs," said a U.N. of-
ficial. "There is also a severe shortage of doctors and nurses,
people are seeking alternative employment because the pay isn't
sufficient.

"In the case of doctors, they were once the cream of society, now
they're at the bottom," the official said. "As a result of sanc-
tions, their social status has changed and that has resulted in a
change in health conditions."

Observers say that the inflation rate, of which there are no of-
ficial figures, is out of control. "It's not the unavailability
of goods that's the problem," said an Asian diplomat. "It's that
prices have galloped.  Every time prices are fixed officially,
things disappear and show up on the black market. Onions are not
available and they're suddenly available at 10 dinars - $30 at
official rates."<02:06 11-07C9999-----

Copyright 1992, The Washington Post.  This story is from the
Washington Post's Capitol Edition On-Line and is not to be ar-
chived or redistributed.

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