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Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

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The interim Iraqi administration announced last weekend bold measures to revitalize the national economy by attracting as many as possible local and foreign investments. Half a year after Saddam Hussein was deposed and US-led forces took Baghdad, the country desperately needs fresh money to put on track its economy. So far little has been done and the patience of the local population can't be taken for granted. The measures announced by the Iraq's newly appointed financed minister are the following:

• Privatization of hundreds of state companies in almost every sector from electricity and telecommunications to pharmaceuticals and engineering, save the oil industry;
• Foreign investors could buy up to 100% of all Iraqis companies and banks except the businesses in the oil industry, the natural resources and the real estate;
• Foreign companies could freely establish their branches and make joint ventures with local companies;
• Establishing independent from the government central bank;
• Tax holiday for the rest of 2003;
• Fixing the maximum individual and corporate tax rate at 15% from January 1st 2004;
• Cutting the import duties to 5%, abolishing the duties on food, medicines, books;
• Foreigners may lease land for up to 40 years;
• Immediate remittance to the host country of profits, dividends, interests and royalties;
• No condition on the need to source products locally;
• No need for clearance for foreign investment;

If accomplished, such measure could make Iraq one of the most opened economies in the world, even without including the oil industry in the deregulated area. The main point now is can the new interim administration with the help of the United States push ahead with these reforms and if yes, then how enduring they could be?

Generally, there is no precedent of such bold liberal reforms in a country without legitimate authority, save perhaps the case in Germany in 1948. But then the local German population welcomed the reforms more than enthusiastically, fearing a possible Soviet occupation, which isn't the case in Iraq. Making reforms in such after-war conditions are truly unique in the human history, which doesn't mean that they are doomed.

Some people in Iraq and outside the country already have expressed their negative reaction about the proposed measures. No one says they are less radical than they should be. On the contrary, some suggest giving the foreigners no more than 49%; some want the banks be excluded from the package. Some don't like the reforms' timing. The point that scares the most the Iraqis is that the oil industry will soon follow the course of liberalization.

How serious these arguments are? I think that the reforms are possible and the foreign troops' presence could play an important role in their success, as was the case in Germany in 1948. Living myself in a country in transition with legitimate government but with no economic reforms for years, I'm convinced that if something should be done then it should be done as quickly as possible. It's always easier for occupying forces than to the elected politicians to push ahead with many unpopular measures. After decades of economic autarchy Iraq can't be reformed overnight. The reforms anyway will be painful.

What are the risks? There are some political risks for the future governments of Iraq. The local population will always remember that there were the "infidels" that have privatized the industries and that have bought this or that company. Therefore for decades ahead the United States should care about the economic welfare of Iraq, otherwise any major economic crisis could turn into an anti-American political revolution. What are the risks of not doing reforms? The economy will remain in its present shape as system of state-owned, stated-controlled and state-regulated companies. Any future government will have to deal with this problem and any regime change could again reproduce the past dictatorial political system.

On the other hand, if the reforms succeed, what will be the benefits, for Iraq and for the rest of the world? At least, this will mean the economic recovery of Iraq. At most, this will put an end to the argument that the Muslim world isn't fit for free market economy. And many more countries from this highly volatile region may follow the Iraqi example. This time without any foreign interference.

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See also the directory of companies providing real estate services in, and general real estate information of Iraq.