30 April 2009
It is a great pleasure and privilege to speak here today to welcome His Excellency Prime Minister Maliki of Iraq as keynote speaker. I am also honoured to be welcoming so many members of his Cabinet. And I am also delighted that so many Iraqi and British businesses are here.
I would like to pay tribute to the Iraqi National Investment Commission, which has taken a lead in organising this conference. Along with the Prime Minister, Deputy Prime Minister and other Ministers present here today, the NIC is playing a vital part in promoting new investment opportunities in Iraq.
Today marks an historic point in UK-Iraq relations – the end of one phase of our relationship, based on military support, and the beginning of another, broader relationship. My colleague John Hutton is currently in Iraq to witness the end of major UK military operations. It is fitting that on the same day that the start of the drawdown of UK troops takes place, we open a new chapter that will herald economic, trade, cultural and educational exchange between our nations.
And this new phase of partnership is with a country which is radically transformed from even just a year ago. I have seen that transformation for myself: the people I met as I visited downtown Basra at the end of last year, told me that where they previously lived in fear, they now live in hope. And where previously they barely dared look to the future, now they are embracing it, determined in their optimism.
On 1 January, the Government of Iraq assumed security responsibility for the whole country from the Coalition. This is a truly remarkable achievement for a country which has faced such huge challenges. Iraq is now ready to become a stable nation of prosperity, able to capitalise on its considerable potential.
This transformation is thanks to the hard work and professionalism of both the Iraqi security forces, under the leadership of Prime Minister Maliki’s government and the coalition forces who have supported them.
But alongside the military presence, civilian staff working in Iraq have made a real difference. I am particularly proud of the staff from my own Department – DFID – who have worked tirelessly, often in dangerous conditions, alongside their military and FCO counterparts to deliver reconstruction and economic development across the country.
Since 2003, we have helped prevent Basra’s neglected infrastructure from collapsing and have increased Basrawis’ access to drinking water and electricity. We have worked with our counterparts in both provincial and national government, helping them to improve their skills in planning, managing and delivering the business of state – providing for their own people and giving them the capability to reconstruct and develop their own country, and to attract investment. And in the last 12 months – since the security situation has been transformed – we have worked with our Iraqi partners to generate economic growth, to ensure that Iraqi people take up skilled jobs, and are in a position of providing a living for them and their families.
One of the most important roles we have played is working with the Government of Iraq to attract foreign investment. This is only part of the solution for economic growth and prosperity in any country. But it is an important part – it has the potential to create tens of thousands of jobs, thereby giving people a stake in a future free from violence.
Just a year ago very few international companies were interested in investing in Iraq. Due to the poor security environment and instability over the previous years, their perception was that Iraq was unsafe for any company to visit, let alone think about investing in.
Together with the Iraqis, we have started changing this perception.
We have supported international companies visit Iraq, we have given them the opportunity to see what the country has to offer for themselves, to meet the people of Iraq face to face and witness first hand the improvements that have taken place. But the progress being made in Iraq speaks for itself. Not one company has left disappointed, or with its perception unchanged. Supported by the UK Government, these companies have between them put forward investment proposals worth more than US $10 billion, in a wide range of sectors including transport, manufacturing, services and of course energy.
And now, in Basra, it is our Iraqi partners themselves who are providing support to international investors, and telling the world that Basra is open for business. I was lucky enough to attend the opening of the Basra Investment Commission on my last visit to Iraq. The ownership and enthusiasm shown by this Iraqi institution highlights the huge progress made in just six months, and reflects the determination with which Iraq is approaching the international community with what it has to offer.
This enthusiasm, this Iraqi-led demand for investment, is – I know - being replicated across the country, and is producing results – particularly from UK companies. This year alone, three British companies have signed contracts totalling nearly US$ 1 billion. And as PM Maliki made clear to me when we met in November, he is keen to see more such British investment. That is why UKTI will be scaling up its presence in Iraq over the coming weeks.
DFID will be moving to address further key constraints to Iraqi development. Today I can announce that DFID is embarking on a major new programme with the World Bank to help the Iraqi government tackle some of the key constraints to private sector development. But we know that the grassroots also require support – so we have agreed a $2 million programme to help small businesses in southern Iraq gain access to credit. We are also funding a programme to help young people in Basra find jobs, through an innovative approach which closely links vocational training with employment placements. And we are launching a £3 million programme to help Iraqi higher education institutions improve the standard of higher education, ensuring that professional skills are available to deliver Iraq’s development.
We have in this room many of the world’s top companies. We have even had to turn many companies away due to lack of capacity. That there is so much interest is an indication of how far we have come down the road of development over the past year.
Of course there is still progress to be made in Iraq. While the security situation is dramatically improved, it remains challenging, as we have seen recently. But trends in violence are still significantly down, and continue to fall by the month. And the Iraqi people’s expectations are higher now than ever, particularly following the successful provincial elections earlier this year when jobs and services were the main concerns of the electorate. The key is that the Government of Iraq now has the tools to meet these challenges. I am confident they will meet these with success.
The events of this week, culminating in this conference, symbolise the change that has and continues to take place in Iraq. On every front it is Iraqi institutions, militarily, politically, economically, that are driving forward progress in Iraq. That is why we are moving from a relationship dominated by the military and reconstruction, to one that includes cultural and educational exchange, partnerships between UK and Iraqi academic institutions, continued support to Iraq’s development and long-lasting partnerships between British and Iraqi businesses.
British companies have a leading role to play in Iraq, and can use their world class expertise to support Iraq’s desire to unlock its undoubted potential. The links that were forged during Lord Mandelson’s visit to Iraq earlier this month will be consolidated and expanded today. A genuine partnership lies ahead.
I pay tribute to the continued optimism of the Iraqi people, their repudiation of violence and the fact that they are embracing democracy - as evidenced most recently by successful Provincial elections. The fact that they can now be expressed is also a testament to the bravery of our military and the skill of our civilians. Today marks a change in our relationship, which will sow the seeds of our future partnership, and allow us to work with Iraq to ensure that this potential is fully realised.
I am now delighted to introduce Prime Minister Maliki. His courage, leadership and determination have been critical to transforming the situation in Iraq. And I know that he strongly supports the international investment that is so needed for Iraq to make progress along the path to prosperity. I hope you will join with me in giving a warm and heartfelt welcome to Prime Minister Maliki.
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