[GJM] Outside-the-box thinking on counterinsurgency warfare

Norman Kurland thirdway at cesj.org
Sun Jul 9 10:32:07 MDT 2006


Mr. Kaplan,

In your article in today's Washington Post 
(http://www.washingtonpost.com/wp-dyn/content/article/2006/07/07/AR2006070701151.html), 
you concluded with the question -- should we give up counterinsurgency 
wars "as futile and -- do what instead?"

Before President Bush sent in the troops, I supported toppling the 
Saddam Hussein regime from within with minimal US military support, not 
just because of the WMD reports but, because Saddam was using oil money 
to pay $25,000 to the families of suicide bombers to terrorize Israeli 
civilians and to increase his leverage over Middle East oil politics in 
general.  After 9/11, it didn't take much imagination to see him doing 
the same in America and in countries allied with America, if and when it 
served his purposes.  While I'm happy with the defeat of Saddam, as a 
former officer in Strategic Air Command, I am a critic of our overall 
strategy in the use of our ground troops and our short-sighted vision 
and strategy for building a viable and sustainable democratic nation to 
replace his totalitarian and repressive regime.

What seemed to be missing in your description of the new Pentagon field 
manual is the critical importance of a vision of an end game that would 
demolish the ideology of the insurgents by effectively and dramatically 
addressing the warning of the manual's authors, "Lose moral legitimacy, 
lose the war."  In other words, what America lacked in sending in troops 
to Iraq was an ideological and morally compelling "H-bomb" for blowing 
the minds of the Iraqi people, a strategy based on universal principles 
of justice that is the essence of Islam, Christianity, Judaism and all 
the major faith traditions.  Such a more principled end game would 
neutralize the influence of the  ideologues of hate and take away their 
breeding grounds for recruiting insurgents.  Pushing "Freedom and 
Democratic Capitalism" won't do the trick.  Having a superior vision of 
an economically and socially just economy and a practical plan for 
implementing what some of us call a "Just Third Way", would.  And while 
he seems unaware of such an alternative vision, President Bush could not 
oppose it if Iraqi leaders made it their plan, if only because it would 
implement a genuine "ownership society" for Iraqis, a goal that he 
espoused for Americans.

  I sent him the following memo on how to incorporate such a plan in an 
effective overall strategy for promoting an integrated economic and 
political democracy in a post-Saddam Iraq:

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A NEW MODEL OF NATION-BUILDING
FOR CITIZENS OF IRAQ

(Center for Economic and Social Justice, updated July 27, 2005)

	
	

	
	
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Introduction

More than two years after the U.S. and coalition forces invaded Iraq and 
captured Saddam Hussein, the cost of the war today, in blood and 
dollars, continues to mount.

The June 30, 2004 transfer of "sovereignty" to the Iraqi people has not 
yet brought about a government that can secure the "life, liberty and 
property" of its citizens. There is still no clear exit strategy for 
U.S. troops that would avoid leaving Iraq in chaos and civil war. No 
official plan for economic reconstruction been offered by the U.S., its 
allies, or the U.N. that could unify the various factions in Iraq and 
provide for a broad sharing of ownership and economic power among all 
Iraqi citizens.

The Bush Administration continues to push for political democracy in 
Iraq. There is, however, mounting skepticism among critics that 
political democracy can work in the Islamic world. The ongoing war in 
Iraq has proven that any plan for political democracy is insufficient 
without a viable plan for building economic democracy. Such a plan 
requires an Iraqi model of what President Bush called an "ownership 
society."

Tailoring it to the specific circumstances of Iraq, the Iraqi political 
and religious leadership should unleash a bold "Peace through Justice" 
offensive to reinforce the government's counter-terrorism initiatives. 
This paper offers a specific "first step" proposal with a powerful 
message that, if properly communicated by respected Iraqi leaders, 
cannot fail to capture the attention and raise the hopes of every Iraqi. 
Centered on who should own and receive profits from the nation's oil 
resources, this proposal deserves serious consideration by thoughtful 
leaders and citizens ready to explore a truly different paradigm that is 
consistent with Islam, one based on ownership and economic justice for 
every citizen.

With the vacuum of ideas being filled by growing hatred and bloodshed, 
the time has come to consider the concept of the Abraham Federation and 
ask, "Why not?" 	
	
. 	
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Extending the Abraham Federation Model: A Just Third Way For Bringing 
Democracy to the Iraqi People 
<http://www.cesj.org/homestead/strategies/regional-global/abrahamfederation-iraq.html#Anchor-Extending-49575> 

------------------------------------------------------------------------
A Quick Comparison of Capitalism, Socialism and the "Just Third Way" 
<http://www.cesj.org/thirdway/comparison3rdway.htm>
------------------------------------------------------------------------
A New Vision for Providing Hope, Justice and Economic Empowerment 
<http://www.cesj.org/thirdway/paradigmpapers/pressclub-nkmgdb-ppr.htm>
------------------------------------------------------------------------
Capital Homestead Act - Summary
------------------------------------------------------------------------
<http://www.cesj.org/homestead/summary-cha.htm>Capital Homesteading 
<http://www.cesj.org/homestead/capitalhomesteading.pdf> For Every 
Citizen <http://www.cesj.org/homestead/capitalhomesteading.pdf>
------------------------------------------------------------------------
Proposed United Nations Declaration on Social Development
------------------------------------------------------------------------
<http://www.cesj.org/thirdway/paradigmpapers/socialdevelopment-un-ppr.htm> 
	.


	
	

Strategic Elements of the Model

    * People in developing countries are increasingly rejecting
      capitalist and socialist models of development as
      power-concentrating and exploitative, or outmoded and inefficient.
      The Just Third Way, in contrast, is a nation-building model based
      on the equal opportunity of every citizen to acquire and possess
      productive capital assets within an economy that decentralizes
      economic power.  The new model provides a stable foundation for an
      effective and religiously pluralistic democracy. It offers a
      viable and politically unifying framework for all Iraqi citizens
      to work and prosper together, regardless of their religious,
      ethnic, cultural and other differences.

    * The new model addresses a "fatal omission" in conventional
      approaches to nation-building whose exclusionary policies engender
      a growing gap between the rich and poor, concentration of power
      and ownership within a small elite, corruption and abuses of power
      at all levels, and instability within society.

    * The leading edge of the new strategic framework is economic,
      attacking directly the root causes of terrorism and the basis of
      its support among the populace.  It answers the demands of all
      Iraqi citizens for justice and an end to systemic poverty and
      oppression. It creates systematically a true nation of owners.

    * This strategy promotes the growing economic sovereignty and
      empowerment of each citizen -- as a worker, as a consumer and as a
      capital owner. Economic governance and accountability are
      structurally diffused from the bottom-up by protecting existing
      private property rights and by spreading throughout society equal
      opportunity to acquire new and transferred productive capital
      assets. Universal access to capital ownership would enhance the
      economic well-being and self-determination of the people, and
      reduce the tendency toward corruption and abuses of power
      associated with any form of monopoly power.

    * It sets up the legal and constitutional infrastructure for moving
      quickly to a high-growth, free market system. It is based on the
      four pillars of a just market economy: (1) expanded capital
      ownership, (2) limited economic power of the state, (3)
      restoration of free trade and open markets for determining just
      prices, just wages and just profits, and (4) restoration of
      private property in all means of production.

    * Because of its emphasis on infrastructural re-engineering
      (particularly with respect to central banking, capital credit, and
      land and natural resources development), this framework would
      radically reduce the cost of reconstruction of Iraq, allowing for
      low-cost internal means of financing the reconstruction. This
      would reduce the cost to the U.S. taxpayer, the U.N. and those
      countries supporting the effort in Iraq.

    * It would help Iraq become economically self-sufficient as soon as
      possible, providing the basis for a stable, independent, and
      democratic government that would serve as a model for other
      nations in the Middle East and around the world.

Phases of Implementation

PHASE 1: Transfer Free Oil Shares to Every Citizen of Iraq.
Denationalize the oil fields of Iraq, as a catalyst for building a new 
"Just Third Way" economy. Transfer the ownership and control of all oil 
reserves and natural resources within the borders of Iraq from the Iraqi 
National Oil Company to a newly formed, professionally managed, limited 
liability joint stock corporation.  All Iraqis would automatically 
receive free, as a right of citizenship from birth to death, an equal 
number of non-transferable shares in the new corporation. All citizens 
would be guaranteed first-class shareholder rights to the profits and 
voting control over the board of directors and management of the new 
company. All profits except for operating reserves would be paid out 
fully and periodically as dividends to each shareholder.

To meet all costs and services of government at the national, provincial 
and local levels, taxes on such dividend incomes would be withheld by 
the corporation before distributing the balance of dividends to each 
citizen.  The shares of those who die would be retired to the General 
Fund or redistributed to new-borns, returning Iraqi exiles and newly 
naturalized citizens, who would receive an equal number of shares as 
existing shareholders.

The new corporation would encourage market forces in setting prices 
throughout the economy by offering, through a competitive bidding 
process, concessions and leases for exploration, drilling, 
infrastructural engineering and construction, processing and marketing 
oil and other natural resource activities. Preferential treatment would 
be given to competitive operating companies that are broadly owned by 
Iraqi citizens.

To lay the foundations for Iraq's future economy, new industrial, 
agricultural and commercial demonstration projects (for example, using 
advanced alternative energy technologies that produce power and water 
from sea water and waste), could be launched and financed in ways that 
encourage wider share ownership among Iraqi workers and other stakeholders. 

Future government revenues would then flow from the bottom-up from 
increasing citizen incomes. This would make government more dependent 
economically on its citizens, rather than perpetuating the previous 
top-down dependency of the people on a political elite. A single rate of 
taxation on all incomes above poverty levels would balance government 
budgets, achieve greater accountability, transparency and democratic 
participation in governance at all levels, and radically reduce future 
risks of public sector corruption or future coups.

Personal share accounts (like Individual Retirement Accounts in the 
U.S.) would be set up within local banks for each worker and every 
citizen of Iraq to accumulate income-producing capital assets, sheltered 
from any taxes until assets or income are distributed for personal 
consumption. The equity accumulation accounts would also be given the 
power to borrow interest-free, non-recourse productive credit on behalf 
of the citizen.

This "capital credit" would be used exclusively by citizens to purchase 
new shares issued by new or growing Iraqi enterprises to finance the 
expansion and modernization needs of a growing Iraqi economy. The debt 
for purchasing the newly issued growth shares would be secured and 
repaid by the projected dividends on those shares (as with leveraged 
employee stock ownership plans in the U.S.).

One cautionary note: Experience with employee stock ownership plans has 
shown that it is not sufficient merely to give people ownership and 
expect any significant change in their behavior and value systems. It is 
essential that, during the planning and implementation phases of a 
national ownership strategy, management systems be introduced that 
encourage a servant leadership philosophy and structures and processes 
for diffusing economic power, ownership and participation. One such 
system called "Justice-Based Management" systematically builds internal 
ownership cultures necessary to educate all stakeholders and maintain 
the continued deconcentration of power and accountability of managers to 
the worker- and citizen-shareholders.

PHASE 2: Establish in Iraq's Constitution the Right of Universal Citizen 
Access to Property.
The constitution now being drafted by Iraqis should be written to 
reflect all the rights contained in the UN Declaration of Human Rights, 
particularly Article 17 (acknowledging every person's right to own 
property individually or in association with others). The new Iraqi 
constitution should include the provision that as a fundamental right of 
citizenship every citizen is guaranteed access to the social means 
(i.e., money and interest-free productive credit) for acquiring and 
possessing income-producing property. All tax, credit, property, 
corporation, insurance, inheritance and related laws should, if 
necessary, be reconstituted to conform to the constitution and to 
establish institutions supporting economic democracy and the universal 
right to private property and protection of the rights of property.

PHASE 3: Enact Central Bank Credit Policy for Growing the Economy.
The discount power of the central bank in Iraq should be restructured to 
encourage non-inflationary private-sector productive growth through the 
creation of interest-free money for local banks for promoting more 
universal citizen access to capital credit for financing new investments.

PHASE 4: Gain U.N. Support for Iraq as a Global Free Trade Zone.
U.S. and other countries should introduce a resolution into the U.N. 
General Assembly to treat Iraq as a "global free trade zone" whose 
imports and exports would be exempt from all trade barriers and tariffs 
of other countries. In this way the international community could 
provide a major catalyst for "Peace Through Justice" in Iraq and 
throughout the Middle East.

------------------------------------------------------------------------

For more information, visit www.cesj.org <http://www.cesj.org> or 
www.globaljusticemovement.org <http://www.globaljusticemovement.org>, or 
email thirdway at cesj.org <mailto:thirdway at cesj.org>. "Extending the 
Abraham Federation Model: A Just Third Way for Bringing Democracy to the 
Iraqi People" is available at 
http://www.cesj.org/homestead/strategies/regional-global/abrahamfederation-nk.html. 
A free download of the book Capital Homesteading for Every Citizen is 
available at http://www.cesj.org/homestead/donnersocialsecurity.pdf.

	
	

	
	
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Mr. Kaplan, as a student of counterinsurgency warfare, do these ideas, 
which would not cost the taxpayers a cent, make sense to you?  If they 
do, it's still not too late to promote them with the new Iraqi 
government, if writers like you begin to push Just Third Way solutions.  
The Iraqi government could start by distributing  free lifetime, 
non-transferable oil shares to each Iraqi citizen, including those 
insurgents who abandon terrorism and violent opposition to the current 
government.  Iraq could become a beachhead for Peace through Justice in 
the Middle East, if not open a sorely needed and bolder goal for 
American diplomatic, military and economic policy throughout the world.

In Peace, Only through Justice,
Norm Kurland
Center for Economic and Social Justice
Washington, D.C.
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