By Phillip Hamrock For BA 516 Marketing & Management August 5, 2008

8/5/2008      Marketing the Iraq war Costs of Invading Iraq Costs of Iraq Reconstruction Reconstruction Projects Discussion 2

8/5/2008  Initial cost estimate  $50 Billion - Bush administration’s estimate to oust Saddam, restore order, & install a new government  $93 Billion – Congressional Democrat estimate 3

8/5/2008   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 4

8/5/2008     $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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8/5/2008 • US Reconstruction Program  $30-45 Billion  Iraq Relief Reconstruction Fund (IRRF)  Commanders Emergency Response Program (CERP) 6

8/5/2008  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 7

8/5/2008  CERP  Small scale, urgent humanitarian reconstruction projects  Money as a weapon  Execute quickly, employ many Iraqis, benefit Iraqi people, highly visible 8

8/5/2008  International Reconstruction Fund Facility for Iraq  26 donor nations  $1.4 Billion 9

8/5/2008  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 10

8/5/2008   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 11

*NY Times 8/5/2008  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 12

 Better use of Iraq reconstruction funds?

 $140 Billion needed to repair deficient US bridges 8/5/2008 13

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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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