Other People's Money
Other funding sources are available to support the U.S. and the coalition's
efforts to secure its objectives in Operation Enduring Freedom and Operation
Iraqi Freedom. For example, both the U.S. Department of State (DOS) and
U.S. Agency for International Development (USAID) are funded to resource
select requirements. USAID provides diverse assistance as a service provider
versus a bill payer. USAID uses economic support funds for programs and
support for key U.S. mission programs. These funds target security, economic,
and political issues. Funding for the DOS and USAID is generally dependant
on annual appropriated funds, and those amounts fluctuate from year to
Sources of Non-U.S. Military Funds
- Migration and refugee assistance funds provide support to refugees and
internally displaced persons.
- International narcotics customs and law enforcement funds support rule
of law and prisons.
- DOS rewards pay for information leading to the acquisition of man-portable
air defense systems.
- The Community Stabilization Program focuses on short-term employment, job
skills training, and business development.
- Provincial economic growth funds provide business development services
and expand commercial lending through microfinance institutions and banks.
- The Iraq Rapid Assistance Program allows provincial reconstruction teams/embedded
provincial reconstruction teams to provide grants to support economic,
social development, and civil society efforts to mitigate conflict.
- The Inma (Arabic for growth) Agribusiness Program is an initiative to improve
farmer livelihood and to advance provincial economic growth through market-based
- The National Capacity Development Program develops the capacity of the
key government of Iraq ministries to deliver core services to the Iraqi
- The Elections Support Program provides technical and material support to
the Independent Higher Electoral Commission as it prepares for Iraq's provincial
- The Community Action Program assists community action groups and local
government counterparts to identify critical priorities and implement programs
to address those needs.
- The Local Governance Program promotes diverse and representative citizen
participation in provincial, municipal, and local councils.
- Economic governance funds assist in establishing and implementing a legal,
regulatory, and institutional framework within which reform and policy
can be formulated to foster a transparent, investment-friendly, and market-based
- The Marla Ruzicka Iraq War Victims Fund aids civilian victims of armed
conflict. Assistance includes small loans, business training, medical care,
children and orphan assistance, and the restoration of battle-damaged homes.
Contracts provide funds to local vendors versus cash payments.
USAID manages a micro-loan program started in 2004 by the Office of Private
Sector Development. This program has grown to expand access to capital
for Iraqi businesses and entrepreneurs across all 18 of Iraq's governorates.
Loans average $1,300 with interest rates between 12 and 18 percent. The
governorates repay the loans at a rate of over 98 percent. There are presently
three international microfinance institutions serving Iraqis: Al Thiqa (operated by Agricultural Cooperative Development International and Volunteers
in Overseas Cooperative Assistance), Cooperative Housing Foundation International,
and Relief International.
USAID currently supports six indigenous microfinance institutions: Al-Aman in Kirkuk; Al Bashair in Baghdad; Al Takadum with offices in Al Qa'im,
Fallujah, and Ramadi; Al-Intilaq in Tikrit; Nenawah Economic Development
Center in Mosul; and Tal'Afar Economic Development Center in Tal'Afar.
Government of Iraq (GOI) funding initiatives:
- The employment stimulus program improves access to capital in order to
encourage job creation.
- Iraq 2020 is a large-scale, 12-year plan for funding infrastructure and
- The National Housing Compensation Fund pays families whose homes were damaged
or destroyed because of war.
- The Iraqi-Commander's Emergency Response Program (I-CERP) is similar to
DOD CERP and is executed by Multi-National Corps-Iraq.
- The Sons of Iraq (SOI) Security Contract is funding set aside to assume
resourcing responsibility for SOI security contracts.
- The Business Startup and Small Business Loans Program is an initiative
based on successful Ministry of Labor and Social Affairs (MOLSA) and Ministry
of Industry and Minerals (MOIM) business finance programs.
- Business finance loans are currently available through two GOI programs
(MOLSA and MOIM) and two U.S. government programs (USAID and Overseas Private
Investment Corporation ([OPIC]):
- MOLSA Program:
- Average loan size: $2,100
- Recipients: Mostly college or technical school graduates but also displaced
families, the disabled, and businesses impacted by violence
- MOIM Program:
- Average loan size: Approximately $17,244
- Recipients: Small- to medium-size enterprises
- The Iraq Mid-Market Development Loan Program, started by the Office of
Private Sector Development and OPIC, provides credit to middle-market Iraqi
companies and offers loans ranging from $500 thousand (K) to $5 million
(M) for up to 5 years with an average interest rate of 12 percent. The
program expanded to $10 M in 2007 to fund small credits in a variety of
business sectors with an emphasis on agribusiness. The loans range between
$250K and $500K.