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Insurgents cripple Iraq's economy through sabotage, attacks.

Knight Ridder/Tribune News Service

| August 01, 2004 | Dilanian, Ken | COPYRIGHT 2004 Knight-Ridder/Tribune News Service. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Ken Dilanian

BAGHDAD, Iraq _ Four months ago, Walid K. Issa Taha was full of hope for Iraq's economic prospects. These days, that hope has vanished.

Taha represents foreign companies trying to do business in Iraq, and one of his clients is a Kuwaiti firm that drew up plans for a $500 million hotel and shopping complex in Baghdad's affluent Mansour neighborhood.

But now, "they don't call anymore," and Taha rarely leaves his office for fear of being kidnapped. "There's nothing happening," he said. "The security situation has ruined everything."

By snatching foreign workers, attacking civilian convoys and sabotaging infrastructure, insurgents have crippled Iraq's badly needed economic recovery. Despite the lifting of international sanctions and economic reforms that opened Iraq to foreign companies, little foreign investment has materialized. Companies _ even multinationals that do business in the farthest reaches of the developing world _ aren't willing ...

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