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The Report of the Iraq Inquiry
116.  Despite that statement, and the significant changes on the ground (including the
deterioration in the security situation and the transition from Occupation to a sovereign
Iraqi Government), DFID did not undertake any further, structured strategic reviews of its
engagement in Iraq.
117.  The focus on the South continued during 2004 and 2005, driven by the
Government’s assessment that the South was not a priority for the US, the lack of
funding from the central Iraqi Government, and the continuing absence of other donors,
the World Bank and UN.
118.  Second, from October 2005, when DFID indicated that it would refocus on building
the capacity of the Iraqi Government in Baghdad. Existing projects in the South
would continue to completion but, given the security situation, no new projects would
be started.
119.  The Inquiry considers that DFID missed several opportunities to address
hard, strategic questions over the scale and focus of its programme in Iraq and the
contribution that it could make to achieving broader UK objectives. Addressing those
questions did not necessarily require a formal review of the Country Assistance Plan,
but did require a structured process which:
included a comprehensive assessment of the political, economic and social
context in Iraq;
considered the lessons that DFID had identified and how it would respond
to them;
challenged DFID’s approach in Iraq;
engaged and reflected the policies and priorities of the Iraqi Government,
the US and other international partners; and
engaged other departments, in particular to consider how the reconstruction
effort could contribute to broader UK objectives.
120.  Particular opportunities were:
in July 2003, when the UK took on civilian leadership of CPA(South) and in
doing so created a “British fiefdom” in the South;
in autumn 2003, as the Government sought to respond to deteriorating security
in the South by providing support for essential services. DFID should have taken
steps to resolve the emerging tension between Ministers’ desire to accelerate
reconstruction in the South, and the lack of resources to do so;
in October 2004, as the insurgency took hold across Iraq and Mr Blair sought to
increase the impact of DFID’s reconstruction effort, in particular in cities regained
from insurgent control;
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