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10.4  |  Conclusions: Reconstruction
Support for UK business
132.  The Government initially adopted a low‑key approach to lobbying for UK business,
to avoid giving “undue prominence” to commercial interests.40 From March 2003, in
response to pressure from UK companies, it gradually stepped up its efforts.
133.  The US (including USAID, the US Army Corps of Engineers and the CPA) was
the major source of reconstruction contracts during the Occupation. The Government’s
objective was to ensure a “level playing field” for UK companies.41 The US made
clear to the UK that, while it welcomed the participation of UK companies, there was
no “special deal”.
134.  A senior UK Trade and Investment (UKTI) official, writing in December 2003,
reported that:
“It took time, initially, to persuade Ministers that this [promoting UK business] was a
legitimate objective that the Government should be seen to be promoting actively …
“But the departments responsible for overseeing this co‑ordination [on post‑conflict
Iraq] made clear at an early stage that UK commercial interests were a lower priority
than other aspects of reconstruction. The result … was that the contribution that the
private sector could make to post‑conflict reconstruction was less well registered.”42
The Government’s approach to post‑conflict reconstruction
135.  The Government began a review of the UK’s approach to post‑conflict
reconstruction in September 2003.
136.  The inter‑departmental Post‑Conflict Reconstruction Unit (PCRU) was established
in September 2004. It became operational during 2005 and in December 2007 was
renamed the Stabilisation Unit (SU).
137.  The PCRU and SU focused their activity on Afghanistan. They made limited, but
valuable, contributions in Iraq.
138.  Since 2007, the SU has continued to evolve in response to a changing strategic
and policy framework shaped by:
the 2008 and 2010 National Security Strategies (NSS);
the 2010 Strategic Defence and Security Review (SDSR); and
the 2011 Building Stability Overseas Strategy (BSOS).
40  Minute Henderson to Symons, 12 February 2003, ‘Iraq: Post‑Conflict Commercial Issues’.
41  Letter Zimmer to Rycroft, 10 October 2003, ‘Iraq: Update on Commercial Issues’ attaching Paper UKTI,
10 October 2003, ‘Iraq: Update on Commercial Issues’.
42  Minute Warren to Haddrill, 10 December 2003, ‘Post‑Conflict Resolution: Iraq’.
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