What restored sovereignty means for Iraq's economy, security and politics

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The Independent Online

POLITICS

Interim government led by Prime Minister Iyad Allawi has "full sovereignty" according to the UN Security Council resolution. But it cannot make long-term policy decisions and has only limited control over making international agreements. It will be monitored by a national council with 100 members, to be chosen through a national conference in Baghdad in July.

SECURITY

Iraq does not have control over its borders. It will rely on about 160,000 US and coalition soldiers for internal security while police and armed forces are trained. A UN resolution gives the US-run multinational force authority "to take all necessary measures to contribute to the security and stability in Iraq". The interim government has the right to ask the troops to leave but has said it has no intention of doing so. The Iraqi government controls Iraqi soldiers, police and the national guard.

COALITION PROVISIONAL AUTHORITY

Paul Bremer's job as head of the Coalition Provisional Authority is dissolved and the CPA is abolished. It will be replaced by the largest US embassy in the world headed by a new ambassador, John Negroponte.

OIL

The United States and Britain will transfer control of Iraqi oil and gas revenue, now deposited in a UN-approved Iraq Development Fund, to the interim government. An international advisory board, including an Iraqi representative, will stay on to audit accounts but has no power to stop expenditures. Eight oil advisers from the US-led occupation authority will leave the country. Four will remain and advise the oil ministry while technically attached to the US embassy.

RECONSTRUCTION.

The US will manage the spending of $18bn in economic aid that it has pledged for post-war reconstruction. The interim constitution, agreed last March, said: "The interim government will administer Iraq's affairs by providing for the welfare and security of the Iraqi people, promoting reconstruction and economic development".

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