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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (63261)	2/2/2007 12:26:30 PM
From: mishedlo	Read Replies (2) \| Respond to of 116555

CR did you read the full underlying doc? Amazing Prospects for Iraq’s Stability: A Challenging Road Ahead Key Judgments Iraqi society’s growing polarization, the persistent weakness of the security forces and the state in general, and all sides’ ready recourse to violence are collectively driving an increase in communal and insurgent violence and political extremism. Unless efforts to reverse these conditions show measurable progress during the term of this Estimate, the coming 12 to 18 months, we assess that the overall security situation will continue to deteriorate at rates comparable to the latter part of 2006. Nevertheless, even if violence is diminished, given the current winner-take-all attitude and sectarian animosities infecting the political scene, Iraqi leaders will be hard pressed to achieve sustained political reconciliation in the time frame of this Estimate. Despite real improvements, the Iraqi Security Forces (ISF)—particularly the Iraqi police—will be hard pressed in the next 12-18 months to execute significantly increased security responsibilities, and particularly to operate independently against Shia militias with success. Sectarian divisions erode the dependability of many units, many are hampered by personnel and equipment shortfalls, and a number of Iraqi units have refused to serve outside of the areas where they were recruited. The Intelligence Community judges that the term “civil war” does not adequately capture the complexity of the conflict in Iraq, which includes extensive Shia-on-Shia violence, al-Qa’ida and Sunni insurgent attacks on Coalition forces, and widespread criminally motivated violence. Nonetheless, the term “civil war” accurately describes key elements of the Iraqi conflict, including the hardening of ethno-sectarian identities, a sea change in the character of the violence, ethno-sectarian mobilization, and population displacements. Iraq’s neighbors influence, and are influenced by, events within Iraq, but the involvement of these outside actors is not likely to be a major driver of violence or the prospects for stability because of the self-sustaining character of Iraq’s internal sectarian dynamics. A number of identifiable internal security and political triggering events, including sustained mass sectarian killings, assassination of major religious and political leaders, and a complete Sunni defection from the government have the potential to convulse severely Iraq’s security environment. Should these events take place, they could spark an abrupt increase in communal and insurgent violence and shift Iraq’s trajectory from gradual decline to rapid deterioration with grave humanitarian, political, and security consequences. Three prospective security paths might then emerge: • Chaos Leading to Partition. With a rapid deterioration in the capacity of Iraq’s central government to function, security services and other aspects of sovereignty would collapse. Resulting widespread fighting could produce de facto partition, dividing Iraq into three mutually antagonistic parts. Collapse of this magnitude would generate fierce violence for at least several years, ranging well beyond the time frame of this Estimate, before settling into a partially stable end-state. • Emergence of a Shia Strongman. Instead of a disintegrating central government producing partition, a security implosion could lead Iraq’s potentially most powerful group, the Shia, to assert its latent strength. • Anarchic Fragmentation of Power. The emergence of a checkered pattern of local control would present the greatest potential for instability, mixing extreme ethno-sectarian violence with debilitating intra-group clashes. ..... ..... dni.gov