It is critical for Iraq to develop an Oil Law defining the "rights of regional and local governments and creates a fiscal and legal framework for investment," the report found. Such a framework is "essential to attract investment." Accountability in the oil sector would be improved with metering at "both ends of the supply line."

Also critical to building infrastructure is ""greater involvement by and with international partners, who should do more than just contribute money."

From the U.S., the Study Group recommends "economic assistance should be increased to a level of $5 billion per year rather than being permitted to decline." But the report cautions Washington needs to supply more than just more money. "A lack of coordination by senior management in Washington still hampers U.S. contributions to Iraq's reconstruction. Focus, priority setting, and skillful implementation are in short supply. No single official is assigned responsibility or held accountable for the overall reconstruction effort." Without coordination, U.S. taxpayer dollars will continue to be wasted. To alleviate this problem, the report recommends creating a "Senior Advisor for Economic Reconstruction in Iraq."

The report is also critical of the Administration policy of setting costs of the war outside of the normal budget process. Problems with this approach are

• "Bypassing the normal review erodes budget discipline and accountability."
• The budget requests are presented "in a confusing manner."
• Erosion of the "oversight and review" role of Congress in the budget process.

The report recommends including the costs for the war in the annual U.S. budget request starting with the 2008 fiscal year.

Conclusions