GOVERNANCE
By the end of 2006:
The Central Bank of Iraq will raise interest rates to 20 percent and appreciate the Iraqi dinar by 10 percent to combat accelerating inflation.
Iraq will continue increasing domestic prices for refined petroleum products and sell imported fuel at market prices.
RECOMMENDATION 24: The contemplated completion dates of the end of 2006 or early 2007 for some milestones may not be realistic. These should be completed by the first quarter of 2007.
RECOMMENDATION 25: These milestones are a good start. The United States should consult closely with the Iraqi government and develop additional milestones in three areas: national reconciliation, security, and improving government services affecting the daily lives of Iraqis. As with the current milestones, these additional milestones should be tied to calendar dates to the fullest extent possible.
2. National Reconciliation
National reconciliation is essential to reduce further violence and maintain the unity of Iraq.
U.S. forces can help provide stability for a time to enable Iraqi leaders to negotiate political solutions, but they cannot stop the violence—or even contain it—if there is no underlying political agreement among Iraqis about the future of their country.