Classified Report Iraq insurgency Self-sustaining: Knowledge Driven Revolution

A classified U.S. government report finds that the Iraq insurgency has enough funds to sustain itself, according to a front page article in Sunday's edition of The New York Times.

"The insurgency in Iraq is now self-sustaining financially, raising tens of millions of dollars a year from oil smuggling, kidnapping, counterfeiting, corrupt charities and other crimes that the Iraqi government and its American patrons have been largely unable to prevent, a classified United States government report has concluded ," John F. Burns reports for the Times.

"The report, obtained by The New York Times, estimates that armed groups responsible for many of the insurgent and terrorist attacks across Iraq are raising between $70 million and $200 million a year from illegal activities," the article continues.

According to the Times, the classified reports estimates "that between $25 million and $100 million of the total comes from oil smuggling and other criminal activity involving the state-owned oil industry that is aided by 'corrupt and complicit' Iraqi government officials."

Excerpts from article:

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As much as $36 million a year comes from ransoms paid to save thousands of kidnapping victims in Iraq, the report said. It estimates that unnamed foreign governments — previously identified by senior American officials in Iraq as including France and Italy — paid Iraqi kidnappers an estimated $30 million in ransom last year.

A copy of the report was made available to The Times by American officials in Iraq, who said they acted in the belief that the findings could improve American understanding of the challenges facing the United States in Iraq.

The report offers little hope that much can be done, at least anytime soon, to choke off insurgent revenues. For one thing, it acknowledges how little the American authorities in Iraq know — three and a half years after the invasion that toppled Mr. Hussein — about key aspects of insurgent operations. For another, it paints an almost despairing picture of the Iraqi government's ability, or willingness, to take measures the report says will be necessary to tamp down the insurgent financing.

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