Want to Save Iraq? Invest.

The best way to stabilize Iraq is by helping its economy. And if America doesn't, others will.

Paul Brinkley, NEWSWEEK

America faces a hidden enemy in Iraq—one often overlooked but arguably just as dangerous as the insurgency. This enemy fosters violence, inspires hate and undermines security; U.S. commanders estimate it may account for half of U.S. casualties suffered since the fall of Saddam Hussein. What is this lurking menace? Iraq's deep economic problems.

Talking about the Iraqi economy may seem superfluous today, as the United States and the world grapple with their own fiscal turmoil. But fixing Iraq's economy is critical to success there. It will affect the safety of U.S. troops and the long-term security of every American.

The irony of Iraq's present crisis is that the country enjoys great advantages: nearly 80 percent literacy and a large professional class. Though the country was once a rising economic power, the Iran-Iraq War, the first gulf war and 12 years of U.N. sanctions have had a devastating impact. After the fall of Saddam, average Iraqis had high hopes things would improve. But standing down the Iraqi Army, removing the majority of government officials and bureaucrats and effectively shutting down the state-supported industrial economy put thousands of Iraqis out of work. Economic activity ground to a halt.

By May 2006, these dire circumstances were helping fuel the insurgency. Captured fighters consistently told U.S. commanders they'd been driven to their deeds by their desperate need for money, which insurgent leaders were paying in return for acts of violence. With unemployment over 50 percent in parts of the country, many idle young men saw no other opportunities.

Over the past two years, however, as part of the counterinsurgency strategy applied by Gen. David Petraeus, the Coalition and the Iraqi government have begun addressing Iraq's economic problems. More than 50 major industrial operations have reopened, and thousands of small- to medium-size private companies have been awarded government contracts, stimulating private-sector growth. Almost 200 private bank branches have been automated and linked to international financial systems, beginning the transition of Iraq from a cash-based economy and offering financial services critical to local development. Agricultural experts from top universities have embedded with U.S. troops, helping farmers and food producers.

As security has improved, multinational companies have begun establishing operations—and not just in Iraq's oil sector. U.S. efforts since the summer of 2006 have led to the restoration of 100,000 jobs, and it's estimated that hundreds of thousands more have been created as a secondary and tertiary result. This is a good start. But in a country of 29 million people with 6 million potential workers, much remains to be done.

The value of Western investment in Iraq is hard to overstate. Commercial ties break down cultural barriers and knit societies together, benefiting both the Middle East and the West. As Iraq's security improves, these ties should grow. So will the fact that Iraq's leaders are performing more basic tasks of government.

The next U.S. administration will face fiscal pressures at home and may be tempted to reduce nonmilitary activities in Iraq. But economic disengagement would leave a void other nations, like Iran and Russia, would fill. It would be tragically shortsighted to have spent billions of dollars and the blood of U.S. troops to liberate Iraq only to leave its economic interests in the hands of nations that don't share Western values and ideals.

Now is the time to encourage America's business community to engage in a long-term partnership with Iraq, to invest and develop Iraq's resources and create cultural and educational ties. These will directly benefit the U.S. economy: Iraqis are eager to gain access to U.S. goods and services, as recent contracts for Boeing aircraft, GE turbines and Case farm tractors show.

It's time to open the economic doors for the Iraqi people through approaches such as tax incentives or favored trade status. Iraqis have seen U.S. troops help protect them and restore security, but now more nonmilitary help should be extended as well. The future of America's relationship with a young and vital Iraq hangs in the balance. Despite the domestic turmoil at home, Americans must rise to this challenge. U.S. security, now and in the future, depends on it.

Brinkley is deputy undersecretary of defense for business transformation. Since the spring of 2006, he has led a team of business people and engineers embedded with U.S. military forces working to restore economic opportunities to the people of Iraq.