Iraqi President Saddam Hussein looks over a model of a new victory palace

December 12, 1999
Web posted at: 11:31 p.m. EST (0431 GMT)

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From staff and wire reports

BAGHDAD, Iraq (CNN) -- Gone are mass baby funerals and public mourning as ways of expressing Iraq's anger over U.N. economic sanctions the nation says are hurting its people.

Instead, Iraqi President Saddam Hussein is encouraging new construction in Baghdad -- to show the country's enemies it can prosper despite the sanctions imposed after Iraq invaded Kuwait in 1990.

Saddam even is planning a building himself -- a new victory palace to replace one damaged during the 1991 Gulf War.

But most Iraqis will have to be content with something more modest. Iraqis must save for years to build the most basic home, even with labor costs at pennies an hour. Building an average house costs $2,000.

Millions of Iraqis struggle just to feed their families

The U.N. Security Council has delayed until at least Monday a vote on a proposed resolution that would return arms inspectors to Iraq and move toward suspending the sanctions. Progress on disarmament has been required by the United Nations before the sanctions will be lifted.

To stretch their money, Iraqis have become masters of recycling. Home builders buy bricks, steel bars, windows and doors taken from demolished houses.

Those with wealth, however, commission homes costing hundreds of thousands of dollars. Engineers say much of the construction capital comes from Iraqis abroad who send money home.

This is one way some Iraqis prosper despite the sanctions. Those who have money are beginning to buy luxury goods that were banned during the Gulf War.

On a weekend night, traffic clogs the city's most upscale neighborhoods, where new shops and restaurants are springing up.

"If you are a businessman or part of the middle class, you can afford to eat out. If you are a government employee or a laborer, it's impossible," one Iraqi said.

Taking the family out to dinner can cost up to $10, much more than most government workers earn in a month.

Last week, the Security Council voted to extend the oil- for-good program in Iraq for six months. Under the program, Iraq can sell $5.2 billion worth of oil during that period to buy humanitarian supplies.

While Iraq has been pressing for years to have the sanctions lifted as soon as possible, now the government seems to have a new message: It will be fine with or without economic restrictions.

Correspondent Jane Arraf and Reuters contributed to this report.

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