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Consistent with the literature on state building, failed states, peacekeeping and foreign assistance, this book argues that budgeting is a core state activity necessary for the operation of a functional government. Employing a historical institutionalist approach, this book first explores the Ottoman, British and Ba'athist origins of Iraq's budgetary institutions. The book next examines American pre-war planning, the Coalition Provisional Authority's rule-making and budgeting following the invasion of Iraq in 2003, and the mixed success of the Coalition's capacity-building programs initiated throughout the occupation. This book sheds light on the problem of 'outsiders' building states, contributes to a more comprehensive evaluation of the Coalition in Iraq, addresses the question of why Iraqis took ownership of some Coalition-generated institutions, and helps explain the nature of institutional change.