This report discusses the situation immediately following the completion of the U.S. withdrawal from Iraq on December 18, 2011, when relations among major political factions worsened substantially, threatening Iraq's stability and the legacy of the U.S. intervention in Iraq. It includes an overview of historical and current political, military, and governance issues as well as an analysis of Iraq in relation to the other nations in the region.

Slated as an economic outlet for Germany, the Baghdad Railway was designed to funnel political influence into the strategically viable regions of the Near East. The Railway was also designed to enrich Germany's coffers with natural resources with natural resources and trade with the Ottomans, their subjects, and their port cities... Over time, the Railway became the only significant route for Germany to reach its "place in the sun," and what began as an international enterprise escalated into a bid for diplomatic influence in the waning Ottoman Empire.