BAGHDAD, Aug. 14, 2007 – Fagah Al Dhahab needs money -- about $4 million, to hear him tell it. Dhahab is the director general of the Hillah textiles company. His cluster of factories in the capital of Iraq’s Babil province represents one piece of a network of state-run industries that dotted Iraq under Saddam Hussein, providing jobs and consumer goods, but also impeding competitive growth as lynchpins of Iraq’s controlled economy. Dhahab’s operations are ongoing but suffering, victims of inadequate funding, supply shortages, understaffing and a paucity of electricity. In July, the factory’s output was 450,000 meters of fabric. Before...