<p>WASHINGTON - The small circle of senior civilians in the Defense Department who dominated planning for postwar Iraq failed to prepare for the setbacks that have erupted over the past two months.</p>
<p>The officials didn't develop any real postwar plans because they believed that Iraqis would welcome U.S. troops with open arms and Washington could install a favored Iraqi exile leader as the country's leader. The Pentagon civilians ignored CIA and State Department experts who disputed them, resisted White House pressure to back off from their favored exile leader and when their scenario collapsed amid increasing violence and disorder, they had no backup plan.</p>