Last August, I participated in a town-hall meeting hosted by the administrative council of Dibis, an ethnically mixed town 22 miles northwest of Kirkuk. Locals complained about everything from sporadic electricity to fertilizer shortages to potholes, and their Iraqi representatives listened attentively. It was an encouraging sight, all the more so because the month before, Coalition Provisional Authority (CPA) head L. Paul Bremer had proudly announced, in a televised speech, that "all of Iraq's main cities, and dozens of other towns, now have administrative councils." But there was a problem. Soon after his announcement, Bremer--not wanting to complicate planning for...