By all indications, the war in Iraq is about to end. Baghdad has fallen, with U.S. and British forces having seized key government buildings in the city. Surprisingly, they have met little organized resistance from Iraqi President Saddam Hussein's loyal troops and militias. It comes as a great relief that the conflict is proving short-lived.
When the war began three weeks ago, fears of prolonged hostilities were gripping the world economy. Now the specter of a wartime recession seems to have all but disappeared. Concerns about oil prices have subsided. Still, longer-term economic prospects remain cloudy, largely for reasons that have nothing to do with the fighting.
The central concern is political. If military victory has come relatively easily, winning the peace is more difficult and more crucial. Iraq is descending into anarchy as it frees itself from the iron grip of a brutal dictatorship. Given deteriorating security and rampant looting, the coalition forces face the urgent task of restoring order and civility.