Saddam Hussein spends much of the income he receives from domestic sources and illicit trade on his inner circle and security services. His inner circle has access to specialty stores and luxury automobiles, preferential access to medical care, and large monthly stipends.

He has authorized the construction of 48 palaces and luxury residences since 1991, the estimated cost of which is in the billions of dollars. Their construction occurred at a time when the regime announced that it could not spare construction materials for home building.

Anecdotal reports indicate that Saddam provides the elite military and security services responsible for protecting him with cash and other bonuses, including vast quantities of illicitly imported alcohol and cigarettes. These individuals reportedly are involved in corruption at all levels.

A joke making the rounds among Iraqis: how can you tell an honest general or politician? They're the ones now driving taxis in Baghdad.

The contrast between the luxuries enjoyed by the elites and the stark conditions maintained by the regime elsewhere in the country is typified by the celebration of Saddam Hussein's recent birthdays.

The 2002 birthday tribute to Saddam included a monument of the dictator--containing 76 kilograms of silver--astride a golden steed on top of a tank.

The weeklong celebration included fireworks, festooned streets, bagpipers, massed dancers in stadium performances, and helicopter gunship demonstrations.

In 2000, Saddam had a three-meter-high birthday cake, the ingredients of which would have fed 100 children for 30 days.