According to Iraqi Prime Minister Haider al-Abadi, the country needs up to US$100 billion to fix its crumbling infrastructure and cities devastated by the Islamic State.

The United States does not plan to announce a financial contribution to Iraq's rebuilding efforts in the upcoming conference in Kuwait after the nation's infrastructure was damaged during its war against Islamic State forces.

International relations experts claim the move will undermine the United States' international standing. Former High Official of the U.S. Agency for International Development (USAID) Jeremy Konyndyk has warned that not helping with reconstruction could set the stage for "a new insurgency."

According to Iraqi Prime Minister Haider al-Abadi, the country needs up to US$100 billion to fix its crumbling infrastructure and cities devastated by the Islamic State.

A U.S. official, speaking on condition of anonymity, claimed "the immediate stabilization needs remain vast, and limited U.S. government resources alone cannot meet these current and pressing needs, let alone consider supporting long-term reconstruction."

Another U.S. official said: "We are not planning to announce anything," but noted that U.S. Secretary of State Rex Tillerson, due to attend the Kuwait conference, may yet decide to announce a contribution.

Washington is encouraging private-sector investment and expecting Sunni regional power Saudi Arabia to contribute as part of a strategy to reduce Iran's influence in Iraq.

The U.S. administration would be fulfilling a promise by President Donald Trump, who said during his 2016 presidential campaign that, if he was elected, "the era of nation-building will be ended."

Former U.S. Ambassador to Iraq James Jeffrey has justified Washington's decision, saying the United States had already "poured billions and billions of dollars into Iraq" to fight the Islamic State.

However, analysts argue the emergence of the Islamic State group was only possible due to the power vacuum the United States created when it invaded Iraq and toppled Saddam Hussein.