In London the other day the Iraqi national football team met a team made up of MPs, mostly opponents of the war, for a friendly match.

The Iraqis won 15-0.

Six months ago the team did not even exist. But in August, after defeating several opponents, including Iran and Saudi Arabia, the men will stand to attention as Iraq’s new flag is raised at the Olympic games in Athens.

Iraq today is no bed of roses, I know. I have just come back from a tour of the country. But I don’t recognise the place I have just visited as the war zone depicted by the Arab and western media.

It is true that Saddamite leftovers and their allies have stolen enough money and arms to continue their campaign of terror and disruption for some time yet. But they have no popular following and have failed to develop a coherent national strategy. The Iraqi civil defence corps has gone on the offensive, hunting down terrorists, often with some success. At the same time attacks on the Iraqi police force have dropped 50% in the past month.

There is also good news on the economic front. In the last quarter the dinar, Iraq’s currency, has increased by almost 15% against the dollar and the two most traded local currencies, the Kuwaiti dinar and the Iranian rial.

Thanks to rising oil prices, Iraq is earning a record £41m to £44m a day. This has led to greater economic activity, including private reconstruction schemes. That money goes into a fund controlled by the United Nations but Iraqi leaders want control transferred to the new interim government, when sovereignty is transferred at the end of this month.

Despite the continuing terrorist violence Iraq has attracted more than 7m foreign visitors, mostly Shi’ites making the pilgrimage to Najaf and Karbala where (despite sporadic fighting) a building boom is under way. This year Iraq has had a bumper harvest with record crops, notably in wheat. It could become agriculturally self-sufficient for the first time in 30 years.

“Iraq has always had everything that is needed to build a successful economy,” says Heydar al-Ayyari, an Iraqi politician. “We have water and fertile land. We have oil and a hardworking people. What we lacked was freedom. Now that we have freedom we can surge ahead.”

Nor should one believe the claims of self-styled experts that the Iraqis are not ready for freedom. During the past 10 months elections have been held in 37 municipalities. In each case victory went to the moderate, liberal and secular candidates. The former Ba’athists, appearing under fresh labels, failed to win a single seat. Hardline Islamist groups collected 1% to 3% of the vote.

Iraq is like a jostling school of democracy with people coming together in clubs, associations, non-governmental organisations, tribal councils, professional guilds and trade unions to talk about the future now that Saddam Hussein’s one-party state has disintegrated.

On my visit to southern Iraq I attended many meetings in mosques, shops in the souks and abandoned office buildings. Everywhere Iraqis were busy using their newly won freedom of expression to discuss their political future.

Yet this is the one area in which the coalition has done little. Despite the fact that President George W Bush has promised to help Iraq to become a model of constitutional government for the Muslim world, there has been no effort to provide training and logistical support for the 30 or so parties that will contest the election in January.