Sunni Muslims, who had governed Iraq during Saddam's rule, now feel marginalized in Iraqi politics.

The major Sunni political bloc, the Accordance Front, withdrew from Iraq's national unity government in August. On the eve of the Stockholm conference, the bloc walked out of talks to rejoin the government.

The final declaration of the conference also urges Arab states to reduce Iraq's debts.

"To further support Iraq's economic development, creditors external to the Paris Club were encouraged to consider resolving outstanding debts to Iraq on Paris Club or similar terms," says the declaration.

On the issue of sanctions, UN Secretary General Ban Ki-moon said this is something that the UN Security Council should decide.

"As secretary general, I will try to help where I can, in coordination with Security Council members," said Ban.

"While Iraq, in close coordination with the international community, moves to address all the challenges which it faces, Iraq will be able to gain the credibility, confidence and trust from the international community in trying to eliminate all the elements which have led the Iraqi government to (be put) under Chapter VII sanctions," he said.

The Stockholm conference was held to evaluate the situation in Iraq one year after the launch of the International Compact with Iraq, under which Iraq promised reforms in exchange for greater international support.

The participants hailed progress in Iraq five years after the US-led invasion in 2003.

"While noting the continuing political, security and humanitarian challenges facing Iraq, the participants of the Stockholm conference recognized the important efforts made by the (Iraqi) government to improve security and public order and combat terrorism and sectarian violence across Iraq," reads the declaration.

Ban was upbeat about the improvement of the situation in Iraq.

"Indeed, notable progress has been made in all three pillars of the (International) Compact – in the security, political and economic fields, despite the challenges," Ban said in his opening speech.

"If I were asked to use one word to describe the situation in Iraq today, I would choose the word 'hope'," he said.

(Xinhua News Agency May 30, 2008)