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Thu May 17, 2007 3:05PM EDT
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BAGHDAD (Reuters) - Iraq's government has lost control of vast areas to powerful local factions and the country is on the verge of collapse and fragmentation, a leading British think-tank said on Thursday.
Chatham House also said there was not one civil war in Iraq, but "several civil wars" between rival communities, and accused Iraq's main neighbors -- Iran, Saudi Arabia and Turkey -- of having reasons "for seeing the instability there continue."
"It can be argued that Iraq is on the verge of being a failed state which faces the distinct possibility of collapse and fragmentation," it said in a report.