Baghdad is the capital of Iraq, it is also the largest city in the country.
On January 1, 2009, more than five years after the 2003 invasion, the United States formally handed control of the heavily-fortified Green Zone portion of Baghdad to Iraqi forces.Los Angeles Times: U.S. hands control of Baghdad's Green Zone to Iraq (January 2, 2009)
Reconstruction
After the 2003 U.S. invasion, Baghdad received considerable damage to its infrastructure. As of March 2008, electricity and running water had not been fully restored. The city also has a sewage problem, which has contaminated drinking water.
As part of the rebuilding process, Coalition Forces and the Iraqi Government have created the Joint Reconstruction Operations Center to help expedite the rebuilding process.GlobalSecurity.org: Joint Reconstruction Office Addresses Baghdad’s Infrastructure
Culture
Not only is Baghdad the capital city of Iraq, but it is also the cultural center of the country. It's home to the National Museum of Iraq, which was only open to Saddam Hussein and his close friends during Saddam's presidency, and the Iraq National Library and Archive and Baghdad Zoo.
Baghdad is also home to several popular Iraqi football teams including Al Quwa Al Jawiya and Al Zawra, Al Shurta.