In many places, there is no electricity, clean water or rubbish services, the charity warned.
However, there have been some recent successes in Iraq.
Iraqi police captured the former finance minister, Hikmat Ibrahim al-Azzawi, and handed him over to US forces. He was a key member of Saddam Hussein's government.
In other Iraq news:
Ali Ismael Abbas, the little boy who lost both his arms in an air raid, is going to receive the very best false limbs available, the doctors who are treating him said.
An investigation's being held into the death of a British soldier who died in Iraq. It's possible that he wasn't wearing any body armour.
US Marines have withdrawn from Baghdad and have handed over responsibility to regular US army troops.