Stepping foot into the transportation hub of Baghdad in mid-April, a U.S. Middle East policy expert recalled being "very surprised" over the visible signs marking the transition from U.S. military forces to the Iraqis themselves.

"The airport did not look like police state, it looked like a normally run airport," Patricia DeGennaro, a senior fellow at the World Policy Institute and adjunct assistant professor at New York University, told Xinhua in a recent telephone interview.

Just a month and a half after the March parliamentary elections which left no clear-cut winner, DeGennaro visited Iraq for several weeks to assess the situation as U.S. combat forces were nearing a withdrawal.

Flying into an Iraqi-headed airport, where there was "not a substantial" U.S. military presence, was an indication that the shift was underway, explained DeGennaro.

There was still a division that existed over what was controlled by Iraqis versus what was still controlled by the U.S. military, she said. In areas further south, the divisions weren't as noticeable, she noted.

"It was more clear to me that in these areas, Iraqis were actually taking a very strong lead in the governance of the city -- having their own struggle and challenge of security," DeGennaro said. "They were moving forward for sure."

With steps being taken towards Iraqi self-governance and responsibility, it can be seen by American forces assuming a supporting role, instead of directly engaging in combat operations.

But there was also a sense of apprehension felt in the air with Iraqis feeling "insecure" over their weakened military and their fear in a rise of militias as the withdrawal came closer, DeGennaro said.

The test though would come once the last brigade of U.S. combat troops left Iraq.

Deadlock remains

But more than seven months later, things are still in limbo as leaders fail to form a government, which has created a power vacuum.

"Nothing is going to be able to move forward until Iraqis get the governance in order," DeGennaro said.

Incumbent Iraqi Prime Minister Nouri al-Maliki's State of Law Alliance, a Shiite group, narrowly lost by two seats in March's elections to Al Iraqiya List, a broadly secular coalition with strong Sunni backing headed by former Prime Minister Ayad Allawi.

With neither side gaining the majority required to preside, gridlock has existed between major factions as they clash on leaders, power and on the formation of a new government.