Active support of Latvian businessmen in rebuilding Iraq doubted by expert
Active support for Iraq from Latvian businessmen cannot be predicted, but it has no economic justification, economist Raita Karnite, director of the Economy Institute at the Latvian Academy of Sciences, commented to LETA.
Active support for Iraq from Latvian businessmen cannot be predicted, but it has no economic justification, economist Raita Karnite, director of the Economy Institute at the Latvian Academy of Sciences, commented to LETA.
The U.S. Department of State has released information about programs for rebuilding Iraq, including restoration of infrastructure, and supply of technology.
The economist explained that there is no economic motivation for the Latvian businessmen to support such efforts in Iraq. From a financial angle, there is little to gain, she said.
One of the reasons for assistance could be large costs for elimination of unsold goods which exceed the costs of goods meant for assistance. At the same time, there is a lack of information about the assistance, therefore the businessmen cannot make the necessary estimates.
Karnite mentioned unsold blankets in stock as one possibility - if it is more advantageous to send them to the war-ravaged country, then to liquidate them.
A moral aspect of the issue would be another reason for assistance, the conviction that "sacred duty" is being carried out, Karnite commented.
According to statistics, Latvian manufacturers produce about as much goods as they manage to sell, therefore they have limited stock of unsold goods. As a result, Latvia would not have huge amounts of goods for assistance, the economist believes.
Latvian businessmen who would like to participate in the program, must fill out a form which is available on the U.S. International Development Agency Internet homepage "www.usaid.gov". "Assistance for Iraq" explains U.S. goal's in rebuilding Iraq, "How Can I Helpģ" contains the form "Register to provide services".
Martins Hartmanis LETA
Copyright © LETA
The U.S. Department of State has released information about programs for rebuilding Iraq, including restoration of infrastructure, and supply of technology.
The economist explained that there is no economic motivation for the Latvian businessmen to support such efforts in Iraq. From a financial angle, there is little to gain, she said.
One of the reasons for assistance could be large costs for elimination of unsold goods which exceed the costs of goods meant for assistance. At the same time, there is a lack of information about the assistance, therefore the businessmen cannot make the necessary estimates.
Karnite mentioned unsold blankets in stock as one possibility - if it is more advantageous to send them to the war-ravaged country, then to liquidate them.
A moral aspect of the issue would be another reason for assistance, the conviction that "sacred duty" is being carried out, Karnite commented.
According to statistics, Latvian manufacturers produce about as much goods as they manage to sell, therefore they have limited stock of unsold goods. As a result, Latvia would not have huge amounts of goods for assistance, the economist believes.
Latvian businessmen who would like to participate in the program, must fill out a form which is available on the U.S. International Development Agency Internet homepage "www.usaid.gov". "Assistance for Iraq" explains U.S. goal's in rebuilding Iraq, "How Can I Helpģ" contains the form "Register to provide services".
Martins Hartmanis LETA
Copyright © LETA
