Necessity
Countertrade also occurs when countries lack sufficient hard currency, or when other types of market trade are impossible.
In 2000, India and Iraq agreed on an "oil for wheat and rice" barter deal, subject to UN approval under Article 50 of the UN Persian Gulf War sanctions, that would facilitate 300,000 barrels of oil delivered daily to India at a price of $6.85 a barrel while Iraq oil sales into Asia were valued at about $22 a barrel. In 2001, India agreed to swap 1.5 million tonnes of Iraqi crude under the oil-for-food program.
The Security Council noted: "... although locally produced food items have become increasingly available throughout the country, most Iraqis do not have the necessary purchasing power to buy them. Unfortunately, the monthly food rations represent the largest proportion of their household income. They are obliged to either barter or sell items from the food basket in order to meet their other essential needs. This is one of the factors which partly explains why the nutritional situation has not improved in line with the enhanced food basket. Moreover, the absence of normal economic activity has given rise to the spread of deep-seated poverty."
Read more about this topic: Counter Trade
Famous quotes containing the word necessity:
“We need not have the loftiest mind to understand that here is no lasting and real satisfaction, that our pleasures are only vanity, that our evils are infinite, and, lastly, that death, which threatens us every moment, must infallibly place us within a few years under the dreadful necessity of being forever either annihilated or unhappy.”
—Blaise Pascal (1623–1662)
“The desire to serve the common good must without fail be a requisite of the soul, a necessity for personal happiness; if it issues not from there, but from theoretical or other considerations, it is not at all the same thing.”
—Anton Pavlovich Chekhov (1860–1904)
“The sadness of the women’s movement is that they don’t allow the necessity of love. See, I don’t personally trust any revolution where love is not allowed.”
—Maya Angelou (b. 1928)