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."
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Famous quotes containing the word necessity:
“This, indeed, has always been the fate of the few that have professed scepticism, that, when they have done what they can to discredit their senses, they find themselves, after all, under a necessity of trusting to them. Mr. Hume has been so candid as to acknowledge this; and it is no less true of those who have shewn the same candour; for I never heard that any sceptic runs his head against a post, or stepped into a kennel, because he did not believe his eyes.”
—Thomas Reid (1710–1796)
“Nothing in the universe is contingent, but all things are conditioned to exist and operate in a particular manner by the necessity of the divine nature.”
—Baruch (Benedict)
“There was a time when the average reader read a novel simply for the moral he could get out of it, and however naïve that may have been, it was a good deal less naïve than some of the limited objectives he has now. Today novels are considered to be entirely concerned with the social or economic or psychological forces that they will by necessity exhibit, or with those details of daily life that are for the good novelist only means to some deeper end.”
—Flannery O’Connor (1925–1964)