Friday, August 29, 2008

My latest adventure!


My work in Iraq involves a USAID funded program designed to assist in the revitalization of agribusinesses in selected areas of Iraq. Many of these businesses were either damaged or looted during the war and have not been operational since. Some of these businesses had ceased to operate years before the war due to policies of the Saddam Hussein regime. Some of these businesses were formerly state owned.

Often the business owner has to travel to our compound because we cannot get to their location. At times we work through other local consulting firms to whom we provide guidance on what needs to be done. One way or another we work with the business owner to develop a business plan that lays out what needs to be done to get the business up and running and then determine where the investment and working capital can be obtained. The project has resources to finance some of the investment.

As part of the development of these businesses we are financing and importing improved seeds and plant material, much of which has genetically deteriorated. In the livestock sector we are working on improved animal nutrition by rehabilitating feed mills and developing rations designed for each type of animal.

Our work is being done in an environment of lax security that leads to much crime in the both the countryside and the cities. In addition, much of the basic infrastructure is in a state of disrepair. It is hard to believe that after more than five years of occupation, we have not been able to put the electric grid back together. We have grid power about three hours a day and that is here in Baghdad. Iraq is a very fertile region and has tremendous agricultural potential, but agriculture here requires irrigation. The extensive irrigation systems have been neglected for years. Water has to be pumped and the pumps are electric! Our estimate is that rehabilitation of the system would require about one billion dollars. Keep in mind that Iraq is exporting about 56 billion dollars of oil a year.

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