The Next L.A. / Reinventing Our Future : THE ECONOMY : IDEA FILE: The Big Export Push.

How It Works

Government aids would-be exporters through a combination of information, technical assistance and financial support. Public-private efforts to enhance the transportation infrastructure, such as the proposed Alameda Corridor, should proceed.

Benefits

Exports are considered a major area of future growth for the local and national economies and create jobs by drawing money from overseas.

Short-Term or Long-Term Impact?

Some export financing already exists through the government, such as the state’s Export Finance office. But experts believe that perhaps 75% of potential exporters aren’t even aware of opportunities. Already, international trade--imports and exports--helps support some 800,000 jobs in Southern California, estimates Richard Davis of the California Trade and Commerce Agency.

Supporters

Most international economists and entrepreneurs embrace such a priority. They argue it is essential to promote Southern California’s position as a trade center, especially with nations in the Pacific and Asia.

Opponents

Some politicians and business executives argue that export aid wastes government money, because Southern California exports are growing in response to market forces.

The Costs

The state already spends about $3 million annually on export-financing guarantees, information, marketing services and overseas trade promotion. Modest cost increases could focus on spreading information and know-how. The private sector would bear costs through such proposals as the Alameda Corridor--a $1.8-billion rail and truck route between downtown Los Angeles and the Port of Los Angeles, to be partly financed by per-train user fees.

REALITY CHECK

Very good chances. Many government officials and entrepreneurs are enthusiastic about exports as a growth area.