A two-day Madrid conference aims to encourage other countries to help Iraq get back on its feet.

BAGHDAD, Iraq (AP) – Boxes of washing machines, TVs and air conditioners spill onto the sidewalks of Karada Street, the electronics marketplace that has become Baghdad’s busiest thoroughfare.

Business has been booming lately, but merchants say that under the veneer of stability, problems remain. Electricity flickers on and off several times a day. Doors close by late afternoon because of fears over crime.

As international donors gather Thursday in Madrid to ponder giving billions of dollars in aid for Iraq’s reconstruction, Iraqi business owners say foreign assistance is essential in stabilizing a nation still wracked by turmoil.

“Let’s face the fact – our economy has been destroyed completely by 20 years of war,” said merchant Tahsin Tahr. “We can’t change it unless someone gives us a push.”

Standing in his small store, Tahr, 38, is dwarfed by cardboard boxes stacked to the ceiling. He deals in flat-screen TVs, Samsung refrigerators and Daewoo air conditioners – and prices are quoted in American dollars only.

Tahir is the first to acknowledge that business has gotten better as new money – much of it coming from Iraqis newly employed by Americans and other foreigners – is flooding into the market.

“Before the war, we were lucky to sell two pieces a week. Now I sell at least five a day. Personally, my business has improved,” he said.

“But the economy is something else. We haven’t really seen progress yet. Security is getting better but it’s not something we can trust yet.”

The two-day Madrid conference, which opens Thursday, is aimed at getting other countries to share in the responsibilities of getting Iraq back on its feet.

U.S. officials have urged other countries to open their wallets for Iraq, trying to turn a hard-won U.N. resolution into billions of dollars in pledges.

The World Bank has estimated that Iraq needs approximately $36 billion over four years to restore its infrastructure and jump-start reconstruction. That is separate from the $20 billion the U.S. Congress is considering giving for security and resurrecting Iraq’s oil industry.

U.S. efforts to broaden the international commitment in Iraq got a big boost last week when the U.N. Security Council passed a unanimous resolution urging international help for Iraq and establishing a multinational force under U.S. command.

Still, Tahir’s unease is echoed elsewhere in Baghdad, where merchants say the visible signs of normalcy belie their real concerns that insecurity is stunting economic progress.

During the day, the city’s central Shurja Market is teeming with vendors hawking everything from spices to satellite dishes. Traffic jams are common as aging buses bulging with passengers jostle with battered orange-and-white taxis.

But gunfire still rattles through the night and three major suicide bombings shook the city earlier this month.

Business owners like carpet dealer Bassem al-Daraj, 26, say any long-term economic progress will only be possible when the country’s security situation is under control.

His giant rugs on display in Baghdad’s downtown shopping district, al-Daraj complained that uncontrolled crime is hurting his business.

“Yes, we are selling more, but it’s not safe. It’s not secure yet. We close our shop at 2 p.m. because there are so many gangs that will loot. We used to be open till 6 p.m. At night, we can’t even transport our goods here,” he said.

Al-Daraj says the world community, which failed to stop the U.S.-led invasion, has a responsibility to help Iraqis.

“They should help us. We lost everything in this war because the Americans were allowed to come in,” he said.

Others say the aid from foreign countries should be in the form of new businesses and investments; not just a handout.

“We are educated people. If they come and hire us for jobs, they are giving us a push and we are helping them do business in Iraq,” said Ali Mohammed, 32, who was trained as an engineer but joined his family’s grocery business.

Mohammed said Iraq’s past prominence in the region shows it has potential to regain that footing in the future.

“We are sad that Iraq is looking to other countries for aid. Before we used to be the ones to give help. People from the other Gulf nations would come here for good jobs. But Saddam has put us in this situation.”

AP-ES-10-22-03 1419EDT