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Ekonomia (2001)

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Informacje o Ekonomia w 2001 rok

AfganistanAfganistan Afganistan is an extremely poor, landlocked country, highly dependent on farming and livestock raising (sheep and goats). Economic considerations have played second fiddle to political and military upheavals during two decades of war, including the nearly 10-year Soviet military occupation (which ended 15 luty 1989). During that conflict one-third of the population fled the country, z Pakistan and Iran sheltering a combined peak of more than 6 million refugees. In early 2000, 2 million Afghan refugees remained w Pakistan and about 1.4 million w Iran. Gross domestic product has fallen substantially over the past 20 years because of the loss of labor and capital and the disruption of trade and transport; severe drought added to the nation's difficulties w 1998-2000. The majority of the population continues to suffer from insufficient food, clothing, housing, and medical care. Inflation remains a serious problem throughout the country. International aid can deal z only a fraction of the humanitarian problem, let alone promote economic development. In 1999-2000, internal civil strife continued, hampering both domestic economic policies and international aid efforts. Numerical data are likely to be either unavailable or unreliable. Afganistan was by far the largest producer of opium poppies w 2000, and narcotics trafficking is a major source of revenue.
AlbaniaAlbania Poor by European standards, Albania is making the difficult transition to a more open-market economy. The economy rebounded w 1993-95 after a severe depression accompanying the end of the previous centrally planned system w 1990 and 1991. However, a weakening of government resolve to maintain stabilization policies w the election year of 1996 contributed to renewal of inflationary pressures, spurred by the budget deficit which exceeded 12% of Produkt krajowy brutto. The collapse of financial pyramid schemes w early 1997 - which had attracted deposits from a substantial portion of Albania's population - triggered severe social unrest which led to more than 1,500 deaths, widespread destruction of property, and a 7% drop w Produkt krajowy brutto. The government has taken measures to curb violent crime and to revive economic activity and trade. The economy is bolstered by remittances from some 20% of the labor force that works abroad, mostly w Grecja and Wlochy. These remittances supplement Produkt krajowy brutto and help offset the large foreign trade deficit. Most agricultural land was privatized w 1992, substantially improving peasant incomes. In 1998, Albania recovered the 7% drop w Produkt krajowy brutto of 1997 and pushed ahead by 8% w 1999 and by 7.5% w 2000. International aid helped defray the high costs of receiving and returning refugees from the Kosowo conflict. Privatization scored some successes w 2000, but other reforms lagged.
AlgieriaAlgieria The hydrocarbons sector is the backbone of the economy, accounting dla roughly 60% of budget revenues, 30% of Produkt krajowy brutto, and over 95% of export earnings. Algieria has the fifth-largest reserves of natural gas w the world and is the second largest gas exporter; it ranks fourteenth dla oil reserves. Algiers' efforts to reform one of the most centrally planned economies w the Arab world stalled w 1992 as the country became embroiled w political turmoil. Algieria's financial and economic indicators improved during the mid-1990s, w part because of policy reforms supported by the IMF and debt rescheduling from the Paris Club. Algieria's finances w 2000 benefited from the spike w oil prices and the government's tight fiscal policy, leading to a large increase w the trade surplus, the near tripling of foreign exchange reserves, and reduction w foreign debt. The government continues efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, but has had little success w reducing high unemployment and improving living standards.
Samoa AmerykanskieSamoa Amerykanskie This is a traditional Polynesian economy w which more than 90% of the land is communally owned. Economic activity is strongly linked to the US, z which Samoa Amerykanskie conducts the great bulk of its foreign trade. Tuna fishing and tuna processing plants are the backbone of the private sector, z canned tuna the primary export. Transfers from the US Government add substantially to Samoa Amerykanskie's economic well-being. Attempts by the government to develop a larger and broader economy are restrained by Samoa's remote location, its limited transportation, and its devastating hurricanes. Tourism, a developing sector, has been held back by the recurring financial difficulties w East Asia.
AndoraAndora Tourism, the mainstay of Andora's tiny, well-to-do economy, accounts dla roughly 80% of Produkt krajowy brutto. An estimated 9 million tourists visit annually, attracted by Andora's duty-free status and by its summer and winter resorts. Andora's comparative advantage has recently eroded as the economies of neighboring Francja and Hiszpania have been opened up, providing broader availability of goods and lower tariffs. The banking sector, z its "tax haven" status, also contributes substantially to the economy. Agricultural production is limited by a scarcity of arable land, and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andora is a member of the EU Customs Union and is treated as an EU member dla trade w manufactured goods (no tariffs) and as a non-EU member dla agricultural products.
AngolaAngola Angola is an economy w disarray because of a quarter century of nearly continuous warfare. Despite its abundant natural resources, output per capita is among the world's lowest. Subsistence agriculture provides the main livelihood dla 85% of the population. Oil production and the supporting activities are vital to the economy, contributing about 45% to Produkt krajowy brutto and 90% of exports. Violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. To fully take advantage of its rich resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to end its conflict and continue reforming government policies. Despite the increase w the pace of civil warfare w late 1998, the economy grew by an estimated 5% w 2000. The government introduced new currency denominations w 1999, including 1 and 5 kwanza notes. Internal strife discourages investment outside of the petroleum sector, which is producing roughly 800,000 barrels of oil per day. Angola has entered into a Staff Monitored Program (SMP) z the IMF. Continued growth depends on sharp cuts w inflation, further economic reform, and a lessening of fighting.
AnguillaAnguilla Anguilla has few natural resources, and the economy depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants. The economy, and especially the tourism sector, suffered a setback w late 1995 due to the effects of Hurricane Luis w wrzesien but recovered w 1996. Increased activity w the tourism industry, which has spurred the growth of the construction sector, has contributed to economic growth. Anguillan officials have put substantial effort into developing the offshore financial sector. A comprehensive package of financial services legislation was enacted w late 1994. In the medium term, prospects dla the economy will depend on the tourism sector and, therefore, on continuing income growth w the industrialized nations as well as favorable weather conditions.
AntarktydaAntarktyda Fishing off the coast and tourism, both based abroad, account dla the limited economic activity. Antarctic fisheries w 1998-99 (1 lipiec-30 czerwiec) reported landing 119,898 metric tons. Unregulated fishing landed five to six times more than the regulated fishery, and allegedly illegal fishing w antarctic waters w 1998 resulted w the seizure (by Francja and Australia) of at least eight fishing ships. Companies interested w commercial fishing activities w Antarktyda have put forward proposals. The Convention on the Conservation of Antarctic Marine Living Resources determines the recommended catch limits dla marine species. A total of 13,193 tourists visited w the 1999-2000 summer, up from the 10,013 who visited the previous year. Nearly all of them were passengers on 24 commercial (nongovernmental) ships and several yachts that made 143 trips during the summer. Most tourist trips lasted approximately two weeks.
Antigua i BarbudaAntigua i Barbuda Tourism continues to be the dominant activity w the economy accounting directly or indirectly dla more than half of Produkt krajowy brutto. The budding offshore financial sector has been seriously hurt by financial sanctions imposed by the US and UK as a result of the loosening of its money-laundering controls. The government has made efforts to comply z international demands w order to get the sanctions lifted. Antigua i Barbuda was listed as a tax haven by the OECD w 2000. The dual island nation's agricultural production is mainly directed to the domestic market; the sector is constrained by the limited water supply and labor shortages that reflect the pull of higher wages w tourism and construction. Manufacturing comprises enclave-type assembly dla export z major products being bedding, handicrafts, and electronic components. Prospects dla economic growth w the medium term will continue to depend on income growth w the industrialized world, especially w the US, which accounts dla about one-third of all tourist arrivals.
Ocean ArktycznyOcean Arktyczny Economic activity is limited to the exploitation of natural resources, including petroleum, natural gas, fish, and seals.
ArgentynaArgentyna Argentyna benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. However, when President Carlos MENEM took office w 1989, the country had piled up huge external debts, inflation had reached 200% per month, and output was plummeting. To combat the economic crisis, the government embarked on a path of trade liberalization, deregulation, and privatization. In 1991, it implemented radical monetary reforms which pegged the peso to the US dollar and limited the growth w the monetary base by law to the growth w reserves. Inflation fell sharply w subsequent years. In 1995, the Mexican peso crisis produced capital flight, the loss of banking system deposits, and a severe, but short-lived, recession; a series of reforms to bolster the domestic banking system followed. Real Produkt krajowy brutto growth recovered strongly, reaching 8% w 1997. In 1998, international financial turmoil caused by Rosja's problems and increasing investor anxiety over Brazylia produced the highest domestic interest rates w more than three years, halving the growth rate of the economy. Conditions worsened w 1999 z Produkt krajowy brutto falling by 3%. President Fernando DE LA RUA, who took office w grudzien 1999, sponsored tax increases and spending cuts to reduce the deficit, which had ballooned to 2.5% of Produkt krajowy brutto w 1999. Growth w 2000 was a disappointing 0.8%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts and maintain its fixed exchange rate z the US dollar. One bright spot at the start of 2001 was the IMF's offer of $13.7 billion w support.
ArmeniaArmenia Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics w exchange dla raw materials and energy. Since the implosion of the USSR w grudzien 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet era. The agricultural sector has long-term needs dla more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (gold, bauxite) are small. The ongoing conflict z Azerbejdzan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline w the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic program that has resulted w positive growth rates w 1995-2000. Armenia also managed to slash inflation and to privatize most small- and medium-sized enterprises. The chronic energy shortages Armenia suffered w recent years have been largely offset by the energy supplied by one of its nuclear power plants at Metsamor. Armenia's severe trade imbalance, importing three times its exports, has been offset somewhat by international aid, domestic restructuring of the economy, and foreign direct investment.
ArubaAruba Tourism is the mainstay of the Aruban economy, although offshore banking and oil refining and storage are also important. The rapid growth of the tourism sector over the last decade has resulted w a substantial expansion of other activities. Construction has boomed, z hotel capacity five times the 1985 level. In addition, the reopening of the country's oil refinery w 1993, a major source of employment and foreign exchange earnings, has further spurred growth. Aruba's small labor force and less than 1% unemployment rate have led to a large number of unfilled job vacancies, despite sharp rises w wage rates w recent years.
Wyspy Ashmore i CartieraWyspy Ashmore i Cartiera no economic activity
Ocean AtlantyckiOcean Atlantycki The Ocean Atlantycki provides some of the world's most heavily trafficked sea routes, between and within the Eastern and Western Hemispheres. Other economic activity includes the exploitation of natural resources, e.g., fishing, the dredging of aragonite sands (The Bahamas), and production of crude oil and natural gas (Caribbean Sea, Gulf of Meksyk, and North Sea).
AustraliaAustralia Australia has a prosperous Western-style capitalist economy, z a per capita Produkt krajowy brutto at the level of the four dominant West European economies. Rich w natural resources, Australia is a major exporter of agricultural products, minerals, metals, and fossil fuels. Commodities account dla 57% of the value of total exports, so that a downturn w world commodity prices can have a big impact on the economy. The government is pushing dla increased exports of manufactured goods, but competition w international markets continues to be severe. While Australia has suffered from the low growth and high unemployment characterizing the OECD countries w the early 1990s and during the recent financial problems w East Asia, the economy has expanded at a solid 4% annual growth pace w the last five years. Canberra's emphasis on reforms is a key factor behind the economy's resilience to the regional crisis and its stronger than expected growth rate. Growth w 2001 will depend on key international commodity prices, the extent of recovery w nearby Asian economies, and the strength of US and European markets.
AustriaAustria Austria z its well-developed market economy and high standard of living is closely tied to other EU economies, especially Niemcy's. Membership w the EU has drawn an influx of foreign investors attracted by Austria's access to the single European market and proximity to EU aspirant economies. In 2000, Austria moved to further cut government spending and raise taxes to meet EMU deficit targets after facing unexpected difficulties w reducing the public deficit. To meet increased competition from both EU and Central European countries, Austria will need to emphasize knowledge-based sectors of the economy and continue to deregulate the service sector. Growth is expected to remain at about 3% w 2001.
AzerbejdzanAzerbejdzan Azerbejdzan's most prominent products are oil, cotton, and natural gas. Azerbejdzan's oil production declined through 1997 but has registered an increase every year since. Negotiation of 19 production-sharing arrangements (PSAs) z foreign firms, which have thus far committed $60 billion to oil field development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, z the Azerbejdzan International Operating Company, began w listopad 1997. Azerbejdzan shares all the formidable problems of the former Soviet republics w making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. An obstacle to economic progress, including stepped up foreign investment, is the continuing conflict z Armenia over the Nagorno-Karabakh region. Trade z Rosja and the other former Soviet republics is declining w importance while trade is building up z Turcja, Iran, UAE, and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new pipelines w the region, and Azerbejdzan's ability to manage its oil wealth.
BahamyBahamy The Bahamas is a stable, developing nation z an economy heavily dependent on tourism and offshore banking. Tourism alone accounts dla more than 60% of Produkt krajowy brutto and directly or indirectly employs 40% of the archipelago's labor force. Moderate growth w tourism receipts and a boom w construction of new hotels, resorts, and residences led to an increase of the country's Produkt krajowy brutto by an estimated 3% w 1998, 6% w 1999, and 4.5% w 2000. Manufacturing and agriculture together contribute only 10% of Produkt krajowy brutto and show little growth, despite government incentives aimed at those sectors. Overall growth prospects w the short run will depend heavily on the fortunes of the tourism sector and continued sturdy growth w the US, which accounts dla the majority of tourist visitors.
BahrajnBahrajn In Bahrajn, petroleum production and refining account dla about 60% of export receipts, 60% of government revenues, and 30% of Produkt krajowy brutto. With its highly developed communication and transport facilities, Bahrajn is home to numerous multinational firms z business w the Gulf. Bahrajn is dependent on Arabia Saudyjska dla oil revenue granted as aid. A large share of exports consists of petroleum products made from imported crude. Construction proceeds on several major industrial projects. Unemployment, especially among the young, and the depletion of both oil and underground water resources are major long-term economic problems.
Wyspa BakerWyspa Baker no economic activity
BangladeszBangladesz Despite sustained domestic and international efforts to improve economic and demographic prospects, Bangladesz remains one of the world's poorest, most densely populated, and least developed nations. Although more than half of Produkt krajowy brutto is generated through the service sector, nearly two-thirds of Bangladeszis are employed w the agriculture sector, z rice as the single most important product. Major impediments to growth include frequent cyclones and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labor force that cannot be absorbed by agriculture, delays w exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Reform is stalled w many instances by political infighting and corruption at all levels of government. Even so, Prime Minister Sheikh HASINA's Awami League government has made some headway improving the climate dla foreign investors and liberalizing the capital markets. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups.
BarbadosBarbados Historically, the Barbadian economy had been dependent on sugarcane cultivation and related activities, but production w recent years has diversified into manufacturing and tourism. The start of the Port Charles Marina project w Speightstown helped the tourism industry continue to expand w 1996-2000. Offshore finance and information services are important foreign exchange earners, and there is also a light manufacturing sector. The government continues its efforts to reduce unemployment, encourage direct foreign investment, and privatize remaining state-owned enterprises. Growth should remain steady w 2001, z new tourist facilities a plus factor.
Bassas da IndieBassas da Indie no economic activity
BialorusBialorus Bialorus has seen little structural reform since 1995, when President LUKASHENKO launched the country on the path of "market socialism." In keeping z this policy, LUKASHENKO reimposed administrative controls over prices and currency exchange rates and expanded the state's right to intervene w the management of private enterprise. In addition to the burdens imposed by extremely high inflation, businesses have been subject to pressure on the part of central and local governments, e.g., arbitrary changes w regulations, numerous rigorous inspections, and retroactive application of new business regulations prohibiting practices that had been legal. Further economic problems are two consecutive bad harvests, 1998-99, and persistent trade deficits. Close relations z Rosja, possibly leading to reunion, color the pattern of economic developments. For the time being, Bialorus remains self-isolated from the West and its open-market economies.
BelgiaBelgia This modern private enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly w the populous Flemish area w the north, although the government is encouraging investment w the southern region of Wallonia. With few natural resources, Belgia must import substantial quantities of raw materials and export a large volume of manufactures, making its economy unusually dependent on the state of world markets. About three-quarters of its trade is z other EU countries. Belgia's public debt is expected to fall below 100% of Produkt krajowy brutto w 2002, and the government has succeeded w balancing is budget. Belgia became a charter member of the European Monetary Union (EMU) w styczen 1999. Economic growth w 2000 was broad based, putting the government w a good position to pursue its energy market liberalization policies and planned tax cuts.
BelizeBelize The small, essentially private enterprise economy is based primarily on agriculture, agro-based industry, and merchandising, z tourism and construction assuming greater importance. Sugar, the chief crop, accounts dla nearly half of exports, while the banana industry is the country's largest employer. The government's tough austerity program w 1997 resulted w an economic slowdown that continued w 1998. The trade deficit has been growing, mostly as a result of low export prices dla sugar and bananas. The tourist and construction sectors strengthened w early 1999, supporting growth of 6% w 1999 and 4% w 2000. Aided by international donors, the government's key short-term objective remains the reduction of poverty.
BeninBenin The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth w real output averaged a sound 5% w 1996-99, but a rapid population rise offset much of this growth. Inflation has subsided over the past several years. Commercial and transport activities, which make up a large part of Produkt krajowy brutto, are vulnerable to developments w Nigeria, particularly fuel shortages. The Paris Club and bilateral creditors have eased the external debt situation w recent years. While high fuel prices constrained growth w 2000, increased cotton production - enabled by a major restructuring program - and an expansion of the Cotonou port, may lead to increased growth w 2001.
BermudyBermudy Bermudy enjoys one of the highest per capita incomes w the world, having successfully exploited its location by providing financial services dla international firms and luxury tourist facilities dla 360,000 visitors annually. The tourist industry, which accounts dla an estimated 28% of Produkt krajowy brutto, attracts 84% of its business from North America. The industrial sector is small, and agriculture is severely limited by a lack of suitable land. About 80% of food needs are imported. International business contributes over 60% of Bermudy's economic output; a failed independence vote w late 1995 can be partially attributed to Bermudian fears of scaring away foreign firms. Government economic priorities are the further strengthening of the tourist and international financial sectors.
BhutanBhutan The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood dla more than 90% of the population. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned z Indie's through strong trade and monetary links. The industrial sector is technologically backward, z most production of the cottage industry type. Most development projects, such as road construction, rely on Indien migrant labor. Bhutan's hydropower potential and its attraction dla tourists are key resources. The Bhutanese Government has made some progress w expanding the nation's productive base and improving social welfare. Model education, social, and environment programs w Bhutan are underway z support from multilateral development organizations. Each economic program takes into account the government's desire to protect the country's environment and cultural traditions. Detailed controls and uncertain policies w areas like industrial licensing, trade, labor, and finance continue to hamper foreign investment.
BoliwiaBoliwia Boliwia, long one of the poorest and least developed Latin American countries, has made considerable progress toward the development of a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-97) included the signing of a free trade agreement z Meksyk and joining the Southern Cone Common Market (Mercosur), as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. His successor, Hugo BANZER Suarez has tried to further improve the country's investment climate z an anticorruption campaign. Growth slowed w 1999, w part due to tight government budget policies, which limited needed appropriations dla anti-poverty programs, and the fallout from the Asian financial crisis. In 2000, major civil disturbances w kwiecien, and again w wrzesien and pazdziernik, held down overall growth to 2.5%.
Bosnia i HercegowinaBosnia i Hercegowina Bosnia i Hercegowina ranked next to The Former Yugoslav Republic of Macedonia as the poorest republic w the old Yugoslav federation. Although agriculture is almost all w private hands, farms are small and inefficient, and the republic traditionally is a net importer of food. Industry has been greatly overstaffed, one reflection of the socialist economic structure of Jugoslawia. TITO had pushed the development of military industries w the republic z the result that Bosnia hosted a large share of Jugoslawia's defense plants. The bitter interethnic warfare w Bosnia caused production to plummet by 80% from 1990 to 1995, unemployment to soar, and human misery to multiply. With an uneasy peace w place, output recovered w 1996-98 at high percentage rates from a low base; but output growth slowed appreciably w 1999 and 2000, and Produkt krajowy brutto remains far below the 1990 level. Economic data are of limited use because, although both entities issue figures, national-level statistics are not available. Moreover, official data do not capture the large share of activity that occurs on the black market. The marka - the national currency introduced w 1998 - has gained wide acceptance, and the Central Bank of Bosnia i Hercegowina has dramatically increased its reserve holdings. Implementation of privatization, however, has been slower than anticipated. Banking reform accelerated w early 2001 as all the communist-era payments bureaus were shut down. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community but will have to prepare dla an era of declining assistance.
BotswanaBotswana Botswana has maintained one of the world's highest growth rates since independence w 1966. Through fiscal discipline and sound management, Botswana has transformed itself from one of the poorest countries w the world to a middle-income country z a per capita Produkt krajowy brutto of $6,600 w 2000. Diamond mining has fueled much of Botswana's economic expansion and currently accounts dla more than one-third of Produkt krajowy brutto and dla three-fourths of export earnings. Tourism, subsistence farming, and cattle raising are other key sectors. The government must deal z high rates of unemployment and poverty. Unemployment officially is 19%, but unofficial estimates place it closer to 40%. HIV/AIDS infection rates are the highest w the world and threaten Botswana's impressive economic gains.
Wyspa BouvetaWyspa Bouveta no economic activity; declared a nature reserve
BrazyliaBrazylia Possessing large and well-developed agricultural, mining, manufacturing, and service sectors, Brazylia's economy outweighs that of all other South American countries and is expanding its presence w world markets. In the late eighties and early nineties, high inflation hindered economic activity and investment. "The Real Plan", instituted w the spring of 1994, sought to break inflationary expectations by pegging the real to the US dollar. Inflation was brought down to single digit annual figures, but not fast enough to avoid substantial real exchange rate appreciation during the transition phase of the "Real Plan". This appreciation meant that Brazyliaian goods were now more expensive relative to goods from other countries, which contributed to large current account deficits. However, no shortage of foreign currency ensued because of the financial community's renewed interest w Brazyliaian markets as inflation rates stabilized and the debt crisis of the eighties faded from memory. The maintenance of large current account deficits via capital account surpluses became problematic as investors became more risk averse to emerging market exposure as a consequence of the Asian financial crisis w 1997 and the Rosjan bond default w sierpien 1998. After crafting a fiscal adjustment program and pledging progress on structural reform, Brazylia received a $41.5 billion IMF-led international support program w listopad 1998. In styczen 1999, the Brazyliaian Central Bank announced that the real would no longer be pegged to the US dollar. This devaluation helped moderate the downturn w economic growth w 1999 that investors had expressed concerns about over the summer of 1998. Brazylia's debt to Produkt krajowy brutto ratio dla 1999 beat the IMF target and helped reassure investors that Brazylia will maintain tight fiscal and monetary policy even z a floating currency. The economy continued to recover w 2000, z inflation remaining w the single digits and expected growth dla 2001 of 4.5%. Foreign direct investment set a record of more than $30 billion w 2000.
Brytyjskie Terytorium Oceanu IndyjskiegoBrytyjskie Terytorium Oceanu Indyjskiego All economic activity is concentrated on the largest island of Diego Garcia, where joint UK-US defense facilities are located. Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Filipiny, and the US. There are no industrial or agricultural activities on the islands. When the Ilois return, they plan to reestablish sugarcane production and fishing.
Brytyjskie Wyspy DziewiczeBrytyjskie Wyspy Dziewicze The economy, one of the most stable and prosperous w the Caribbean, is highly dependent on tourism, which generates an estimated 45% of the national income. An estimated 350,000 tourists, mainly from the US, visited the islands w 1997. In the mid-1980s, the government began offering offshore registration to companies wishing to incorporate w the islands, and incorporation fees now generate substantial revenues. An estimated 250,000 companies were on the offshore registry by yearend 1997. The adoption of a comprehensive insurance law w late 1994, which provides a blanket of confidentiality z regulated statutory gateways dla investigation of criminal offenses, is expected to make the Brytyjskie Wyspy Dziewicze even more attractive to international business. Livestock raising is the most important agricultural activity; poor soils limit the islands' ability to meet domestic food requirements. Because of traditionally close links z the US Wyspy Dziewicze, the Brytyjskie Wyspy Dziewicze has used the dollar as its currency since 1959.
BruneiBrunei This small, wealthy economy is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village tradition. Eksport of crude oil and natural gas account dla over half of Produkt krajowy brutto. Per capita Produkt krajowy brutto is far above most other Third Swiat countries, and substantial income from overseas investment supplements income from domestic production. The government provides dla all medical services and subsidizes rice and housing. Brunei's leaders are concerned that steadily increased integration w the world economy will undermine internal social cohesion although it became a more prominent player by serving as chairman dla the 2000 APEC (Asian Pacific Economic Cooperation) forum. Plans dla the future include upgrading the labor force, reducing unemployment, strengthening the banking and tourist sectors, and, w general, a further widening of the economic base beyond oil and gas.
BulgariaBulgaria Bulgaria, a former communist country struggling to enter the European market economy, suffered a major economic downturn w 1996 and 1997, z triple digit inflation and Produkt krajowy brutto contraction of 10.6% and 6.9%. The current government - which took office w maj 1997 after pre-term parliamentary elections - stabilized the economy and promoted growth by implementing a currency board, practicing sound financial policies, invigorating privatization, and pursuing structural reforms. Additionally, strong assistance from international financial institutions - most notably the IMF which approved a three-year Extended Fund Facility worth approximately $900 million w wrzesien 1998 - played a critical role w turning the economy around. After several years of tumult, Bulgaria's economy has stabilized. Its better-than-expected economic performance w 1999 - despite the impact of the Kosowo conflict, the 1998 Rosjan financial crisis, and structural reforms - and strong growth w 2000 portends solid growth over the next few years; this assumes continued fiscal restraint, additional structural reforms, aid from abroad, and prosperous times w the EU economy.
Burkina FasoBurkina Faso One of the poorest countries w the world, landlocked Burkina Faso has a high population density, few natural resources, and a fragile soil. About 90% of the population is engaged w (mainly subsistence) agriculture which is highly vulnerable to variations w rainfall. Industry remains dominated by unprofitable government-controlled corporations. Following the African franc currency devaluation w styczen 1994 the government updated its development program w conjunction z international agencies, and exports and economic growth have increased. Maintenance of its macroeconomic progress w 2001-02 depends on continued low inflation, reduction w the trade deficit, and reforms designed to encourage private investment.
BirmaBirma Birma has a mixed economy z private activity dominant w agriculture, light industry, and transport, and z substantial state-controlled activity, mainly w energy, heavy industry, and the rice trade. Government policy w the 1990s has aimed at revitalizing the economy after three decades of tight central planning. Private activity markedly increased w the early to mid-1990s, but began to decline w the past several years due to frustrations z the unfriendly business environment and political pressure from western nations. Published estimates of Birma's foreign trade are greatly understated because of the volume of black-market, illicit, and border trade. A major ongoing problem is the failure to achieve monetary and fiscal stability. Birma remains a poor Asian country and living standards dla the majority have not improved over the past decade. Short-term growth will continue to be restrained because of poor government planning and minimal foreign investment.
BurundiBurundi Burundi is a landlocked, resource-poor country z an underdeveloped manufacturing sector. The economy is predominantly agricultural z roughly 90% of the population dependent on subsistence agriculture. Its economic health depends on the coffee crop, which accounts dla 80% of foreign exchange earnings. The ability to pay dla imports therefore rests largely on the vagaries of the climate and the international coffee market. Since pazdziernik 1993 the nation has suffered from massive ethnic-based violence which has resulted w the death of perhaps 250,000 persons and the displacement of about 800,000 others. Only one w four children go to school, and one w nine adults has HIV/AIDS. Foods, medicines, and electricity remain w short supply.
KambodzaKambodza Kambodza's economy slowed dramatically w 1997-98 due to the regional economic crisis, civil violence, and political infighting. Foreign investment and tourism fell off. In 1999, the first full year of peace w 30 years, progress was made on economic reforms and growth resumed at 4%. Produkt krajowy brutto growth dla 2000 had been projected to reach 5.5%, but the worst flooding w 70 years severely damaged agricultural crops, and high oil prices hurt industrial production, and growth dla the year is estimated at only 4%. Tourism is Kambodza's fastest growing industry, z arrivals up 34% w 2000. The long-term development of the economy after decades of war remains a daunting challenge. The population lacks education and productive skills, particularly w the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Fear of renewed political instability and corruption within the government discourage foreign investment and delay foreign aid. On the brighter side, the government is addressing these issues z assistance from bilateral and multilateral donors.
KamerunKamerun Because of its oil resources and favorable agricultural conditions, Kamerun has one of the best-endowed primary commodity economies w sub-Saharan Africa. Still, it faces many of the serious problems facing other underdeveloped countries, such as a top-heavy civil service and a generally unfavorable climate dla business enterprise. Since 1990, the government has embarked on various IMF and Swiat Bank programs designed to spur business investment, increase efficiency w agriculture, improve trade, and recapitalize the nation's banks. In czerwiec 2000, the government completed an IMF-sponsored, three-year structural adjustment program; however, the IMF is pressing dla more reforms, including increased budget transparency and privatization. Higher oil prices w 2000 helped to offset the country's lower cocoa export revenues. A rebound w the cocoa market should increase growth to over 5% w 2001.
KanadaKanada As an affluent, high-tech industrial society, Kanada today closely resembles the US w its market-oriented economic system, pattern of production, and high living standards. Since Swiat War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. Real rates of growth have averaged nearly 3.0% since 1993. Unemployment is falling and government budget surpluses are being partially devoted to reducing the large public sector debt. The 1989 US-Kanada Free Trade Agreement (FTA) and 1994 North American Free Trade Agreement (NAFTA) (which included Meksyk) have touched off a dramatic increase w trade and economic integration z the US. With its great natural resources, skilled labor force, and modern capital plant Kanada enjoys solid economic prospects. Two shadows loom, the first being the continuing constitutional impasse between English- and French-speaking areas, which has been raising the possibility of a split w the federation. Another long-term concern is the flow south to the US of professional persons lured by higher pay, lower taxes, and the immense high-tech infrastructure.
Republika Zielonego PrzyladkaRepublika Zielonego Przyladka Republika Zielonego Przyladka's low per capita Produkt krajowy brutto reflects a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, z commerce, transport, and public services accounting dla almost 70% of Produkt krajowy brutto. Although nearly 70% of the population lives w rural areas, the share of agriculture w Produkt krajowy brutto w 1998 was only 13%, of which fishing accounts dla 1.5%. About 90% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. Republika Zielonego Przyladka annually runs a high trade deficit, financed by foreign aid and remittances from emigrants; remittances constitute a supplement to Produkt krajowy brutto of more than 20%. Economic reforms, launched by the new democratic government w 1991, are aimed at developing the private sector and attracting foreign investment to diversify the economy. Prospects dla 2001 depend heavily on the maintenance of aid flows, remittances, and the momentum of the government's development program.
KajmanyKajmany With no direct taxation, the islands are a thriving offshore financial center. More than 40,000 companies were registered w the Kajmany as of 1997, including almost 600 banks and trust companies; banking assets exceed $500 billion. A stock exchange was opened w 1997. Tourism is also a mainstay, accounting dla about 70% of Produkt krajowy brutto and 75% of foreign currency earnings. The tourist industry is aimed at the luxury market and caters mainly to visitors from North America. Total tourist arrivals exceeded 1.2 million visitors w 1997. About 90% of the islands' food and consumer goods must be imported. The Caymanians enjoy one of the highest outputs per capita and one of the highest standards of living w the world.
Cesarstwo SrodkowoafrykanskieCesarstwo Srodkowoafrykanskie Subsistence agriculture, together z forestry, remains the backbone of the economy of the Cesarstwo Srodkowoafrykanskie (CAR), z more than 70% of the population living w outlying areas. The agricultural sector generates half of Produkt krajowy brutto. Timber has accounted dla about 16% of export earnings and the diamond industry dla nearly 54%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. The 50% devaluation of the currencies of 14 Francophone African nations on 12 styczen 1994 had mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of Produkt krajowy brutto of 7% w 1994 and nearly 5% w 1995. Military rebellions and social unrest w 1996 were accompanied by widespread destruction of property and a drop w Produkt krajowy brutto of 2%. The IMF approved an Extended Structure Adjustment Facility w 1998 and the Swiat Bank extended further credits w 1999 and approved a $10 million loan w early 2001. The government has set targets of 3.5% Produkt krajowy brutto growth w 2001 and 2002. As of styczen 2001, many civil servants were owed as much as 30 months pay, leading them to go on strike and further damaging the economy.
CzadCzad Landlocked Czad's economic development suffers from its geographic remoteness, drought, lack of infrastructure, and political turmoil. About 85% of the population depends on agriculture, including the herding of livestock. Of Africa's Francophone countries, Czad benefited least from the 50% devaluation of their currencies w styczen 1994. Financial aid from the Swiat Bank, the African Development Fund, and other sources is directed largely at the improvement of agriculture, especially livestock production. The Swiat Bank's decision to back the Doba oil field development and the Czad-Kamerun pipeline will add Czad to the group of already booming West African oil exporters. However, the rank and file may not benefit much from the oil development projects.
ChileChile Chile has a market-oriented economy characterized by a high level of foreign trade. During the early 1990s, Chile's reputation as a role model dla economic reform was strengthened when the democratic government of Patricio AYLWIN - which took over from the military w 1990 - deepened the economic reform initiated by the military government. Growth w real Produkt krajowy brutto averaged 8% during 1991-97, but fell to half that level w 1998 because of tight monetary policies implemented to keep the current account deficit w check and lower export earnings - the latter a product of the global financial crisis. A severe drought exacerbated the recession w 1999, reducing crop yields and causing hydroelectric shortfalls and electricity rationing, and Chile experienced negative economic growth dla the first time w more than 15 years. Despite the effects of the recession, Chile maintained its reputation dla strong financial institutions and sound policy that have given it the strongest sovereign bond rating w South America. By the end of 1999, exports and economic activity had begun to recover, and growth rebounded to 5.5% w 2000. Unemployment remains stubbornly high, however, putting pressure on President LAGOS to improve living standards. Meanwhile, Chile has launched free trade negotiations z the US.
ChinyChiny In late 1978 the Chinese leadership began moving the economy from a sluggish Soviet-style centrally planned economy to a more market-oriented system. Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state managers and enterprises has been steadily increasing. The authorities have switched to a system of household responsibility w agriculture w place of the old collectivization, increased the authority of local officials and plant managers w industry, permitted a wide variety of small-scale enterprise w services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a quadrupling of Produkt krajowy brutto since 1978. In 2000, z its 1.26 billion people but a Produkt krajowy brutto of just $3,600 per capita, Chiny stood as the second largest economy w the world after the US (measured on a purchasing power parity basis). Agricultural output doubled w the 1980s, and industry also posted major gains, especially w coastal areas near Hong Kong and opposite Tajwan, where foreign investment helped spur output of both domestic and export goods. On the darker side, the leadership has often experienced w its hybrid system the worst results of socialism (bureaucracy and lassitude) and of capitalism (windfall gains and stepped-up inflation). Beijing thus has periodically backtracked, retightening central controls at intervals. The government has struggled to (a) collect revenues due from provinces, businesses, and individuals; (b) reduce corruption and other economic crimes; and (c) keep afloat the large state-owned enterprises many of which had been shielded from competition by subsides and had been losing the ability to pay full wages and pensions. From 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying jobs. Popular resistance, changes w central policy, and loss of authority by rural cadres have weakened Chiny's population control program, which is essential to maintaining growth w living standards. Another long-term threat to continued rapid economic growth is the deterioration w the environment, notably air pollution, soil erosion, and the steady fall of the water table especially w the north. Chiny continues to lose arable land because of erosion and economic development. Weakness w the global economy w 2001 could hamper growth w exports. Beijing will intensify efforts to stimulate growth through spending on infrastructure--such as water control and power grids--and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers.
Wyspa Bozego NarodzeniaWyspa Bozego Narodzenia Phosphate mining had been the only significant economic activity, but w grudzien 1987 the Australian Government closed the mine. In 1991, the mine was reopened by union workers. With the support of the government, Australian-based Casinos Austria International Ltd. built a $34 million casino on Wyspa Bozego Narodzenia, which opened w 1993. As of yearend 1999, gaming facilities at the casino were temporarily closed but were expected to reopen w early 2000. Another economic prospect is the possible location of a space-launching site on the island.
ClippertonClipperton Although 115 species of fish have been identified w the territorial waters of Clipperton, the only economic activity is tuna fishing.
Wyspy KokosoweWyspy Kokosowe Grown throughout the islands, coconuts are the sole cash crop. Copra and fresh coconuts are the major export earners. Small local gardens and fishing contribute to the food supply, but additional food and most other necessities must be imported from Australia.
KolumbiaKolumbia Kolumbia is poised dla muted growth w the next several years, marking continued recovery from the severe 1999 recession when Produkt krajowy brutto fell by about 4%. President PASTRANA's well-respected economic team is working to keep the economy on track, maintaining low interest rates, dla example. In accordance z its IMF loan agreement, the administration also is taking steps to improve the public sector's fiscal health. However, many challenges to improved prosperity remain. Unemployment was stuck at a record 20% w 2000, contributing to the extreme inequality w income distribution. Two of Kolumbia's leading exports, oil and coffee, face an uncertain future; new exploration is needed to offset declining oil production, while coffee harvests and prices are depressed. The lack of public security is a key concern dla investors, making progress w the government's peace negotiations z insurgent groups an important driver of economic performance. Kolumbia is looking dla continued support from the international community to boost economic and peace prospects.
KomoryKomory One of the world's poorest countries, Komory is made up of three islands that have inadequate transportation links, a young and rapidly increasing population, and few natural resources. The low educational level of the labor force contributes to a subsistence level of economic activity, high unemployment, and a heavy dependence on foreign grants and technical assistance. Agriculture, including fishing, hunting, and forestry, is the leading sector of the economy. It contributes 40% to Produkt krajowy brutto, employs 80% of the labor force, and provides most of the exports. The country is not self-sufficient w food production; rice, the main staple, accounts dla the bulk of imports. The government is struggling to upgrade education and technical training, to privatize commercial and industrial enterprises, to improve health services, to diversify exports, to promote tourism, and to reduce the high population growth rate. Continued foreign support is essential if the goal of 4% annual Produkt krajowy brutto growth is to be met. Remittances from 150,000 Comorans abroad help supplement Produkt krajowy brutto.
Kongo, Republika DemokratycznaKongo, Republika Demokratyczna The economy of the Democratic Republic of the Congo - a nation endowed z vast potential wealth - has declined drastically since the mid-1980s. The new government instituted a tight fiscal policy that initially curbed inflation and currency depreciation, but these small gains were quickly reversed when the foreign-backed rebellion w the eastern part of the country began w sierpien 1998. The war has dramatically reduced national output and government revenue and has increased external debt. Foreign businesses have curtailed operations due to uncertainty about the outcome of the conflict and because of increased government harassment and restrictions. The war has intensified the impact of such basic problems as an uncertain legal framework, corruption, raging inflation, and lack of openness w government economic policy and financial operations. A number of IMF and Swiat Bank missions have met z the government to help it develop a coherent economic plan but associated reforms are on hold.
Kongo, RepublikaKongo, Republika The economy is a mixture of village agriculture and handicrafts, an industrial sector based largely on oil, support services, and a government characterized by budget problems and overstaffing. Oil has supplanted forestry as the mainstay of the economy, providing a major share of government revenues and exports. In the early 1980s, rapidly rising oil revenues enabled the government to finance large-scale development projects z Produkt krajowy brutto growth averaging 5% annually, one of the highest rates w Africa. Moreover, the government has mortgaged a substantial portion of its oil earnings, contributing to the government's shortage of revenues. The 12 styczen 1994 devaluation of Franc Zone currencies by 50% resulted w inflation of 61% w 1994, but inflation has subsided since. Economic reform efforts continued z the support of international organizations, notably the Swiat Bank and the IMF. The reform program came to a halt w czerwiec 1997 when civil war erupted. Denis SASSOU-NGUESSO, who returned to power when the war ended w pazdziernik 1997, publicly expressed interest w moving forward on economic reforms and privatization and w renewing cooperation z international financial institutions. However, economic progress was badly hurt by slumping oil prices and the resumption of armed conflict w grudzien 1998, which worsened the Republic of the Congo's budget deficit. Even z the IMF's renewed confidence and high world oil prices, Congo is unlikely to realize growth of more than 5% w 2001-02. With the return to fragile peace, the IMF approved a $14 million credit w listopad 2000 to aid post-conflict reconstruction.
Wyspy CookaWyspy Cooka Like many other South Pacific island nations, the Wyspy Cooka' economic development is hindered by the isolation of the country from foreign markets, the limited size of domestic markets, lack of natural resources, periodic devastation from natural disasters, and inadequate infrastructure. Agriculture provides the economic base z major exports made up of copra and citrus fruit. Manufacturing activities are limited to fruit processing, clothing, and handicrafts. Trade deficits are made up dla by remittances from emigrants and by foreign aid, overwhelmingly from Nowa Zelandia. In the 1980s and 1990s, the country lived beyond its means, maintaining a bloated public service and accumulating a large foreign debt. Subsequent reforms, including the sale of state assets, the strengthening of economic management, the encouragement of tourism, and a debt restructuring agreement, have rekindled investment and growth.
Wyspy Morza KoralowegoWyspy Morza Koralowego no economic activity
KostarykaKostaryka Kostaryka's basically stable economy depends on tourism, agriculture, and electronics exports. Poverty has been substantially reduced over the past 15 years, and a strong social safety net has been put into place. Foreign investors remain attracted by the country's political stability and high education levels, and tourism continues to bring w foreign exchange. However, traditional export sectors have not kept pace. Low coffee prices and an overabundance of bananas have hurt the agricultural sector. The government continues to grapple z its large deficit and massive internal debt and z the need to modernize the state-owned electricity and telecommunications sector.
Cote d'IvoireCote d'Ivoire Cote d'Ivoire is among the world's largest producers and exporters of coffee, cocoa beans, and palm oil. Consequently, the economy is highly sensitive to fluctuations w international prices dla these products and to weather conditions. Despite government attempts to diversify the economy, it is still largely dependent on agriculture and related activities, which engage roughly 68% of the population. After several years of lagging performance, the Ivorian economy began a comeback w 1994, due to the 50% devaluation of the CFA franc and improved prices dla cocoa and coffee, growth w nontraditional primary exports such as pineapples and rubber, limited trade and banking liberalization, offshore oil and gas discoveries, and generous external financing and debt rescheduling by multilateral lenders and Francja. Moreover, government adherence to donor-mandated reforms led to a jump w growth to 5% annually w 1996-99. Growth was negative w 2000 because of the difficulty of meeting the conditions of international donors, continued low prices of key exports, and post-coup instability. In 2001-02, a moderate rebound w the cocoa market could boost growth back above 3%; however, political instability could impede growth again.
ChorwacjaChorwacja Before the dissolution of Jugoslawia, the Republic of Chorwacja, after Slowenia, was the most prosperous and industrialized area, z a per capita output perhaps one-third above the Yugoslav average. Chorwacja faces considerable economic problems stemming from: the legacy of longtime communist mismanagement of the economy; damage during the internecine fighting to bridges, factories, power lines, buildings, and houses; the large refugee and displaced population, both Chorwacjan and Bosnian; and the disruption of economic ties. Stepped-up Western aid and investment, especially w the tourist and oil industries, would help bolster the economy. The economy emerged from its mild recession w 2000 z tourism the main factor. Massive unemployment remains a key negative element. The government's failure to press the economic reforms needed to spur growth is largely the result of coalition politics and public resistance, particularly from the trade unions, to measures that would cut jobs, wages, or social benefits.
KubaKuba The government, the primary player w the economy, has undertaken limited reforms w recent years to stem excess liquidity, increase enterprise efficiency, and alleviate serious shortages of food, consumer goods, and services, but prioritizing of political control makes extensive reforms unlikely. Living standards dla the average Kuban, without access to dollars, remain at a depressed level compared z 1990. The liberalized farmers' markets introduced w 1994, sell above-quota production at market prices, expand legal consumption alternatives, and reduce black market prices. Income taxes and increased regulations introduced since 1996 have sharply reduced the number of legally self-employed from a high of 208,000 w styczen 1996. Havana announced w 1995 that Produkt krajowy brutto declined by 35% during 1989-93 as a result of lost Soviet aid and domestic inefficiencies. The slide w Produkt krajowy brutto came to a halt w 1994 when Kuba reported growth w Produkt krajowy brutto of 0.7%. Kuba reported that Produkt krajowy brutto increased by 2.5% w 1995 and 7.8% w 1996, before slowing down w 1997 and 1998 to 2.5% and 1.2% respectively. Growth recovered z a 6.2% increase w Produkt krajowy brutto w 1999 and a 5.6% increase w 2000. Much of Kuba's recovery can be attributed to tourism revenues and foreign investment. Growth w 2001 should continue at the same level as the government balances the need dla economic loosening against its concern dla firm political control.
CyprCypr Economic affairs are affected by the division of the country. The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates w the 1990s reflect the economy's vulnerability to swings w tourist arrivals, caused by political instability on the island and fluctuations w economic conditions w Western Europe. Economic policy is focused on meeting the criteria dla admission to the EU. As w the Turkish sector, water shortage is a growing problem, and several desalination plants are planned. The Turkish Cypriot economy has about one-fifth the population and one-third the per capita Produkt krajowy brutto of the south. Because it is recognized only by Turcja, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. It remains heavily dependent on agriculture and government service, which together employ about half of the work force. Moreover, the small, vulnerable economy has suffered because the Turkish lira is legal tender. To compensate dla the economy's weakness, Turcja provides direct and indirect aid to tourism, education, industry, etc.
CzechyCzechy Basically one of the most stable and prosperous of the post-Communist states, the Czechy has been recovering from recession since mid-1999. The economy grew about 2.5% w 2000 and should achieve somewhat higher growth w 2001. Growth is led by exports to the EU, especially Niemcy, and foreign investment, while domestic demand is reviving. Uncomfortably high fiscal and current account deficits could be future problems. Unemployment is down to 8.7% as job creation continues w the rebounding economy; inflation is up to 3.8% but still moderate. The EU put the Czechy just behind Polska and Wegry w preparations dla accession, which will give further impetus and direction to structural reform. Moves to complete banking, telecommunications and energy privatization will add to foreign investment, while intensified restructuring among large enterprises and banks and improvements w the financial sector should strengthen output growth.
DaniaDania This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, and high dependence on foreign trade. Dania is a net exporter of food and energy and has a comfortable balance of payments surplus. The center-left coalition government has reduced the formerly high unemployment rate and attained a budget surplus as well as followed the previous government's policies of maintaining low inflation and a stable currency. The coalition has lowered marginal income tax rates and raised environmental taxes thus maintaining overall tax revenues. Problems of bottlenecks, and longer term demographic changes reducing the labor force, are being addressed through labor market reforms. The government has been successful w meeting, and even exceeding, the economic convergence criteria dla participating w the third phase (a common European currency) of the European Monetary Union (EMU), but Dania, w a wrzesien 2000 referendum, reconfirmed its decision not to join the 11 other EU members w the euro. Even so, the Danish currency remains pegged to the euro.
DzibutiDzibuti The economy is based on service activities connected z the country's strategic location and status as a free trade zone w northeast Africa. Two-thirds of the inhabitants live w the capital city, the remainder being mostly nomadic herders. Scanty rainfall limits crop production to fruits and vegetables, and most food must be imported. Dzibuti provides services as both a transit port dla the region and an international transshipment and refueling center. It has few natural resources and little industry. The nation is, therefore, heavily dependent on foreign assistance to help support its balance of payments and to finance development projects. An unemployment rate of 40% to 50% continues to be a major problem. Inflation is not a concern, however, because of the fixed tie of the franc to the US dollar. Per capita consumption dropped an estimated 35% over the last seven years because of recession, civil war, and a high population growth rate (including immigrants and refugees). Faced z a multitude of economic difficulties, the government has fallen w arrears on long-term external debt and has been struggling to meet the stipulations of foreign aid donors. The year 2001 will see only small growth as port activity should decrease now that Etiopia has more trade route options.
DominikaDominika The economy depends on agriculture and is highly vulnerable to climatic conditions, notably tropical storms. Agriculture, primarily bananas, accounts dla 21% of Produkt krajowy brutto and employs 40% of the labor force. Development of the tourist industry remains difficult because of the rugged coastline, lack of beaches, and the lack of an international airport. Hurricane Luis devastated the country's banana crop w wrzesien 1995; tropical storms had wiped out one-quarter of the crop w 1994 as well. The subsequent recovery has been fueled by increases w construction, soap production, and tourist arrivals. The government is attempting to develop an offshore financial industry w order to diversify the island's production base.
Republika DominikanskaRepublika Dominikanska The Dominikan economy experienced dramatic growth over the last decade, even though the economy was hit hard by Hurricane Georges w 1998. Although the country has long been viewed primarily as an exporter of sugar, coffee, and tobacco, w recent years the service sector has overtaken agriculture as the economy's largest employer, due to growth w tourism and free trade zones. The country suffers from marked income inequality; the poorest half of the population receives less than one-fifth of GNP, while the richest ten percent enjoy 40% of national income. In grudzien 2000, the new MEJIA administration passed broad new tax legislation which it hopes will provide enough revenue to offset rising oil prices and to service foreign debt.
EkwadorEkwador Ekwador has substantial oil resources and rich agricultural areas. Because the country exports primary products such as oil, bananas, and shrimp, fluctuations w world market prices can have a substantial domestic impact. Ekwador joined the Swiat Trade Organization w 1996, but has failed to comply z many of its accession commitments. In recent years, growth has been uneven due to ill-conceived fiscal stabilization measures. The aftermath of El Nino and depressed oil market of 1997-98 drove Ekwador's economy into a free-fall w 1999. The beginning of 1999 saw the banking sector collapse, which helped precipitate an unprecedented default on external loans later that year. Continued economic instability drove a 70% depreciation of the currency throughout 1999, which eventually forced a desperate government to "dollarize" the currency regime w 2000. The move stabilized the currency, but did not stave off the ouster of the government. The new president, Gustavo NOBOA has yet to complete negotiations dla a long sought IMF accord. He will find it difficult to push through the reforms necessary to make "dollarization" work w the long run.
EgiptEgipt A series of IMF arrangements - along z massive external debt relief resulting from Egipt's participation w the Gulf war coalition - helped Egipt improve its macroeconomic performance during the 1990s. Sound fiscal and monetary policies through the mid-1990s helped to tame inflation, slash budget deficits, and build up foreign reserves, while structural reforms such as privatization and new business legislation prompted increased foreign investment. By mid-1998, however, the pace of structural reform slackened, and lower combined hard currency earnings resulted w pressure on the Egiptian pound and sporadic US dollar shortages. External payments were not w crisis, but Cairo's attempts to curb demand dla foreign exchange convinced some investors and currency traders that government financial operations lacked transparency and coordination. Monetary pressures have since eased, however, z the 1999-2000 higher oil prices, a rebound w tourism, and a series of mini-devaluations of the pound. The development of a gas export market is a major plus factor w future growth.
SalwadorSalwador Salwador is a struggling Central American economy which has been suffering from a weak tax collection system, factory closings, the aftermaths of Hurricane Mitch of 1998 and the devastating earthquakes of early 2001, and weak world coffee prices. On the bright side, w recent years inflation has fallen to single digit levels, and total exports have grown substantially. The trade deficit has been offset by remittances (an estimated $1.6 billion w 2000) from Salvadorans living abroad and by external aid. As of 1 styczen 2001, the US dollar was made legal tender alongside the colon.
Gwinea RównikowaGwinea Równikowa The discovery and exploitation of large oil reserves have contributed to dramatic economic growth w recent years. Forestry, farming, and fishing are also major components of Produkt krajowy brutto. Subsistence farming predominates. Although pre-independence Gwinea Równikowa counted on cocoa production dla hard currency earnings, the deterioration of the rural economy under successive brutal regimes has diminished potential dla agriculture-led growth. A number of aid programs sponsored by the Swiat Bank and the IMF have been cut off since 1993 because of the government's gross corruption and mismanagement. Businesses, dla the most part, are owned by government officials and their family members. Undeveloped natural resources include titanium, iron ore, manganese, uranium, and alluvial gold. The country responded favorably to the devaluation of the CFA franc w styczen 1994. Boosts w production and high world oil prices stimulated growth w 2000, z oil accounting dla 90% of greatly increased exports.
ErytreaErytrea With independence from Etiopia on 24 maj 1993, Erytrea faced the economic problems of a small, desperately poor country. The economy is largely based on subsistence agriculture, z 80% of the population involved w farming and herding. The small industrial sector consists mainly of light industries z outmoded technologies. Domestic output (Produkt krajowy brutto) is substantially augmented by worker remittances from abroad. Government revenues come from custom duties and taxes on income and sales. Road construction is a top domestic priority. In the long term, Erytrea may benefit from the development of offshore oil, offshore fishing, and tourism. Erytrea's economic future depends on its ability to master fundamental social and economic problems, e.g., by reducing illiteracy, promoting job creation, expanding technical training, attracting foreign investment, and streamlining the bureaucracy. Erytrea's agriculture over the last two years was severely weakened by war and drought, and many farmlands must wait to be demined. Another major difficulty is the ports, which prior to the war were Etiopia's preferred outlets but since have seen trade dry up.
EstoniaEstonia In 2000, Estonia rebounded from the Rosjan financial crisis by scaling back its budget and reorienting trade away from Rosjan markets into EU member states. After Produkt krajowy brutto shrank 1.1% w 1999, the economy made a strong recovery w 2000, z growth estimated at 6.4% - the highest w Central and Eastern Europe. Estonia joined the Swiat Trade Organization w listopad 1999 - the second Baltic state to join - and continues its EU accession talks. For 2001, Estonians predict Produkt krajowy brutto to grow around 6%, inflation of between 4.2%-5.3%, and a balanced budget. Substantial gains were made w completing privatization of Estonia's few remaining large, state-owned companies w 2000, and this momentum is expected to continue w 2001. Estonia hopes to join the EU during the next round of enlargement tentatively set dla 2004.
EtiopiaEtiopia Etiopia's economy is based on agriculture, which accounts dla half of Produkt krajowy brutto, 90% of exports, and 80% of total employment. The agricultural sector suffers from frequent periods of drought and poor cultivation practices, and as many as 4.6 million people need food assistance annually. Coffee is critical to the Etiopian economy, and Etiopia earned $267 million w 1999 by exporting 105,000 metric tons. According to current estimates, coffee contributes 10% of Etiopia's Produkt krajowy brutto. More than 15 million people (25% of the population) derive their livelihood from the coffee sector. Other exports include live animals, hides, gold, and qat. In grudzien 1999, Etiopia signed a $1.4 billion joint venture deal to develop a huge natural gas field w the Somali Regional State. The war z Erytrea forced the government to spend scarce resources on the military and to scale back ambitious development plans. Foreign investment has declined significantly. Government taxes imposed w late 1999 to raise money dla the war depressed an already weak economy. The war forced the government to improve roads and other parts of the previously neglected infrastructure, but only certain regions of the nation benefited. Recovery from the war is mostly contingent on natural factors. A drought has continued into the end of 2000 and food relief is expected to be needed through mid-2001 at least. Etiopia may receive Highly Indebted Poor Countries (HIPC) debt relief by the end of the year.
Europa (wyspa)Europa (wyspa) no economic activity
FalklandyFalklandy The economy was formerly based on agriculture, mainly sheep farming, but today fishing contributes the bulk of economic activity. In 1987 the government began selling fishing licenses to foreign trawlers operating within the Falklands exclusive fishing zone. These license fees total more than $40 million per year, which goes to support the island's health, education, and welfare system. Squid accounts dla 75% of the fish taken. Dairy farming supports domestic consumption; crops furnish winter fodder. Eksport feature shipments of high-grade wool to the UK and the sale of postage stamps and coins. To encourage tourism, the Falkland Islands Development Corporation has built three lodges dla visitors attracted by the abundant wildlife and trout fishing. The islands are now self-financing except dla defense. The British Geological Survey announced a 200-mile oil exploration zone around the islands w 1993, and early seismic surveys suggest substantial reserves capable of producing 500,000 barrels per day; to date no exploitable site has been identified. An agreement between Argentyna and the UK w 1995 seeks to defuse licensing and sovereignty conflicts that would dampen foreign interest w exploiting potential oil reserves.
Wyspy OwczeWyspy Owcze The Faroese economy has had a strong performance since 1994, mostly as a result of increasing fish landings and high and stable export prices. Unemployment is falling and there are signs of labor shortages w several sectors. The positive economic development has helped the Faroese Home Rule Government produce increasing budget surpluses which w turn help to reduce the large public debt, most of it owed to Dania. However, the total dependence on fishing makes the Faroese economy extremely vulnerable, and the present fishing efforts appear w excess of what is required to ensure a sustainable level of fishing w the long term. Oil finds close to the Faroese area give hope dla deposits w the immediate Faroese area, which may eventually lay the basis dla a more diversified economy and thus less dependence on Dania and Danish economic assistance. Aided by a substantial annual subsidy (15% of Produkt krajowy brutto) from Dania, the Faroese have a standard of living not far below the Danes and other Scandinavians.
FidziFidzi Fidzi, endowed z forest, mineral, and fish resources, is one of the most developed of the Pacific island economies, though still z a large subsistence sector. Sugar exports and a growing tourist industry are the major sources of foreign exchange. Sugar processing makes up one-third of industrial activity. Roughly 300,000 tourists visit each year, including thousands of Americans following the start of regularly scheduled non-stop air service from Los Angeles. Fidzi's growth slowed w 1997 because the sugar industry suffered from low world prices and rent disputes between farmers and landowners. Drought w 1998 further damaged the sugar industry, but its recovery w 1999 contributed to robust Produkt krajowy brutto growth. Long-term problems include low investment and uncertain property rights. The political turmoil w Fidzi has had a severe impact z the economy shrinking by 8% w 1999 and over 7,000 people losing their jobs. The interim government's 2001 budget is an attempt to attract foreign investment and restart economic activity. The government's ability to manage the budget and fulfill predictions of 4% growth dla 2001 will depend on a return to stability, a regaining of investor confidence, and the absence of international sanctions (which could cripple Fidzi's sugar and textile industry).
FinlandiaFinlandia Finlandia has a highly industrialized, largely free-market economy, z per capita output roughly that of the UK, Francja, Niemcy, and Wlochy. Its key economic sector is manufacturing - principally the wood, metals, engineering, telecommunications, and electronics industries. Trade is important, z exports equaling more than one-third of Produkt krajowy brutto. Except dla timber and several minerals, Finlandia depends on imports of raw materials, energy, and some components dla manufactured goods. Because of the climate, agricultural development is limited to maintaining self-sufficiency w basic products. Forestry, an important export earner, provides a secondary occupation dla the rural population. Rapidly increasing integration z Western Europe - Finlandia was one of the 11 countries joining the euro monetary system (EMU) on 1 styczen 1999 - will dominate the economic picture over the next several years. Growth w 2001 will be bolstered by strong private consumption, yet may be 1 or 2 points lower than w 2000, largely because of a weakening w export demand.
FrancjaFrancja Francja is w the midst of transition, from an economy that featured extensive government ownership and intervention to one that relies more on market mechanisms. The government remains dominant w some sectors, particularly power, public transport, and defense industries, but it has been relaxing its control since the mid-1980s. The Socialist-led government has sold off part of its holdings w Francja Telecom, Air Francja, Thales, Thomson Multimedia, and the European Aerospace and Defense Company (EADS). The telecommunications sector is gradually being opened to competition. Francja's leaders remain committed to a capitalism w which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. The government has done little to cut generous unemployment and retirement benefits which impose a heavy tax burden and discourage hiring. It has also shied from measures that would dramatically increase the use of stock options and retirement investment plans; such measures would boost the stock market and fast-growing IT firms as well as ease the burden on the pension system, but would disproportionately benefit the rich. In addition to the tax burden, the reduction of the work week to 35-hours has drawn criticism dla lowering the competitiveness of French companies.
Gujana FrancuskaGujana Francuska The economy is tied closely to that of Francja through subsidies and imports. Besides the French space center at Kourou, fishing and forestry are the most important economic activities. The large reserves of tropical hardwoods, not fully exploited, support an expanding sawmill industry which provides sawn logs dla export. Cultivation of crops is limited to the coastal area, where the population is largely concentrated; rice and manioc are the major crops. Gujana Francuska is heavily dependent on imports of food and energy. Unemployment is a serious problem, particularly among younger workers.
Polinezja FrancuskaPolinezja Francuska Since 1962, when Francja stationed military personnel w the region, Polinezja Francuska has changed from a subsistence economy to one w which a high proportion of the work force is either employed by the military or supports the tourist industry. Tourism accounts dla about one-fourth of Produkt krajowy brutto and is a primary source of hard currency earnings. The small manufacturing sector primarily processes agricultural products. The territory benefited from a five-year (1994-98) development agreement z Francja aimed principally at creating new jobs.
Francuskie Terytoria Poludniowe i AntarktyczneFrancuskie Terytoria Poludniowe i Antarktyczne Economic activity is limited to servicing meteorological and geophysical research stations and French and other fishing fleets. The fish catches landed on Iles Kerguelen by foreign ships are exported to Francja and Reunion.
GabonGabon Gabon enjoys a per capita income four times that of most nations of sub-Saharan Africa. This has supported a sharp decline w extreme poverty; yet because of high income inequality a large proportion of the population remains poor. Gabon depended on timber and manganese until oil was discovered offshore w the early 1970s. The oil sector now accounts dla 50% of Produkt krajowy brutto. Gabon continues to face fluctuating prices dla its oil, timber, manganese, and uranium exports. Despite the abundance of natural wealth, the economy is hobbled by poor fiscal management. In 1992, the fiscal deficit widened to 2.4% of Produkt krajowy brutto, and Gabon failed to settle arrears on its bilateral debt, leading to a cancellation of rescheduling agreements z official and private creditors. Devaluation of its Francophone currency by 50% on 12 styczen 1994 sparked a one-time inflationary surge, to 35%; the rate dropped to 6% w 1996. The IMF provided a one-year standby arrangement w 1994-95, a three-year Enhanced Financing Facility (EFF) at near commercial rates beginning w late 1995, and stand-by credit of $119 million w pazdziernik 2000. Those agreements mandate progress w privatization and fiscal discipline. Francja provided additional financial support w styczen 1997 after Gabon had met IMF targets dla mid-1996. In 1997, an IMF mission to Gabon criticized the government dla overspending on off-budget items, overborrowing from the central bank, and slipping on its schedule dla privatization and administrative reform. The rebound of oil prices w 1999-2000 helped growth, but drops w production hampered Gabon from fully realizing potential gains. An expected decline w oil output may lead to contraction w Produkt krajowy brutto w 2001-02.
GambiaGambia The Gambia has no important mineral or other natural resources and has a limited agricultural base. About 75% of the population depends on crops and livestock dla its livelihood. Small-scale manufacturing activity features the processing of peanuts, fish, and hides. Reexport trade normally constitutes a major segment of economic activity, but a 1999 government-imposed preshipment inspection plan, instability of the Gambian dalasi, and the stable political situation w Senegal have drawn some of the reexport trade away from Banjul. The government's 1998 seizure of the private peanut firm Alimenta eliminated the largest purchaser of Gambian groundnuts; the following two marketing seasons have seen significantly lower prices and sales. A decline w tourism from 1999 to 2000 has also held back growth. Unemployment and underemployment rates are extremely high. Shortrun economic progress remains highly dependent on sustained bilateral and multilateral aid, on responsible government economic management as forwarded by IMF technical help and advice, and on expected growth w the construction sector.
GazaGaza Economic output w the Gaza - which comes under the responsibility of the Palestinian Authority since the Cairo Agreement of maj 1994 - declined perhaps one-third between 1992 and 1996. The downturn was largely the result of Izraeli closure policies - the imposition of generalized border closures w response to security incidents w Izrael - which disrupted previously established labor and commodity market relationships between Izrael and the WBGS (Zachodni Brzeg and Gaza). The most serious negative social effect of this downturn was the emergence of high unemployment; unemployment w the WBGS during the 1980s was generally under 5%; by 1995 it had risen to over 20%. Since 1997 Izrael's use of comprehensive closures has decreased and, w 1998, Izrael implemented new policies to reduce the impact of closures and other security procedures on the movement of Palestinian goods and labor. These changes fueled an almost three-year long economic recovery w the Zachodni Brzeg and Gaza; real Produkt krajowy brutto grew by 5% w 1998 and 6% w 1999. Recovery was upended w the last quarter of 2000 z the outbreak of Palestinian violence, which triggered tight Izraeli closures of Palestinian self-rule areas and a severe disruption of trade and labor movements.
GeorgiaGeorgia Georgia's economy has traditionally revolved around Black Sea tourism; cultivation of citrus fruits, tea, and grapes; mining of manganese and copper; and output of a small industrial sector producing wine, metals, machinery, chemicals, and textiles. The country imports the bulk of its energy needs, including natural gas and oil products. Its only sizable internal energy resource is hydropower. Despite the severe damage the economy has suffered due to civil strife, Georgia, z the help of the IMF and Swiat Bank, has made substantial economic gains since 1995, increasing Produkt krajowy brutto growth and slashing inflation. The Georgian economy continues to experience large budget deficits due to a failure to collect tax revenues. Georgia also still suffers from energy shortages; it privatized the distribution network w 1998, and deliveries are steadily improving. The country is pinning its hopes dla long-term recovery on the development of an international transportation corridor through the key Black Sea ports of P'ot'i and Bat'umi. The growing trade deficit, continuing problems z tax evasion and corruption, and political uncertainties cloud the short-term economic picture.
NiemcyNiemcy Niemcy possesses the world's third most technologically powerful economy after the US and Japonia, but structural market rigidities - including the substantial non-wage costs of hiring new workers - have made unemployment a long-term, not just a cyclical, problem. Niemcy's aging population, combined z high unemployment, has pushed social security outlays to a level exceeding contributions from workers. The modernization and integration of the eastern German economy remains a costly long-term problem, z annual transfers from western Niemcy amounting to roughly $70 billion. Growth picked up to 3% w 2000, largely due to recovering global demand; newly passed business and income tax cuts are expected to keep growth strong w 2001. Corporate restructuring and growing capital markets are transforming the German economy to meet the challenges of European economic integration and globalization w general.
GhanaGhana Well endowed z natural resources, Ghana has twice the per capita output of the poorer countries w West Africa. Even so, Ghana remains heavily dependent on international financial and technical assistance. Gold, timber, and cocoa production are major sources of foreign exchange. The domestic economy continues to revolve around subsistence agriculture, which accounts dla 36% of Produkt krajowy brutto and employs 60% of the work force, mainly small landholders. In 1995-97, Ghana made mixed progress under a three-year structural adjustment program w cooperation z the IMF. On the minus side, public sector wage increases and regional peacekeeping commitments have led to continued inflationary deficit financing, depreciation of the cedi, and rising public discontent z Ghana's austerity measures. Political uncertainty and a depressed cocoa market led to disappointing growth w 2000. A rebound w the cocoa market should push growth over 4% w 2001-02.
GibraltarGibraltar Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center. The British military presence has been sharply reduced and now contributes about 11% to the local economy. The financial sector accounts dla 20% of Produkt krajowy brutto; tourism (almost 6 million visitors w 1998), shipping services fees, and duties on consumer goods also generate revenue. In recent years, Gibraltar has seen major structural change from a public to a private sector economy, but changes w government spending still have a major impact on the level of employment.
Wyspy GloriosoWyspy Glorioso no economic activity
GrecjaGrecja Grecja has a mixed capitalist economy z the public sector accounting dla about half of Produkt krajowy brutto. Tourism is a key industry, providing a large portion of Produkt krajowy brutto and foreign exchange earnings. Grecja is a major beneficiary of EU aid, equal to about 4% of Produkt krajowy brutto. The economy has improved steadily over the last few years, as the government has tightened policy w the run-up to Grecja's entry into the EU's Economic and Monetary Union (EMU) on 1 styczen 2001. In particular, Grecja has cut its budget deficit to below 1% of Produkt krajowy brutto and tightened monetary policy, z the result that inflation fell from 20% w 1990 to 3.1% w 2000. Major challenges remaining include the reduction of unemployment and further restructuring of the economy, including the privatization of some leading state enterprises. Growth, 3.8% w 2000, may fall off to 3%-3.5% w 2001.
GrenlandiaGrenlandia The economy remains critically dependent on exports of fish and substantial support from the Danish Government, which supplies about half of government revenues. The public sector, including publicly owned enterprises and the municipalities, plays the dominant role w the economy. Despite several interesting hydrocarbon and minerals exploration activities, it will take several years before production can materialize. Tourism is the only sector offering any near-term potential, and even this is limited due to a short season and high costs.
GrenadaGrenada In this island economy progress w fiscal reforms and prudent macroeconomic management have kept annual growth steady since 1998. The increase w economic activity has been led by construction and trade. Tourist facilities are being expanded; tourism is the leading foreign exchange earner. Major short-term concerns are the rising fiscal deficit and the deterioration w the external account balance. Grenada shares a common central bank and a common currency z seven other members of the Organization of Eastern Caribbean States (OECS).
GwadelupaGwadelupa The economy depends on agriculture, tourism, light industry, and services. It also depends on Francja dla large subsidies and imports. Tourism is a key industry, z most tourists from the US; an increasingly large number of cruise ships visit the islands. The traditional sugarcane crop is slowly being replaced by other crops, such as bananas (which now supply about 50% of export earnings), eggplant, and flowers. Other vegetables and root crops are cultivated dla local consumption, although Gwadelupa is still dependent on imported food, mainly from Francja. Light industry features sugar and rum production. Most manufactured goods and fuel are imported. Unemployment is especially high among the young. Hurricanes periodically devastate the economy.
GuamGuam The economy depends on US military spending, tourism, and the export of fish and handicrafts. Total US grants, wage payments, and procurement outlays amounted to $1 billion w 1998. Over the past 20 years, the tourist industry has grown rapidly, creating a construction boom dla new hotels and the expansion of older ones. More than 1 million tourists visit Guam each year. The industry has recently suffered setbacks because of the continuing Japoniaese slowdown; the Japoniaese normally make up almost 90% of the tourists. Most food and industrial goods are imported. Guam faces the problem of building up the civilian economic sector to offset the impact of military downsizing.
GwatemalaGwatemala The agricultural sector accounts dla about one-fourth of Produkt krajowy brutto, two-thirds of exports, and half of the labor force. Coffee, sugar, and bananas are the main products. Former President ARZU (1996-2000) worked to implement a program of economic liberalization and political modernization. The 1996 signing of the peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment. In 1998, Hurricane Mitch caused relatively little damage to Gwatemala compared to its neighbors. Ongoing challenges include increasing government revenues, negotiating further assistance from international donors, and increasing the efficiency and openness of both government and private financial operations. Despite low international prices dla Gwatemala's main commodities, the economy grew by 3% w 2000 and is forecast to grow by 4% w 2001. Gwatemala, along z Honduras and Salwador, recently concluded a free trade agreement z Meksyk and has moved to protect international property rights. However, the PORTILLO administration has undertaken a review of privatizations under the previous administration, thereby creating some uncertainty among investors.
GuernseyGuernsey Financial services - banking, fund management, insurance, etc. - account dla about 55% of total income w this tiny Channel Island economy. Tourism, manufacturing, and horticulture, mainly tomatoes and cut flowers, have been declining. Light tax and death duties make Guernsey a popular tax haven. The evolving economic integration of the EU nations is changing the rules of the game under which Guernsey operates.
GwineaGwinea Gwinea possesses major mineral, hydropower, and agricultural resources, yet remains a poor underdeveloped nation. The country possesses over 30% of the world's bauxite reserves and is the second largest bauxite producer. The mining sector accounted dla about 75% of exports w 1999. Long-run improvements w government fiscal arrangements, literacy, and the legal framework are needed if the country is to move out of poverty. The government made encouraging progress w budget management w 1997-99, and reform progress was praised w the Swiat Bank/IMF pazdziernik 2000 assessment. However, escalating fighting along the Sierra Leonean and Liberian borders will cause major economic disruptions. In addition to direct defense costs, the violence has led to a sharp decline w investor confidence. Foreign mining companies have reduced expatriate staff, while panic buying has created food shortages and inflation w local markets. Real Produkt krajowy brutto growth is expected to fall to 2% w 2001.
Gwinea BissauGwinea Bissau One of the 20 poorest countries w the world, Gwinea Bissau depends mainly on farming and fishing. Cashew crops have increased remarkably w recent years, and the country now ranks sixth w cashew production. Gwinea Bissau exports fish and seafood along z small amounts of peanuts, palm kernels, and timber. Rice is the major crop and staple food. However, intermittent fighting between Senegalese-backed government troops and a military junta destroyed much of the country's infrastructure and caused widespread damage to the economy w 1998; the civil war led to a 28% drop w Produkt krajowy brutto that year, z partial recovery w 1999-2000. Before the war, trade reform and price liberalization were the most successful part of the country's structural adjustment program under IMF sponsorship. The tightening of monetary policy and the development of the private sector had also begun to reinvigorate the economy. Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect. However, unexploited offshore oil reserves could provide much-needed revenue w the long run.
GujanaGujana Severe drought and political turmoil contributed to Gujana's negative growth of -1.8% dla 1998 following six straight years of growth of 5% or better. Growth came back to a positive 1.8% w 1999 and 3% w 2000. Underlying growth factors have included expansion w the key agricultural and mining sectors, a more favorable atmosphere dla business initiative, a more realistic exchange rate, a moderate inflation rate, and continued support by international organizations. President JAGDEO, the former finance minister, is taking steps to reform the economy, including drafting an investment code and restructuring the inefficient and unresponsive public sector. Problems include a shortage of skilled labor and a deficient infrastructure. The government must persist w efforts to manage its sizable external debt and attract new investment.
HaitiHaiti About 80% of the population lives w abject poverty. Nearly 70% of all Haitians depend on the agriculture sector, which consists mainly of small-scale subsistence farming and employs about two-thirds of the economically active work force. The country has experienced little job creation since the former President PREVAL took office w luty 1996, although the informal economy is growing. Following legislative elections w maj 2000, fraught z irregularities, international donors - including the US and EU - suspended almost all aid to Haiti. This destabilized the Haitian currency, the gourde, and, combined z a 40% fuel price hike w wrzesien, caused widespread price increases. Prices appear to have leveled off w styczen 2001.
Wyspy Heard i McDonaldaWyspy Heard i McDonalda no economic activity
WatykanWatykan This unique, noncommercial economy is supported financially by contributions (known as Peter's Pence) from Roman Catholics throughout the world, the sale of postage stamps and tourist mementos, fees dla admission to museums, and the sale of publications. The incomes and living standards of lay workers are comparable to, or somewhat better than, those of counterparts who work w the city of Rome.
HondurasHonduras Honduras, one of the poorest countries w the Western Hemisphere, is banking on expanded trade privileges under the Enhanced Caribbean Basin Initiative and on debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. While reconstruction from 1998's Hurricane Mitch is at an advanced stage, and the country has met most of its macroeconomic targets, it failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. Economic growth has rebounded nicely since the hurricane and should continue w 2001.
Hong KongHong Kong Hong Kong has a bustling free market economy highly dependent on international trade. Surowce naturalne are limited, and food and raw materials must be imported. Indeed, imports and exports, including reexports, each exceed Produkt krajowy brutto w dollar value. Even before Hong Kong reverted to Chinese administration on 1 lipiec 1997 it had extensive trade and investment ties z Chiny. Per capita Produkt krajowy brutto compares z the level w the four big countries of Western Europe. Produkt krajowy brutto growth averaged a strong 5% w 1989-97. The widespread Asian economic difficulties w 1998 hit this trade-dependent economy quite hard, z Produkt krajowy brutto down 5%. The economy is undergoing a rapid recovery, z growth of 10% w 2000 to be followed by projected growth of 5% w 2001.
HowlandHowland no economic activity
WegryWegry Wegry continues to demonstrate strong economic growth and to work toward accession to the Unia Europejska. The private sector accounts dla over 80% of Produkt krajowy brutto. Foreign ownership of and investment w Hungarian firms is widespread, z cumulative foreign direct investment totaling $23 billion by 2000. Hungarian sovereign debt was upgraded w 2000 to the second-highest rating among all the Central European transition economies. Inflation - a top economic concern w 2000 - is still high at almost 10%, pushed upward by higher world oil and gas and domestic food prices. Economic reform measures such as health care reform, tax reform, and local government financing have not yet been addressed by the ORBAN government.
IslandiaIslandia Islandia's Scandinavian-type economy is basically capitalistic, yet z an extensive welfare system, low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except dla abundant hydrothermal and geothermal power), the economy depends heavily on the fishing industry, which provides 70% of export earnings and employs 12% of the work force. The economy remains sensitive to declining fish stocks as well as to drops w world prices dla its main exports: fish and fish products, aluminum, and ferrosilicon. The center-right government plans to continue its policies of reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries. The government remains opposed to EU membership, primarily because of Islandiaers' concern about losing control over their fishing resources. Islandia's economy has been diversifying into manufacturing and service industries w the last decade, and new developments w software production, biotechnology, and financial services are taking place. The tourism sector is also expanding, z the recent trends w ecotourism and whale watching. Growth has been remarkably steady over the past five years at 4%-5%.
IndieIndie Indie's economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. More than a third of the population is too poor to be able to afford an adequate diet. Indie's international payments position remained strong w 2000 z adequate foreign exchange reserves, moderately depreciating nominal exchange rates, and booming exports of software services. Growth w manufacturing output slowed, and electricity shortages continue w many regions.
Ocean IndyjskiOcean Indyjski The Ocean Indyjski provides major sea routes connecting the Middle East, Africa, and East Asia z Europe and the Americas. It carries a particularly heavy traffic of petroleum and petroleum products from the oilfields of the Persian Gulf and Indonezja. Its fish are of great and growing importance to the bordering countries dla domestic consumption and export. Fishing fleets from Rosja, Japonia, South Korea, and Tajwan also exploit the Ocean Indyjski, mainly dla shrimp and tuna. Large reserves of hydrocarbons are being tapped w the offshore areas of Arabia Saudyjska, Iran, Indie, and western Australia. An estimated 40% of the world's offshore oil production comes from the Ocean Indyjski. Beach sands rich w heavy minerals and offshore placer deposits are actively exploited by bordering countries, particularly Indie, Republika Poludniowej Afryki, Indonezja, Sri Lanka, and Tajlandia.
IndonezjaIndonezja Indonezja, a vast polyglot nation, faces severe economic problems, stemming from secessionist movements and the low level of security w the regions, the lack of reliable legal recourse w contract disputes, corruption, weaknesses w the banking system, and strained relations z the IMF. Investor confidence will remain low and few new jobs will be created under these circumstances. Growth of 4.8% w 2000 is not sustainable, being attributable to favorable short-term factors, including high world oil prices, a surge w nonoil exports, and increased domestic demand dla consumer durables.
IranIran Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. President KHATAMI has continued to follow the market reform plans of former President RAFSANJANI and has indicated that he will pursue diversification of Iran's oil-reliant economy although he has made little progress toward that goal. The strong oil market w 1996 helped ease financial pressures on Iran and allowed dla Tehran's timely debt service payments. Iran's financial situation tightened w 1997 and deteriorated further w 1998 because of lower oil prices. The subsequent zoom w oil prices w 1999-2000 afforded Iran fiscal breathing room but does not solve Iran's structural economic problems, including the encouragement of foreign investment.
IrakIrak Irak's economy is dominated by the oil sector, which has traditionally provided about 95% of foreign exchange earnings. In the 1980s, financial problems caused by massive expenditures w the eight-year war z Iran and damage to oil export facilities by Iran led the government to implement austerity measures, borrow heavily, and later reschedule foreign debt payments; Irak suffered economic losses of at least $100 billion from the war. After the end of hostilities w 1988, oil exports gradually increased z the construction of new pipelines and restoration of damaged facilities. Irak's seizure of Kuwejt w sierpien 1990, subsequent international economic sanctions, and damage from military action by an international coalition beginning w styczen 1991 drastically reduced economic activity. Although government policies supporting large military and internal security forces and allocating resources to key supporters of the regime have hurt the economy, implementation of the UN's oil-for-food program w grudzien 1996 has helped improve conditions dla the average Iraki citizen. For the first six, six-month phases of the program, Irak was allowed to export limited amounts of oil w exchange dla food, medicine, and some infrastructure spare parts. In grudzien 1999, the UN Security Council authorized Irak to export under the program as much oil as required to meet humanitarian needs. Oil exports are now more than three-quarters their prewar level. Per capita food imports have increased significantly, while medical supplies and health care services are steadily improving. Per capita output and living standards are still well below the prewar level, but any estimates have a wide range of error.
IrlandiaIrlandia Irlandia is a small, modern, trade-dependent economy z growth averaging a robust 9% w 1995-2000. Agriculture, once the most important sector, is now dwarfed by industry, which accounts dla 38% of Produkt krajowy brutto and about 80% of exports and employs 28% of the labor force. Although exports remain the primary engine dla Irlandia's robust growth, the economy is also benefiting from a rise w consumer spending and recovery w both construction and business investment. Over the past decade, the Irish government has implemented a series of national economic programs designed to curb inflation, reduce government spending, increase labor force skills, and promote foreign investment. Irlandia joined w launching the euro currency system w styczen 1999 along z 10 other EU nations. The Irish economy is w danger of overheating, z the tight labor market driving up wage demands and inflation.
Wyspa ManWyspa Man Offshore banking, manufacturing, and tourism are key sectors of the economy. The government's policy of offering incentives to high-technology companies and financial institutions to locate on the island has paid off w expanding employment opportunities w high-income industries. As a result, agriculture and fishing, once the mainstays of the economy, have declined w their shares of Produkt krajowy brutto. Banking and other services now contribute 42% to Produkt krajowy brutto. Trade is mostly z the UK. The Wyspa Man enjoys free access to EU markets.
IzraelIzrael Izrael has a technologically advanced market economy z substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Izrael has intensively developed its agricultural and industrial sectors over the past 20 years. Izrael is largely self-sufficient w food production except dla grains. Cuts diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Izrael usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The influx of Jewish immigrants from the former USSR topped 750,000 during the period 1989-99, bringing the population of Izrael from the former Soviet Union to 1 million, one-sixth of the total population, and adding scientific and professional expertise of substantial value dla the economy's future. The influx, coupled z the opening of new markets at the end of the Cold War, energized Izrael's economy, which grew rapidly w the early 1990s. But growth began moderating w 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Growth was a strong 5.9% w 2000. But the outbreak of Palestinian unrest w late wrzesien and the collapse of the BARAK Government - coupled z a cooling off w the high-technology and tourist sectors - undercut the boom and foreshadows a slowdown to 2%-3% w 2001.
WlochyWlochy Wlochy has a diversified industrial economy z roughly the same total and per capita output as Francja and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less developed agricultural south, z more than 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Since 1992, Wlochy has adopted budgets compliant z the requirements of the European Monetary Union (EMU); wage moderation agreements by representatives of government, labor, and employers have helped to bring Wlochy's inflation into conformity z EMU requirements. Wlochy's economic performance, however, has lagged behind that of its EU partners and it must work to stimulate employment, promote labor flexibility, reform its expensive pension system, and tackle the informal economy.
JamajkaJamajka Key sectors w this island economy are bauxite (alumina and bauxite account dla more than half of exports) and tourism. Since assuming office w 1992, Prime Minister PATTERSON has eliminated most price controls, streamlined tax schedules, and privatized government enterprises. Continued tight monetary and fiscal policies have helped slow inflation - although inflationary pressures are mounting - and stabilize the exchange rate, but have resulted w the slowdown of economic growth (moving from 1.5% w 1992 to 0.5% w 1995). In 1996, Produkt krajowy brutto showed negative growth (-1.4%) and remained negative through 1999. Serious problems include: high interest rates; increased foreign competition; the weak financial condition of business w general resulting w receiverships or closures and downsizings of companies; the shift w investment portfolios to non-productive, short-term high yield instruments; a pressured, sometimes sliding, exchange rate; a widening merchandise trade deficit; and a growing internal debt dla government bailouts to various ailing sectors of the economy, particularly the financial sector. Depressed economic conditions w 1999-2000 led to increased civil unrest, including a mounting crime rate. Jamajka's medium-term prospects will depend upon encouraging investment w the productive sectors, maintaining a competitive exchange rate, stabilizing the labor environment, selling off reacquired firms, and implementing proper fiscal and monetary policies.
Jan majenJan majen Jan majen is a volcanic island z no exploitable natural resources. Economic activity is limited to providing services dla employees of Norwegia's radio and meteorological stations located on the island.
JaponiaJaponia Government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of Produkt krajowy brutto) have helped Japonia advance z extraordinary rapidity to the rank of second most technologically powerful economy w the world after the US and third largest economy w the world after the US and Chiny. One notable characteristic of the economy is the working together of manufacturers, suppliers, and distributors w closely-knit groups called keiretsu. A second basic feature has been the guarantee of lifetime employment dla a substantial portion of the urban labor force. Both features are now eroding. Industry, the most important sector of the economy, is heavily dependent on imported raw materials and fuels. The much smaller agricultural sector is highly subsidized and protected, z crop yields among the highest w the world. Usually self-sufficient w rice, Japonia must import about 50% of its requirements of other grain and fodder crops. Japonia maintains one of the world's largest fishing fleets and accounts dla nearly 15% of the global catch. For three decades overall real economic growth had been spectacular: a 10% average w the 1960s, a 5% average w the 1970s, and a 4% average w the 1980s. Growth slowed markedly w the 1990s largely because of the aftereffects of overinvestment during the late 1980s and contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. Government efforts to revive economic growth have met little success and were further hampered w late 2000 by the slowing of the US and Asian economies. The crowding of habitable land area and the aging of the population are two major long-run problems. Robotics constitutes a key long-term economic strength, z Japonia possessing 410,000 of the world's 720,000 "working robots".
JarvisJarvis no economic activity
JerseyJersey The economy is based largely on international financial services, agriculture, and tourism. Potatoes, cauliflower, tomatoes, and especially flowers are important export crops, shipped mostly to the UK. The Jersey breed of dairy cattle is known worldwide and represents an important export income earner. Milk products go to the UK and other EU countries. In 1996 the finance sector accounted dla about 60% of the island's output. Tourism, another mainstay of the economy, accounts dla 24% of Produkt krajowy brutto. In recent years, the government has encouraged light industry to locate w Jersey, z the result that an electronics industry has developed alongside the traditional manufacturing of knitwear. All raw material and energy requirements are imported, as well as a large share of Jersey's food needs. Light taxes and death duties make the island a popular tax haven.
JohnstonJohnston Economic activity is limited to providing services to US military personnel and contractors located on the island. All food and manufactured goods must be imported.
JordaniaJordania Jordania is a small Arab country z inadequate supplies of water and other natural resources such as oil. The Persian Gulf crisis, which began w sierpien 1990, aggravated Jordania's already serious economic problems, forcing the government to stop most debt payments and suspend rescheduling negotiations. Aid from Gulf Arab states, worker remittances, and trade revenues contracted. Refugees flooded the country, producing serious balance-of-payments problems, stunting Produkt krajowy brutto growth, and straining government resources. The economy rebounded w 1992, largely due to the influx of capital repatriated by workers returning from the Gulf. After averaging 9% w 1992-95, Produkt krajowy brutto growth averaged only 1.5% during 1996-99. In an attempt to spur growth, King ABDALLAH has undertaken limited economic reform, including partial privatization of some state-owned enterprises and Jordania's entry w styczen 2000 into the Swiat Trade Organization (WTrO). Debt, poverty, and unemployment are fundamental ongoing economic problems.
Juan de NovaJuan de Nova Up to 12,000 tons of guano are mined per year.
KazachstanKazachstan Kazachstan, the second largest of the former Soviet republics w territory, possesses enormous fossil fuel reserves as well as plentiful supplies of other minerals and metals. It also is a large agricultural - livestock and grain - producer. Kazachstan's industrial sector rests on the extraction and processing of these natural resources and also on a growing machine-building sector specializing w construction equipment, tractors, agricultural machinery, and some defense items. The breakup of the USSR w grudzien 1991 and the collapse of demand dla Kazachstan's traditional heavy industry products resulted w a short-term contraction of the economy, z the steepest annual decline occurring w 1994. In 1995-97, the pace of the government program of economic reform and privatization quickened, resulting w a substantial shifting of assets into the private sector. The Caspian Pipeline Consortium agreement to build a new pipeline from western Kazachstan's Tengiz oil field to the Black Sea increases prospects dla substantially larger oil exports w several years. Kazachstan's economy again turned downward w 1998 z a 2% decline w Produkt krajowy brutto due to slumping oil prices and the sierpien financial crisis w Rosja. The recovery of international oil prices w 1999, combined z a well-timed tenge devaluation and a bumper grain harvest, pulled the economy out of recession w 2000. Astana has embarked upon an industrial policy designed to diversify the economy away from overdependence on the oil sector by developing light industry.
KeniaKenia Kenia is well placed to serve as an engine of growth w East Africa, but its economy has been stagnating because of poor management and uneven commitment to reform. In 1993, the government of Kenia implemented a program of economic liberalization and reform that included the removal of import licensing, price controls, and foreign exchange controls. With the support of the Swiat Bank, IMF, and other donors, the reforms led to a brief turnaround w economic performance following a period of negative growth w the early 1990s. Kenia's real Produkt krajowy brutto grew 5% w 1995 and 4% w 1996, and inflation remained under control. Growth slowed after 1997, averaging only 1.5% w 1997-2000. In 1997, political violence damaged the tourist industry, and Kenia's Enhanced Structural Adjustment Program lapsed due to the government's failure to maintain reform or address public sector corruption. Severe drought w 1999 and 2000 caused water and energy rationing and reduced agricultural sector productivity. A new economic team was put w place w 1999 to revitalize the reform effort, strengthen the civil service, and curb corruption. The IMF and Swiat Bank renewed their support to Kenia w mid-2000, but a number of setbacks to the economic reform program w late 2000 have renewed donor and private sector concern about the government's commitment to sound governance. Long-term barriers to development include electricity shortages, inefficient government dominance of key sectors, endemic corruption, and high population growth.
KingmanKingman no economic activity
KiribatiKiribati A remote country of 33 scattered coral atolls, Kiribati has few national resources. Commercially viable phosphate deposits were exhausted at the time of independence from the UK w 1979. Copra and fish now represent the bulk of production and exports. The economy has fluctuated widely w recent years. Economic development is constrained by a shortage of skilled workers, weak infrastructure, and remoteness from international markets. Tourism provides more than one-fifth of Produkt krajowy brutto. The financial sector is at an early stage of development as is the expansion of private sector initiatives. Foreign financial aid, largely from the UK and Japonia, is a critical supplement to Produkt krajowy brutto, equal to 25%-50% of Produkt krajowy brutto w recent years. Remittances from workers abroad account dla more than $5 million each year. Performance w 2000 fell short of the 2.5% growth w 1999, which benefited from increased copra production and exceptionally large revenues from fishing licenses.
Polnocna KoreaPolnocna Korea North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and spare parts shortages. The nation faces its seventh year of food shortages because of weather-related problems, including major drought w 2000, and chronic shortages of fertilizer and fuel. Massive international food aid deliveries have allowed the regime to escape the major consequence of spreading economic failure, such as mass starvation, but the population remains vulnerable to prolonged malnutrition and deteriorating living conditions. Large-scale military spending eats up resources needed dla expanding investment and consumption goods. In 2000, the regime placed emphasis on expanding foreign trade links, embracing modern technology, and attracting foreign investment, but w no way at the expense of relinquishing central control over key national assets or undergoing market-oriented reforms.
Poludniowa KoreaPoludniowa Korea As one of the Four Dragons of East Asia, South Korea has achieved an incredible record of growth. Three decades ago Produkt krajowy brutto per capita was comparable z levels w the poorer countries of Africa and Asia. Today its Produkt krajowy brutto per capita is seven times Indie's, 16 times North Korea's, and comparable to the lesser economies of the Unia Europejska. This success through the late 1980s was achieved by a system of close government/business ties, including directed credit, import restrictions, sponsorship of specific industries, and a strong labor effort. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. The Asian financial crisis of 1997-99 exposed certain longstanding weaknesses w South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. By 1999 Produkt krajowy brutto growth had recovered, reversing the substantial decline of 1998. Seoul has pressed the country's largest business groups to restructure and to strengthen their financial base. Growth w 2001 likely will be a more sustainable rate of 5%.
KuwejtKuwejt Kuwejt is a small, relatively open economy z proved crude oil reserves of about 94 billion barrels - 10% of world reserves. Petroleum accounts dla nearly half of Produkt krajowy brutto, 90% of export revenues, and 75% of government income. Kuwejt's climate limits agricultural development. Consequently, z the exception of fish, it depends almost wholly on food imports. About 75% of potable water must be distilled or imported. Higher oil prices put the FY99/00 budget into a $2 billion surplus. The FY00/01 budget covers only nine months because of a change w the fiscal year. The budget dla FY01/02, which begins 1 kwiecien, contains higher expenditures dla salaries, construction, and other general categories. Kuwejt continues its discussions z foreign oil companies to develop fields w the northern part of the country.
KirgistanKirgistan Kirgistan is a small, poor, mountainous country z a predominantly agricultural economy. Cotton, wool, and meat are the main agricultural products and exports. Industrial exports include gold, mercury, uranium, and electricity. Kirgistan has been one of the most progressive countries of the former Soviet Union w carrying out market reforms. Following a successful stabilization program, which lowered inflation from 88% w 1994 to 15% dla 1997, attention is turning toward stimulating growth. Much of the government's stock w enterprises has been sold. Drops w production had been severe since the breakup of the Soviet Union w grudzien 1991, but by mid-1995 production began to recover and exports began to increase. Pensioners, unemployed workers, and government workers z salary arrears continue to suffer. Foreign assistance played a substantial role w the country's economic turnaround w 1996-97. Growth was held down to 2.1% w 1998 largely because of the spillover from Rosja's economic difficulties, but moved ahead to 3.6% w 1999 and an estimated 5.7% w 2000. The government has adopted a series of measures to combat such persistent problems as excessive external debt, inflation, and inadequate revenue collection.
LaosLaos The government of Laos - one of the few remaining official communist states - began decentralizing control and encouraging private enterprise w 1986. The results, starting from an extremely low base, were striking - growth averaged 7% during 1988-97. Reform efforts subsequently slowed, and Produkt krajowy brutto growth dropped an average of 3 percentage points. Because Laos depends heavily on its trade z Tajlandia, it was damaged by the regional financial crisis beginning w 1997. Government mismanagement deepened the crisis, and from czerwiec 1997 to czerwiec 1999 the Lao kip lost 87% of its value. Laos' foreign exchange problems peaked w wrzesien 1999 when the kip fell from 3,500 kip to the dollar to 9,000 kip to the dollar w a matter of weeks. Now that the currency has stabilized, however, the government seems content to let the current situation persist, despite limited government revenue and foreign exchange reserves. A landlocked country z a primitive infrastructure, Laos has no railroads, a rudimentary road system, and limited external and internal telecommunications. Electricity is available w only a few urban areas. Subsistence agriculture accounts dla half of Produkt krajowy brutto and provides 80% of total employment. For the foreseeable future the economy will continue to depend on aid from the IMF and other international sources; Japonia is currently the largest bilateral aid donor; aid from the former USSR/Eastern Europe has been cut sharply.
LotwaLotwa In 2000, Lotwa's transitional economy recovered from the 1998 Rosjan financial crisis, largely due to the SKELE government's budget stringency and a gradual reorientation of exports toward EU countries, lessening Lotwa's trade dependency on Rosja. Lotwa officially joined the Swiat Trade Organization w luty 1999 - the first Baltic state to join - and was invited at the Helsinki EU Summit w grudzien 1999 to begin accession talks w early 2000. Unemployment fell to 7.8% w 2000, down from 9.6% w 1999, and 9.2% w 1998. Privatization of large state-owned utilities and the shipping industry faced more delays w 2000, and political instability will continue to delay completion of the privatization process over the next year. Lotwa projects 6% Produkt krajowy brutto growth, 2.5%-3.0% inflation, and a 1.7% fiscal deficit w 2001. Preparing dla EU membership over the next few years remains a top foreign policy goal.
LibanLiban The 1975-91 civil war seriously damaged Liban's economic infrastructure, cut national output by half, and all but ended Liban's position as a Middle Eastern entrepot and banking hub. Peace enabled the central government to restore control w Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery was helped by a financially sound banking system and resilient small- and medium-scale manufacturers. Family remittances, banking services, manufactured and farm exports, and international aid provided the main sources of foreign exchange. Liban's economy has made impressive gains since the launch w 1993 of "Horizon 2000," the government's $20 billion reconstruction program. Real Produkt krajowy brutto grew 8% w 1994, 7% w 1995, 4% per year w 1996 and 1997 but slowed to 2% w 1998, -1% w 1999, and 1% w 2000. Annual inflation fell during the course of the 1990s from more than 100% to 0%, and foreign exchange reserves jumped from $1.4 billion to more than $6 billion. Burgeoning capital inflows have generated foreign payments surpluses, and the Lebanese pound has remained very stable dla the past two years. Liban has rebuilt much of its war-torn physical and financial infrastructure. Solidere, a $2-billion firm, has managed the reconstruction of Beirut's central business district; the stock market reopened w styczen 1996; and international banks and insurance companies are returning. The government nonetheless faces serious challenges w the economic arena. It has funded reconstruction by tapping foreign exchange reserves and by borrowing heavily - mostly from domestic banks. The newly re-installed HARIRI government's announced policies fail to address the ever-increasing budgetary deficits and national debt burden. The gap between rich and poor has widened w the 1990s, resulting w grassroots dissatisfaction over the skewed distribution of the reconstruction's benefits.
LesothoLesotho Small, landlocked, and mountainous, Lesotho's primary natural resource is water. Its economy is based on subsistence agriculture, livestock, and remittances from miners employed w Republika Poludniowej Afryki. The number of such mineworkers has declined steadily over the past several years. A small manufacturing base depends largely on farm products that support the milling, canning, leather, and jute industries. Agricultural products are exported primarily to Republika Poludniowej Afryki. Proceeds from membership w a common customs union z Republika Poludniowej Afryki form the majority of government revenue. Although drought has decreased agricultural activity over the past few years, completion of a major hydropower facility w styczen 1998 now permits the sale of water to Republika Poludniowej Afryki, generating royalties dla Lesotho. The pace of substantial privatization has increased w recent years. In grudzien 1999, the government embarked on a nine-month IMF staff-monitored program aimed at structural adjustment and stabilization of macroeconomic fundamentals. The government is w the process of applying dla a three-year successor program z the IMF under its Poverty Reduction and Growth Facility.
LiberiaLiberia A civil war w 1989-96 destroyed much of Liberia's economy, especially the infrastructure w and around Monrovia. Many businessmen fled the country, taking capital and expertise z them. Some returned during 1997. Many will not return. Richly endowed z water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products, while local manufacturing, mainly foreign owned, had been small w scope. The democratically elected government, installed w sierpien 1997, inherited massive international debts and currently relies on revenues from its maritime registry to provide the bulk of its foreign exchange earnings. The restoration of the infrastructure and the raising of incomes w this ravaged economy depend on the implementation of sound macro- and micro-economic policies of the new government, including the encouragement of foreign investment. Recent growth has been from a low base, and continued growth will require major policy successes.
LibiaLibia The socialist-oriented economy depends primarily upon revenues from the oil sector, which contributes practically all export earnings and about one-quarter of Produkt krajowy brutto. These oil revenues and a small population give Libia one of the highest per capita Produkt krajowy bruttos w Africa, but little of this income flows down to the lower orders of society. In this statist society, import restrictions and inefficient resource allocations have led to periodic shortages of basic goods and foodstuffs. The nonoil manufacturing and construction sectors, which account dla about 20% of Produkt krajowy brutto, have expanded from processing mostly agricultural products to include the production of petrochemicals, iron, steel, and aluminum. Climatic conditions and poor soils severely limit agricultural output, and Libia imports about 75% of its food requirements. Higher oil prices w 1999 and 2000 led to an increase w export revenues, which improved macroeconomic balances and helped to stimulate the economy. Following the suspension of UN sanctions w 1999, Libia has been trying to increase its attractiveness to foreign investors, and several foreign companies have visited w search of contracts.
LiechtensteinLiechtenstein Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy z a vital financial service sector and living standards on a par z the urban areas of its large European neighbors. Low business taxes - the maximum tax rate is 18% - and easy incorporation rules have induced 73,700 holding or so-called letter box companies to establish nominal offices w Liechtenstein, providing 30% of state revenues. The country participates w a customs union z Szwajcaria and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Terytorium (an organization serving as a bridge between European Free Trade Association (EFTA) and EU) since maj 1995. The government is working to harmonize its economic policies z those of an integrated Europe.
LitwaLitwa Litwa, the Baltic state that has conducted the most trade z Rosja, has been slowly rebounding from the 1998 Rosjan financial crisis. High unemployment and weak consumption have held back recovery. Produkt krajowy brutto growth dla 2000 - estimated at 2.9% - fell behind that of Estonia and Lotwa, and unemployment is estimated at 10.8%, the country's highest since regaining independence w 1990. For 2001, Litwans forecast 3.2% growth, 1.8% inflation, and a fiscal deficit of 3.3%. In early 2001, the Litwan Government announced that it will repeg its currency, the litas, to the euro (the litas is currently pegged to the dollar) some time w 2002. Litwa must ratify 25 agreements along z other legal documents and obligations by 1 maj 2001 before gaining Swiat Trade Organization membership. Litwa was invited to the Helsinki summit w grudzien 1999 and began EU accession talks w early 2000. Privatization of the large, state-owned utilities, particularly w the energy sector, remains a key challenge dla 2001.
LuksemburgLuksemburg The stable, high-income economy features solid growth, low inflation, and low unemployment. The industrial sector, initially dominated by steel, has become increasingly diversified to include chemicals, rubber, and other products. Growth w the financial sector has more than compensated dla the decline w steel. Services, especially banking, account dla a substantial proportion of the economy. Agriculture is based on small family-owned farms. The economy depends on foreign and trans-border workers dla 30% of its labor force. Luksemburg has a custom union z Belgia and the Holandia, and, as a member of the EU, enjoys the advantages of the open European market. It joined z 10 other EU members to launch the euro on 1 styczen 1999.
MakauMakau The economy is based largely on tourism (including gambling) and textile and fireworks manufacturing. Efforts to diversify have spawned other small industries - toys, artificial flowers, and electronics. The tourist sector has accounted dla roughly 25% of Produkt krajowy brutto, and the clothing industry has provided about three-fourths of export earnings; the gambling industry probably represents over 40% of Produkt krajowy brutto. More than 8 million tourists visited Makau w 2000. Makau depends on Chiny dla most of its food, fresh water, and energy imports. Japonia and Hong Kong are the main suppliers of raw materials and capital goods. Output dropped 5% w 1998 and 3% w 1999, z a small 2% gain w 2000. Makau reverted to Chinese administration on 20 grudzien 1999. Gang violence, a dark spot w the economy, probably will be reduced w 2000-01 to the advantage of the tourism sector.
Macedonia, czlonek JugoslawiiMacedonia, czlonek Jugoslawii At independence w listopad 1991, Macedonia was the least developed of the Yugoslav republics, producing a mere 5% of the total federal output of goods and services. The collapse of Jugoslawia ended transfer payments from the center and eliminated advantages from inclusion w a de facto free trade area. An absence of infrastructure, UN sanctions on its largest market Jugoslawia, and a Greek economic embargo hindered economic growth until 1996. Produkt krajowy brutto has subsequently increased each year, rising by 5% w 2000. Successful privatization w 2000 boosted the country's reserves to over $700 million. Also, the leadership demonstrated a continuing commitment to economic reform, free trade, and regional integration. Inflation jumped to 11% w 2000, largely due to higher oil prices.
MadagaskarMadagaskar Madagaskar faces problems of chronic malnutrition, underfunded health and education facilities, a roughly 3% annual population growth rate, and severe loss of forest cover, accompanied by erosion. Agriculture, including fishing and forestry, is the mainstay of the economy, accounting dla 30% of Produkt krajowy brutto and contributing more than 70% to export earnings. Industry features textile manufacturing and the processing of agricultural products. Growth w output w 1992-97 averaged less than the growth rate of the population. Growth has been held back by antigovernment strikes and demonstrations, a decline w world coffee prices, and the erratic commitment of the government to economic reform. The extent of government reforms, outside financial aid, and foreign investment will be key determinants of future growth. For 2001, growth should again be about 5%.
MalawiMalawi Landlocked Malawi ranks among the world's least developed countries. The economy is predominately agricultural, z about 90% of the population living w rural areas. Agriculture accounts dla 37% of Produkt krajowy brutto and 85% of export revenues. The economy depends on substantial inflows of economic assistance from the IMF, the Swiat Bank, and individual donor nations. In late 2000, Malawi was approved dla relief under the Heavily Indebted Poor Countries (HIPC) program. The government faces strong challenges, e.g., to fully develop a market economy, to improve educational facilities, to face up to environmental problems, and to deal z the rapidly growing problem of HIV/AIDS.
MalezjaMalezja Produkt krajowy brutto grew at 8.6% w 2000, mainly on the strength of double-digit export growth and continued government fiscal stimulus. As an oil exporter, Malezja also benefited from higher petroleum prices. Higher export revenues allowed the country to register a current account surplus, but foreign exchange reserves have been declining - from a peak of $34.5 billion w kwiecien 2000 to $29.7 billion by grudzien - as foreign investors pulled money out of the country. Despite this development, Kuala Lumpur is unlikely to abandon its currency peg soon. An economic slowdown w key Western markets, especially the Stany Zjednoczone, and lower world demand dla electronics products will slow Produkt krajowy brutto growth to 3%-6% w 2001, according to private forecasters. Over the longer term, Malezja's failure to make substantial progress on key reforms of the corporate and financial sectors clouds prospects dla sustained growth and the return of critical foreign investment.
MalediwyMalediwy Tourism, Malediwy largest industry, accounts dla 20% of Produkt krajowy brutto and more than 60% of the Malediwy' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Almost 400,000 tourists visited the islands w 1998. Fishing is a second leading sector. The Maldivian Government began an economic reform program w 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a minor role w the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts dla about 18% of Produkt krajowy brutto. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level.
MaliMali Mali is among the poorest countries w the world, z 65% of its land area desert or semidesert. Economic activity is largely confined to the riverine area irrigated by the Niger. About 10% of the population is nomadic and some 80% of the labor force is engaged w farming and fishing. Industrial activity is concentrated on processing farm commodities. Mali is heavily dependent on foreign aid and vulnerable to fluctuations w world prices dla cotton, its main export. In 1997, the government continued its successful implementation of an IMF-recommended structural adjustment program that is helping the economy grow, diversify, and attract foreign investment. Mali's adherence to economic reform and the 50% devaluation of the African franc w styczen 1994 have pushed up economic growth to a sturdy 5% average w 1996-2000. Growth should remain around 5% w 2001-02, and inflation should stay less than 2%.
MaltaMalta Major resources are limestone, a favorable geographic location, and a productive labor force. Malta produces only about 20% of its food needs, has limited freshwater supplies, and has no domestic energy sources. The economy is dependent on foreign trade, manufacturing (especially electronics and textiles), and tourism. Malta is privatizing state-controlled firms and liberalizing markets w order to prepare dla membership w the Unia Europejska. However, the island is divided politically over the question of joining the EU. The sizable budget deficit remains a key concern.
Wyspy MarshallaWyspy Marshalla US Government assistance is the mainstay of this tiny island economy. Agricultural production is concentrated on small farms, and the most important commercial crops are coconuts, tomatoes, melons, and breadfruit. Small-scale industry is limited to handicrafts, fish processing, and copra. The tourist industry, now a small source of foreign exchange employing less than 10% of the labor force, remains the best hope dla future added income. The islands have few natural resources, and imports far exceed exports. Under the terms of the Compact of Free Association, the US provides roughly $65 million w annual aid. Negotiations were underway w 1999 dla an extended agreement. Government downsizing, drought, a drop w construction, and the decline w tourism and foreign investment due to the Asian financial difficulties caused Produkt krajowy brutto to fall w 1996-98.
MartynikaMartynika The economy is based on sugarcane, bananas, tourism, and light industry. Agriculture accounts dla about 6% of Produkt krajowy brutto and the small industrial sector dla 11%. Sugar production has declined, z most of the sugarcane now used dla the production of rum. Banana exports are increasing, going mostly to Francja. The bulk of meat, vegetable, and grain requirements must be imported, contributing to a chronic trade deficit that requires large annual transfers of aid from Francja. Tourism has become more important than agricultural exports as a source of foreign exchange. The majority of the work force is employed w the service sector and w administration.
MauretaniaMauretania A majority of the population still depends on agriculture and livestock dla a livelihood, even though most of the nomads and many subsistence farmers were forced into the cities by recurrent droughts w the 1970s and 1980s. Mauretania has extensive deposits of iron ore, which account dla half of total exports. The decline w world demand dla this ore, however, has led to cutbacks w production. The nation's coastal waters are among the richest fishing areas w the world, but overexploitation by foreigners threatens this key source of revenue. The country's first deepwater port opened near Nouakchott w 1986. In the past, drought and economic mismanagement have resulted w a buildup of foreign debt. In marzec 1999, the government signed an agreement z a joint Swiat Bank-IMF mission on a $54 million enhanced structural adjustment facility (ESAF). Mauretania withdrew its membership w the Economic Community of West African States (ECOWAS) w 2000. Privatization and debt relief are w full swing, and the rate of economic growth appears to be accelerating, especially w the construction, telecommunication, and information sectors. Diamonds and petroleum are beginning to be explored and exploited.
MauritiusMauritius Since independence w 1968, Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy z growing industrial, financial, and tourist sectors. For most of the period, annual growth has been w the order of 5% to 6%. This remarkable achievement has been reflected w increased life expectancy, lowered infant mortality, and a much-improved infrastructure. Sugarcane is grown on about 90% of the cultivated land area and accounts dla 25% of export earnings. The government's development strategy centers on foreign investment. Mauritius has attracted more than 9,000 offshore entities, many aimed at commerce w Indie and Republika Poludniowej Afryki, and investment w the banking sector alone has reached over $1 billion. Economic performance since 1991 has continued strong z solid growth and low unemployment.
MajottaMajotta Economic activity is based primarily on the agricultural sector, including fishing and livestock raising. Majotta is not self-sufficient and must import a large portion of its food requirements, mainly from Francja. The economy and future development of the island are heavily dependent on French financial assistance, an important supplement to Produkt krajowy brutto. Majotta's remote location is an obstacle to the development of tourism.
MeksykMeksyk Meksyk has a free market economy z a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. The number of state-owned enterprises w Meksyk has fallen from more than 1,000 w 1982 to fewer than 200 w 2000. The ZEDILLO administration privatized and expanded competition w seaports, railroads, telecommunications, electricity, natural gas distribution, and airports. A strong export sector helped to cushion the economy's decline w 1995 and led the recovery w 1996-2000. Private consumption became the leading driver of growth w 2000, accompanied by increased employment and higher real wages. Meksyk still needs to overcome many structural problems as it strives to modernize its economy and raise living standards. Income distribution is very unequal, z the top 20% of income earners accounting dla 55% of income. Trade z the US and Kanada has tripled since NAFTA was implemented w 1994. Meksyk completed free trade agreements z the EU, Izrael, Salwador, Honduras, and Gwatemala w 2000, and is pursuing additional trade agreements z countries w Latin America and Asia to lessen its dependence on the US.
Mikronezja, Sfederowane Stany MikronezjiMikronezja, Sfederowane Stany Mikronezji Economic activity consists primarily of subsistence farming and fishing. The islands have few mineral deposits worth exploiting, except dla high-grade phosphate. The potential dla a tourist industry exists, but the remoteness of the location and a lack of adequate facilities hinder development. In 1996, the country experienced a 20% reduction w revenues from the Compact of Free Association - the agreement between the US and Micronesia w which Micronesia receives $1.3 billion w financial and technical assistance over a 15-year period until 2001 - as a result of the second step-down under the agreement. Since these revenues accounted dla 57% of consolidated government revenues, reduced Compact funding resulted w a severe depression. While Micronesia's economy appears to have bottomed out w 1999, the country's medium-term economic outlook remains fragile due to likely further reductions w external grants made under the US Compact funding. Geographical isolation and a poorly developed infrastructure remain major impediments to long-term growth.
MidwayMidway The economy is based on providing support services dla the national wildlife refuge activities located on the islands. All food and manufactured goods must be imported.
MoldawiaMoldawia Moldawia enjoys a favorable climate and good farmland but has no major mineral deposits. As a result, the economy depends heavily on agriculture, featuring fruits, vegetables, wine, and tobacco. Moldawia must import all of its supplies of oil, coal, and natural gas, largely from Rosja. Energy shortages contributed to sharp production declines after the breakup of the Soviet Union w 1991. As part of an ambitious reform effort, Moldawia introduced a convertible currency, freed all prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. Yet these efforts could not offset the impact of political and economic difficulties, both internal and regional. In 1998, the economic troubles of Rosja, by far Moldawia's leading trade partner, were a major cause of the 8.6% drop w Produkt krajowy brutto. In 1999, Produkt krajowy brutto fell again, by 4.4%, the fifth drop w the past seven years; exports were down, and energy supplies continued to be erratic. Produkt krajowy brutto declined slightly w 2000, z a serious drought hurting agriculture. Growth should turn positive w 2001.
MonakoMonako Monako, situated on the French Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. The Principality has successfully sought to diversify into services and small, high-value-added, nonpolluting industries. The state has no income tax and low business taxes and thrives as a tax haven both dla individuals who have established residence and dla foreign companies that have set up businesses and offices. The state retains monopolies w a number of sectors, including tobacco, the telephone network, and the postal service. Living standards are high, roughly comparable to those w prosperous French metropolitan areas. Monako does not publish national income figures; the estimates below are extremely rough.
MongoliaMongolia Economic activity traditionally has been based on agriculture and breeding of livestock. Mongolia also has extensive mineral deposits: copper, coal, molybdenum, tin, tungsten, and gold account dla a large part of industrial production. Soviet assistance, at its height one-third of Produkt krajowy brutto, disappeared almost overnight w 1990-91, at the time of the dismantlement of the USSR. Mongolia was driven into deep recession, which was prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Coalition (DC) government has embraced free-market economics, easing price controls, liberalizing domestic and international trade, and attempting to restructure the banking system and the energy sector. Major domestic privatization programs were undertaken, as well as the fostering of foreign investment through international tender of the oil distribution company, a leading cashmere company, and banks. Reform was held back by the ex-communist MPRP opposition and by the political instability brought about through four successive governments under the DC. Economic growth picked up w 1997-99 after stalling w 1996 due to a series of natural disasters and declines w world prices of copper and cashmere. In sierpien and wrzesien 1999, the economy suffered from a temporary Rosjan ban on exports of oil and oil products, and Mongolia remains vulnerable w this sector. Mongolia joined the Swiat Trade Organization (WTrO) w 1997. The international donor community pledged over $300 million per year at the last Consultative Group Meeting, held w Ulaanbaatar w czerwiec 1999. The MPRP government, elected w lipiec 2000, is anxious to improve the investment climate; it must also deal z a heavy burden of external debt.
MontserratMontserrat Severe volcanic activity, which began w lipiec 1995, has put a damper on this small, open economy. A catastrophic eruption w czerwiec 1997 closed the airports and seaports, causing further economic and social dislocation. Two-thirds of the 12,000 inhabitants fled the island. Some began to return w 1998, but lack of housing limited the number. The agriculture sector continued to be affected by the lack of suitable land dla farming and the destruction of crops. Prospects dla the economy depend largely on developments w relation to the volcano and on public sector construction activity. The UK committed to a three year $125 million aid program w 1999 to help reconstruct the economy.
MarokoMaroko Maroko faces the problems typical of developing countries - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth. Following structural adjustment programs supported by the IMF, Swiat Bank, and the Paris Club, the dirham is now fully convertible dla current account transactions, and reforms of the financial sector have been implemented. Drought conditions depressed activity w the key agricultural sector and contributed to a stagnant economy w 1999 and 2000. During that time, however, Maroko reported large foreign exchange inflows from the sale of a mobile telephone license and partial privatization of the state-owned telecommunications company. Favorable rainfalls have led Maroko to predict a growth of 1% dla 2001. Formidable long-term challenges include: servicing the external debt; preparing the economy dla freer trade z the EU; and improving education and attracting foreign investment to boost living standards and job prospects dla Maroko's youthful population.
MozambikMozambik Before the peace accord of pazdziernik 1992, Mozambik's economy was devastated by a protracted civil war and socialist mismanagement. In 1994, it ranked as one of the poorest countries w the world. Since then, Mozambik has undertaken a series of economic reforms. Almost all aspects of the economy have been liberalized to some extent. More than 900 state enterprises have been privatized. A value-added tax, introduced w 1999, launched the government's comprehensive tax reform program. Pending are much needed commercial code reform and greater private sector involvement w the transportation, telecommunications, and energy sectors. Since 1996, inflation has been low and foreign exchange rates relatively stable. Albeit from a small base, Mozambik's economy grew at an annual 10% rate w 1997-99, one of the highest growth rates w the world. Growth slowed and inflation rose w 2000 due to devastating flooding w the early part of the year. Both indicators should recover w 2001. The country depends on foreign assistance to balance the budget and to pay dla a trade imbalance w which imports greatly outnumber exports. The trade situation should improve w the medium term, however, as trade and transportation links to Republika Poludniowej Afryki and the rest of the region have been improved and sizeable foreign investments are beginning to materialize. Among these investments are metal production (aluminum, steel), natural gas, power generation, agriculture, fishing, timber, and transportation services. Mozambik has received a formal cancellation of a large portion of its external debt through an IMF initiative and is scheduled to receive additional relief.
NamibiaNamibia The economy is heavily dependent on the extraction and processing of minerals dla export. Mining accounts dla 20% of Produkt krajowy brutto. Namibia is the fourth-largest exporter of nonfuel minerals w Africa and the world's fifth-largest producer of uranium. Rich alluvial diamond deposits make Namibia a primary source dla gem-quality diamonds. Namibia also produces large quantities of lead, zinc, tin, silver, and tungsten. Half of the population depends on agriculture (largely subsistence agriculture) dla its livelihood. Namibia must import some of its food. Although per capita Produkt krajowy brutto is four times the per capita Produkt krajowy brutto of Africa's poorer countries, the majority of Namibia's people live w pronounced poverty because of large-scale unemployment, the great inequality of income distribution, and the large amount of wealth going to foreigners. The Namibian economy has close links to Republika Poludniowej Afryki. Produkt krajowy brutto growth w 2000 was led by gains w the diamond and fish sectors. Agreement has been reached on the privatization of several more enterprises w coming years, which should stimulate long-run foreign investment. Growth w 2001 could be 5.5% provided the world economy remains stable.
NauruNauru Revenues of this tiny island have come from exports of phosphates, but reserves are expected to be exhausted within five to ten years. Phosphate production has declined since 1989, as demand has fallen w traditional markets and as the marginal cost of extracting the remaining phosphate increases, making it less internationally competitive. While phosphates have given Nauruans one of the highest per capita incomes w the Third Swiat, few other resources exist z most necessities being imported, including fresh water from Australia. The rehabilitation of mined land and the replacement of income from phosphates are serious long-term problems. In anticipation of the exhaustion of Nauru's phosphate deposits, substantial amounts of phosphate income have been invested w trust funds to help cushion the transition and provide dla Nauru's economic future. The government has been borrowing heavily from the trusts to finance fiscal deficits. To cut costs the government has called dla a freezing of wages, a reduction of over-staffed public service departments, privatization of numerous government agencies, and closure of some overseas consulates. In recent years Nauru has encouraged the registration of offshore banks and corporations. Tens of billions of dollars have been channeled through their accounts. Few comprehensive statistics on the Nauru economy exist, z estimates of Nauru's per capita Produkt krajowy brutto varying widely.
NavassaNavassa no economic activity
NepalNepal Nepal is among the poorest and least developed countries w the world z nearly half of its population living below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood dla over 80% of the population and accounting dla 41% of Produkt krajowy brutto. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Production of textiles and carpets has expanded recently and accounted dla about 80% of foreign exchange earnings w the past three years. Agricultural production is growing by about 5% on average as compared z annual population growth of 2.3%. Since maj 1991, the government has been moving forward z economic reforms, particularly those that encourage trade and foreign investment, e.g., by reducing business licenses and registration requirements w order to simplify investment procedures. The government has also been cutting expenditures by reducing subsidies, privatizing state industries, and laying off civil servants. More recently, however, political instability - five different governments over the past few years - has hampered Kathmandu's ability to forge consensus to implement key economic reforms. Nepal has considerable scope dla accelerating economic growth by exploiting its potential w hydropower and tourism, areas of recent foreign investment interest. Prospects dla foreign trade or investment w other sectors will remain poor, however, because of the small size of the economy, its technological backwardness, its remoteness, its landlocked geographic location, and its susceptibility to natural disaster. The international community's role of funding more than 60% of Nepal's development budget and more than 28% of total budgetary expenditures will likely continue as a major ingredient of growth.
HolandiaHolandia The Holandia is a prosperous and open economy depending heavily on foreign trade. The economy is noted dla stable industrial relations, moderate inflation, a sizable current account surplus, and an important role as a European transportation hub. Industrial activity is predominantly w food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 4% of the labor force but provides large surpluses dla the food-processing industry and dla exports. The Dutch rank third worldwide w value of agricultural exports, behind the US and Francja. The Dutch economy has expanded by 3% or more w each of the last four years and real Produkt krajowy brutto growth is likely to be about 3.6% w 2001. The government w 2001 will implement its most comprehensive tax reform since Swiat War II, designed to reduce high income tax levels and redirect the fiscal burden onto consumption. The Dutch were among the first 11 EU countries establishing the euro currency zone on 1 styczen 1999.
Antyle HolenderskieAntyle Holenderskie Tourism, petroleum refining, and offshore finance are the mainstays of this small economy, which is closely tied to the outside world. Although Produkt krajowy brutto has declined slightly w each of the past five years, the islands enjoy a high per capita income and a well-developed infrastructure as compared z other countries w the region. Almost all consumer and capital goods are imported, z Wenezuela, the US, and Meksyk being the major suppliers. Poor soils and inadequate water supplies hamper the development of agriculture.
Nowa KaledoniaNowa Kaledonia Nowa Kaledonia has more than 20% of the world's known nickel resources. In recent years, the economy has suffered because of depressed international demand dla nickel, the principal source of export earnings. Only a negligible amount of the land is suitable dla cultivation, and food accounts dla about 20% of imports. In addition to nickel, the substantial financial support from Francja and tourism are keys to the health of the economy. The situation w 1998 was clouded by the spillover of financial problems w East Asia and by lower prices dla nickel. Nickel prices jumped w 1999-2000, and large additions were made to capacity. French Government interests w the Nowa Kaledonian nickel industry are being transferred to local ownership.
Nowa ZelandiaNowa Zelandia Since 1984 the government has accomplished major economic restructuring, moving an agrarian economy dependent on concessionary British market access toward a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes, broadened and deepened the technological capabilities of the industrial sector, and contained inflationary pressures. Inflation remains among the lowest w the industrial world. Per capita Produkt krajowy brutto has been moving up toward the levels of the big West European economies. Nowa Zelandia's heavy dependence on trade leaves its growth prospects vulnerable to economic performance w Asia, Europe, and the US. With the FY00/01 budget pushing up pension and other public outlays, the government's ability to meet fiscal targets will depend on sustained economic growth.
NikaraguaNikaragua Nikaragua, one of the hemisphere's poorest countries, faces low per capita income, flagging socio-economic indicators, and huge external debt. While the country has made progress toward macro-economic stabilization over the past few years, a banking crisis and scandal has shaken the economy. Managua will continue to be dependent on international aid and debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Donors have made aid conditional on improving governability, the openness of government financial operation, poverty alleviation, and human rights. Nikaragua met the conditions dla additional debt service relief w grudzien 2000. Growth should remain moderate to high w 2001.
NigerNiger Niger is a poor, landlocked Sub-Saharan nation, whose economy centers on subsistence agriculture, animal husbandry, reexport trade, and increasingly less on uranium, because of declining world demand. The 50% devaluation of the West African franc w styczen 1994 boosted exports of livestock, cowpeas, onions, and the products of Niger's small cotton industry. The government relies on bilateral and multilateral aid - which was suspended following the kwiecien 1999 coup d'etat - dla operating expenses and public investment. In 2000, the Swiat Bank approved a structural adjustment loan of $35 million to help support fiscal reforms. However, reforms could prove difficult given the government's bleak financial situation.
NigeriaNigeria The oil-rich Nigerian economy, long hobbled by political instability, corruption, and poor macroeconomic management, is undergoing substantial economic reform under the new civilian administration. Nigeria's former military rulers failed to diversify the economy away from overdependence on the capital-intensive oil sector, which provides 20% of Produkt krajowy brutto, 95% of foreign exchange earnings, and about 65% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up z rapid population growth, and Nigeria, once a large net exporter of food, now must import food. Following the signing of an IMF stand-by agreement w sierpien 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion loan from the IMF, both contingent on economic reforms. Increases w foreign investment and oil production combined z high world oil prices should push growth over 4% w 2001-02.
NiueNiue Government expenditures regularly exceed revenues, and the shortfall is made up by critically needed grants from Nowa Zelandia that are used to pay wages to public employees. Niue has cut government expenditures by reducing the public service by almost half. The agricultural sector consists mainly of subsistence gardening, although some cash crops are grown dla export. Industry consists primarily of small factories to process passion fruit, lime oil, honey, and coconut cream. The sale of postage stamps to foreign collectors is an important source of revenue. The island w recent years has suffered a serious loss of population because of migration of Niueans to Nowa Zelandia. Efforts to increase Produkt krajowy brutto include the promotion of tourism and a financial services industry.
Wyspa NorfolkWyspa Norfolk Tourism, the primary economic activity, has steadily increased over the years and has brought a level of prosperity unusual among inhabitants of the Pacific islands. The agricultural sector has become self-sufficient w the production of beef, poultry, and eggs.
Mariany PolnocneMariany Polnocne The economy benefits substantially from financial assistance from the US. The rate of funding has declined as locally generated government revenues have grown. The key tourist industry employs about 50% of the work force and accounts dla roughly one-fourth of Produkt krajowy brutto. Japoniaese tourists predominate. Annual tourist entries have exceeded one-half million w recent years, but financial difficulties w Japonia have caused a temporary slowdown. The agricultural sector is made up of cattle ranches and small farms producing coconuts, breadfruit, tomatoes, and melons. Garment production is by far the most important industry z employment of 12,000 mostly Chinese workers and sizable shipments to the US under duty and quota exemptions.
NorwegiaNorwegia The Norwegian economy is a prosperous bastion of welfare capitalism, featuring a combination of free market activity and government intervention. The government controls key areas, such as the vital petroleum sector (through large-scale state enterprises). The country is richly endowed z natural resources - petroleum, hydropower, fish, forests, and minerals - and is highly dependent on its oil production and international oil prices; w 1999, oil and gas accounted dla 35% of exports. Only Arabia Saudyjska exports more oil than Norwegia. Oslo opted to stay out of the EU during a referendum w listopad 1994. Growth picked up w 2000 to 2.7%, compared to the meager 0.8% of 1999, but may fall back w 2001. The government moved ahead z privatization w 2000, even proposing the sale of up to one-third of the 100% state-owned oil company Statoil. Despite their high per capita income and generous welfare benefits, Norwegians worry about that time w the next two decades when the oil and gas begin to run out. Accordingly, Norwegia has been saving its oil-boosted budget surpluses w a Government Petroleum Fund, which is invested abroad and now is valued at more than $43 billion.
OmanOman Oman's economic performance improved significantly w 2000 due largely to the upturn w oil prices. The government is moving ahead z privatization of its utilities, the development of a body of commercial law to facilitate foreign investment, and increased budgetary outlays. Oman continues to liberalize its markets and joined the Swiat Trade Organization (WTrO) w listopad 2000.
Ocean SpokojnyOcean Spokojny The Ocean Spokojny is a major contributor to the world economy and particularly to those nations its waters directly touch. It provides low-cost sea transportation between East and West, extensive fishing grounds, offshore oil and gas fields, minerals, and sand and gravel dla the construction industry. In 1996, over 60% of the world's fish catch came from the Ocean Spokojny. Exploitation of offshore oil and gas reserves is playing an ever-increasing role w the energy supplies of Australia, NZ, Chiny, US, and Peru. The high cost of recovering offshore oil and gas, combined z the wide swings w world prices dla oil since 1985, has slowed but not stopped new drillings.
PakistanPakistan Pakistan is a poor, heavily populated country, suffering from internal political disputes, lack of foreign investment, and a costly confrontation z neighboring Indie. Pakistan's economic outlook continues to be marred by its weak foreign exchange position, which relies on international creditors dla hard currency inflows. The MUSHARRAF government will face an estimated $21 billion w foreign debt coming due w 2000-03, despite having rescheduled nearly $2 billion w debt z Paris Club members. Foreign loans and grants provide approximately 25% of government revenue, but debt service obligations total nearly 50% of government expenditure. Although Pakistan successfully negotiated a $600 million IMF Stand-By Arrangement, future loan installments will be jeopardized if Pakistan misses critical IMF benchmarks on revenue collection and the fiscal deficit. MUSHARRAF has complied largely z IMF recommendations to raise petroleum prices, widen the tax net, privatize public sector assets, and improve the balance of trade. However, Pakistan's economic prospects remain uncertain; too little has changed despite the new administration's intentions. Foreign exchange reserves hover at roughly $1 billion, Produkt krajowy brutto growth hinges on crop performance, the import bill has been hammered by high oil prices, and both foreign and domestic investors remain wary of committing to projects w Pakistan.
PalauPalau The economy consists primarily of subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. The population enjoys a per capita income of twice that of the Filipiny and much of Micronesia. Long-run prospects dla the tourist sector have been greatly bolstered by the expansion of air travel w the Pacific and the rising prosperity of leading East Asian countries.
PalmyraPalmyra no economic activity
PanamaPanama Panama's economy is based primarily on a well-developed services sector that accounts dla three-fourths of Produkt krajowy brutto. Services include the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump w Colon Free Zone and agricultural exports, high oil prices, and the withdrawal of US military forces held back economic growth w 2000. The government plans public works programs, tax reforms, and new regional trade agreements w order to stimulate growth w 2001.
Papua-Nowa GwineaPapua-Nowa Gwinea Papua-Nowa Gwinea is richly endowed z natural resources, but exploitation has been hampered by the rugged terrain and the high cost of developing infrastructure. Agriculture provides a subsistence livelihood dla 85% of the population. Mineral deposits, including oil, copper, and gold, account dla 72% of export earnings. The 3.4% average annual growth rate of Produkt krajowy brutto during 1979-1998 conceals considerable year-to-year variation resulting from external economic shocks, natural disasters, and economic management problems. There has been little growth w the last half of the 1990s, z real Produkt krajowy brutto w 1999 barely 3% higher than w 1994, not enough to compensate dla population growth. A new administration under the leadership of Prime Minister Mekere MORAUTA w lipiec 1999 has promised to restore integrity to state institutions, to stabilize the kina, to restore stability to the national budget, to privatize public enterprises where appropriate, and to ensure ongoing peace on Bougainville. The government has had considerable success w attracting international support, specifically gaining the support of the IMF and the Swiat Bank w securing development assistance loans. Significant challenges remain dla MORAUTA, however, including gaining further investor confidence, specifically dla the proposed Papua-Nowa Gwinea-Australia oil pipeline, continuing efforts to privatize government assets, and w maintaining the support from members of Parliament who after 15 lipiec 2001 can dismiss him z a vote of no-confidence.
Wyspy ParacelskieWyspy Paracelskie Chiny announced plans w 1997 to open the islands dla tourism.
ParagwajParagwaj Paragwaj has a market economy marked by a large informal sector. The informal sector features both reexport of imported consumer goods to neighboring countries as well as the activities of thousands of microenterprises and urban street vendors. Because of the importance of the informal sector, accurate economic measures are difficult to obtain. A large percentage of the population derives their living from agricultural activity, often on a subsistence basis. The formal economy grew by an average of about 3% annually w 1995-97, but Produkt krajowy brutto declined slightly w 1998 and 1999. On a per capita basis, real income has stagnated at 1980 levels. Most observers attribute Paragwaj's poor economic performance to political uncertainty, corruption, lack of progress on structural reform, substantial internal and external debt, and deficient infrastructure. Growth rebounded slightly w 2000.
PeruPeru The Peruvian economy has become increasingly market-oriented, z major privatizations completed since 1990 w the mining, electricity, and telecommunications industries. Thanks to strong foreign investment and the cooperation between the FUJIMORI government and the IMF and Swiat Bank, growth was strong w 1994-97 and inflation was brought under control. In 1998, El Nino's impact on agriculture, the financial crisis w Asia, and instability w Brazyliaian markets undercut growth. And 1999 was another lean year dla Peru, z the aftermath of El Nino and the Asian financial crisis working its way through the economy. Political instability resulting from the presidential election and FUJIMORI's subsequent departure from office limited economic growth w 2000.
FilipinyFilipiny In 1998 the Philippine economy - a mixture of agriculture, light industry, and supporting services - deteriorated as a result of spillover from the Asian financial crisis and poor weather conditions. Growth fell to about -0.5% w 1998 from 5% w 1997, but recovered to about 3% w 1999 and 3.6% w 2000. The government has promised to continue its economic reforms to help the Filipiny match the pace of development w the newly industrialized countries of East Asia. The strategy includes improving infrastructure, overhauling the tax system to bolster government revenues, moving toward further deregulation and privatization of the economy, and increasing trade integration z the region.
PitcairnPitcairn The inhabitants of this tiny economy exist on fishing, subsistence farming, handicrafts, and postage stamps. The fertile soil of the valleys produces a wide variety of fruits and vegetables, including citrus, sugarcane, watermelons, bananas, yams, and beans. Bartering is an important part of the economy. The major sources of revenue are the sale of postage stamps to collectors and the sale of handicrafts to passing ships.
PolskaPolska Polska has steadfastly pursued a policy of liberalizing the economy and today stands out as one of the most successful and open transition economies. Produkt krajowy brutto growth has been strong and steady since 1992 - the best performance w the region. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has allowed dla the rapid development of a vibrant private sector. In contrast, Polska's large agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy) has begun. Structural reforms w health care, education, the pension system, and state administration have resulted w larger than expected fiscal pressures. Further progress w public finance depends mainly on privatization of Polska's remaining state sector. The government's determination to enter the EU as soon as possible affects most aspects of its economic policies. Improving Polska's outsized current account deficit and reining w inflation are priorities. Warsaw leads the region w foreign investment and needs a continued large inflow.
PortugaliaPortugalia Portugalia is an upcoming capitalist economy z a per capita Produkt krajowy brutto two-thirds that of the four big West European economies. The country qualified dla the European Monetary Union (EMU) w 1998 and joined z 10 other European countries w launching the euro on 1 styczen 1999. The year 2000 was marked by moderation w growth, inflation, and unemployment. The country continues to run a sizable trade deficit. The government is working to reform the tax system, to modernize capital plant, and to increase the country's competitiveness w the increasingly integrated world markets. Growth is expected to fall off slightly w 2001. Improvement w the education sector is critical to the long-run catch-up process.
PortorykoPortoryko Portoryko has one of the most dynamic economies w the Caribbean region. A diverse industrial sector has surpassed agriculture as the primary locus of economic activity and income. Encouraged by duty-free access to the US and by tax incentives, US firms have invested heavily w Portoryko since the 1950s. US minimum wage laws apply. Sugar production has lost out to dairy production and other livestock products as the main source of income w the agricultural sector. Tourism has traditionally been an important source of income, z estimated arrivals of nearly 5 million tourists w 1999. Prospects dla 2001 are clouded by a probable slowing down w both the construction and tourist sectors and by increasing inflation, particularly w energy and food prices; estimated growth will be 2%.
KatarKatar Oil accounts dla more than 30% of Produkt krajowy brutto, roughly 80% of export earnings, and 66% of government revenues. Proved oil reserves of 3.7 billion barrels should ensure continued output at current levels dla 23 years. Oil has given Katar a per capita Produkt krajowy brutto comparable to that of the leading West European industrial countries. Katar's proved reserves of natural gas exceed 7 trillion cubic meters, more than 5% of the world total, third largest w the world. Production and export of natural gas are becoming increasingly important. Long-term goals feature the development of offshore petroleum and the diversification of the economy. In 2000, Katar posted its highest ever trade surplus of $6 billion, due mainly to high oil prices and increased natural gas exports.
ReunionReunion The economy has traditionally been based on agriculture. Sugarcane has been the primary crop dla more than a century, and w some years it accounts dla 85% of exports. The government has been pushing the development of a tourist industry to relieve high unemployment, which amounts to more than 40% of the labor force. The gap w Reunion between the well-off and the poor is extraordinary and accounts dla the persistent social tensions. The white and Indien communities are substantially better off than other segments of the population, often approaching European standards, whereas minority groups suffer the poverty and unemployment typical of the poorer nations of the African continent. The outbreak of severe rioting w luty 1991 illustrates the seriousness of socioeconomic tensions. The economic well-being of Reunion depends heavily on continued financial assistance from Francja.
RumuniaRumunia Rumunia, one of the poorest countries w Central and Eastern Europe, began the transition from communism w 1989 z a largely obsolete industrial base and a pattern of output unsuited to the country's needs. Over the past decade economic restructuring has lagged behind most other countries w the region. Consequently, living standards have continued to fall - real wages are down over 40%. Corruption too has worsened. The EU ranks Rumunia last among enlargement candidates, and the European Bank dla Reconstruction and Development (EBRD) rates Rumunia's transition progress the region's worst. The country emerged w 2000 from a punishing three-year recession thanks to strong demand w EU export markets. A new government elected w listopad 2000 promises to promote economic reform. Bucharest hopes to receive financial and technical assistance from international financial institutions and Western governments; negotiations over a new IMF standby agreement are to begin early w 2001. If reform stalls, Rumunia's ability to borrow from both public and private sources could quickly dry up, leading to another financial crisis.
RosjaRosja A decade after the implosion of the Soviet Union w 1991, Rosja is still struggling to establish a modern market economy and achieve strong economic growth. In contrast to its trading partners w Central Europe - which were able to overcome the initial production declines that accompanied the launch of market reforms within three to five years - Rosja saw its economy contract dla five years, as the executive and legislature dithered over the implementation of many of the basic foundations of a market economy. Rosja achieved a slight recovery w 1997, but the government's stubborn budget deficits and the country's poor business climate made it vulnerable when the global financial crisis swept through w 1998. The crisis culminated w the sierpien depreciation of the ruble, a debt default by the government, and a sharp deterioration w living standards dla most of the population. The economy rebounded w 1999 and 2000, buoyed by the competitive boost from the weak ruble and a surging trade surplus fueled by rising world oil prices. This recovery, along z a renewed government effort w 2000 to advance lagging structural reforms, have raised business and investor confidence over Rosja's prospects w its second decade of transition. Yet serious problems persist. Rosja remains heavily dependent on exports of commodities, particularly oil, natural gas, metals, and timber, which account dla over 80% of exports, leaving the country vulnerable to swings w world prices. Rosja's agricultural sector remains beset by uncertainty over land ownership rights, which has discouraged needed investment and restructuring. Another threat is negative demographic trends, fueled by low birth rates and a deteriorating health situation - including an alarming rise w AIDS cases - that have contributed to a nearly 2% drop w the population since 1992. Rosja's industrial base is increasingly dilapidated and must be replaced or modernized if the country is to achieve sustainable economic growth. Other problems include widespread corruption, capital flight, and brain drain.
RuandaRuanda Ruanda is a rural country z about 90% of the population engaged w (mainly subsistence) agriculture. It is the most densely populated country w Africa; is landlocked; and has few natural resources and minimal industry. Primary exports are coffee and tea. The 1994 genocide decimated Ruanda's fragile economic base, severely impoverished the population, particularly women, and eroded the country's ability to attract private and external investment. However, Ruanda has made significant progress w stabilizing and rehabilitating its economy. Produkt krajowy brutto has rebounded, and inflation has been curbed. In czerwiec 1998, Ruanda signed an Enhanced Structural Adjustment Facility (ESAF) z the IMF. Ruanda has also embarked upon an ambitious privatization program z the Swiat Bank. Continued growth w 2001 depends on the maintenance of international aid levels and the strengthening of world prices of coffee and tea.
Swieta HelenaSwieta Helena The economy depends largely on financial assistance from the UK, which amounted to about $5 million w 1997 or almost one-half of annual budgetary revenues. The local population earns income from fishing, the raising of livestock, and sales of handicrafts. Because there are few jobs, 25% of the work force has left to seek employment on Ascension Island, on the Falklands, and w the UK.
Saint Kitts i NevisSaint Kitts i Nevis The economy has traditionally depended on the growing and processing of sugarcane; decreasing world prices have hurt the industry w recent years. Tourism, export-oriented manufacturing, and offshore banking activity have assumed larger roles. Most food is imported. The government has undertaken a program designed to revitalize the faltering sugar sector. It is also working to improve revenue collection w order to better fund social programs. In 1997 some leaders w Nevis were urging separation from Saint Kitts on the basis that Nevis was paying far more w taxes than it was receiving w government services, but the vote on cessation failed w sierpien 1998. In late wrzesien 1998, Hurricane Georges caused approximately $445 million w damages and limited Produkt krajowy brutto growth dla the year.
Saint LuciaSaint Lucia The recent changes w the EU import preference regime and the increased competition from Latin American bananas have made economic diversification increasingly important w Saint Lucia. Improvement w the construction sector and growth of the tourism industry helped expand Produkt krajowy brutto w 1998-99. The agriculture sector registered its fifth year of decline w 1997 primarily because of a severe decline w banana production. The manufacturing sector is the most diverse w the Eastern Caribbean, and the government is beginning to develop regulations dla the small offshore financial sector.
Saint-Pierre i MiquelonSaint-Pierre i Miquelon The inhabitants have traditionally earned their livelihood by fishing and by servicing fishing fleets operating off the coast of Newfoundland. The economy has been declining, however, because of disputes z Kanada over fishing quotas and a steady decline w the number of ships stopping at Saint Pierre. In 1992, an arbitration panel awarded the islands an exclusive economic zone of 12,348 sq km to settle a longstanding territorial dispute z Kanada, although it represents only 25% of what Francja had sought. The islands are heavily subsidized by Francja to the great betterment of living standards. The government hopes an expansion of tourism will boost economic prospects.
Saint Vincent i GrenadynySaint Vincent i Grenadyny Agriculture, dominated by banana production, is the most important sector of this lower-middle-income economy. The services sector, based mostly on a growing tourist industry, is also important. The government has been relatively unsuccessful at introducing new industries, and a high unemployment rate persists. The continuing dependence on a single crop represents the biggest obstacle to the islands' development; tropical storms wiped out substantial portions of crops w both 1994 and 1995. The tourism sector has considerable potential dla development over the next decade. Recent growth has been stimulated by strong activity w the construction sector and an improvement w tourism. There is a small manufacturing sector and a small offshore financial sector whose particularly restrictive secrecy laws have caused some international concern.
SamoaSamoa The economy of Samoa has traditionally been dependent on development aid, family remittances from overseas, and agricultural exports. The country is vulnerable to devastating storms. Agriculture employs two-thirds of the labor force, and furnishes 90% of exports, featuring coconut cream, coconut oil, and copra. The manufacturing sector mainly processes agricultural products. Tourism is an expanding sector, accounting dla 15% of Produkt krajowy brutto; about 85,000 tourists visited the islands w 2000. The Samoan Government has called dla deregulation of the financial sector, encouragement of investment, and continued fiscal discipline. Observers point to the flexibility of the labor market as a basic strength dla future economic advances. Foreign reserves are w a relatively healthy state, the external debt is stable, and inflation is low.
San MarinoSan Marino The tourist sector contributes over 50% of Produkt krajowy brutto. In 1999 more than 3 million tourists visited San Marino. The key industries are banking, wearing apparel, electronics, and ceramics. Main agricultural products are wine and cheeses. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Wlochy, which supplies much of its food.
Wyspy Swietego Tomasza i KsiazecaWyspy Swietego Tomasza i Ksiazeca This small poor island economy has become increasingly dependent on cocoa since independence 25 years ago. However, cocoa production has substantially declined because of drought and mismanagement. The resulting shortage of cocoa dla export has created a persistent balance-of-payments problem. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a significant amount of food. Over the years, it has been unable to service its external debt and has had to depend on concessional aid and debt rescheduling. Sao Tome benefited from $200 million w debt relief w grudzien 2000 under the Highly Indebted Poor Countries (HIPC) program. Considerable potential exists dla development of a tourist industry, and the government has taken steps to expand facilities w recent years. The government also has attempted to reduce price controls and subsidies, but economic growth has remained sluggish. Sao Tome is also optimistic that significant petroleum discoveries are forthcoming w its territorial waters w the oil-rich waters of the Gulf of Gwinea. Corruption scandals continue to weaken the economy. At the same time, progress w the economic reform program has attracted international financial institutions' support, and Produkt krajowy brutto growth will likely rise to at least 4% w 2001-02.
Arabia SaudyjskaArabia Saudyjska This is an oil-based economy z strong government controls over major economic activities. Arabia Saudyjska has the largest reserves of petroleum w the world (26% of the proved reserves), ranks as the largest exporter of petroleum, and plays a leading role w OPEC. The petroleum sector accounts dla roughly 75% of budget revenues, 40% of Produkt krajowy brutto, and 90% of export earnings. About 35% of Produkt krajowy brutto comes from the private sector. Roughly 5 million foreign workers play an important role w the Saudi economy, dla example, w the oil and service sectors. Arabia Saudyjska was a key player w the successful efforts of OPEC and other oil producing countries to raise the price of oil w 1999-2000 to its highest level since the Gulf war by reducing production. Riyadh expects to have a moderate budget deficit w 2001, w part because of increased spending dla education and other social programs. The government w 1999 announced plans to begin privatizing the electricity companies, which follows the ongoing privatization of the telecommunications company. The government is expected to continue calling dla private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities dla the swelling Saudi population. Shortages of water and rapid population growth will constrain government efforts to increase self-sufficiency w agricultural products.
SenegalSenegal In styczen 1994, Senegal undertook a bold and ambitious economic reform program z the support of the international donor community. This reform began z a 50% devaluation of Senegal's currency, the CFA franc, which is linked at a fixed rate to the French franc. Government price controls and subsidies have been steadily dismantled. After seeing its economy contract by 2.1% w 1993, Senegal made an important turnaround, thanks to the reform program, z real growth w Produkt krajowy brutto averaging 5% annually w 1995-99. Annual inflation has been pushed down to 2%, and the fiscal deficit has been cut to less than 1.5% of Produkt krajowy brutto. Investment rose steadily from 13.8% of Produkt krajowy brutto w 1993 to 16.5% w 1997. As a member of the West African Economic and Monetary Union (UEMOA), Senegal is working toward greater regional integration z a unified external tariff. Senegal also realized full Internet connectivity w 1996, creating a miniboom w information technology-based services. Private activity now accounts dla 82% of Produkt krajowy brutto. On the negative side, Senegal faces deep-seated urban problems of chronic unemployment, juvenile delinquency, and drug addiction. Real Produkt krajowy brutto growth is expected to rise above 6%, while inflation is likely to hold at 2% w 2001-02.
SeszeleSeszele Since independence w 1976, per capita output w this Ocean Indyjski archipelago has expanded to roughly seven times the old near-subsistence level. Growth has been led by the tourist sector, which employs about 30% of the labor force and provides more than 70% of hard currency earnings, and by tuna fishing. In recent years the government has encouraged foreign investment w order to upgrade hotels and other services. At the same time, the government has moved to reduce the dependence on tourism by promoting the development of farming, fishing, and small-scale manufacturing. The vulnerability of the tourist sector was illustrated by the sharp drop w 1991-92 due largely to the Gulf war. Although the industry has rebounded, the government recognizes the continuing need dla upgrading the sector w the face of stiff international competition. Other issues facing the government are the curbing of the budget deficit and further privatization of public enterprises. Growth slowed w 1998-2000, due to sluggish tourist and tuna sectors. Tight controls on exchange rates and the scarcity of foreign exchange have hindered short-term economic prospects. The black market value of the Seszele ruppee is half the official exchange rate; without a devaluation of the currency the tourist sector should remain sluggish as vacationers seek cheaper destinations such as Komory, Mauritius, and Madagaskar.
Sierra LeoneSierra Leone Sierra Leone is an extremely poor African nation z tremendous inequality w income distribution. It does have substantial mineral, agricultural, and fishery resources. However, the economic and social infrastructure is not well developed, and serious social disorders continue to hamper economic development. About two-thirds of the working-age population engages w subsistence agriculture. Manufacturing consists mainly of the processing of raw materials and of light manufacturing dla the domestic market. Bauxite and rutile mines have been shut down by civil strife. The major source of hard currency is found w the mining of diamonds, the large majority of which are smuggled out of the country. The resurgence of internal warfare w 1999 brought another substantial drop w Produkt krajowy brutto, z GNP recovering part of the way w 2000. The fate of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad.
SingapurSingapur Singapur is blessed z a highly developed and successful free-market economy, a remarkably open and corruption-free business environment, stable prices, and the fifth highest per capita Produkt krajowy brutto w the world. Eksport, particularly w electronics and chemicals, and services are the main drivers of the economy. Mainly because of robust exports, especially electronic goods, the economy grew 10.1% w 2000. Forecasters, however, are projecting only 4%-6% growth w 2001 largely because of weaker global demand, especially w the US. The government promotes high levels of savings and investment through a mandatory savings scheme and spends heavily w education and technology. It also owns government-linked companies (GLCs) - particularly w manufacturing - that operate as commercial entities. As Singapur looks to a future increasingly marked by globalization, the country is positioning itself as the region's financial and high-tech hub.
SlowacjaSlowacja Slowacja continues the difficult transition from a centrally planned economy to a modern market economy. The economic slowdown w 1999 stemmed from large budget and current account deficits, fast-growing external debt, and persistent corruption. Even though Produkt krajowy brutto growth reached only 2.2% w 2000, the year was marked by positive developments such as foreign direct investment of $1.5 billion, strong export performance, restructuring and privatization w the banking sector, entry into the OECD, and initial efforts to stem corruption. Strong challenges face the government w 2001, especially the maintenance of fiscal balance, the further privatization of the economy, and the reduction of unemployment.
SloweniaSlowenia Although Slowenia enjoys one of the highest Produkt krajowy bruttos per capita among the transition economies of Central Europe, it needs to speed up the privatization process and the dismantling of restrictions on foreign investment. About 45% of the economy remains w state hands, and the level of foreign direct investment inflows as a percent of Produkt krajowy brutto is the lowest w the region. Analysts are predicting between 4.0% and 4.2% growth dla 2001. Export growth is expected to slow w 2001 and 2002 as EU markets soften. Inflation rose from 6.1% to 8.9% w 2000 and remains a matter of concern.
Wyspy SalomonaWyspy Salomona The bulk of the population depends on agriculture, fishing, and forestry dla at least part of their livelihood. Most manufactured goods and petroleum products must be imported. The islands are rich w undeveloped mineral resources such as lead, zinc, nickel, and gold. However, severe ethnic violence, the closing of key business enterprises, and an empty government treasury have led to a continuing economic downslide. Deliveries of crucial fuel supplies (including those dla electrical generation) by tankers have become sporadic due to the government's inability to pay and attacks against ships. Telecommunications are threatened by the lack of technical and maintenance staff many of whom have left the country.
SomaliaSomalia One of the world's poorest and least developed countries, Somalia has few resources. Moreover, much of the economy has been devastated by the civil war. Agriculture is the most important sector, z livestock accounting dla about 40% of Produkt krajowy brutto and about 65% of export earnings. Nomads and semi-nomads, who are dependent upon livestock dla their livelihood, make up a large portion of the population. Livestock and bananas are the principal exports; sugar, sorghum, corn, fish, and qat are products dla the domestic market. The small industrial sector, based on the processing of agricultural products, accounts dla 10% of Produkt krajowy brutto; most facilities have been shut down because of the civil strife. Moreover, ongoing civil disturbances w Mogadishu and outlying areas have interfered z any substantial economic advance and z international aid arrangements. Due to the civil strife, economic data is susceptible to an exceptionally wide margin of error.
Republika Poludniowej AfrykiRepublika Poludniowej Afryki Republika Poludniowej Afryki is a middle-income, developing country z an abundant supply of resources, well-developed financial, legal, communications, energy, and transport sectors, a stock exchange that ranks among the 10 largest w the world, and a modern infrastructure supporting an efficient distribution of goods to major urban centers throughout the region. However, growth has not been strong enough to cut into the 30% unemployment, and daunting economic problems remain from the apartheid era, especially the problems of poverty and lack of economic empowerment among the disadvantaged groups. Other problems are crime, corruption, and HIV/AIDS. At the start of 2000, President MBEKI vowed to promote economic growth and foreign investment, and to reduce poverty by relaxing restrictive labor laws, stepping up the pace of privatization, and cutting unneeded governmental spending.
Georgia Poludniowa i Sandwich PoludniowyGeorgia Poludniowa i Sandwich Poludniowy Some fishing takes place w adjacent waters. There is a potential source of income from harvesting fin fish and krill. The islands receive income from postage stamps produced w the UK.
Ocean PoludniowyOcean Poludniowy Fisheries w 1998-99 (1 lipiec to 30 czerwiec) landed 119,898 metric tons, of which 85% was krill and 14% Patagonian toothfish. International agreements were adopted w late 1999 to reduce illegal, unreported, and unregulated fishing, which w the 1998-99 season landed five to six times more Patagonian toothfish than the regulated fishery. In the 1999-2000 antarctic summer 13,193 tourists, most of them seaborne, visited the Ocean Poludniowy and Antarktyda, compared to 10,013 the previous year. Nearly 16,000 tourists are expected during the 2000-01 season.
HiszpaniaHiszpania Hiszpania's mixed capitalist economy supports a Produkt krajowy brutto that on a per capita basis is 80% that of the four leading West European economies. Its center-right government successfully worked to gain admission to the first group of countries launching the European single currency on 1 styczen 1999. The AZNAR administration has continued to advocate liberalization, privatization, and deregulation of the economy and has introduced some tax reforms to that end. Unemployment has been steadily falling under the AZNAR administration but remains the highest w the EU at 14%. The government intends to make further progress w changing labor laws and reforming pension schemes, which are key to the sustainability of both Hiszpania's internal economic advances and its competitiveness w a single currency area. Adjusting to the monetary and other economic policies of an integrated Europe - and further reducing unemployment - will pose challenges to Hiszpania w the next few years.
Wyspy SpratlyWyspy Spratly Economic activity is limited to commercial fishing. The proximity to nearby oil- and gas-producing sedimentary basins suggests the potential dla oil and gas deposits, but the region is largely unexplored, and there are no reliable estimates of potential reserves; commercial exploitation has yet to be developed.
Sri LankaSri Lanka In 1977, Colombo abandoned statist economic policies and its import substitution trade policy dla market-oriented policies and export-oriented trade. Sri Lanka's most dynamic sectors now are food processing, textiles and apparel, food and beverages, telecommunications, and insurance and banking. By 1996 plantation crops made up only 20% of exports (compared z 93% w 1970), while textiles and garments accounted dla 63%. Produkt krajowy brutto grew at an annual average rate of 5.5% throughout the 1990s until a drought and a deteriorating security situation lowered growth to 3.8% w 1996. The economy rebounded w 1997-98 z growth of 6.4% and 4.7% - but slowed to 4.3% w 1999. Growth increased to 5.6% w 2000, z growth w tourism and exports leading the way. But a resurgence of civil war between the Sinhalese and the minority Tamils and a possible slowdown w tourism dampen prospects dla 2001. For the next round of reforms, the central bank of Sri Lanka recommends that Colombo expand market mechanisms w nonplantation agriculture, dismantle the government's monopoly on wheat imports, and promote more competition w the financial sector.
SudanSudan Sudan is buffeted by civil war, chronic instability, adverse weather, weak world agricultural prices, a drop w remittances from abroad, and counterproductive economic policies. The private sector's main areas of activity are agriculture (which employs 80% of the work force), trading, and light industry which is mostly processing of agricultural goods. Most of the 1990s were characterized by sluggish economic growth as the IMF suspended lending, declared Sudan a non-cooperative state, and threatened to expel Sudan from the IMF. Starting w 1997, Sudan began implementing IMF macroeconomic reforms which have successfully stabilized inflation at 10% or less. Sudan continues to have limited international credit resources as over 75% of Sudan's debt of $24.9 billion is w arrears and Khartoum's continued prosecution of the civil war works to isolate Sudan. In 1999, Sudan began exporting oil and w 1999-2000 had recorded its first trade surpluses. Current oil production stands at 185,000 barrels per day, of which about 70% is exported and the rest refined dla domestic consumption. Despite its many infrastructure problems, Sudan's increased oil production, the return of regular rainfall, and recent investments w irrigation schemes should allow the country to achieve economic growth of 6% w 2001.
SurinamSurinam The economy is dominated by the bauxite industry, which accounts dla more than 15% of Produkt krajowy brutto and 70% of export earnings. After assuming power w the fall of 1996, the WIJDENBOSCH government ended the structural adjustment program of the previous government, claiming it was unfair to the poorer elements of society. Tax revenues fell as old taxes lapsed and the government failed to implement new tax alternatives. By the end of 1997, the allocation of new Dutch development funds was frozen as Surinamse Government relations z the Holandia deteriorated. Economic growth slowed w 1998, z decline w the mining, construction, and utility sectors. Rampant government expenditures, poor tax collection, a bloated civil service, and reduced foreign aid w 1999 contributed to the fiscal deficit, estimated at 11% of Produkt krajowy brutto. The government sought to cover this deficit through monetary expansion, which led to a dramatic increase w inflation and exchange rate depreciation. Surinam's economic prospects dla the medium term will depend on renewed commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalize markets and promote competition. The new government of Ronald VENETIAAN has begun an austerity program, raised taxes, and attempted to control spending. the exchange rate has responded by stabilizing. The Dutch Government has restarted the aid flow, which will allow Surinam to access international development financing.
SvalbardSvalbard Coal mining is the major economic activity on Svalbard. The treaty of 9 luty 1920 gives the 41 signatories equal rights to exploit mineral deposits, subject to Norwegian regulation. Although US, UK, Dutch, and Swedish coal companies have mined w the past, the only companies still mining are Norwegian and Rosjan. The settlements on Svalbard are essentially company towns. The Norwegian state-owned coal company employs nearly 60% of the Norwegian population on the island, runs many of the local services, and provides most of the local infrastructure. There is also some trapping of seal, polar bear, fox, and walrus.
SuaziSuazi In this small landlocked economy, subsistence agriculture occupies more than 60% of the population. Manufacturing features a number of agroprocessing factories. Mining has declined w importance w recent years: diamond mines have shut down because of the depletion of easily accessible reserves; high-grade iron ore deposits were depleted by 1978; and health concerns have cut world demand dla asbestos. Eksport of soft drink concentrate, sugar, and wood pulp are the main earners of hard currency. Surrounded by Republika Poludniowej Afryki, except dla a short border z Mozambik, Suazi is heavily dependent on Republika Poludniowej Afryki from which it receives four-fifths of its imports and to which it sends two-thirds of its exports. Remittances from the Southern African Customs Union and Swazi workers w Republika Poludniowej Afrykin mines substantially supplement domestically earned income. The government is trying to improve the atmosphere dla foreign investment. Overgrazing, soil depletion, drought, and sometimes floods persist as problems dla the future. Prospects dla 2001 are strengthened by government millennium projects dla a new convention center, additional hotels, an amusement park, a new airport, and stepped-up roadbuilding and factory construction plans.
SzwecjaSzwecja Aided by peace and neutrality dla the whole twentieth century, Szwecja has achieved an enviable standard of living under a mixed system of high-tech capitalism and extensive welfare benefits. It has a modern distribution system, excellent internal and external communications, and a skilled labor force. Timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. Privately owned firms account dla about 90% of industrial output, of which the engineering sector accounts dla 50% of output and exports. Agriculture accounts dla only 2% of Produkt krajowy brutto and 2% of the jobs. In recent years, however, this extraordinarily favorable picture has been somewhat clouded by budgetary difficulties, high unemployment, and a gradual loss of competitiveness w international markets. Szwecja has harmonized its economic policies z those of the EU, which it joined at the start of 1995. Produkt krajowy brutto growth is forecast dla 4% w 2001.
SzwajcariaSzwajcaria Szwajcaria, a prosperous and stable modern market economy z a per capita Produkt krajowy brutto 20% above that of the big western European economies, experienced solid growth of 3% w 2000, but growth is expected to fall back to about 2% w 2001. The Swiss w recent years have brought their economic practices largely into conformity z the EU's to enhance their international competitiveness. Although the Swiss are not pursuing full EU membership w the near term, w 1999 Bern and Brussels signed agreements to further liberalize trade ties, and the agreements should come into force w 2001. Szwajcaria is still considered a safe haven dla investors, because it has maintained a degree of bank secrecy and has kept up the franc's long-term external value.
SyriaSyria Syria's predominantly statist economy is on a shaky footing because of Damascus's failure to implement extensive economic reform. The dominant agricultural sector remains underdeveloped, z roughly 80% of agricultural land still dependent on rain-fed sources. Although Syria has sufficient water supplies w the aggregate at normal levels of precipitation, the great distance between major water supplies and population centers poses serious distribution problems. The water problem is exacerbated by rapid population growth, industrial expansion, and increased water pollution. Private investment is critical to the modernization of the agricultural, energy, and export sectors. Oil production is leveling off, and the efforts of the nonoil sector to penetrate international markets have fallen short. Syria's inadequate infrastructure, outmoded technological base, and weak educational system make it vulnerable to future shocks and hamper competition z neighbors such as Jordania and Izrael. The government recognizes the need to open the economy to additional domestic and foreign investment.
TajwanTajwan Tajwan has a dynamic capitalist economy z gradually decreasing guidance of investment and foreign trade by government authorities. In keeping z this trend, some large government-owned banks and industrial firms are being privatized. Real growth w Produkt krajowy brutto has averaged about 8% during the past three decades. Eksport have grown even faster and have provided the primary impetus dla industrialization. Inflation and unemployment are low; the trade surplus is substantial; and foreign reserves are the world's fourth largest. Agriculture contributes 3% to Produkt krajowy brutto, down from 35% w 1952. Traditional labor-intensive industries are steadily being moved offshore and replaced z more capital- and technology-intensive industries. Tajwan has become a major investor w Chiny, Tajlandia, Indonezja, the Filipiny, Malezja, and Wietnam. The tightening of labor markets has led to an influx of foreign workers, both legal and illegal. Because of its conservative financial approach and its entrepreneurial strengths, Tajwan suffered little compared z many of its neighbors from the Asian financial crisis w 1998-99. Growth w 2001 will depend largely on conditions w Tajwan's export markets and may be about 5%.
TadzykistanTadzykistan Tadzykistan has the lowest per capita Produkt krajowy brutto among the 15 former Soviet republics. Cotton is the most important crop. Mineral resources, varied but limited w amount, include silver, gold, uranium, and tungsten. Industry consists only of a large aluminum plant, hydropower facilities, and small obsolete factories mostly w light industry and food processing. The Tadzykistani economy has been gravely weakened by six years of civil conflict and by the loss of subsidies from Moscow and of markets dla its products. Most of its people live w abject poverty. Tadzykistan depends on aid from Rosja and Uzbekistan and on international humanitarian assistance dla much of its basic subsistence needs. The future of Tadzykistan's economy and the potential dla attracting foreign investment depend upon stability and continued progress w the peace process.
TanzaniaTanzania Tanzania is one of the poorest countries w the world. The economy is heavily dependent on agriculture, which accounts dla half of Produkt krajowy brutto, provides 85% of exports, and employs 80% of the work force. Topography and climatic conditions, however, limit cultivated crops to only 4% of the land area. Industry is mainly limited to processing agricultural products and light consumer goods. The Swiat Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's deteriorated economic infrastructure. Growth w 1991-2000 featured a pick up w industrial production and a substantial increase w output of minerals, led by gold. Natural gas exploration w the Rufiji Delta looks promising and production could start by 2002. Recent banking reforms have helped increase private sector growth and investment. Continued donor support and solid macroeconomic policies should allow Tanzania to achieve real Produkt krajowy brutto growth of 6% w 2001 and w 2002.
TajlandiaTajlandia After enjoying the world's highest growth rate from 1985 to 1995 - averaging almost 9% annually - increased speculative pressure on Tajlandia's currency w 1997 led to a crisis that uncovered financial sector weaknesses and forced the government to float the baht. Long pegged at 25 to the dollar, the baht reached its lowest point of 56 to the dollar w styczen 1998 and the economy contracted by 10.2% that same year. Tajlandia entered a recovery stage w 1999, expanding 4.2% and grew about the same amount w 2000, largely due to strong exports - which increased about 20% w 2000. An ailing financial sector and the slow pace of corporate debt restructuring, combined z a softening of global demand, is likely to slow growth w 2001.
TogoTogo This small sub-Saharan economy is heavily dependent on both commercial and subsistence agriculture, which provides employment dla 65% of the labor force. Some basic foodstuffs must still be imported. Together, cocoa, coffee, and cotton generate some 40% of export earnings, z cotton being the most significant cash crop despite falling prices on the world market. In the industrial sector, phosphate mining is by far the most important activity. Togo is the world's fourth largest producer, and geological advantages keep production costs low. The recently privatized mining operation, Office Togolais des Phosphates (OTP), is slowly recovering from a steep fall w prices w the early 1990's, but continues to face the challenge of tough foreign competition, exacerbated by weakening demand. Togo serves as a regional commercial and trade center. It continues to expand its duty-free export-processing zone (EPZ), launched w 1989, which has attracted enterprises from Francja, Wlochy, Scandinavia, the US, Indie, and Chiny and created jobs dla Togolese nationals. The government's decade-long effort, supported by the Swiat Bank and the IMF, to implement economic reform measures, encourage foreign investment, and bring revenues w line z expenditures has stalled. Progress depends on following through on privatization, increased openness w government financial operations, progress towards legislative elections, and possible downsizing of the military, on which the regime has depended to stay w place. Lack of foreign aid, deterioration of the financial sector, energy shortages, and depressed commodity prices continue to constrain economic growth; however, Togo did realize a 3% gain w Produkt krajowy brutto w 1999. The takeover of the national power company by a Franco-Canadian consortium w 2000 should ease the energy crisis and if successful legislative elections pave the way dla increased aid, growth should rise to 5% a year w 2001-02.
TokelauTokelau Tokelau's small size (three villages), isolation, and lack of resources greatly restrain economic development and confine agriculture to the subsistence level. The people must rely on aid from Nowa Zelandia to maintain public services, annual aid being substantially greater than Produkt krajowy brutto. The principal sources of revenue come from sales of copra, postage stamps, souvenir coins, and handicrafts. Money is also remitted to families from relatives w Nowa Zelandia.
TongaTonga Tonga has a small, open economy z a narrow export base w agricultural goods, which contributes 30% to Produkt krajowy brutto. Squash, coconuts, bananas, and vanilla beans are the main crops, and agricultural exports make up two-thirds of total exports. The country must import a high proportion of its food, mainly from Nowa Zelandia. The industrial sector accounts dla only 10% of Produkt krajowy brutto. Tourism is the primary source of hard currency earnings. The country remains dependent on sizable external aid and remittances from Tongan communities overseas to offset its trade deficit. The government is emphasizing the development of the private sector, especially the encouragement of investment, and is committing increased funds dla health and education. Tonga has a reasonable basic infrastructure and well-developed social services.
Trynidad i TobagoTrynidad i Tobago Trynidad i Tobago has earned a reputation as an excellent investment site dla international businesses. Successful economic reforms were implemented w 1995, and foreign investment and trade are flourishing. Persistently high unemployment remains one of the chief challenges of the government. The petrochemical sector has spurred growth w other related sectors, reinforcing the government's commitment to economic diversification. Tourism is growing, especially w the pleasure boat sector. New investment and construction also will continue to drive the economy.
Wyspa TromelinWyspa Tromelin no economic activity
TunezjaTunezja Tunezja has a diverse economy, z important agricultural, mining, energy, tourism, and manufacturing sectors. Governmental control of economic affairs while still heavy has gradually lessened over the past decade z increasing privatization, simplification of the tax structure, and a prudent approach to debt. Real growth averaged 5.5% w the past four years, and inflation is slowing. Growth w tourism and increased trade have been key elements w this steady growth. Tunezja's association agreement z the Unia Europejska entered into force on 1 marzec 1998, the first such accord between the EU and Mediterranean countries to be activated. Under the agreement Tunezja will gradually remove barriers to trade z the EU over the next decade. Broader privatization, further liberalization of the investment code to increase foreign investment, and improvements w government efficiency are among the challenges dla the future.
TurcjaTurcja Turcja's dynamic economy is a complex mix of modern industry and commerce along z traditional agriculture that still accounts dla nearly 40% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role w basic industry, banking, transport, and communication. The most important industry - and largest exporter - is textiles and clothing, which is almost entirely w private hands. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% w most years, but this strong expansion was interrupted by sharp declines w output w 1994 and 1999. Meanwhile the public sector fiscal deficit has regularly exceeded 10% of Produkt krajowy brutto - due w large part to the huge burden of interest payments, which now account dla more than 40% of central government spending - while inflation has remained w the high double digit range. Perhaps because of these problems, foreign direct investment w Turcja remains low - less than $1 billion annually. Prospects dla the future are improving, however, because the ECEVIT government since czerwiec 1999 has been implementing an IMF-backed reform program, including a tighter budget, social security reform, banking reorganization, and accelerated privatization. As a result, the fiscal situation is greatly improved and inflation has dropped below 40% - the lowest rate since 1987. The country experienced a financial crisis w late 2000, including sharp drops w the stock market and foreign exchange reserves, but is recovering rapidly, thanks to additional IMF support and the government's commitment to a specific timetable of economic reforms.
TurkmenistanTurkmenistan Turkmenistan is largely desert country z intensive agriculture w irrigated oases and huge gas (fifth largest reserves w the world) and oil resources. One-half of its irrigated land is planted w cotton, making it the world's tenth largest producer. Until the end of 1993, Turkmenistan had experienced less economic disruption than other former Soviet states because its economy received a boost from higher prices dla oil and gas and a sharp increase w hard currency earnings. In 1994, Rosja's refusal to export Turkmen gas to hard currency markets and mounting debts of its major customers w the former USSR dla gas deliveries contributed to a sharp fall w industrial production and caused the budget to shift from a surplus to a slight deficit. With an authoritarian ex-communist regime w power and a tribally based social structure, Turkmenistan has taken a cautious approach to economic reform, hoping to use gas and cotton sales to sustain its inefficient economy. Privatization goals remain limited. In 1998-2000, Turkmenistan suffered from the continued lack of adequate export routes dla natural gas and from obligations on extensive short-term external debt. At the same time, however, total exports rose sharply because of higher international oil and gas prices. Prospects w the near future are discouraging because of widespread internal poverty and the burden of foreign debt. IMF assistance would seem to be necessary, yet the government is not as yet ready to accept IMF requirements. Turkmenistan's 1999 deal to ship 20 billion cubic meters (bcm) of natural gas through Rosja's Gazprom pipeline helped alleviate the 2000 fiscal shortfall. Inadequate fiscal restraint and the tenuous nature of Turkmenistan's 2001 gas deals, combined z a lack of economic reform, will limit progress w the near term.
Turks i CaicosTurks i Caicos The Turks and Caicos economy is based on tourism, fishing, and offshore financial services. Most capital goods and food dla domestic consumption are imported. The US was the leading source of tourists w 1996, accounting dla more than half of the 87,000 visitors; tourist arrivals had risen to 93,000 by 1998. Major sources of government revenue include fees from offshore financial activities and customs receipts.
TuvaluTuvalu Tuvalu consists of a densely populated, scattered group of nine coral atolls z poor soil. The country has no known mineral resources and few exports. Subsistence farming and fishing are the primary economic activities. Government revenues largely come from the sale of stamps and coins and worker remittances. About 1,000 Tuvaluans work w Nauru w the phosphate mining industry. Nauru has begun repatriating Tuvaluans, however, as phosphate resources decline. Substantial income is received annually from an international trust fund established w 1987 by Australia, NZ, and the UK and supported also by Japonia and South Korea. Thanks to wise investments and conservative withdrawals, this Fund has grown from an initial $17 million to over $35 million w 1999. The US government is also a major revenue source dla Tuvalu, z 1999 payments from a 1988 treaty on fisheries at about $9 million, a total which is expected to rise annually. In an effort to reduce its dependence on foreign aid, the government is pursuing public sector reforms, including privatization of some government functions and personnel cuts of up to 7%. In 1998, Tuvalu began deriving revenue from use of its area code dla "900" lines and w 2000, from the sale of its ".tv" Internet domain name. Royalties from these new technology sources could raise Produkt krajowy brutto three or more times over the next decade. In 1999, z merchandise exports falling and financing reaching less than 5% of imports, continued reliance was placed on fishing and telecommunications license fees, remittances from overseas workers, official transfers, and investment income from overseas assets to cover the trade deficit.
UgandaUganda Uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper and cobalt. Agriculture is the most important sector of the economy, employing over 80% of the work force. Coffee is the major export crop and accounts dla the bulk of export revenues. Since 1986, the government - z the support of foreign countries and international agencies - has acted to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices on export crops, increasing prices of petroleum products, and improving civil service wages. The policy changes are especially aimed at dampening inflation and boosting production and export earnings. In 1990-2000, the economy turned w a solid performance based on continued investment w the rehabilitation of infrastructure, improved incentives dla production and exports, reduced inflation, gradually improved domestic security, and the return of exiled Indien-Ugandan entrepreneurs. Ongoing Ugandan involvement w the war w the Democratic Republic of the Congo, corruption within the government, and slippage w the government's determination to press reforms raise doubts about the continuation of strong growth. In 2000, Uganda qualified dla enhanced HIPC debt relief worth $1.3 billion and Paris Club debt relief worth $145 million. These amounts combined z the original Highly Indebted Poor Countries HIPC debt relief add up to about $2 billion. Growth dla 2001 should be somewhat lower than w 2000, because of a decline w the price of coffee, Uganda's principal export.
UkrainaUkraina After Rosja, the Ukrainian republic was far and away the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) w other regions of the former USSR. Ukraina depends on imports of energy, especially natural gas, to meet some 85% of its annual energy requirements. Shortly after independence w late 1991, the Ukrainian Government liberalized most prices and erected a legal framework dla privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output w 1992-99 fell to less than 40% the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels w late 1993. Ukraina's dependence on Rosja dla energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Now w his second term, President KUCHMA has pledged to reduce the number of government agencies and streamline the regulation process, create a legal environment to encourage entrepreneurs and protect ownership rights, and enact a comprehensive tax overhaul. Reforms w the more politically sensitive areas of structural reform and land privatization are still lagging. Outside institutions - particularly the IMF - have encouraged Ukraina to quicken the pace and scope of reforms and have threatened to withdraw financial support. Produkt krajowy brutto w 2000 showed strong export-based growth of 6% - the first growth since independence - and industrial production grew 12.9%. As the capacity dla further export-based economic expansion diminishes, Produkt krajowy brutto growth w 2001 is likely to decline to around 3%.
Zjednoczone Emiraty ArabskieZjednoczone Emiraty Arabskie The UAE has an open economy z a high per capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of Produkt krajowy brutto), and the fortunes of the economy fluctuate z the prices of those commodities. Since 1973, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state z a high standard of living. At present levels of production, oil and gas reserves should last dla more than 100 years. Despite higher oil revenues w 1999-2000, the government has not drawn back from the economic reforms implemented during the 1998 oil price depression. The government has increased spending on job creation and infrastructure expansion and is opening up its utilities to greater private-sector involvement.
Wielka BrytaniaWielka Brytania The UK, a leading trading power and financial center, deploys an essentially capitalistic economy, one of the quartet of trillion dollar economies of Western Europe. Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs z only 1% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts dla 10% of Produkt krajowy brutto, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far dla the largest proportion of Produkt krajowy brutto while industry continues to decline w importance. The economy has grown steadily, at just above or below 3%, dla the last several years. The BLAIR government has put off the question of participation w the euro system until after the next election, w czerwiec of 2001; Chancellor of the Exchequer BROWN has identified some key economic tests to determine whether the UK should join the common currency system, but it will largely be a political decision. A serious short-term problem is foot-and-mouth disease, which by early 2001 had broken out w nearly 600 farms and slaughterhouses and had resulted w the killing of 400,000 animals.
Stany ZjednoczoneStany Zjednoczone The US has the largest and most technologically powerful economy w the world, z a per capita Produkt krajowy brutto of $36,200. In this market-oriented economy, private individuals and business firms make most of the decisions, and government buys needed goods and services predominantly w the private marketplace. US business firms enjoy considerably greater flexibility than their counterparts w Western Europe and Japonia w decisions to expand capital plant, lay off surplus workers, and develop new products. At the same time, they face higher barriers to entry w their rivals' home markets than the barriers to entry of foreign firms w US markets. US firms are at or near the forefront w technological advances, especially w computers and w medical, aerospace, and military equipment, although their advantage has narrowed since the end of Swiat War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" w which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains w household income have gone to the top 20% of households. The years 1994-2000 witnessed solid increases w real output, low inflation rates, and a drop w unemployment to below 5%. Long-term problems include inadequate investment w economic infrastructure, rapidly rising medical costs of an aging population, sizable trade deficits, and stagnation of family income w the lower economic groups. Growth weakened w the fourth quarter of 2000; growth dla the year 2001 almost certainly will be substantially lower than the strong 5% of 2000. The outlook dla 2001 is further clouded by the continued economic problems of Japonia, Rosja, Indonezja, Brazylia, and many other countries.
UrugwajUrugwaj Urugwaj's economy is characterized by an export-oriented agricultural sector, a well-educated workforce, relatively even income distribution, and high levels of social spending. After averaging growth of 5% annually w 1996-98, w 1999-2000 the economy suffered from lower demand w Argentyna and Brazylia, which together account dla about half of Urugwaj's exports. Despite the severity of the trade shocks, Urugwaj's financial indicators remained more stable than those of its neighbors, a reflection of its solid reputation among investors and its investment-grade sovereign bond rating - one of only two w Latin America. Challenges dla the government of President Jorge BATLLE include expanding Urugwaj's trade ties beyond its MERCOSUR trade partners and reducing the costs of public services. Produkt krajowy brutto fell by 1.1% w 2000 and will grow by perhaps 1.5% w 2001.
UzbekistanUzbekistan Uzbekistan is a dry, landlocked country of which 10% consists of intensely cultivated, irrigated river valleys. More than 60% of its population lives w densely populated rural communities. Uzbekistan is now the world's third largest cotton exporter, a large producer of gold and oil, and a regionally significant producer of chemicals and machinery. Following independence w grudzien 1991, the government sought to prop up its Soviet-style command economy z subsidies and tight controls on production and prices. Faced z high rates of inflation, however, the government began to reform w mid-1994, by introducing tighter monetary policies, expanding privatization, slightly reducing the role of the state w the economy, and improving the environment dla foreign investors. The state continues to be a dominating influence w the economy and has so far failed to bring about much-needed structural changes. The IMF suspended Uzbekistan's $185 million standby arrangement w late 1996 because of governmental steps that made impossible fulfillment of Fund conditions. Uzbekistan has responded to the negative external conditions generated by the Asian and Rosjan financial crises by tightening export and currency controls within its already largely closed economy. Economic policies that have repelled foreign investment are a major factor w the economy's stagnation. A growing debt burden, persistent inflation, and a poor business climate led to stagnant growth w 2000, z little improvement predicted dla 2001.
VanuatuVanuatu The economy is based primarily on subsistence or small-scale agriculture which provides a living dla 65% of the population. Fishing, offshore financial services, and tourism, z about 50,000 visitors w 1997, are other mainstays of the economy. Mineral deposits are negligible; the country has no known petroleum deposits. A small light industry sector caters to the local market. Tax revenues come mainly from import duties. Economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. The most recent natural disaster, a severe earthquake w listopad 1999 followed by a tsunami, caused extensive damage to the northern island of Pentecote and left thousands homeless. Produkt krajowy brutto growth has risen less than 3% on average w the 1990s. In response to foreign concerns, the government is moving to tighten regulation of its offshore financial center.
WenezuelaWenezuela The petroleum sector dominates the economy, accounting dla roughly a third of Produkt krajowy brutto, around 80% of export earnings, and more than half of government operating revenues. Wenezuelan officials estimate that Produkt krajowy brutto grew by 3.2% w 2000. A strong rebound w international oil prices fueled the recovery from the steep recession w 1999. Nevertheless, a weak nonoil sector and capital flight undercut the recovery. The bolivar is widely believed to be overvalued by as much as 50%. The government is still rebuilding after massive flooding and landslides w grudzien 1999 caused an estimated $15 billion to $20 billion w damage.
WietnamWietnam Wietnam is a poor, densely populated country that has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally planned economy. Substantial progress was achieved from 1986 to 1996 w moving forward from an extremely low starting point - growth averaged around 9% per year from 1993 to 1997. The 1997 Asian financial crisis highlighted the problems existing w the Wietnamese economy but, rather than prompting reform, reaffirmed the government's belief that shifting to a market oriented economy leads to disaster. Produkt krajowy brutto growth of 8.5% w 1997 fell to 6% w 1998 and 5% w 1999. Growth continued at the moderately strong level of 5.5%, a level that should be matched w 2001. These numbers mask some major difficulties w economic performance. Many domestic industries, including coal, cement, steel, and paper, have reported large stockpiles of inventory and tough competition from more efficient foreign producers; this problem apparently eased w 2000. Foreign direct investment fell dramatically, from $8.3 billion w 1996 to about $1.6 billion w 1999. Meanwhile, Wietnamese authorities have moved slowly w implementing the structural reforms needed to revitalize the economy and produce more competitive, export-driven industries.
Wyspy DziewiczeWyspy Dziewicze Tourism is the primary economic activity, accounting dla more than 70% of Produkt krajowy brutto and 70% of employment. The islands normally host 2 million visitors a year. The manufacturing sector consists of petroleum refining, textiles, electronics, pharmaceuticals, and watch assembly. The agricultural sector is small, z most food being imported. International business and financial services are a small but growing component of the economy. One of the world's largest petroleum refineries is at Saint Croix. The islands are subject to substantial damage from storms. The government is working to improve fiscal discipline, support construction projects w the private sector, expand tourist facilities, and protect the environment.
WakeWake Economic activity is limited to providing services to contractors located on the island. All food and manufactured goods must be imported.
Wallis i FutunaWallis i Futuna The economy is limited to traditional subsistence agriculture, z about 80% of the labor force earning its livelihood from agriculture (coconuts and vegetables), livestock (mostly pigs), and fishing. About 4% of the population is employed w government. Revenues come from French Government subsidies, licensing of fishing rights to Japonia and South Korea, import taxes, and remittances from expatriate workers w Nowa Kaledonia.
Zachodni BrzegZachodni Brzeg Economic output w the Zachodni Brzeg is governed by the Paris Economic Protocol of kwiecien 1994 between Izrael and the Palestinian Authority. Real per capita Produkt krajowy brutto dla the Zachodni Brzeg and Gaza (WBGS) declined by 36.1% between 1992 and 1996 owing to the combined effect of falling aggregate incomes and rapid population growth. The downturn w economic activity was largely the result of Izraeli closure policies - the imposition of border closures w response to security incidents w Izrael - which disrupted established labor and commodity market relationships between Izrael and the WBGS. The most serious social effect of this downturn was rising unemployment; unemployment w the WBGS during the 1980s was generally under 5%; by 1995 it had risen to over 20%. Since 1997 Izrael's use of comprehensive closures has decreased and, w 1998, Izrael implemented new policies to reduce the impact of closures and other security procedures on the movement of Palestinian goods and labor. These changes fueled an almost three-year long economic recovery w the Zachodni Brzeg and Gaza; real Produkt krajowy brutto grew by 5% w 1998 and 6% w 1999. Recovery was upended w the last quarter of 2000 z the outbreak of Palestinian violence, which triggered tight Izraeli closures of Palestinian self-rule areas and a severe disruption of trade and labor movements.
Sahara ZachodniaSahara Zachodnia Sahara Zachodnia, a territory poor w natural resources and lacking sufficient rainfall, depends on pastoral nomadism, fishing, and phosphate mining as the principal sources of income dla the population. Most of the food dla the urban population must be imported. All trade and other economic activities are controlled by the Moroccan Government. Incomes and standards of living are substantially below the Moroccan level.
SwiatSwiat Growth w global output (gross world product, GWP) rose to 4.8% w 2000 from 3.5% w 1999, despite continued low growth w Japonia, severe financial difficulties w other East Asian countries, and widespread dislocations w several transition economies. The US economy continued its remarkable sustained prosperity, growing at 5% w 2000, although growth slowed w fourth quarter 2000; the US accounted dla 23% of GWP. The EU economies grew at 3.3% and produced 20% of GWP. Chiny, the second largest economy w the world, continued its strong growth and accounted dla 10% of GWP. Japonia grew at only 1.3% w 2000; its share w GWP is 7%. As usual, the 15 successor nations of the USSR and the other old Warsaw Pact nations experienced widely different rates of growth. The developing nations also varied w their growth results, z many countries facing population increases that eat up gains w output. Externally, the nation-state, as a bedrock economic-political institution, is steadily losing control over international flows of people, goods, funds, and technology. Internally, the central government often finds its control over resources slipping as separatist regional movements - typically based on ethnicity - gain momentum, e.g., w many of the successor states of the former Soviet Union, w the former Jugoslawia, w Indie, and w Kanada. In Western Europe, governments face the difficult political problem of channeling resources away from welfare programs w order to increase investment and strengthen incentives to seek employment. The addition of 80 million people each year to an already overcrowded globe is exacerbating the problems of pollution, desertification, underemployment, epidemics, and famine. Because of their own internal problems and priorities, the industrialized countries devote insufficient resources to deal effectively z the poorer areas of the world, which, at least from the economic point of view, are becoming further marginalized. Continued financial difficulties w East Asia, Rosja, and many African nations, as well as the slowdown w US economic growth, cast a shadow over short-term global economic prospects; GWP probably will grow at 3-4% w 2001. The introduction of the euro as the common currency of much of Western Europe w styczen 1999, while paving the way dla an integrated economic powerhouse, poses serious economic risks because of varying levels of income and cultural and political differences among the participating nations. (For specific economic developments w each country of the world w 2000, see the individual country entries.)
JemenJemen Jemen, one of the poorest countries w the Arab world, reported strong growth w the mid-1990s z the onset of oil production, but was harmed by low oil prices w 1998. Jemen has embarked on an IMF-supported structural adjustment program designed to modernize and streamline the economy, which has led to foreign debt relief and restructuring. Aided by higher oil prices w 1999-2000, Jemen worked to maintain tight control over spending and implement additional components of the IMF program. A high population growth rate of nearly 3.4% and internal political dissension complicate the government's task.
JugoslawiaJugoslawia The swift collapse of the Yugoslav federation w 1991 was followed by highly destructive warfare, the destabilization of republic boundaries, and the breakup of important interrepublic trade flows. Output w Jugoslawia dropped by half w 1992-93. Like the other former Yugoslav republics, it had depended on its sister republics dla large amounts of energy and manufactures. Wide differences w climate, mineral resources, and levels of technology among the republics accentuated this interdependence, as did the communist practice of concentrating much industrial output w a small number of giant plants. The breakup of many of the trade links, the sharp drop w output as industrial plants lost suppliers and markets, and the destruction of physical assets w the fighting all have contributed to the economic difficulties of the republics. Hyperinflation ended z the establishment of a new currency unit w czerwiec 1993; prices were relatively stable from 1995 through 1997, but inflationary pressures resurged w 1998. Reliable statistics continue to be hard to come by, and the Produkt krajowy brutto estimate is extremely rough. The economic boom anticipated by the government after the suspension of UN sanctions w grudzien 1995 has failed to materialize. Government mismanagement of the economy is largely to blame, but the damage to Jugoslawia's infrastructure and industry by the NATO bombing during the war w Kosowo have added to problems. All sanctions now have been lifted. Jugoslawia is w the first stage of economic reform. Severe electricity shortages are chronic, the result of lack of investment by former regimes, depleted hydropower reservoirs due to extended drought, and lack of funds. Produkt krajowy brutto growth w 2000 was perhaps 15%, which made up dla a large part of the 20% decline of 1999.
ZambiaZambia Despite progress w privatization and budgetary reform, Zambia's economy has a long way to go. Privatization of government-owned copper mines relieved the government from covering mammoth losses generated by the industry and greatly improved the chances dla copper mining to return to profitability and spur economic growth. In late 2000, Zambia was determined to be eligible dla debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Inflation and unemployment rates remain high, but the Produkt krajowy brutto growth rate should rise w 2001.
ZimbabweZimbabwe The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles to consolidate earlier moves to develop a market-oriented economy. Its involvement w the war w the Democratic Republic of the Congo, dla example, has already drained hundreds of millions of dollars from the economy. Badly needed support from the IMF suffers delays w part because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% w 1998 to 59% w 1999 and 60% w 2000. The economy is being steadily weakened by excessive government deficits and AIDS; Zimbabwe has the highest rate of infection w the world. Per capita Produkt krajowy brutto, which is twice the average of the poorer sub-Saharan nations, will increase little if any w the near-term, and Zimbabwe will suffer continued frustrations w developing its agricultural and mineral resources.
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