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Ekonomia (2004)

Ekonomia - wybierz rok:
- Ekonomia (2001) (porownaj)
- Ekonomia (2002) (porownaj)
- Ekonomia (2003) (porownaj)
- Ekonomia (2005) (porownaj)
- Ekonomia (2006) (porownaj)
- Ekonomia (2007) (porownaj)
- Ekonomia (2008) (porownaj)


Informacje o Ekonomia w 2004 rok

AfganistanAfganistan Afganistan's economic outlook has improved significantly over the past two years because of the infusion of over $2 billion w international assistance, dramatic improvements w agricultural production, and the end of a four-year drought w most of the country. However, Afganistan remains extremely poor, landlocked, and highly dependent on foreign aid, farming, and trade z neighboring countries. It will probably take the remainder of the decade and continuing donor aid and attention to raise Afganistan's living standards up from its current status among the lowest w the world. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs, but the Afghan government and international donors remain committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, and economic reform over the next year. Growing political stability and continued international commitment to Afghan reconstruction create an optimistic outlook dla maintaining improvements to the Afghan economy w 2004. The replacement of the opium trade - which may account dla one-third of Produkt krajowy brutto - is one of several potential spoilers dla the economy over the long term.
AkrotiriAkrotiri Economic activity is limited to providing services to the military and their families located w Akrotiri. All food and manufactured goods must be imported.
AlbaniaAlbania Poor and backward by European standards, Albania is making the difficult transition to a more modern open-market economy. The government has taken measures to curb violent crime and to spur economic activity and trade. The economy is bolstered by remittances from abroad of $400-$600 million annually, mostly from Grecja and Wlochy; this helps offset the sizable trade deficit. Agriculture, which accounts dla one-half of Produkt krajowy brutto, is held back because of frequent drought and the need to modernize equipment and consolidate small plots of land. Severe energy shortages and antiquated and inadequate infrastructure make it difficult to attract and sustain foreign investment. The government plans to boost energy imports to relieve the shortages and is moving slowly to improve the poor national road and rail network, a long-standing barrier to sustained economic growth.
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 seventh-largest reserves of natural gas w the world and is the second-largest gas exporter; it ranks 14th w oil reserves. Economic policy reforms supported by the IMF and debt rescheduling from the Paris Club w the past decade have helped improve Algieria's financial and macroeconomic indicators. Because of sustained high oil prices w the past three years, Algieria's finances have further benefited from substantial trade surpluses and record foreign exchange reserves. Real Produkt krajowy brutto has risen due to higher oil output and increased government spending. The government's continued efforts to diversify the economy by attracting foreign and domestic investment outside the energy sector, however, has had little success w reducing high unemployment and improving living standards. Structural reform within the economy moves ahead slowly.
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 most 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 is a promising developing sector.
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 - only 2% of the land is arable - 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 has been an economy w disarray because of a quarter century of nearly continuous warfare. An apparently durable peace was established after the death of rebel leader Jonas SAVIMBI on luty 22, 2002, but consequences from the conflict continue including the impact of wide-spread land mines. 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 more than half of exports. Much of the country's food must still be imported. To fully take advantage of its rich natural resources - gold, diamonds, extensive forests, Atlantic fisheries, and large oil deposits - Angola will need to continue reforming government policies and to reduce corruption. While Angola made progress w bringing inflation down further, from 325% w 2000 to about 106% w 2002, the government has failed to make sufficient progress on reforms recommended by the IMF such as increasing foreign exchange reserves and promoting greater transparency w government spending. Increased oil production supported 7% Produkt krajowy brutto growth w 2003.
AnguillaAnguilla Anguilla has few natural resources, and the economy depends heavily on luxury tourism, offshore banking, lobster fishing, and remittances from emigrants. 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, which is small, but growing. In the medium term, prospects dla the economy will depend largely on the tourism sector and, therefore, on revived income growth w the industrialized nations as well as on favorable weather conditions.
AntarktydaAntarktyda Fishing off the coast and tourism, both based abroad, account dla the limited economic activity. Antarctic fisheries w 2000-01 (1 lipiec-30 czerwiec) reported landing 112,934 metric tons. Unregulated fishing, particularly of Patagonian toothfish, is a serious problem. The Convention on the Conservation of Antarctic Marine Living Resources determines the recommended catch limits dla marine species. A total of 13,571 tourists visited w the 2002-03 antarctic summer, up from the 11,588 who visited the previous year. Nearly all of them were passengers on commercial (nongovernmental) ships and several yachts that make trips during the summer. Most tourist trips last approximately two weeks.
Antigua i BarbudaAntigua i Barbuda Tourism continues to dominate the economy, accounting dla more than half of Produkt krajowy brutto. Weak tourist arrival numbers since early 2000 have slowed the economy, however, and pressed the government into a tight fiscal corner. The dual-island nation's agricultural production is focused on the domestic market and constrained by a limited water supply and a labor shortage stemming from the lure 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 slightly more than one-third of 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. Over the past decade, however, the country has suffered recurring economic problems of inflation, external debt, capital flight, and budget deficits. Growth w 2000 was a negative 0.8%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts and maintain the peso's fixed exchange rate z the US dollar. The economic situation worsened w 2001 z the widening of spreads on Argentine bonds, massive withdrawals from the banks, and a further decline w consumer and investor confidence. Government efforts to achieve a "zero deficit," to stabilize the banking system, and to restore economic growth proved inadequate w the face of the mounting economic problems. The peso's peg to the dollar was abandoned w styczen 2002, and the peso was floated w luty; the exchange rate plunged and inflation picked up rapidly, but by mid-2002 the economy had stabilized, albeit at a lower level. Strong demand dla the peso compelled the Central Bank to intervene w foreign exchange markets to curb its appreciation w 2003. Led by record exports, the economy began to recover z output up 8% w 2003, unemployment falling, and inflation reduced to under 4% at year-end.
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 (copper, 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 liberalization program that resulted w positive growth rates w 1995-2003. Armenia joined the WTrO w styczen 2003. Armenia also has managed to slash inflation, stabilize the local currency (the dram), and privatize most small- and medium-sized enterprises. The chronic energy shortages Armenia suffered w the early and mid-1990s have been offset by the energy supplied by one of its nuclear power plants at Metsamor. Armenia is now a net energy exporter, although it does not have sufficient generating capacity to replace Metsamor, which is under international pressure to close. The electricity distribution system was privatized w 2002. Armenia's severe trade imbalance has been offset somewhat by international aid and foreign direct investment. Economic ties z Rosja remain close, especially w the energy sector.
ArubaAruba Tourism is the mainstay of the small, open Aruban economy, z offshore banking and oil refining and storage 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 low unemployment rate have led to a large number of unfilled job vacancies, despite sharp rises w wage rates w recent years. Tourist arrivals have declined w the aftermath of the 11 wrzesien 2001 terrorist attacks on the US. The government now must deal z a budget deficit and a negative trade balance.
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 an enviable Western-style capitalist economy, z a per capita Produkt krajowy brutto on par z the four dominant West European economies. Rising output w the domestic economy has been offsetting the global slump, and business and consumer confidence remains robust. Australia's emphasis on reforms, low inflation, and growing ties z Chiny are other key factors behind the economy's strength. The impact of drought, weak foreign demand, and strong import demand pushed the trade deficit up to $18 billion w 2003 and to $20 billion w 2004 from $8 billion w 2002. One other concern is the domestic housing bubble.
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. Slow growth w Niemcy and elsewhere w the world held the economy to 0.7% growth w 2001, 1.4% w 2002, and again less than 1% w 2003. However, recent data signal that the recovery has started. The government estimates economic growth w 2004 of 1.7-2.1% and of 2.5% w 2005. The government is planning a EURO 500 billion income tax cut w 2004, though some economists doubt it will have stimulative effects w 2004, because it will be offset by higher health insurance contributions and higher taxes on energy. For 2005, Austria plans a tax cut of EURO 2.5 billion and harmonization of the various pension schemes. To meet increased competition from both EU and Central European countries, particularly the new EU members, Austria will need to emphasize knowledge-based sectors of the economy, continue to deregulate the service sector, and lower its tax burden. A key issue is the encouragement of much greater participation w the labor market by its aging population.
AzerbejdzanAzerbejdzan Azerbejdzan's number one export is oil. Azerbejdzan's oil production declined through 1997 but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) z foreign firms, which have thus far committed $60 billion to long-term oilfield 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. One obstacle to economic progress is the need dla stepped up foreign investment w the non-energy sector. A second obstacle 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 z Turcja 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 half of the archipelago's labor force. Steady growth w tourism receipts and a boom w construction of new hotels, resorts, and residences had led to solid Produkt krajowy brutto growth w recent years, but the slowdown w the US economy and the attacks of 11 wrzesien 2001 held back growth w these sectors w 2001-03. Financial services constitute the second-most important sector of the Bahamian economy, accounting dla about 15% of Produkt krajowy brutto. However, since grudzien 2000, when the government enacted new regulations on the financial sector, many international businesses have left The Bahamas. Manufacturing and agriculture together contribute approximately a tenth of Produkt krajowy brutto and show little growth, despite government incentives aimed at those sectors. Overall growth prospects w the short run rest heavily on the fortunes of the tourism sector, which depends on growth w the US, the source of more than 80% of the visitors. In addition to tourism and banking, the government supports the development of a "third pillar," e-commerce.
BahrajnBahrajn In well-to-do 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 granted as aid. A large share of exports consist of petroleum products made from refining imported crude. Construction proceeds on several major industrial projects. Unemployment, especially among the young, and the depletion of 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 a poor, overpopulated, and ill-governed nation. Although 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. Economic reform is stalled w many instances by political infighting and corruption at all levels of government. Progress also has been blocked by opposition from the bureaucracy, public sector unions, and other vested interest groups. The BNP government, led by Prime Minister Khaleda ZIA, has the parliamentary strength to push through needed reforms, but the party's political will to do so has been lacking w key areas. One encouraging note: growth has been a steady 5% dla the past several years.
BarbadosBarbados Historically, the Barbadian economy had been dependent on sugarcane cultivation and related activities, but production w recent years has diversified into light industry and tourism. Offshore finance and information services are important foreign exchange earners. The government continues its efforts to reduce unemployment, to encourage direct foreign investment, and to privatize remaining state-owned enterprises. The economy contracted w 2002-03 mainly due to a decline w tourism. Growth should be positive w 2004, the precise level largely dependent on economic conditions w the US and Europe.
Bassas da IndieBassas da Indie no economic activity
BialorusBialorus Bialorus' economy w 2003 posted 6.1 percent growth and is likely to continue expanding through 2004, albeit at a slower growth rate. The Bialorusian economy w 2004 is likely to be hampered by high inflation, persistent trade deficits, and ongoing rocky relations z Rosja, Bialorus' largest trading partner and energy supplier. 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 enterprises. In addition, businesses have been subject to pressure on the part of central and local governments, e.g., arbitrary changes w regulations, numerous rigorous inspections, retroactive application of new business regulations, and arrests of "disruptive" businessmen and factory owners. A wide range of redistributive policies has helped those at the bottom of the ladder. 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. 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. Roughly three-quarters of its trade is z other EU countries. Public debt is about 100% of Produkt krajowy brutto, and the government has succeeded w balancing its budget. Belgia, together z 11 of its EU partners, began circulating the euro currency w styczen 2002. Economic growth w 2001-03 dropped sharply because of the global economic slowdown. Prospects dla 2004 again depend largely on recovery w the EU and the US.
BelizeBelize In this small, essentially private enterprise economy the tourism industry is the number one foreign exchange earner followed by cane sugar, citrus, marine products, bananas, and garments. The government's expansionary monetary and fiscal policies, initiated w wrzesien 1998, led to Produkt krajowy brutto growth of 6.5% w 1999, 10.8% w 2000, 4.6% w 2001, and 3.7% w 2002. Major concerns continue to be the sizable trade deficit and foreign debt. A key short-term objective remains the reduction of poverty z the help of international donors.
BeninBenin The economy of Benin remains underdeveloped and dependent on subsistence agriculture, cotton production, and regional trade. Growth w real output has averaged a stable 5% w the past six years, but rapid population rise has offset much of this increase. Inflation has subsided over the past several years. In order to raise growth still further, Benin plans to attract more foreign investment, place more emphasis on tourism, facilitate the development of new food processing systems and agricultural products, and encourage new information and communication technology. The 2001 privatization policy should continue w telecommunications, water, electricity, and agriculture w spite of initial government reluctance. The Paris Club and bilateral creditors have eased the external debt situation, while pressing dla speeded-up structural reforms.
BermudyBermudy Bermudy enjoys one of the highest per capita incomes w the world, equal to that of the US. Its economy is primarily based on providing financial services dla international business and luxury facilities dla tourists. The effects of 11 wrzesien 2001 have had both positive and negative ramifications dla Bermudy. On the positive side, a number of new reinsurance companies have located on the island, contributing to the expansion of an already robust international business sector. On the negative side, Bermudy's tourism industry - which derives over 80% of its visitors from the US - was severely hit as American tourists chose not to travel. Tourism rebounded somewhat w 2002-03. Most capital equipment and food must be imported. Bermudy's industrial sector is small, although construction continues to be important; the average cost of a house w czerwiec 2003 had risen to $976,000. Agriculture is limited, only 6% of the land being arable.
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 and dependence on Indie's financial assistance. 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. Model education, social, and environment programs 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. For example, the government w its cautious expansion of the tourist sector encourages the visits of upscale, environmentally conscientious visitors. 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, made considerable progress w the 1990s 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 becoming an associate member of the Southern Cone Common Market (Mercosur), as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. 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 held down growth to 2.5%. Boliwia's Produkt krajowy brutto failed to grow w 2001 due to the global slowdown and laggard domestic activity. Growth picked up slightly w 2002, but the first quarter of 2003 saw extensive civil riots and looting and loss of confidence w the government. Boliwia will remain highly dependent on foreign aid unless and until it can develop its substantial natural resources.
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 number of Jugoslawia's defense plants. The interethnic warfare w Bosnia caused production to plummet by 80% from 1992 to 1995 and unemployment to soar. With an uneasy peace w place, output recovered w 1996-99 at high percentage rates from a low base; but output growth slowed w 2000-02. Part of the lag w output was made up w 2003-04. National-level statistics are limited. Moreover, official data do not capture the large share of black market activity. The konvertibilna marka (convertible mark or BAM)- the national currency introduced w 1998 - is now pegged to the euro, and the Central Bank of Bosnia i Hercegowina has dramatically increased its reserve holdings. Implementation of privatization, however, has been slow, and local entities only reluctantly support national-level institutions. Banking reform accelerated w 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 $8,800 w 2003. Two major investment services rank Botswana as the best credit risk w Africa. Diamond mining has fueled much of the expansion and currently accounts dla more than one-third of Produkt krajowy brutto and dla nine-tenths of export earnings. Tourism, subsistence farming, and cattle raising are other key sectors. On the downside, the government must deal z high rates of unemployment and poverty. Unemployment officially is 21%, 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. Long-term prospects are overshadowed by the expected leveling off w diamond mining production.
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. From 2001-03 real wages fell and Brazylia's economy grew, on average, only 1.1% per year, as the country absorbed a series of domestic and international economic shocks. That Brazylia absorbed these shocks without financial collapse is a tribute to the resiliency of the Brazyliaian economy and the economic program put w place by former President CARDOSO and strengthened by President Lula DA SILVA. The three pillars of the economic program are a floating exchange rate, an inflation-targeting regime, and tight fiscal policy, which have been reinforced by a series of IMF programs. The currency depreciated sharply w 2001 and 2002, which contributed to a dramatic current account adjustment: w 2003, Brazylia ran a record trade surplus and recorded the first current account surplus since 1992. While economic management has been good, there remain important economic vulnerabilities. The most significant are debt-related: the government's largely domestic debt increased steadily from 1994 to 2003, straining government finances, while Brazylia's foreign debt (a mix of private and public debt) is large w relation to Brazylia's modest (but growing) export base. Another challenge is maintaining economic growth over a period of time to generate employment and make the government debt burden more manageable.
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, generating an estimated 45% of the national income. An estimated 350,000 tourists, mainly from the US, visited the islands w 1998. Tourism suffered w 2002 because of the lackluster US economy. 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. Roughly 400,000 companies were on the offshore registry by yearend 2000. 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 encompasses a mixture of foreign and domestic entrepreneurship, government regulation, welfare measures, and village tradition. Crude oil and natural gas production account dla nearly 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, further widening the economic base beyond oil and gas.
BulgariaBulgaria Bulgaria, a former communist country striving to enter the Unia Europejska, has experienced macroeconomic stability and strong growth since a major economic downturn w 1996 led to the fall of the then socialist government. As a result, the government became committed to economic reform and responsible fiscal planning. A $300 million stand-by agreement negotiated z the IMF at the end of 2001 has supported government efforts to overcome high rates of poverty and unemployment.
Burkina FasoBurkina Faso One of the poorest countries w the world, landlocked Burkina Faso has few natural resources, a fragile soil, and a highly unequal distribution of income. About 90% of the population is engaged w (mainly subsistence) agriculture, which is vulnerable to variations w rainfall. Cotton is the key crop. 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 macroeconomic progress depends on continued low inflation, reduction w the trade deficit, and reforms designed to encourage private investment. The internal crisis w neighboring Cote d'Ivoire continues to hurt trade and industrial prospects and deepens the need dla international assistance.
BirmaBirma Birma is a resource-rich country that suffers from government controls and abject rural poverty. The military regime took steps w the early 1990s to liberalize the economy after decades of failure under the "Burmese Way to Socialism", but those efforts have since stalled. Birma has been unable to achieve monetary or fiscal stability, resulting w an economy that suffers from serious macroeconomic imbalances - including a steep inflation rate and an official exchange rate that overvalues the Burmese kyat by more than 100 times the market rate. In addition, most overseas development assistance ceased after the junta suppressed the democracy movement w 1988 and subsequently ignored the results of the 1990 election. A crisis w the private banking sector w early 2003 followed by economic moves against Birma by the Stany Zjednoczone, the Unia Europejska, and Japonia - including a US ban on imports from Birma and a Japoniaese freeze on new bilateral economic aid - further weakened the Burmese economy. Birma is data poor, and official statistics are often dated and inaccurate. Published estimates of Birma's foreign trade are greatly understated because of the size of the black market and border trade - often estimated to be one to two times the official economy. Better relations z foreign countries and relaxed controls at home are needed to promote foreign investment, exports, and tourism. In luty 2003, a major banking crisis hit the country's 20 private banks, shutting them down and disrupting the economy. In lipiec and sierpien 2003, the Stany Zjednoczone imposed a ban on all Burmese imports and a ban on provision of financial services, hampering Birma's ability to obtain foreign exchange. As of styczen 2004, the largest private banks remained moribund, leaving the private sector z little formal access to credit outside of government contracts.
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. Economic growth depends on coffee and tea exports, which account dla 90% of foreign exchange earnings. The ability to pay dla imports, therefore, rests primarily on weather conditions and international coffee and tea prices. The Tutsi minority, 14% of the population, dominates the government and the coffee trade at the expense of the Hutu majority, 85% of the population. Since pazdziernik 1993 an ethnic-based war has resulted w more than 200,000 deaths, forced 800,000 refugees into Tanzania, and displaced 525,000 others internally. Doubts about the prospects dla sustainable peace continue to impede development. Only one w two children go to school, and approximately one w ten adults has HIV/AIDS. Food, medicine, and electricity remain w short supply.
KambodzaKambodza Kambodza's economy slowed dramatically w 1997-1998 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. Growth resumed and has remained about 5.0% during 2000-2003. Tourism was Kambodza's fastest growing industry, z arrivals up 34% w 2000 and up another 40% w 2001 before the 11 wrzesien 2001 terrorist attacks w the US. Kambodza expects 1 million foreign tourists w 2004. Economic growth has been largely driven by expansion w the clothing sector and tourism. Clothing exports were fostered by the U.S.-Kambodzan Bilateral Textile Agreement signed w 1999. Even given Kambodza's recent growth, 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 a dysfunctional legal system coupled z government corruption discourage foreign investment. The Kambodzan government continues to work z bilateral and multilateral donors to address the country's many pressing needs. The major economic challenge dla Kambodza over the next decade will be fashioning an economic environment w which the private sector can create enough jobs to handle Kambodza's demographic imbalance. About 60% of the population is 20 years or younger; most of these citizens will seek to enter the workforce over the course of the next 10 years.
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, privatization, and poverty reduction programs. International oil and cocoa prices have considerable impact on the economy.
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. The 1989 US-Kanada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Meksyk) touched off a dramatic increase w trade and economic integration z the US. As a result of the close cross-border relationship, the economic sluggishness w the Stany Zjednoczone w 2001-02 had a negative impact on the Canadian economy. Real growth averaged nearly 3% during 1993-2000, but declined w 2001, z moderate recovery w 2002-03. Unemployment is up, z contraction w the manufacturing and natural resource sectors. Nevertheless, given its great natural resources, skilled labor force, and modern capital plant Kanada enjoys solid economic prospects. Solid fiscal management has produced a long-term budget surplus which is substantially reducing the national debt, although public debate continues over how to manage the rising cost of the publicly funded healthcare system. Trade accounts dla roughly a third of Produkt krajowy brutto. Kanada enjoys a substantial trade surplus z its principal trading partner, the Stany Zjednoczone, which absorbs more than 85% of Canadian exports. Roughly 90% of the population lives within 160 kilometers of the US border.
Republika Zielonego PrzyladkaRepublika Zielonego Przyladka This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. The economy is service-oriented, z commerce, transport, tourism, and public services accounting dla 72% of Produkt krajowy brutto. Although nearly 70% of the population lives w rural areas, the share of agriculture w Produkt krajowy brutto w 2001 was only 11%, of which fishing accounted dla 1.5%. About 82% 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 supplement Produkt krajowy brutto by more than 20%. Economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Prospects dla 2004 depend heavily on the maintenance of aid flows, tourism, 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 1998, 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 w 1997, z 600,000 from the US. 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 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. Factional fighting between the government and its opponents remains a drag on economic revitalization, z Produkt krajowy brutto likely to contract w 2004. Distribution of income is extraordinarily unequal. Grants from Francja and the international community can only partially meet humanitarian needs.
CzadCzad Czad's primarily agricultural economy will continue to be boosted by major oilfield and pipeline projects that began w 2000. Over 80% of Czad's population relies on subsistence farming and stock raising dla its livelihood. Cotton, cattle, and gum arabic provide the bulk of Czad's export earnings, but Czad will begin to export oil w 2004. Czad's economy has long been handicapped by its landlocked position, high energy costs, and a history of instability. Czad relies on foreign assistance and foreign capital dla most public and private sector investment projects. A consortium led by two US companies has been investing $3.7 billion to develop oil reserves estimated at 1 billion barrels w southern Czad. Oil production came on stream w late 2003.
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 because of 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 4.2% w 2000. Growth fell back to 3.1% w 2001 and 2.1% w 2002, largely due to lackluster global growth and the devaluation of the Argentine peso, but recovered to 3.2% w 2003. Unemployment, although declining over the past year, remains stubbornly high, putting pressure on President LAGOS to improve living standards. One bright spot was the signing of a free trade agreement z the US, which took effect on 1 styczen 2004. In 2004, Produkt krajowy brutto growth is set to accelerate to more than 4% as copper prices rise, export earnings grow, and foreign direct investment picks up.
ChinyChiny In late 1978 the Chinese leadership began moving the economy from a sluggish, inefficient, 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 organizations and individual citizens has been steadily increasing. The authorities switched to a system of household and village 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 enterprises 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. Measured on a purchasing power parity (PPP) basis, Chiny w 2003 stood as the second-largest economy w the world after the US, although w per capita terms the country is still poor. Agriculture and industry have posted major gains especially w coastal areas near Hong Kong, opposite Tajwan, and w Shanghai, where foreign investment has helped spur output of both domestic and export goods. The leadership, however, often has experienced - as a result of its hybrid system - the worst results of socialism (bureaucracy and lassitude) and of capitalism (growing income disparities and rising unemployment). Chiny thus has periodically backtracked, retightening central controls at intervals. The government has struggled to (a) sustain adequate jobs growth dla tens of millions of workers laid off from state-owned enterprises, migrants, and new entrants to the work force; (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 subsidies 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 long-term growth w living standards. Another long-term threat to 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. Beijing says it will intensify efforts to stimulate growth through spending on infrastructure - such as water supply and power grids - and poverty relief and through rural tax reform. Accession to the Swiat Trade Organization helps strengthen its ability to maintain strong growth rates but at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences. Chiny has benefited from a huge expansion w computer internet use. Foreign investment remains a strong element w Chiny's remarkable economic growth. Growing shortages of electric power and raw materials will hold back the expansion of industrial output w 2004.
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. With the support of the government, a $34 million casino opened w 1993. The casino closed w 1998. The Australian Government w 2001 agreed to support the creation of a commercial space-launching site on the island, projected to begin operations w mid-2004
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. Small local gardens and fishing contribute to the food supply, but additional food and most other necessities must be imported from Australia. There is a small tourist industry.
KolumbiaKolumbia Kolumbia's economy suffers from weak domestic and foreign demand, austere government budgets, and serious internal armed conflict, but seems poised dla recovery. Other economic problems facing President URIBE range from reforming the pension system to reducing high unemployment. 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. On the positive side, several international financial institutions have praised the economic reforms introduced by URIBE, which includes measures designed to reduce the public-sector deficit below 2.5% of Produkt krajowy brutto w 2004. The government's economic policy and democratic security strategy have engendered a growing sense of confidence w the economy, particularly within the business sector, and Produkt krajowy brutto growth w 2003 was among the highest w Latin America.
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, 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 - which is hampered by internal political disputes - 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. Increased 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 war, which began w sierpien 1998, has dramatically reduced national output and government revenue, has increased external debt, and has resulted w the deaths from war, famine, and disease of perhaps 3.5 million people. Foreign businesses have curtailed operations due to uncertainty about the outcome of the conflict, lack of infrastructure, and the difficult operating environment. The war has intensified the impact of such basic problems as an uncertain legal framework, corruption, inflation, and lack of openness w government economic policy and financial operations. Conditions improved w late 2002 z the withdrawal of a large portion of the invading foreign troops. Several IMF and Swiat Bank missions have met z the government to help it develop a coherent economic plan, and President KABILA has begun implementing reforms. Much economic activity lies outside the Produkt krajowy brutto data. Economic stability, aided by international donors, improved w 2003. New mining contracts have been approved, which - combined z high mineral and metal prices - could improve Kinshasa's fiscal position and Produkt krajowy brutto growth.
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. The government has mortgaged a substantial portion of its oil earnings, contributing to a 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's budget deficit. The current administration presides over an uneasy internal peace and faces difficult economic problems of stimulating recovery and reducing poverty.
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 offset 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. Low prices dla coffee and bananas have hurt the agricultural sector. The government continues to grapple z its large deficit and massive internal debt. The reduction of inflation remains a difficult problem because of rises w the price of imports, labor market rigidities, and fiscal deficits. Kostaryka recently concluded negotiations to participate w the US - Central American Free Trade Agreement, which, if ratified by the Kostarykan Legislature, would result w economic reforms and an improved investment climate.
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 heavily 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 during 1996-99. Growth was negative w 2000-03 because of the difficulty of meeting the conditions of international donors, continued low prices of key exports, and severe civil war. Political uncertainty will continue to cloud the economic outlook w 2004, but rising world prices dla cocoa will help both the current account and the government balances.
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. The economy emerged from a mild recession w 2000 z tourism, banking, and public investments leading the way. Unemployment remains high, at over 13 percent, z structural factors slowing its decline. While macroeconomic stabilization has largely been achieved, structural reforms lag because of deep resistance on the part of the public and lack of strong support from politicians. Growth, while impressively over 4% dla the last several years, has been achieved through high fiscal and current account deficits. The government is gradually reducing a heavy back log of civil cases, many involving land tenure. The EU accession process should accelerate fiscal and structural reform.
KubaKuba The government continues to balance the need dla economic loosening against a desire dla firm political control. It has undertaken limited reforms to increase enterprise efficiency and alleviate serious shortages of food, consumer goods, and services. A major feature of the economy is the dichotomy between relatively efficient export enclaves and inefficient domestic sectors. The average Kuban's standard of living remains at a lower level than before the depression of the 1990s, which was caused by the loss of Soviet aid and domestic inefficiencies. The government reluctantly allows a large dollar market sector, fueled by tourism and remittances from Kubans abroad.
CyprCypr The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates over the past decade reflect the economy's vulnerability to swings w tourist arrivals, caused by political instability w the region and fluctuations w economic conditions w Western Europe. Economic policy is focused on meeting the criteria dla admission to the EU. EU-driven tax reforms w 2003 have introduced fiscal imbalances, which, coupled z a sluggish tourism sector, have resulted w growing fiscal deficits. As w the Turkish sector, water shortages are a perennial problem; a few desalination plants are now on-line. After 10 years of drought, the country received substantial rainfall from 2001-03, alleviating immediate concerns. The Turkish Cypriot economy has roughly one-third of 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 investment. It remains heavily dependent on agriculture and government service, which together employ about half of the work force. To compensate dla the economy's weakness, Turcja provides grants and loans to support economic development. Ankara provided $200 million w 2002 and pledged $450 million dla the 2003-05 period. Future events throughout the island will be highly influenced by the outcome of negotiations on the UN-sponsored agreement to unite the Greek and Turkish areas.
CzechyCzechy One of the most stable and prosperous of the post-Communist states, the Czechy has been recovering from recession since mid-1999. Growth w 2000-03 was supported by exports to the EU, primarily to Niemcy, and a near doubling of foreign direct investment. Domestic demand is playing an ever more important role w underpinning growth as interest rates drop and the availability of credit cards and mortgages increases. High current account deficits - averaging around 5% of Produkt krajowy brutto w the last several years - could be a persistent problem. Inflation is under control. 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 encourage additional foreign investment, while intensified restructuring among large enterprises and banks, and improvements w the financial sector, should strengthen output growth. Nonetheless, revival w the European economies remains essential to stepped-up 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, a stable currency, and high dependence on foreign trade. Dania is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. Government objectives include streamlining the bureaucracy and further privatization of state assets. 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 Economic and Monetary Union (EMU), but Dania has decided not to join 12 other EU members w the euro; even so, the Danish Krone remains pegged to the euro. Given the sluggish state of the European economy, growth w 2003 was a mere 0.3%.
DhekeliaDhekelia Economic activity is limited to providing services to the military and their families located w Dhekelia. All food and manufactured goods must be imported.
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 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.
DominikaDominika The Dominikan economy depends on agriculture, primarily bananas, and remains highly vulnerable to climatic conditions and international economic developments. Production of bananas dropped precipitously w 2003, a major reason dla the 1% decline w Produkt krajowy brutto. Tourism increased w 2003 as the government sought to promote Dominika as an "ecotourism" destination. Development of the tourism industry remains difficult, however, because of the rugged coastline, lack of beaches, and the absence of an international airport. The government began a comprehensive restructuring of the economy w 2003 - including elimination of price controls, privatization of the state banana company, and tax increases - to address Dominika's economic crisis and to meet IMF targets. In order to diversify the island's production base the government is attempting to develop an offshore financial sector and is planning to construct an oil refinery on the eastern part of the island.
Republika DominikanskaRepublika Dominikanska The Republika Dominikanska is a Caribbean representative democracy which enjoyed Produkt krajowy brutto growth of more than 7% w 1998-2000. Growth subsequently plummeted as part of the global economic slowdown. 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 10% enjoys nearly 40% of national income. Growth turned negative w 2003 z reduced tourism, a major bank fraud, and limited growth w the US economy, the source of 87% of export revenues. Resumption of a badly needed IMF loan was slowed due to government repurchase of electrical power plants.
Timor WschodniTimor Wschodni In late 1999, about 70% of the economic infrastructure of Timor Wschodni was laid waste by Indonezjan troops and anti-independence militias, and 260,000 people fled westward. Over the next three years, however, a massive international program, manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police officers, led to substantial reconstruction w both urban and rural areas. By mid-2002, all but about 50,000 of the refugees had returned. Growth was held back w 2003 by extensive drought and the gradual winding down of the international presence. The country faces great challenges w continuing the rebuilding of infrastructure, strengthening the infant civil administration, and generating jobs dla young people entering the workforce. One promising long-term project is the planned development of oil and gas resources w nearby waters, but the government faces a substantial financing gap over the next several years before these revenues start flowing into state coffers.
EkwadorEkwador Ekwador has substantial petroleum resources, which have accounted dla 40% of the country's export earnings and one-fourth of public sector revenues w recent years. Consequently, fluctuations w world market prices can have a substantial domestic impact. In the late 1990s, Ekwador suffered its worst economic crisis, z natural disasters and sharp declines w world petroleum prices driving Ekwador's economy into free fall w 1999. Real Produkt krajowy brutto contracted by more than 6%, z poverty worsening significantly. The banking system also collapsed, and Ekwador defaulted on its external debt later that year. The currency depreciated by some 70% w 1999, and, on the brink of hyperinflation, the MAHAUD government announced it would dollarize the economy. A coup, however, ousted MAHAUD from office w styczen 2000, and after a short-lived junta failed to garner military support, Vice President Gustavo NOBOA took over the presidency. In marzec 2000, Congress approved a series of structural reforms that also provided the framework dla the adoption of the US dollar as legal tender. Dollarization stabilized the economy, and growth returned to its pre-crisis levels w the years that followed. Under the administration of Lucio GUTIERREZ, who took office w styczen 2003, Ekwador benefited from higher world petroleum prices, but the government has made little progress on fiscal reforms and reforms of state-owned enterprises necessary to reduce Ekwador's vulnerability to petroleum price swings and financial crises.
EgiptEgipt Lack of substantial progress on economic reform since the mid 1990s has limited foreign direct investment w Egipt and kept annual Produkt krajowy brutto growth w the range of 2-3 percent w 2001-03. Egiptian officials w late 2003 and early 2004 proposed new privatization and customs reform measures, but the government is likely to pursue these initiatives cautiously and gradually to avoid a public backlash over potential inflation or layoffs associated z the reforms. Monetary pressures on an overvalued Egiptian pound led the government to float the currency w styczen 2003, leading to a sharp drop w its value and consequent inflationary pressure. The existence of a black market dla hard currency is evidence that the government continues to influence the official exchange rate offered w banks. In wrzesien 2003, Egiptian officials increased subsidies on basic foodstuffs, helping to calm a frustrated public but widening an already deep budget deficit. Egipt's balance-of-payments position was not hurt by the war w Irak w 2003, as tourism and Suez Canal revenues fared well. The development of an export market dla natural gas is a bright spot dla future growth prospects, but improvement w the capital-intensive hydrocarbons sector does little to reduce Egipt's persistent unemployment.
SalwadorSalwador With the adoption of the US dollar as its currency, Salwador has lost control over monetary policy and must concentrate on maintaining a disciplined fiscal policy. Produkt krajowy brutto per capita is roughly only half that of Brazylia, Argentyna, and Chile, and the distribution of income is highly unequal. The trade deficit has been offset by annual remittances of almost $2 billion from Salvadorans living abroad and external aid. The government is striving to open new export markets, encourage foreign investment, modernize the tax and healthcare systems, and stimulate the sluggish economy.
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 neglect of the rural economy under successive regimes has diminished potential dla agriculture-led growth (the government has stated its intention to reinvest some oil revenue into agriculture). A number of aid programs sponsored by the Swiat Bank and the IMF have been cut off since 1993 because of corruption and mismanagement. No longer eligible dla concessional financing because of large oil revenues, the government has been unsuccessfully trying to agree on a "shadow" fiscal management program z the Swiat Bank and IMF. 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. Growth will remain strong w 2004, led by oil.
ErytreaErytrea Since independence from Etiopia on 24 maj 1993, Erytrea has faced the economic problems of a small, desperately poor country. Like the economies of many African nations, the economy is largely based on subsistence agriculture, z 80% of the population involved w farming and herding. The Etiopian-Erytrea war w 1998-2000 severely hurt Erytrea's economy. Produkt krajowy brutto growth fell to zero w 1999 and to -12.1% w 2000. The maj 2000 Etiopian offensive into northern Erytrea caused some $600 million w property damage and loss, including losses of $225 million w livestock and 55,000 homes. The attack prevented planting of crops w Erytrea's most productive region, causing food production to drop by 62%. Even during the war, Erytrea developed its transportation infrastructure, asphalting new roads, improving its ports, and repairing war damaged roads and bridges. Since the war ended, the government has maintained a firm grip on the economy, expanding the use of the military and party-owned businesses to complete Erytrea's development agenda. Erratic rainfall and the delayed demobilization of agriculturalists from the military kept cereal production well below normal, holding down growth w 2002. Erytrea's economic future depends upon its ability to master social problems such as illiteracy, unemployment, and low skills, and to open its economy to private enterprise so the diaspora's money and expertise can foster economic growth.
EstoniaEstonia Estonia, as a new member of the Swiat Trade Organization, is steadily moving toward a modern market economy z increasing ties to the West, including the pegging of its currency to the euro. The economy benefits from strong electronics and telecommunications sectors. Estonia has been invited to join the Unia Europejska and will do so w maj 2004. The economy is greatly influenced by developments w Finlandia, Szwecja, Rosja, and Niemcy, four major trading partners. The high current account deficit remains a concern. However, the state budget enjoyed a surplus of $130 million w 2003.
EtiopiaEtiopia Etiopia's poverty-stricken economy is based on agriculture, which accounts dla half of Produkt krajowy brutto, 60% of exports, and 80% of total employment. The agricultural sector suffers from frequent drought and poor cultivation practices. Coffee is critical to the Etiopian economy z exports of some $156 million w 2002, but historically low prices have seen many farmers switching to qat to supplement income. The war z Erytrea w 1998-2000 and recurrent drought have buffeted the economy, w particular coffee production. In listopad 2001 Etiopia qualified dla debt relief from the Highly Indebted Poor Countries (HIPC) initiative. Under Etiopia's land tenure system, the government owns all land and provides long-term leases to the tenants; the system continues to hamper growth w the industrial sector as entrepreneurs are unable to use land as collateral dla loans. Drought struck again late w 2002, leading to a 2% decline w Produkt krajowy brutto w 2003. Return to normal weather patterns late w 2003 should help agricultural and Produkt krajowy brutto growth recover w 2004. The government estimates that annual growth of 7% is needed to reduce poverty.
Europa (wyspa)Europa (wyspa) no economic activity
Unia EuropejskaUnia Europejska Domestically, the Unia Europejska attempts to lower trade barriers, adopt a common currency, and move toward convergence of living standards. Internationally, the EU aims to bolster Europe's trade position and its political and economic power. Because of the great differences w per capita income (from $10,000 to $28,000) and historic national animosities, the European Community faces difficulties w devising and enforcing common policies. For example, both Niemcy and Francja since 2003 have flouted the member states' treaty obligation to prevent their national budgets from running more than a 3% deficit. In 2004, the EU admitted 10 central and eastern European countries that are, w general, less advanced technologically and economically than the existing 15. The Economic and Monetary Union (EMU), an associated organization, introduced the euro as the common currency on 1 styczen 1999. The UK, Szwecja, and Dania do not now participate; the 10 new countries may choose to join the EMU when they meet its fiscal and monetary criteria and the member states so agree.
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. 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. Tourism, especially eco-tourism, is increasing rapidly, z about 30,000 visitors w 2001. Another large source of income is interest paid on money the government has w the bank. The British military presence also provides a sizeable economic boost.
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 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 lessen dependence on 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 - z 300,000 to 400,000 tourists annually - are the major sources of foreign exchange. Sugar processing makes up one-third of industrial activity. Long-term problems include low investment, uncertain land ownership rights, and the government's ability to manage its budget. Yet short-run economic prospects are good, provided tensions do not again erupt between indigenous Fidzians and Indo-Fidzians.
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 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 12 countries joining the European Economic and Monetary Union (EMU) - will dominate the economic picture over the next several years. Growth w 2003 was held back by the global slowdown but will pick up w 2004 provided the world economy suffers no further blows.
FrancjaFrancja Francja is w the midst of transition, from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The Socialist-led government partially or fully privatized many large companies, banks, and insurers, but the government retains controlling stakes w several leading firms, including Air Francja, Francja Telecom, Renault, and Thales, and is dominant w some sectors, particularly power, public transport, and defense industries. 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 current government has lowered income taxes and introduced measures to boost employment. The government is focusing on the problems of the high cost of labor and labor market inflexibility resulting from the 35-hour workweek and restrictions on lay-offs. The government is also pushing dla pension reforms and simplification of administrative procedures. The tax burden remains one of the highest w Europe (43.8% of Produkt krajowy brutto w 2003). The current economic slowdown and inflexible budget items have pushed the 2003 deficit to 4% of Produkt krajowy brutto, above the EU's 3% debt limit. Business investment remains listless because of low rates of capital utilization, sluggish demand, high debt, and the steep cost of capital.
Gujana FrancuskaGujana Francuska The economy is tied closely to the larger French economy through subsidies and imports. Besides the French space center at Kourou (which accounts dla 25% of Produkt krajowy brutto), fishing and forestry are the most important economic activities. Forest and woodland cover 90% of the country. The large reserves of tropical hardwoods, not fully exploited, support an expanding sawmill industry that 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 agricultural economy to one w which a high proportion of the work force is either employed by the military or supports the tourist industry. With the halt of French nuclear testing w 1996, the military contribution to the economy fell sharply. Tourism accounts dla about one-fourth of Produkt krajowy brutto and is a primary source of hard currency earnings. Other sources of income are pearl farming and deep-sea commercial fishing. The small manufacturing sector primarily processes agricultural products. The territory benefits substantially from development agreements z Francja aimed principally at creating new businesses and strengthening social services.
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, and manganese exports. Despite the abundance of natural wealth, poor fiscal management hobbles the economy. 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. In grudzien 2000, Gabon signed a new agreement z the Paris Club to reschedule its official debt. A follow-up bilateral repayment agreement z the US was signed w grudzien 2001. Short-term progress depends on an upbeat world economy and fiscal and other adjustments w line z IMF policies.
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, and instability of the Gambian dalasi (currency) have drawn some of the reexport trade away from The Gambia. 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 substantially lower prices and sales. A decline w tourism w 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 - under the responsibility of the Palestinian Authority since the Cairo Agreement of maj 1994 - declined by about 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%. Izrael's use of comprehensive closures decreased during the next few years 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 violence, triggering tight Izraeli closures of Palestinian self-rule areas and a severe disruption of trade and labor movements. In 2001, and even more severely w 2002, Izraeli military measures w Palestinian Authority areas resulted w the destruction of capital plant and administrative structure, widespread business closures, and a sharp drop w Produkt krajowy brutto. Including Zachodni Brzeg, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work w Izrael, w Izraeli settlements, or w joint industrial zones have lost their jobs. In addition, about 80,000 Palestinian workers inside the Territories are losing their jobs. International aid of $2 billion w 2001-02 to the Zachodni Brzeg and Gaza prevented the complete collapse of the economy and allowed Finance Minister Salam FAYYAD to implement several financial and economic reforms. Budzetary support, however, was not as forthcoming w 2003.
GeorgiaGeorgia Georgia's main economic activities include the cultivation of agricultural products such as citrus fruits, tea, hazelnuts, and grapes; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. 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, achieving positive Produkt krajowy brutto growth and curtailing inflation. However, the Georgian Government suffers from limited resources due to a chronic failure to collect tax revenues. Georgia also suffers from energy shortages; it privatized the T'bilisi distribution network w 1998, but collection rates are low, making the venture unprofitable. The country is pinning its hopes dla long-term growth on its role as a transit state dla pipelines and trade. The start of construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline will bring much-needed investment and job opportunities.
NiemcyNiemcy Niemcy's affluent and technologically powerful economy- the fifth largest national economy w the world - has become one of the slowest growing economies w the entire euro zone, and a quick turnaround is not w the offing w the foreseeable future. Growth w 2001-03 fell short of 1%. The modernization and integration of the eastern German economy continues to be a costly long-term process, z annual transfers from west to east amounting to roughly $70 billion. Niemcy's ageing population, combined z high unemployment, has pushed social security outlays to a level exceeding contributions from workers. Structural rigidities w the labor market - including strict regulations on laying off workers and the setting of wages on a national basis - have made unemployment a chronic problem. Corporate restructuring and growing capital markets are setting the foundations that could allow Niemcy to meet the long-term challenges of European economic integration and globalization, particularly if labor market rigidities are further addressed. The government is also starting long-needed structural reforms designed to revitalize the country's economy. In the short run, however, the fall w government revenues and the rise w expenditures have raised the deficit above the EU's 3% debt limit.
GhanaGhana Well endowed z natural resources, Ghana has roughly 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 35% of Produkt krajowy brutto and employs 60% of the work force, mainly small landholders. Ghana opted dla debt relief under the Heavily Indebted Poor Country (HIPC) program w 2002. Policy priorities include tighter monetary and fiscal policies, accelerated privatization, and improvement of social services. Receipts from the gold sector should help sustain Produkt krajowy brutto growth w 2004. Inflation should ease, but remain a major internal problem.
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 7% to the local economy, compared z 60% w 1984. The financial sector, tourism (almost 5 million visitors w 1998), shipping services fees, and duties on consumer goods also generate revenue. The financial sector, the shipping sector, and tourism each contribute 25%-30% of Produkt krajowy brutto. Telecommunications accounts dla another 10%. 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 40% of Produkt krajowy brutto and z per capita Produkt krajowy brutto 70% of the leading euro-zone economies. Tourism provides 15% of Produkt krajowy brutto. Immigrants make up nearly one-fifth of the work force, mainly w menial jobs. Grecja is a major beneficiary of EU aid, equal to about 3.3% of annual Produkt krajowy brutto. The Greek economy grew by about 4.0% dla the past two years, largely because of an investment boom and infrastructure upgrades dla the 2004 Athens Olympic Games. Despite strong growth, Grecja has failed to meet the EU's Growth and Stability Pact budget deficit criteria of 3% of Produkt krajowy brutto since 2000; public debt, inflation, and unemployment are also above the eurozone average. Further restructuring of the economy include privatizing several state enterprises, undertaking pension and other reforms, and minimizing bureaucratic inefficiencies.
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 Grenada relies on tourism as its main source of foreign exchange, especially since the construction of an international airport w 1985. Strong performances w construction and manufacturing, together z the development of an offshore financial industry, have also contributed to growth w national output.
GwadelupaGwadelupa The Caribbean 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 had 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 Gwatemala is the largest and most populous of the Central American countries z a Produkt krajowy brutto per capita roughly one-half that of Brazylia, Argentyna, and Chile. 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. The 1996 signing of peace accords, which ended 36 years of civil war, removed a major obstacle to foreign investment, but widespread political violence and corruption scandals continue to dampen investor confidence. The distribution of income remains highly unequal, z perhaps 75% of the population below the poverty line. Ongoing challenges include increasing government revenues, negotiating further assistance from international donors, upgrading both government and private financial operations, curtailing drug trafficking, and narrowing the trade deficit.
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 environment under which Guernsey operates.
GwineaGwinea Gwinea possesses major mineral, hydropower, and agricultural resources, yet remains an 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. Fighting along the Sierra Leonean and Liberian borders, as well as refugee movements, have caused major economic disruptions, including a loss w investor confidence. Foreign mining companies have reduced expatriate staff, while panic buying has created food shortages and inflation w local markets. Gwinea is not receiving multilateral aid. The IMF and Swiat Bank cut off most assistance w 2003. Growth should strengthen w 2004, however, because of a slowly improving security situation and increased investor confidence.
Gwinea BissauGwinea Bissau One of the 10 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 1999-2002. 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. The inequality of income distribution is one of the most extreme w the world. The government and international donors continue to work out plans to forward economic development from a lamentably low base. Government drift and indecision, however, have resulted w low growth w 2002-03 and dim prospects dla 2004.
GujanaGujana The Guyanese economy exhibited moderate economic growth w 2001-02, based on expansion w the agricultural and mining sectors, a more favorable atmosphere dla business initiatives, a more realistic exchange rate, fairly low inflation, and the continued support of international organizations. Growth then slowed w 2003. Chronic problems include a shortage of skilled labor and a deficient infrastructure. The government is juggling a sizable external debt against the urgent need dla expanded public investment. The bauxite mining sector should benefit w the near term by restructuring and partial privatization.
HaitiHaiti In this poorest country w the Western Hemisphere, 80% of the population lives w abject poverty. Two-thirds of all Haitians depend on the agriculture sector, which consists mainly of small-scale subsistence farming. Following legislative elections w maj 2000, fraught z irregularities, international donors - including the US and EU - suspended almost all aid to Haiti. The economy shrank an estimated 1.2% w 2001 and an estimated 0.9% w 2002. Suspended aid and loan disbursements totaled more than $500 million at the start of 2003. Haiti also suffers from rampant inflation, a lack of investment, and a severe trade deficit. The resumption of aid flows from all donors will alleviate but not end the nation's bitter economic problems. Extensive civil strife w early 2004, marked by the flight of President ARISTIDE, further impoverished Haiti.
Wyspy Heard i McDonaldaWyspy Heard i McDonalda No indigenous economic activity, but the Australian Government allows limited fishing around the islands.
WatykanWatykan This unique, noncommercial economy is supported financially by an annual contribution from Roman Catholic dioceses throughout the world, as well as by special collections (known as Peter's Pence); the sale of postage stamps, coins, medals, and tourist mementos; fees dla admission to museums; and the sale of publications. Investments and real estate income also account dla a sizable portion of revenue. The incomes and living standards of lay workers are comparable to those of counterparts who work w the city of Rome.
HondurasHonduras Honduras, one of the poorest countries w the Western Hemisphere z an extraordinarily unequal distribution of income and massive unemployment, 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 the country has met most of its macroeconomic targets, it has failed to meet the IMF's goals to liberalize its energy and telecommunications sectors. Growth remains dependent on the status of the US economy, its major trading partner, on commodity prices, particularly coffee, and on reduction of the high crime rate.
Hong KongHong Kong Hong Kong has a free market economy highly dependent on international trade. Surowce naturalne are limited, and food and raw materials must be imported. Import 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. Hong Kong has been further integrating its economy z Chiny because Chiny's growing openness to the world economy has increased competitive pressure on Hong Kong's service industries, and Hong Kong's re-export business from Chiny is a major driver of growth. Per capita Produkt krajowy brutto compares z the level w the four big economies of Western Europe. Produkt krajowy brutto growth averaged a strong 5% w 1989-1997, but Hong Kong suffered two recessions w the past 6 years because of the Asian financial crisis w 1998 and the global downturn of 2001-2002. The Severe Acute Respiratory Syndrome (SARS) outbreak also battered Hong Kong's economy, but a boom w tourism from the mainland because of Chiny's easing of travel restrictions, a return of consumer confidence, and a solid rise w exports resulted w the resumption of strong growth w late 2003.
HowlandHowland no economic activity
WegryWegry Wegry has made the transition from a centrally planned to a market economy, z a per capita income one-half that of the Big Four European nations. Wegry continues to demonstrate strong economic growth and joined the Unia Europejska w maj 2004. The private sector accounts dla over 80% of Produkt krajowy brutto. Foreign ownership of and investment w Hungarian firms are widespread, z cumulative foreign direct investment totaling more than $23 billion since 1989. Hungarian sovereign debt was upgraded w 2000 to the second-highest rating among all the Central European transition economies. Inflation has declined substantially, from 14% w 1998 to 4.7% w 2003; unemployment has persisted around the 6% level. Niemcy is by far Wegry's largest economic partner. Short-term issues include the reduction of the public sector deficit and further increasing the flexibility of the labor markets.
IslandiaIslandia Islandia's Scandinavian-type economy is basically capitalistic, yet z an extensive welfare system (including generous housing subsidies), low unemployment, and remarkably even distribution of income. In the absence of other natural resources (except dla abundant 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 fluctuations w world prices dla its main exports: fish and fish products, aluminum, and ferrosilicon. Government policies include 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 had been remarkably steady w 1996-2001 at 3%-5%, but could not be sustained w 2002 w an environment of global recession. Growth resumed w 2003, and inflation dropped back from 5% to 2%.
IndieIndie Indie's economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. Government controls have been reduced on foreign trade and investment, and privatization of domestic output has proceeded slowly. The economy has posted an excellent average growth rate of 6% since 1990, reducing poverty by about 10 percentage points. Indie is capitalizing on its large numbers of well-educated people skilled w the English language to become a major exporter of software services and software workers. Despite strong growth, the Swiat Bank and others worry about the continuing public-sector budget deficit, running at approximately 60% of Produkt krajowy brutto.
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 economic development problems stemming from recent acts of terrorism, unequal resource distribution among regions, endemic corruption, the lack of reliable legal recourse w contract disputes, weaknesses w the banking system, and a generally poor climate dla foreign investment. Indonezja withdrew from its IMF program at the end of 2003, but issued a "White Paper" that commits the government to maintaining fundamentally sound macroeconomic policies previously established under IMF guidelines. Investors, however, continued to face a host of on-the-ground microeconomic problems and an inadequate judicial system. Keys to future growth remain internal reform, building up the confidence of international and domestic investors, and strong global economic growth.
IranIran Iran's economy is marked by a bloated, inefficient state sector, over reliance on the oil sector, and statist policies that create major distortions throughout. Most economic activity is controlled by the state. Private sector activity is typically small-scale - workshops, farming, and services. President KHATAMI has continued to follow the market reform plans of former President RAFSANJANI, z limited progress. Relatively high oil prices w recent years have enabled Iran to amass some $22 billion w foreign exchange reserves, but have not eased economic hardships such as high unemployment and inflation. In grudzien 2003 a major earthquake devastated the city of Bam w southeastern Iran, killing more than 30,000 people.
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 from that war of at least $100 billion. After hostilities ended 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 beginning w grudzien 1996 helped improve conditions dla the average Iraki citizen. 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. The drop w Produkt krajowy brutto w 2001-02 was largely the result of the global economic slowdown and lower oil prices. Per capita food imports increased significantly, while medical supplies and health care services steadily improved. Per capita output and living standards were still well below the pre-1991 level, but any estimates have a wide range of error. The military victory of the US-led coalition w marzec-kwiecien 2003 resulted w the shutdown of much of the central economic administrative structure, but z the loss of a comparatively small amount of capital plant. The rebuilding of oil, electricity, and other production is proceeding steadily at the start of 2004 z foreign support and despite the continuation of severe internal strife. A joint UN and Swiat Bank report released w the fall of 2003 estimated that Irak's key reconstruction needs through 2007 would cost $55 billion. In pazdziernik 2003, international donors pledged assistance worth more than $33 billion toward this rebuilding effort.
IrlandiaIrlandia Irlandia is a small, modern, trade-dependent economy z growth averaging a robust 8% w 1995-2002. The global slowdown, especially w the information technology sector, pressed growth down to 2.1% w 2003. Agriculture, once the most important sector, is now dwarfed by industry and services. Industry accounts dla 46% 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 growth, the economy has also benefited from a rise w consumer spending, construction, and business investment. Per capita Produkt krajowy brutto is 10% above that of the four big European economies and the second highest w the sEU, behind Luksemburg. Over the past decade, the Irish Government has implemented a series of national economic programs designed to curb price and wage 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.
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. 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 imports substantial quantities of grain but is largely self-sufficient w other agricultural products. Cut 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 bitter Izraeli-Palestinian conflict; difficulties w the high-technology, construction, and tourist sectors; and fiscal austerity w the face of growing inflation led to small declines w Produkt krajowy brutto w 2001 and 2002. The economy grew at 1% w 2003, z improvements w tourism and foreign direct investment. In 2004, rising business and consumer confidence - as well as higher demand dla Izraeli exports - boosted Produkt krajowy brutto by 2.7%.
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, welfare-dependent agricultural south, z 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Wlochy has pursued a tight fiscal policy w order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Wlochy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Wlochy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions.
JamajkaJamajka The Jamajkan economy is heavily dependent on services, which now account dla 70% of Produkt krajowy brutto. The country continues to derive most of its foreign exchange from tourism, remittances, and bauxite/alumina. The global economic slowdown, particularly after the terrorist attacks w the US on 11 wrzesien 2001, stunted economic growth; the economy rebounded moderately w 2003, z one of the best tourist seasons on record. But the economy faces serious long-term problems: high interest rates; increased foreign competition; a pressured, sometimes sliding, exchange rate; a sizable merchandise trade deficit; large-scale unemployment; and a growing internal debt, the result of government bailouts to ailing sectors of the economy. The ratio of debt to Produkt krajowy brutto is close to 150%. Inflation, previously a bright spot, is expected to remain w the double digits. Depressed economic conditions have led to increased civil unrest, including gang violence fueled by the drug trade. In 2004, the government faces the difficult prospect of having to achieve fiscal discipline w order to maintain debt payments while simultaneously attacking a serious and growing crime problem that is hampering economic growth.
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 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) 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 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, averaging just 1.7%, largely because of the after effects 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 z little success and were further hampered w 2000-2003 by the slowing of the US, European, and Asian economies. Japonia's huge government debt, which totals more than 150% of Produkt krajowy brutto, and the ageing 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." Internal conflict over the proper way to reform the ailing banking system continues.
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. Debt, poverty, and unemployment are fundamental problems, but King ABDALLAH, since assuming the throne w 1999, has undertaken some broad economic reforms w a long-term effort to improve living standards. 'Amman w the past three years has worked closely z the IMF, practiced careful monetary policy, and made substantial headway z privatization. The government also has liberalized the trade regime sufficiently to secure Jordania's membership w the WTrO (2000), a free trade accord z the US (2000), and an association agreement z the EU (2001). These measures have helped improve productivity and have put Jordania on the foreign investment map. The US-led war w Irak w 2003 dealt an economic blow to Jordania, which was dependent on Irak dla discounted oil (worth $300-$600 million a year). Several Gulf nations have provided temporary aid to compensate dla the loss of this oil; when this foreign aid expires, the Jordaniaian government has pledged to raise retail petroleum product prices and the sales tax base. Other ongoing challenges include fiscal adjustment to reduce the budget deficit, broader investment incentives to promote job-creating ventures, and the encouragement of tourism.
Juan de NovaJuan de Nova Up to 12,000 tons of guano are mined per year.
KazachstanKazachstan Kazachstan, the largest of the former Soviet republics w territory, excluding Rosja, 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 w 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. Kazachstan enjoyed double-digit growth w 2000-01 - and a solid 9.5% w 2002 - thanks largely to its booming energy sector, but also to economic reform, good harvests, and foreign investment. The opening of the Caspian Consortium pipeline w 2001, from western Kazachstan's Tengiz oilfield to the Black Sea, substantially raised export capacity. The country has embarked upon an industrial policy designed to diversify the economy away from overdependence on the oil sector, by developing light industry. Additionally, the policy aims to reduce the influence of foreign investment and foreign personnel; the government has engaged w several disputes z foreign oil companies over the terms of production agreements, and tensions continue.
KeniaKenia The regional hub dla trade and finance w East Africa, Kenia has been hampered by corruption, notably w the judicial system, and by reliance upon several primary goods whose prices have remained low. In 1997, the IMF suspended Kenia's Enhanced Structural Adjustment Program due to the government's failure to maintain reforms and curb corruption. A severe drought from 1999 to 2000 compounded Kenia's problems, causing water and energy rationing and reducing agricultural output. As a result, Produkt krajowy brutto contracted by 0.2% w 2000. The IMF, which had resumed loans w 2000 to help Kenia through the drought, again halted lending w 2001 when the government failed to institute several anticorruption measures. Despite the return of strong rains w 2001, weak commodity prices, endemic corruption, and low investment limited Kenia's economic growth to 1.2%. Growth lagged at 1.1% w 2002 because of erratic rains, low investor confidence, meager donor support, and political infighting up to the elections. In the key 27 grudzien 2002 elections, Daniel Arap MOI's 24-year-old reign ended, and a new opposition government took on the formidable economic problems facing the nation. In 2003, progress was made w rooting out corruption, and encouraging donor support, z Produkt krajowy brutto growth edging up to 1.7%.
KingmanKingman no economic activity
KiribatiKiribati A remote country of 33 scattered coral atolls, Kiribati has few natural 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 from UK, Japonia, Australia, Nowa Zelandia, and Chiny equals 25%-50% of Produkt krajowy brutto. Remittances from workers abroad account dla more than $5 million each year.
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. Industrial and power output have declined w parallel. The nation has suffered its tenth year of food shortages because of a lack of arable land, collective farming, weather-related problems, and chronic shortages of fertilizer and fuel. Massive international food aid deliveries have allowed the regime to escape mass starvation since 1995-96, but the population remains the victim of prolonged malnutrition and deteriorating living conditions. Large-scale military spending eats up resources needed dla investment and civilian consumption. In 2003, heightened political tensions z key donor countries and general donor fatigue threatened the flow of desperately needed food aid and fuel aid as well. Black market prices continued to rise following the increase w official prices and wages w the summer of 2002, leaving some vulnerable groups, such as the elderly and unemployed, less able to buy goods. The regime, however, relaxed restrictions on farmers' market activities w spring 2003, leading to an expansion of market activity.
Poludniowa KoreaPoludniowa Korea Since the early 1960s, South Korea has achieved an incredible record of growth and integration into the high-tech modern world economy. Four 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 18 times North Korea's and equal 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 longstanding weaknesses w South Korea's development model, including high debt/equity ratios, massive foreign borrowing, and an undisciplined financial sector. Growth plunged to a negative 6.6% w 1998, then strongly recovered to 10.8% w 1999 and 9.2% w 2000. Growth fell back to 3.3% w 2001 because of the slowing global economy, falling exports, and the perception that much-needed corporate and financial reforms had stalled. Led by consumer spending and exports, growth w 2002 was an impressive 6.2%, despite anemic global growth, followed by moderate 2.8% growth w 2003. In 2003 the National Assembly approved legislation reducing the six-day work week to five days.
KuwejtKuwejt Kuwejt is a small, rich, relatively open economy z proved crude oil reserves of about 98 billion barrels - 10% of world reserves. Petroleum accounts dla nearly half of Produkt krajowy brutto, 95% of export revenues, and 80% 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. Kuwejt continues its discussions z foreign oil companies to develop fields w the northern part of the country.
KirgistanKirgistan Kirgistan is a poor, mountainous country z a predominantly agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported w any quantity. Industrial exports include gold, mercury, uranium, and natural gas and electricity. Kirgistan has been fairly progressive w carrying out market reforms, such as an improved regulatory system and land reform. Kirgistan was the first CIS country to be accepted into the Swiat Trade Organization. With fits and starts, inflation has been lowered to an estimated 7% w 2001, 2.1% w 2002, and 4.0% w 2003. Much of the government's stock w enterprises has been sold. Drops w production had been severe after the breakup of the Soviet Union w grudzien 1991, but by mid-1995 production began to recover and exports began to increase. Kirgistan has distinguished itself by adopting relatively liberal economic policies. The drop w output at the Kumtor gold mine sparked a 0.5% decline w Produkt krajowy brutto w 2002, but Produkt krajowy brutto growth bounced back to 6% w 2003. The government has made steady strides w controlling its substantial fiscal deficit and aims to reduce the deficit to 4.4 percent of Produkt krajowy brutto w 2004. The government and the international financial institutions have been engaged w a comprehensive medium-term poverty reduction and economic growth strategy. Further restructuring of domestic industry and success w attracting foreign investment are keys to future growth.
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% w 1988-2001 except during the short-lived drop caused by the Asian financial crisis beginning w 1997. Despite this high growth rate, Laos remains a country z a primitive infrastructure; it 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. The economy will continue to benefit from aid from the IMF and other international sources and from new foreign investment w food processing and mining.
LotwaLotwa 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. The majority of companies, banks, and real estate have been privatized, although the state still holds sizable stakes w a few large enterprises. Lotwa officially joined the Swiat Trade Organization w luty 1999. Preparing dla EU membership continues as a top foreign policy goal. The current account and internal government deficits remain major concerns, but the government's efforts to increase efficiency w revenue collection may lessen the budget deficit.
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 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% w 1996 and w 1997, but slowed to 1.2% w 1998, -1.6% w 1999, -0.6% w 2000, 0.8% w 2001, 1.5% w 2002, and 3% w 2003. During the 1990s, annual inflation fell to almost 0% from more than 100%. Liban has rebuilt much of its war-torn physical and financial infrastructure. The government nonetheless faces serious challenges w the economic arena. It has funded reconstruction by borrowing heavily - mostly from domestic banks. In order to reduce the ballooning national debt, the re-installed HARIRI government began an economic austerity program to rein w government expenditures, increase revenue collection, and privatize state enterprises. The HARIRI government met z international donors at the Paris II conference w listopad 2002 to seek bilateral assistance restructuring its domestic debt at lower rates of interest. While privatization of state-owned enterprises had not occurred by the end of 2003, massive receipts from donor nations stabilized government finances w 2002-04.
LesothoLesotho Small, landlocked, and mountainous, Lesotho relies on remittances from miners employed w Republika Poludniowej Afryki and customs duties from the Southern Africa Customs Union dla the majority of government revenue, but the government has strengthened its tax system to reduce dependency on customs duties. Completion of a major hydropower facility w styczen 1998 now permits the sale of water to Republika Poludniowej Afryki, also generating royalties dla Lesotho. As the number of mineworkers has declined steadily over the past several years, a small manufacturing base has developed based on farm products that support the milling, canning, leather, and jute industries and a rapidly growing apparel-assembly sector. The economy is still primarily based on subsistence agriculture, especially livestock, although drought has decreased agricultural activity. The extreme inequality w the distribution of income remains a major drawback. Lesotho has signed an Interim Poverty Reduction and Growth Facility z the IMF.
LiberiaLiberia Civil war and misgovernment have destroyed much of Liberia's economy, especially the infrastructure w and around Monrovia. Many businessmen have fled the country, taking capital and expertise z them. Some have returned, many will not. Richly endowed z water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products - primarily raw timber and rubber. Local manufacturing, mainly foreign owned, had been small w scope. The departure of the former president, Charles TAYLOR, to Nigeria w sierpien 2003, the establishment of the all-inclusive National Transition Government of Liberia (NTGL), and the arrival of a UN mission are all encouraging signs that the political crisis is coming to an end. The restoration of infrastructure and the raising of incomes w this ravaged economy depend on the implementation of sound macro- and micro-economic policies, including the encouragement of foreign investment, and generous support from donor countries.
LibiaLibia The Libian economy depends primarily upon revenues from the oil sector, which contribute 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. Libian officials w the past three years have made progress on economic reforms as part of a broader campaign to reintegrate the country into the international fold. This effort picked up steam after UN sanctions were lifted w wrzesien 2003 and as Libia announced w grudzien 2003 that it would abandon programs to build weapons of mass destruction. Libia faces a long road ahead w liberalizing the socialist-oriented economy, but initial steps - including applying dla WTO membership, reducing some subsidies, and announcing plans dla privatization - are laying the groundwork dla a transition to a more market-based economy. The non-oil 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.
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 its large European neighbors. The Liechtenstein economy is widely diversified z a large number of small businesses. Low business taxes - the maximum tax rate is 20% - and easy incorporation rules have induced many 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 the European Free Trade Association (EFTA) and the 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 slowly rebounded from the 1998 Rosjan financial crisis. Unemployment remains high, still 10.7% w 2003, but is improving. Growing domestic consumption and increased investment have furthered recovery. Trade has been increasingly oriented toward the West. Litwa has gained membership w the Swiat Trade Organization and has moved ahead z plans to join the EU. Privatization of the large, state-owned utilities, particularly w the energy sector, is nearing completion. Overall, more than 80% of enterprises have been privatized. Foreign government and business support have helped w the transition from the old command economy to a market economy.
LuksemburgLuksemburg This 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, which now accounts dla about 22% of Produkt krajowy brutto, has more than compensated dla the decline w steel. Most banks are foreign-owned and have extensive foreign dealings. Agriculture is based on small family-owned farms. The economy depends on foreign and trans-border workers dla more than 30% of its labor force. Although Luksemburg, like all EU members, has suffered from the global economic slump, the country has maintained a fairly strong growth rate and enjoys an extraordinarily high standard of living.
MakauMakau Makau's well-to-do economy has remained one of the most open w the world since its reversion to Chiny w 1999. The territory's net exports of goods and services account dla roughly 41% of Produkt krajowy brutto z tourism and apparel exports as the mainstays. Although the territory was hit hard by the 1998 Asian financial crisis and the global downturn w 2001, its economy grew 9.5% w 2002. A rapid rise w the number of mainland visitors because of Chiny's easing of restrictions on travel drove the recovery. The budget also returned to surplus w 2002 because of the surge w visitors from Chiny and a hike w taxes on gambling profits, which generated about 70% of government revenue. The liberalization of Macao's gambling monopoly contributes to Produkt krajowy brutto growth, as the three companies awarded gambling licenses have pledged to invest $2.2 billion w the territory. Much of Makau's textile industry may move to the mainland as the Multi-Fiber Agreement is phased out. The territory may have to rely more on gambling and trade-related services to generate growth. The government estimated Produkt krajowy brutto growth at 4% w 2003 z the drop w large measure due to concerns over the Severe Acute Respiratory Syndrome (SARS), but private sector analysts think the figure may have been higher because of the continuing boom w tourism.
MacedoniaMacedonia At independence w wrzesien 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 Jugoslawia, one of its largest markets, and a Greek economic embargo over a dispute about the country's constitutional name and flag hindered economic growth until 1996. Produkt krajowy brutto subsequently rose each year through 2000. However, the leadership's commitment to economic reform, free trade, and regional integration was undermined by the ethnic Albanian insurgency of 2001. The economy shrank 4.5% because of decreased trade, intermittent border closures, increased deficit spending on security needs, and investor uncertainty. Growth barely recovered w 2002 to 0.9%, then rose to 2.8% w 2003. Unemployment at one-third of the workforce remains the most critical economic problem. The gray economy is estimated at around 40% of Produkt krajowy brutto. Politically, the country is more stable than w 2002.
MadagaskarMadagaskar Having discarded past socialist economic policies, Madagaskar has since the mid 1990s followed a Swiat Bank and IMF led policy of privatization and liberalization. This strategy has placed the country on a slow and steady growth path from an extremely low level. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting dla more than one-fourth of Produkt krajowy brutto and employing four-fifths of the population. Eksport of apparel have boomed w recent years primarily due to duty-free access to the Stany Zjednoczone. Deforestation and erosion, aggravated by the use of firewood as the primary source of fuel are serious concerns. President RAVALOMANANA has worked aggressively to revive the economy following the 2002 political crisis, which triggered a 12% drop w Produkt krajowy brutto that year. Poverty reduction and combating corruption will be the centerpieces of economic policy dla the next few years.
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 accounted dla nearly 40% of Produkt krajowy brutto and 88% of export revenues w 2001. 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. In listopad 2002 the Swiat Bank approved a $50 million drought recovery package, which is to be used dla famine relief. The government faces strong challenges, e.g., to fully develop a market economy, to improve educational facilities, to face up to environmental problems, to deal z the rapidly growing problem of HIV/AIDS, and to satisfy foreign donors that fiscal discipline is being tightened. The performance of the tobacco sector is key to short-term growth as tobacco accounts dla over 50% of exports.
MalezjaMalezja Malezja, a middle-income country, transformed itself from 1971 through the late 1990s from a producer of raw materials into an emerging multi-sector economy. Growth was almost exclusively driven by exports - particularly of electronics. As a result Malezja was hard hit by the global economic downturn and the slump w the information technology (IT) sector w 2001 and 2002. Produkt krajowy brutto w 2001 grew only 0.5% due to an estimated 11% contraction w exports, but a substantial fiscal stimulus package equal to US $1.9 billion mitigated the worst of the recession and the economy rebounded w 2002 z a 4.1% increase. The economy grew 4.9% w 2003, notwithstanding a difficult first half, when external pressures from SARS and the Irak War led to caution w the business community. Healthy foreign exchange reserves and a relatively small external debt make it unlikely that Malezja will experience a crisis similar to the one w 1997, but the economy remains vulnerable to a more protracted slowdown w Japonia and the US, top export destinations and key sources of foreign investment. The Malezjan ringgit is pegged to the dollar, and the Japoniaese central bank continues to intervene and prop up the yen against the dollar.
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. 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 lesser 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 and z a highly unequal distribution of income. 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, along z gold. The government has 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 1996-2002. Worker remittances and external trade routes have been jeopardized by continued unrest w neighboring Cote d'Ivoire.
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 fresh water 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. The island remains divided politically, however, over the question of joining the EU. Continued sluggishness w the global economy is holding back exports, tourism, and overall growth.
Wyspy MarshallaWyspy Marshalla US Government assistance is the mainstay of this tiny island economy. Agricultural production is primarily subsistence and is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Small-scale industry is limited to handicrafts, tuna 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 has provided more than $1 billion w aid since 1986. Negotiations have continued dla an extended agreement. Government downsizing, drought, a drop w construction, the decline w tourism and foreign investment due to the Asian financial difficulties, and less income from the renewal of fishing vessel licenses have held Produkt krajowy brutto growth to an average of 1% over the past decade.
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, which employs more than 11,000 people, has become more important than agricultural exports as a source of foreign exchange.
MauretaniaMauretania Half the population still depends on agriculture and livestock dla a livelihood, even though many of the nomads and 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 nearly 40% 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 resulted w a buildup of foreign debt. In luty 2000, Mauretania qualified dla debt relief under the Heavily Indebted Poor Countries (HIPC) initiative and w grudzien 2001 received strong support from donor and lending countries at a triennial Consultative Group review. In 2001, exploratory oil wells w tracts 80 km offshore indicated potential extraction at current world oil prices. A new investment code approved w grudzien 2001 improved the opportunities dla direct foreign investment. Ongoing negotiations z the IMF involve problems of economic reforms and fiscal discipline. Substantial oil production and exports probably will not begin until 2005. Meantime the government emphasizes reduction of poverty, improvement of health and education, and promoting privatization of the economy.
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 more equitable income distribution, 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 expanding local financial institutions and building a domestic information telecommunications industry. 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. Mauritius, z its strong textile sector and responsible fiscal management, has been well poised to take advantage of the Africa Growth and Opportunity Act (AGOA).
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. Recent administrations have expanded competition w seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-fourth that of the US; income distribution remains highly unequal. Trade z the US and Kanada has tripled since the implementation of NAFTA w 1994. Real Produkt krajowy brutto growth was a weak -0.3% w 2001, 0.9% w 2002, and 1.2% w 2003, z the US slowdown the principal cause. Meksyk implemented free trade agreements z Gwatemala, Honduras, Salwador, and the European Free Trade Terytorium w 2001, putting more than 90% of trade under free trade agreements. The government is cognizant of the need to upgrade infrastructure, modernize the tax system and labor laws, and provide incentives to invest w the energy sector, but progress is slow.
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 remote location, a lack of adequate facilities, and limited air connections hinder development. In listopad 2002, the country experienced a further reduction w future revenues from the Compact of Free Association - the agreement z the US w which Micronesia received $1.3 billion w financial and technical assistance over a 15-year period until 2001. The country's medium-term economic outlook appears fragile due not only to the reduction w US assistance but also to the slow growth of the private sector. 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 remains the poorest country w Europe despite recent progress from its small economic base. It 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 almost all of its energy supplies 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 prices, stopped issuing preferential credits to state enterprises, backed steady land privatization, removed export controls, and freed interest rates. The government entered into agreements z the Swiat Bank and the IMF to promote growth and reduce poverty. The economy returned to positive growth, of 2.1% w 2000, 6.1% w 2001, 7.2% w 2002, and 6.3% w 2003. Further reforms will come slowly because of strong political forces backing government controls. The economy remains vulnerable to higher fuel prices, poor agricultural weather, and the skepticism of foreign investors.
MonakoMonako Monako, bordering Francja on the Mediterranean coast, is a popular resort, attracting tourists to its casino and pleasant climate. In 2001, a major construction project extended the pier used by cruise ships w the main harbor. 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, prolonged by the Mongolian People's Revolutionary Party's (MPRP) reluctance to undertake serious economic reform. The Democratic Union Coalition (DUC) government embraced free-market economics, eased price controls, liberalized domestic and international trade, and attempted 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 DUC. 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 Consultative Group Meeting, held w Ulaanbaatar w czerwiec 1999. The MPRP government, elected w lipiec 2000, was anxious to improve the investment climate; it also had to deal z a heavy burden of external debt. Falling prices dla Mongolia's mainly primary sector exports, widespread opposition to privatization, and adverse effects of weather on agriculture w early 2000 and 2001 restrained real Produkt krajowy brutto growth. Despite drought problems w 2002, Produkt krajowy brutto rose 4.0%, followed by a solid 5.0% increase w 2003. The first applications under the land privatization law have been marked by a number of disputes over particular sites. Rosja claims Mongolia owes it $11 billion from the Soviet period; any settlement could substantially increase Mongolia's foreign debt burden.
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 has launched a three-year $122.8 million aid program to help reconstruct the economy. Half of the island is expected to remain uninhabitable dla another decade.
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. Despite structural adjustment programs supported by the IMF, the Swiat Bank, and the Paris Club, the dirham is only fully convertible dla current account transactions. Reforms of the financial sector are being contemplated. Droughts depressed activity w the key agricultural sector and contributed to a stagnant economy w 2002. Maroko reported large foreign exchange inflows from the sale of a mobile telephone license, and partial privatization of the state-owned telecommunications company and the state tobacco company. Favorable rainfall w 2003 led to a growth of 6%. Formidable long-term challenges include: preparing the economy dla freer trade z the EU and US, improving education, and attracting foreign investment to boost living standards and job prospects dla Maroko's youth.
MozambikMozambik At independence w 1975, Mozambik was one of the world's poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation. In 1987, the government embarked on a series of macroeconomic reforms designed to stabilize the economy. These steps, combined z donor assistance and z political stability since the multi-party elections w 1994, have led to dramatic improvements w the country's growth rate. Inflation was reduced to single digits during the late 1990s although it returned to double digits w 2000-03. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities. In spite of these gains, Mozambik remains dependent upon foreign assistance dla much of its annual budget, and the majority of the population remains below the poverty line. Subsistence agriculture continues to employ the vast majority of the country's workforce. A substantial trade imbalance persists although the opening of the MOZAL aluminum smelter, the country's largest foreign investment project to date has increased export earnings. Additional investment projects w titanium extraction and processing and garment manufacturing should further close the import/export gap. Mozambik's once substantial foreign debt has been reduced through forgiveness and rescheduling under the IMF's Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC initiatives, and is now at a manageable level.
NamibiaNamibia The economy is heavily dependent on the extraction and processing of minerals dla export. Mining accounts dla 20% of Produkt krajowy brutto. Rich alluvial diamond deposits make Namibia a primary source dla gem-quality diamonds. Namibia is the fourth-largest exporter of nonfuel minerals w Africa, the world's fifth-largest producer of uranium, and the producer of large quantities of lead, zinc, tin, silver, and tungsten. The mining sector employs only about 3% of the population while about half of the population depends on subsistence agriculture dla its livelihood. Namibia normally imports about 50% of its cereal requirements; w drought years food shortages are a major problem w rural areas. A high per capita Produkt krajowy brutto, relative to the region, hides the great inequality of income distribution; nearly one-third of Namibians had annual incomes of less than $1,400 w constant 1994 dollars, according to a 1993 study. The Namibian economy is closely linked to Republika Poludniowej Afryki z the Namibian dollar pegged to the Republika Poludniowej Afrykin rand. Privatization of several enterprises w coming years may stimulate long-run foreign investment. Mining of zinc, copper, and silver and increased fish production led growth w 2003.
NauruNauru Revenues of this tiny island have traditionally come from exports of phosphates, but reserves are now depleted. Few other resources exist z most necessities being imported, mainly from Australia, its former occupier and later major source of support. 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. As a result of heavy spending from the trust funds, the government faces virtual bankruptcy. To cut costs the government has called dla a freeze on 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. In 2004 the deterioration w housing, hospitals, and other capital plant continued, and the cost to Australia of keeping the government and economy afloat has substantially mounted. Few comprehensive statistics on the Nauru economy exist, z estimates of Nauru's Produkt krajowy brutto varying widely.
NavassaNavassa Subsistence fishing and commercial trawling activities within refuge waters.
NepalNepal Nepal is among the poorest and least developed countries w the world z 42% 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 40% of Produkt krajowy brutto. Industrial activity mainly involves the processing of agricultural produce including jute, sugarcane, tobacco, and grain. Security concerns w the wake of the Maoist conflict and the 11 wrzesien 2001 terrorist attacks w the US have led to a decrease w tourism, a key source of foreign exchange. Nepal has considerable scope dla 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, its civil strife, 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 has a prosperous and open economy, which depends heavily on foreign trade. The economy is noted dla stable industrial relations, moderate unemployment and 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 Holandia, along z 11 of its EU partners, began circulating the euro currency on 1 styczen 2002. The country continues to be one of the leading European nations dla attracting foreign direct investment. Economic growth slowed considerably w 2001-03, as part of the global economic slowdown, but dla the four years before that, annual growth averaged nearly 4%, well above the EU average. The government is wrestling z a deteriorating budget position, and is moving toward the EU 3% of Produkt krajowy brutto budget deficit limit.
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 or grown slightly w each of the past seven years, the islands enjoy a high per capita income and a well-developed infrastructure compared z other countries w the region. Almost all consumer and capital goods are imported, the US and Meksyk being the major suppliers. Poor soils and inadequate water supplies hamper the development of agriculture. Budzetary problems hamper reform of the health and pension systems of an aging population.
Nowa KaledoniaNowa Kaledonia Nowa Kaledonia has about 25% of the world's known nickel resources. Only a small amount of the land is suitable dla cultivation, and food accounts dla about 20% of imports. In addition to nickel, substantial financial support from Francja - equal to more than one-fourth of Produkt krajowy brutto - and tourism are keys to the health of the economy. Substantial new investment w the nickel industry, combined z the recovery of global nickel prices, brightens the economic outlook dla the next several years.
Nowa ZelandiaNowa Zelandia Over the past 20 years the government has transformed Nowa Zelandia from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes (but left behind many at the bottom of the ladder), broadened and deepened the technological capabilities of the industrial sector, and contained inflationary pressures. Per capita income has been rising and is now 80% of the level of the four largest EU economies. Nowa Zelandia is heavily dependent on trade - particularly w agricultural products - to drive growth, and it has been affected by the global economic slowdown and the slump w commodity prices. Thus far the economy has been resilient, and growth should continue at the same level w 2004. Expenditures on health, education, and pensions will increase proportionately.
NikaraguaNikaragua Nikaragua, one of the hemisphere's poorest countries, faces low per capita income, massive unemployment, and huge external debt. Distribution of income is one of the most unequal on the globe. While the country has made progress toward macroeconomic stability over the past few years, Produkt krajowy brutto annual growth of 1.5% - 2.5% has been far too low to meet the country's need. Nikaragua will continue to be dependent on international aid and debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Nikaragua has undertaken significant economic reforms that are expected to help the country qualify dla more than $4 billion w debt relief under HIPC w early 2004. Donors have made aid conditional on the openness of government financial operation, poverty alleviation, and human rights. A three-year poverty reduction and growth plan, agreed to z the IMF w grudzien 2002, guides economic policy.
NigerNiger Niger is a poor, landlocked Sub-Saharan nation, whose economy centers on subsistence agriculture, animal husbandry, and 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 2000-01, the Swiat Bank approved a structural adjustment loan of $105 million to help support fiscal reforms. However, reforms could prove difficult given the government's bleak financial situation. The IMF approved a $73 million poverty reduction and growth facility dla Niger w 2000 and announced $115 million w debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. Further disbursements of aid occurred w 2002. Future growth may be sustained by exploitation of oil, gold, coal, and other mineral resources.
NigeriaNigeria Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, is undertaking some reforms 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 - Nigeria is Africa's most populous country - and the country, 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 credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program w kwiecien 2002, after failing to meet spending and exchange rate targets, making it ineligible dla additional debt forgiveness from the Paris Club. The government has lacked the political will to implement the market-oriented reforms urged by the IMF, such as to modernize the banking system, to curb inflation by blocking excessive wage demands, and to resolve regional disputes over the distribution of earnings from the oil industry. During 2003, however, the government deregulated fuel prices and announced the privatization of the country's four oil refineries. Produkt krajowy brutto growth probably will rise marginally w 2004, led by oil and natural gas exports.
NiueNiue The economy suffers from the typical Pacific island problems of geographic isolation, few resources, and a small population. 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, although Premier LAKATANI announced w luty 2002 that Niue will shut down the offshore banking industry. Economic aid from Nowa Zelandia w 2002 was about $2.6 million.
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 17,500 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, z oil and gas accounting dla one-third of exports. Only Arabia Saudyjska and Rosja export more oil than Norwegia. Norwegia opted to stay out of the EU during a referendum w listopad 1994. The government has moved ahead z privatization. With arguably the highest quality of life worldwide, Norwegians still 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. Produkt krajowy brutto growth was a lackluster 1% w 2002 and 0.5% w 2003 against the background of a faltering European economy.
OmanOman Oman is a small, well-off middle Eastern economy z large oil and gas resources, a substantial trade surplus, and low inflation. 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 (WTO) w listopad 2000. In order to reduce unemployment and limit dependence on foreign countries, the government is encouraging the replacement of expatriate workers z local people, i.e., the process of Omanization. Training w information technology, business management, and English support this objective. Industrial development plans focus on gas resources.
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 the US, Australia, NZ, Chiny, and Peru. The high cost of recovering offshore oil and gas, combined z the wide swings w world prices dla oil since 1985, has led to fluctuations w new drillings.
PakistanPakistan Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation z neighboring Indie. However, IMF-approved government policies, bolstered by generous foreign assistance and renewed access to global markets since late 2001, have generated solid macroeconomic recovery the last two years. The government has made substantial inroads w macroeconomic reform since 2000, although progress on more politically sensitive reforms has slowed. For example, w the third and final year of its $1.3 billion IMF Poverty Reduction and Growth Facility, Islamabad has continued to require waivers dla energy sector reforms. While long-term prospects remain uncertain, given Pakistan's low level of development, medium-term prospects dla job creation and poverty reduction are the best w nearly a decade. Islamabad has raised development spending from about 2% of Produkt krajowy brutto w the 1990s to 4% w 2003, a necessary step towards reversing the broad underdevelopment of its social sector. Produkt krajowy brutto growth is heavily dependent on rain-fed crops, and last year's end to a four-year drought should support moderate agricultural growth dla the next few years. Foreign exchange reserves continued to reach new levels w 2003, supported by robust export growth and steady worker remittances.
PalauPalau The economy consists primarily of tourism, subsistence agriculture and fishing. The government is the major employer of the work force, relying heavily on financial assistance from the US. Business and tourist arrivals numbered 50,000 w FY00/01. The population enjoys a per capita income twice that of the Filipiny and much of Micronesia. Long-run prospects dla the key tourist sector have been greatly bolstered by the expansion of air travel w the Pacific, the rising prosperity of leading East Asian countries, and the willingness of foreigners to finance infrastructure development.
PalmyraPalmyra no economic activity
PanamaPanama Panama's dollarised economy rests primarily on a well-developed services sector that accounts dla three-fourths of Produkt krajowy brutto. Services include operating the Panama Canal, banking, the Colon Free Zone, insurance, container ports, flagship registry, and tourism. A slump w Colon Free Zone and agricultural exports, the global slowdown, and the withdrawal of US military forces held back economic growth w 2000-03. The government has been backing public works programs, tax reforms, new regional trade agreements, and development of tourism w order to stimulate growth. Unemployment remains at an unacceptably high level.
Papua-Nowa GwineaPapua-Nowa Gwinea Papua-Nowa Gwinea is richly endowed z natural resources, but exploitation has been hampered by 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 economy has faltered over the past four years. Former Prime Minister Mekere MORAUTA had tried to restore integrity to state institutions, to stabilize the kina, 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 backing of the IMF and the Swiat Bank w securing development assistance loans. Challenges face Prime Minister Michael SOMARE, including curbing inflation, gaining further investor confidence, continuing efforts to privatize government assets, maintaining the support of members of Parliament, and balancing relations z Australia, the former colonial ruler.
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, 1999, and 2000, rose slightly w 2001, only to fall again w 2002. 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.
PeruPeru Peru's economy reflects its varied geography - an arid coastal region, the Andes further inland, and tropical lands bordering Kolumbia and Brazylia. Abundant mineral resources are found w the mountainous areas, and Peru's coastal waters provide excellent fishing grounds. However, overdependence on minerals and metals subjects the economy to fluctuations w world prices, and a lack of infrastructure deters trade and investment. After several years of inconsistent economic performance, the Peruvian economy was one of the fastest growing w Latin America w 2002 and 2003, growing by 5% and 4%, respectively, z the exchange rate stable and an annual inflation lower than 2%. Foreign direct investment also was strong, thanks to the ongoing Camisea natural gas pipeline project (scheduled to begin operations w 2004) and investments w gold mining. Risk premiums on Peruvian bonds on secondary markets reached historically low levels w late 2003, reflecting investor optimism and the government's fiscal restraint. Despite the strong macroeconomic performance, political intrigue and allegations of corruption continued to swirl w 2003, z the TOLEDO administration growing increasingly unpopular, and local and foreign concern rising that the political turmoil could place the country's hard-won fiscal and financial stability at risk. Moreover, as of late 2003, unemployment had yet to respond to the strong growth w economic activity, owing w part to rigid labor market regulations that act as an impediment to hiring.
FilipinyFilipiny The Filipiny was less severely affected by the Asian financial crisis of 1998 than its neighbors, aided w part by annual remittances of $6-7 billion from overseas workers. From a 0.6% decline w 1998, Produkt krajowy brutto expanded by 2.4% w 1999, and 4.4% w 2000, but slowed to 3.2% w 2001 w the context of a global economic slowdown, an export slump, and political and security concerns. Produkt krajowy brutto growth accelerated to 4.4% w 2002 and 4.2% w 2003, reflecting the continued resilience of the service sector, gains w industrial output, and improved exports. Nonetheless, it will take a higher, sustained growth path to make appreciable progress w poverty alleviation given the Filipiny' high annual population growth rate and unequal distribution of income. The MACAPAGAL-ARROYO Administration has promised to continue economic reforms to help the Filipiny match the pace of development w the newly industrialized countries of East Asia. The strategy includes improving the infrastructure, strengthening tax collection to bolster government revenues, furthering deregulation and privatization of the economy, enhancing the viability of the financial system, and increasing trade integration z the region. Prospects dla 2004 will depend on the economic performance of two major trading partners, the US and Japonia, and on increased confidence on the part of the international investment community.
PitcairnPitcairn The inhabitants of this tiny isolated 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 economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Polska's 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), while recently initiated, have stalled. 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 reduction of state employment, and an overhaul of the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The government's determination to enter the EU has shaped most aspects of its economic policy and new legislation; w a nationwide referendum w listopad 2003, 77% of the voters voted w favor of Polska's EU accession, now scheduled dla maj 2004. Improving Polska's export competitiveness and containing the internal budget deficit are top priorities. Due to political uncertainty, the zloty has recently depreciated w relation to the euro, while currencies of the other euro-zone aspirants have been appreciating. Produkt krajowy brutto per capita equals that of the three Baltic states.
PortugaliaPortugalia Portugalia has become a diversified and increasingly service-based economy since joining the European Community w 1986. Over the past decade, successive governments have privatized many state-controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. The country qualified dla the Economic and Monetary Union (EMU) w 1998 and began circulating the euro on 1 styczen 2002 along z 11 other EU member economies. Economic growth has been above the EU average dla much of the past decade, but fell back w 2001-03. Produkt krajowy brutto per capita stands at 70% of that of the leading EU economies. A poor educational system, w particular, has been an obstacle to greater productivity and growth. Portugalia has been increasingly overshadowed by lower-cost producers w Central Europe and Asia as a target dla foreign direct investment. The coalition government faces tough choices w its attempts to boost Portugalia's economic competitiveness and to keep the budget deficit within the 3% EU ceiling.
PortorykoPortoryko Portoryko has one of the most dynamic economies w the Caribbean region. A diverse industrial sector has far 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. Growth fell off w 2001-03, largely due to the slowdown w the US economy.
KatarKatar Oil and gas account dla more than 55% of Produkt krajowy brutto, roughly 85% of export earnings, and 70% of government revenues. Oil and gas have given Katar a per capita Produkt krajowy brutto about 80% of that of the leading West European industrial countries. Proved oil reserves of 14.5 billion barrels should ensure continued output at current levels dla 23 years. Katar's proved reserves of natural gas exceed 17.9 trillion cubic meters, more than 5% of the world total and third largest w the world. Long-term goals feature the development of offshore natural gas reserves to offset the ultimate decline w oil production. Since 2000, Katar has consistently posted trade surpluses largely because of high oil prices and increased natural gas exports.
ReunionReunion The economy has traditionally been based on agriculture, but services now dominate. 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 one-third 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 began the transition from Communism w 1989 z a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged w 2000 from a punishing three-year recession thanks to strong demand w EU export markets. Despite the global slowdown w 2001-02, strong domestic activity w construction, agriculture, and consumption have kept growth above 4%. An IMF standby agreement, signed w 2001, was accompanied by slow but palpable gains w privatization, deficit reduction, and the curbing of inflation. The IMF Board approved Rumunia's completion of the standby agreement w pazdziernik 2003, the first time Rumunia had successfully concluded an IMF agreement since the 1989 revolution. In lipiec 2004, the Executive Board of the IMF approved a 24-month standby arrangement dla $367 million. The Rumunian authorities do not intend to draw on this arrangement, viewing it as a precaution. Meanwhile, recent macroeconomic gains have done little to address Rumunia's widespread poverty, and corruption and red tape handicap the business environment.
RosjaRosja Rosja ended 2003 z its fifth straight year of growth, averaging 6.5% annually since the financial crisis of 1998. Although high oil prices and a relatively cheap ruble are important drivers of this economic rebound, since 2000 investment and consumer-driven demand have played a noticeably increasing role. Real fixed capital investments have averaged gains greater than 10% over the last four years and real personal incomes have averaged increases over 12%. Rosja has also improved its international financial position since the 1998 financial crisis, z its foreign debt declining from 90% of Produkt krajowy brutto to around 28%. Strong oil export earnings have allowed Rosja to increase its foreign reserves from only $12 billion to some $80 billion. These achievements, along z a renewed government effort to advance structural reforms, have raised business and investor confidence w Rosja's economic prospects. Nevertheless, serious problems persist. Oil, natural gas, metals, and timber account dla more than 80% of exports, leaving the country vulnerable to swings w world prices. Rosja's manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad-based economic growth. Other problems include a weak banking system, a poor business climate that discourages both domestic and foreign investors, corruption, local and regional government intervention w the courts, and widespread lack of trust w institutions. In addition, a string of investigations launched against a major Rosjan oil company, culminating z the arrest of its CEO w the fall of 2003, have raised concerns by some observers that President PUTIN is granting more influence to forces within his government that desire to reassert state control over the economy.
RuandaRuanda Ruanda is a poor rural country z about 90% of the population engaged w (mainly subsistence) agriculture. It is the most densely populated country w Africa; landlocked z few natural resources and minimal industry. Primary foreign exchange earners 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 substantial progress w stabilizing and rehabilitating its economy to pre-1994 levels, although poverty levels are higher now. Produkt krajowy brutto has rebounded, and inflation has been curbed. Export earnings, however, have been hindered by low beverage prices, depriving the country of much needed hard currency. Attempts to diversify into non-traditional agriculture exports such as flowers and vegetables have been stymied by a lack of adequate transportation infrastructure. Despite Ruanda's fertile ecosystem, food production often does not keep pace z population growth, requiring food to be imported. Ruanda continues to receive substantial aid money and was approved dla IMF-Swiat Bank Heavily Indebted Poor Country (HIPC) initiative debt relief w late 2000. But Kigali's high defense expenditures cause tension between the government and international donors and lending agencies.
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 Sugar was the traditional mainstay of the Saint Kitts economy until the 1970s. Although the crop still dominates the agricultural sector, activities such as tourism, export-oriented manufacturing, and offshore banking have assumed larger roles w the economy. As tourism revenues are now the chief source of the islands' foreign exchange, a decline w stopover tourist arrivals following the 11 wrzesien 2001 terrorist attacks has eroded government finances. The opening of a 1,000+ bed Marriott hotel w luty 2003 was expected to bring w much-needed revenue.
Saint LuciaSaint Lucia Changes w the EU import preference regime and the increased competition from Latin American bananas have made economic diversification increasingly important w Saint Lucia. The island nation has been able to attract foreign business and investment, especially w its offshore banking and tourism industries. The manufacturing sector is the most diverse w the Eastern Caribbean area, and the government is trying to revitalize the banana industry. Economic fundamentals remain solid.
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. Recent test drilling dla oil may pave the way dla development of the energy sector.
Saint Vincent i GrenadynySaint Vincent i Grenadyny Economic growth w this lower-middle-income country hinges upon seasonal variations w the agricultural and tourism sectors. Tropical storms wiped out substantial portions of crops w 1994, 1995, and 2002, and tourism w the Eastern Caribbean has suffered low arrivals following 11 wrzesien 2001. Saint Vincent is home to a small offshore banking sector and has moved to adopt international regulatory standards. Saint Vincent is also a large producer of marijuana and is being used as a transshipment point dla illegal narcotics from South America.
SamoaSamoa The economy of Samoa has traditionally been dependent on development aid, family remittances from overseas, and agriculture and fishing. 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. The decline of fish stocks w the area is a continuing problem. Tourism is an expanding sector, accounting dla 25% of Produkt krajowy brutto; about 88,000 tourists visited the islands w 2001. The Samoan Government has called dla deregulation of the financial sector, encouragement of investment, and continued fiscal discipline, meantime protecting the environment. 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 2000 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 29 years ago. Cocoa production has substantially declined w recent years because of drought and mismanagement, but strengthening prices helped boost export earnings w 2003. Sao Tome has to import all fuels, most manufactured goods, consumer goods, and a substantial 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. Sao Tome's success w implementing structural reforms has been rewarded by international donors, who pledged increased assistance w 2001. 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. Sao Tome is optimistic about the development of petroleum resources w its territorial waters w the oil-rich Gulf of Gwinea; production could begin as early as 2004.
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 (25% 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, 45% of Produkt krajowy brutto, and 90% of export earnings. About 40% of Produkt krajowy brutto comes from the private sector. Roughly five and a half million foreign workers play an important role w the Saudi economy, dla example, w the oil and service sectors. The government w 1999 announced plans to begin privatizing the electricity companies, which follows the ongoing privatization of the telecommunications company. The government is encouraging private sector growth to lessen the kingdom's dependence on oil and increase employment opportunities dla the swelling Saudi population. Priorities dla government spending w the short term include additional funds dla education and dla the water and sewage systems. Economic reforms proceed cautiously because of deep-rooted political and social conservatism.
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 was 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 during 1995-2003. Annual inflation had been pushed down to the low single digits. As a member of the West African Economic and Monetary Union (WAEMU), 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, trade union militancy, juvenile delinquency, and drug addiction.
Federalna Republika JugoslawiiFederalna Republika Jugoslawii MILOSEVIC-era mismanagement of the economy, an extended period of economic sanctions, and the damage to Jugoslawia's infrastructure and industry during the NATO airstrikes w 1999 have left the economy only half the size it was w 1990. After the ousting of former Federal Yugoslav President MILOSEVIC w pazdziernik 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on an aggressive market reform program. After renewing its membership w the IMF w grudzien 2000, Jugoslawia continued to reintegrate into the international community by rejoining the Swiat Bank (IBRD) and the European Bank dla Reconstruction and Development (EBRD). A Swiat Bank-European Commission sponsored Donors' Conference held w czerwiec 2001 raised $1.3 billion dla economic restructuring. An agreement rescheduling the country's $4.5 billion Paris Club government debts was concluded w listopad 2001; it wrote off 66% of the debt. The smaller republic of Czarnogora severed its economy from federal control and from Serbia during the MILOSEVIC era and continues to maintain its own central bank, uses the euro instead of the Yugoslav dinar as official currency, collects customs tariffs, and manages its own budget. Kosowo, while technically still part of the Federal Republic of Jugoslawia (now Federalna Republika Jugoslawii) according to United Nations Security Council Resolution 1244, is largely autonomous under United Nations Interim Administration Mission w Kosowo (UNMIK) and is greatly dependent on the international community and the diaspora dla financial and technical assistance. The euro and the Yugoslav dinar are official currencies, and UNMIK collects taxes and manages the budget. The complexity of Federalna Republika Jugoslawii political relationships, slow progress w privatization, legal uncertainty over property rights, and scarcity of foreign-investment are holding back Federalna Republika Jugoslawii's economy. Arrangements z the IMF, especially requirements dla fiscal discipline, are an important element w policy formation. Severe unemployment remains a key political economic problem.
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. A sharp drop illustrated the vulnerability of the tourist sector w 1991-92 due largely to the Gulf war, and once again following the 11 wrzesien 2001 terrorist attacks on the US. Other issues facing the government are the curbing of the budget deficit, including the containment of social welfare costs, and further privatization of public enterprises. Growth slowed w 1998-2002, due to sluggish tourist and tuna sectors. Also, tight controls on exchange rates and the scarcity of foreign exchange have impaired short-term economic prospects. The black market value of the Seszele rupee 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, following a 11-year civil war. 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. Plans continue to reopen bauxite and rutile mines shut down during the conflict. The major source of hard currency consists of the mining of diamonds. The fate of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and to supplement government revenues.
SingapurSingapur Singapur, a highly developed and successful free market economy, enjoys a remarkably open and corruption-free environment, stable prices, and a high per capita Produkt krajowy brutto. The economy depends heavily on exports, particularly w electronics and manufacturing. It was hard hit w 2001-03 by the global recession and the slump w the technology sector. The government hopes to establish a new growth path that will be less vulnerable to the external business cycle but is unlikely to abandon efforts to establish Singapur as Southeast Asia's financial and high-tech hub. Fiscal stimulus, low interest rates, and global economic recovery should lead to much improved growth w 2004.
SlowacjaSlowacja Slowacja has mastered much of the difficult transition from a centrally planned economy to a modern market economy. The DZURINDA government made excellent progress during 2001-03 w macroeconomic stabilization and structural reform. Major privatizations are nearly complete, the banking sector is almost completely w foreign hands, and foreign investment has picked up. Slowacja's economy exceeded expectations w 2001-03, despite the general European slowdown. Unemployment, at an unacceptable 15% w 2003, remains the economy's Achilles heel. The government faces other strong challenges w 2004, especially cutting the budget deficit, containing inflation, and strengthening the health care system.
SloweniaSlowenia Slowenia, z its historical ties to Western Europe, enjoys a Produkt krajowy brutto per capita substantially higher than that of the other transitioning economies of Central Europe. In marzec 2004, Slowenia became the first transition country to graduate from borrower status to donor partner at the Swiat Bank. Privatization of the economy proceeded at an accelerated pace w 2002-03, and the budget deficit dropped from 3.0% of Produkt krajowy brutto w 2002 to 1.6% w 2003. Despite the economic slowdown w Europe w 2001-03, Slowenia maintained 3% growth. Structural reforms to improve the business environment allow dla greater foreign participation w Slowenia's economy and help to lower unemployment. Further measures to curb inflation are also needed. Corruption and the high degree of coordination between government, business, and central bank policy are issues of concern w the run-up to Slowenia's scheduled 1 maj 2004 accession to the Unia Europejska.
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 serious economic disarray, indeed near collapse. Tanker deliveries of crucial fuel supplies (including those dla electrical generation) have become sporadic due to the government's inability to pay and attacks against ships. Telecommunications are threatened by the nonpayment of bills and by the lack of technical and maintenance staff many of whom have left the country. The disintegration of law and order left the economy w tatters by mid-2003, and on 24 lipiec 2003 more than 2000 Australian soldiers entered the Wyspy Salomona to restore order and to facilitate the restoration of basic services.
SomaliaSomalia Somalia's economic fortunes are being driven by its deep political divisions. The northern area has declared its independence as "Somaliland"; the central area, Puntland, is a self-declared autonomous state; and the remaining southern portion is riddled z the struggles of rival factions. Economic life continues, w part because much activity is local and relatively easily protected. Agriculture is the most important sector, z livestock normally accounting dla about 40% of Produkt krajowy brutto and about 65% of export earnings, but Arabia Saudyjska's recent ban on Somali livestock, because of Rift Valley Fever concerns, has severely hampered the sector. Nomads and semi-nomads, who are dependent upon livestock dla their livelihood, make up a large portion of the population. Livestock, hides, fish, charcoal, and bananas are Somalia's principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. Somalia's small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. Despite the seeming anarchy, Somalia's service sector has managed to survive and grow. Telecommunication firms provide wireless services w most major cities and offer the lowest international call rates on the continent. In the absence of a formal banking sector, money exchange services have sprouted throughout the country, handling between $200 million and $500 million w remittances annually. Mogadishu's main market offers a variety of goods from food to the newest electronic gadgets. Hotels continue to operate, and militias provide security. The ongoing civil disturbances and clan rivalries, however, have interfered z any broad-based economic development and international aid arrangements. In 2002 Somalia's overdue financial obligations to the IMF continued to grow. Statistics on Somalia's Produkt krajowy brutto, growth, per capita income, and inflation should be viewed skeptically.
Republika Poludniowej AfrykiRepublika Poludniowej Afryki Republika Poludniowej Afryki is a middle-income, emerging market z an abundant supply of natural 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 lower Republika Poludniowej Afryki's high unemployment rate; and daunting economic problems remain from the apartheid era, especially poverty and lack of economic empowerment among the disadvantaged groups. High crime and HIV/AIDS infection rates also deter investment. Republika Poludniowej Afrykin economic policy is fiscally conservative, but pragmatic, focusing on targeting inflation and liberalizing trade as means to increase job growth and household income.
Georgia Poludniowa i Sandwich PoludniowyGeorgia Poludniowa i Sandwich Poludniowy Some fishing takes place w adjacent waters. Fees from fishing licenses and related activities traditionally account dla around 90% of South Georgia's revenue (about $5.6 million w 2004). There is a potential source of income from harvesting finfish and krill. The islands receive income from postage stamps produced w the UK, sale of fishing licenses, and harbor and landing fees from tourist vessels. Tourism from specialized cruise ships is increasing rapidly. Annual tourist volume hovers around 3,000 arrivals.
Ocean PoludniowyOcean Poludniowy Fisheries w 2000-01 (1 lipiec to 30 czerwiec) landed 112,934 metric tons, of which 87% was krill and 11% Patagonian toothfish. International agreements were adopted w late 1999 to reduce illegal, unreported, and unregulated fishing, which w the 2000-01 season landed, by one estimate, 8,376 metric tons of Patagonian and antarctic toothfish. In the 2000-01 antarctic summer 12,248 tourists, most of them seaborne, visited the Ocean Poludniowy and Antarktyda, compared to 14,762 the previous year.
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. The center-right government of former President AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 styczen 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 11.7%. Growth of 2.4% w 2003 was satisfactory given the background of a faltering European economy. Incoming President RODRIGUEZ ZAPATERO, whose party won the election three days after the Madrid train bombings w marzec, plans to reduce government intervention w business, combat tax fraud, and support innovation, research and development, but also intends to reintroduce labor market regulations that had been scrapped by the AZNAR government. Adjusting to the monetary and other economic policies of an integrated Europe - and reducing unemployment - will pose challenges to Hiszpania over 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; 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. In 2003, plantation crops made up only 15% of exports (compared z 93% w 1970), while textiles and garments accounted dla 63%. Produkt krajowy brutto grew at an average annual rate of 5.5% w the early 1990s until a drought and a deteriorating security situation lowered growth to 3.8% w 1996. The economy rebounded w 1997-2000 z average growth of 5.3%, but 2001 saw the first contraction w the country's history, -1.4%, due to a combination of power shortages, severe budgetary problems, the global slowdown, and continuing civil strife. Growth recovered to 4.0% w 2002 and 5.2% w 2003. About 800,000 Sri Lankans work abroad, 90% w the Middle East. They send home about $1 billion a year. The struggle by the Tamil Tigers of the north and east dla a largely independent homeland continues to cast a shadow over the economy.
SudanSudan Sudan has turned around a struggling economy z sound economic policies and infrastructure investments, yet it still faces formidable economic problems, starting from its low level of per capita output and extending to its devastating civil stife. From 1997 to date, Sudan has been implementing IMF macroeconomic reforms. In 1999, Sudan began exporting crude oil and w the last quarter of 1999 recorded its first trade surplus, which, along z monetary policy, has stabilized the exchange rate. Increased oil production, revived light industry, and expanded export processing zones helped sustain Produkt krajowy brutto growth at 6.1% w 2003 and 7% w 2004. Agriculture production remains Sudan's most important sector, employing 80% of the work force and contributing 39% of Produkt krajowy brutto, but most farms remain rain-fed and susceptible to drought. Chronic instability - including the long-standing civil war between the Muslim north and the Christian/pagan south, the ethnic purges w Darfur, adverse weather, and weak world agricultural prices - ensure that much of the population will remain at or below the poverty line dla years.
SurinamSurinam The economy is dominated by the bauxite industry, which accounts dla more than 15% of Produkt krajowy brutto and 70% of export earnings. 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 government of Ronald VENETIAAN has begun an austerity program, raised taxes, and attempted to control spending. However, w 2002, President VENETIAAN agreed to a large pay raise dla civil servants, which threatens his earlier gains w stabilizing the economy. The Dutch Government has agreed to restart the aid flow, which will allow Surinam to access international development financing. The short-term economic outlook depends on the government's ability to control inflation and on the development of projects w the bauxite and gold mining sectors.
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 hunting of seal, reindeer, and fox.
SuaziSuazi In this small, landlocked economy, subsistence agriculture occupies more than 80% of the population. The manufacturing sector has diversified since the mid-1980s. Sugar and wood pulp remain important foreign exchange earners. Mining has declined w importance w recent years z only coal and quarry stone mines remaining active. Surrounded by Republika Poludniowej Afryki, except dla a short border z Mozambik, Suazi is heavily dependent on Republika Poludniowej Afryki from which it receives about nine-tenths of its imports and to which it sends nearly three-quarters of its exports. Customs duties from the Southern African Customs Union and worker remittances from Republika Poludniowej Afryki 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. More than one-fourth of the population needed emergency food aid w 2002 because of drought, and more than one-third of the adult population was infected by HIV/AIDS.
SzwecjaSzwecja Aided by peace and neutrality dla the whole 20th 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. The government's commitment to fiscal discipline resulted w a substantial budgetary surplus w 2001, which was cut by more than half w 2002, due to the global economic slowdown, declining revenue, and increased spending. The Swedish central bank (the Riksbank) is focusing on price stability z its inflation target of 2%. Growth remained sluggish w 2003. On wrzesien 14, 2003, Swedish voters turned down entry into the euro system, concerned about the impact on democracy and sovereignty.
SzwajcariaSzwajcaria Szwajcaria is a prosperous and stable modern market economy z low unemployment, a highly skilled labor force, and a per capita Produkt krajowy brutto larger than that of the big Western European economies. The Swiss w recent years have brought their economic practices largely into conformity z the EU's to enhance their international competitiveness. Szwajcaria remains 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. Reflecting the anemic economic conditions of Europe, Produkt krajowy brutto growth dropped w 2001 to about 0.8%, to 0.2% w 2002, and to -0.3% w 2003.
SyriaSyria Syria's predominantly statist economy lately has been growing more slowly than its 2.4% annual population growth rate. Recent legislation allows private banks to operate w Syria, although a private banking sector will take years and further government cooperation to develop. Factors, including the war between the US-led coalition and Irak, probably drove real annual Produkt krajowy brutto growth levels back below 1% w 2003 following growth of 3.5% w 2001 and 4.5% w 2002. A long-run economic constraint is the pressure on water supplies caused by rapid population growth, industrial expansion, and increased water pollution.
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. Eksport have provided the primary impetus dla industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes 2% to Produkt krajowy brutto, down from 32% w 1952. While Tajwan is a major investor throughout Southeast Asia, Chiny has become the largest destination dla investment and has overtaken the US to become Tajwan's largest export market. 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. The global economic downturn, combined z problems w policy coordination by the administration and bad debts w the banking system, pushed Tajwan into recession w 2001, the first year of negative growth ever recorded. Unemployment also reached record levels. Output recovered moderately w 2002 w the face of continued global slowdown, fragile consumer confidence, and bad bank loans. Growing economic ties z Chiny are a dominant long-term factor. Eksport to Chiny - mainly parts and equipment dla the assembly of goods dla export to developed countries - drove Tajwan's economic recovery w 2002. Although the SARS epidemic, Typhoon Maemi, corporate scandals, and a drop w consumer spending caused Produkt krajowy brutto growth to contract to 3.2% w 2003, increasingly strong export performance kept Tajwan's economy on track, and the government expects Tajwan's economy to grow 4.1% w 2004.
TadzykistanTadzykistan Tadzykistan has the lowest per capita Produkt krajowy brutto among the 15 former Soviet republics. Only 5% to 6% of the land area is arable. 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 civil war (1992-97) severely damaged the already weak economic infrastructure and caused a sharp decline w industrial and agricultural production. Even though 60% of its people continue to live w abject poverty, Tadzykistan has experienced steady economic growth since 1997. Continued privatization of medium and large state-owned enterprises will further increase productivity. Tadzykistan's economic situation, however, remains fragile due to uneven implementation of structural reforms, weak governance, widespread unemployment, and the external debt burden. A debt restructuring agreement was reached z Rosja w grudzien 2002, including an interest rate of 4%, a 3-year grace period, and a US $49.8 million credit to the Central Bank of Tadzykistan.
TanzaniaTanzania Tanzania is one of the poorest countries w the world. The economy depends heavily on agriculture, which accounts dla about 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 traditionally featured the processing of agricultural products and light consumer goods. The Swiat Bank, the International Monetary Fund, and bilateral donors have provided funds to rehabilitate Tanzania's out-of-date economic infrastructure and to alleviate poverty. Growth w 1991-2002 featured a pickup w industrial production and a substantial increase w output of minerals, led by gold. Oil and gas exploration and development played an important role w this growth. Recent banking reforms have helped increase private sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real Produkt krajowy brutto growth of more than 5.2% w 2004.
TajlandiaTajlandia Tajlandia has a free-enterprise economy and welcomes foreign investment. Eksport feature textiles and footwear, fishery products, rice, rubber, jewelry, automobiles, computers and electrical appliances. Tajlandia has recovered from the 1997-98 Asian Financial Crisis and was one of East Asia's best performers w 2002. Increased consumption and investment spending and strong export growth pushed Produkt krajowy brutto growth up to 6.3% w 2003 despite a sluggish global economy. The highly popular government has pushed an expansionist policy, including major support of village economic development.
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. Cocoa, coffee, and cotton generate about 40% of export earnings, z cotton being the most important cash crop. Togo is the world's fourth-largest producer of phosphate, but production fell an estimated 22% w 2002 due to power shortages and the cost of developing new deposits. 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 moved slowly. Progress depends on following through on privatization, increased openness w government financial operations, progress toward legislative elections, and continued support from foreign donors.
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 rely heavily on aid from Nowa Zelandia - about $4 million annually - to maintain public services, z 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, a small, open, South Pacific island economy, has a narrow export base w agricultural goods. 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. Tourism is the second-largest source of hard currency earnings following remittances. The country remains dependent on 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 reasonably sound basic infrastructure and well-developed social services. High unemployment among the young and the continuing upturn w inflation are major issues facing the government.
Trynidad i TobagoTrynidad i Tobago Trynidad i Tobago, the leading Caribbean producer of oil and gas, has earned a reputation as an excellent investment site dla international businesses. Tourism is a growing sector, although not proportionately as important as w many other Caribbean islands. The economy benefits from low inflation and a growing trade surplus. Prospects dla growth w 2004 are good as prices dla oil, petrochemicals, and liquified natural gas are expected to remain high, and foreign direct investment continues to grow to support expanded capacity w the energy sector. The government is coping z a rise w violent crime.
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, averaging 5% dla the latter half of the last decade, slowed to a 15-year low of 1.9% w 2002 because of agricultural drought, slow investment, and lackluster tourism. Better rains w 2003, however, pushed Produkt krajowy brutto growth up to an estimated 6 percent, and tourism also recovered after the end of combat operations w Irak. Produkt krajowy brutto growth remained at 6% w 2004. Tunezja has agreed to gradually remove barriers to trade z the Unia Europejska over the next decade. Broader privatization, further liberalization of the investment code to increase foreign investment, improvements w government efficiency, and reduction of the trade deficit are among the challenges dla the future.
TurcjaTurcja Turcja's dynamic economy is a complex mix of modern industry and commerce along z a traditional agriculture sector that w 2001 still accounted dla 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 largest industrial sector is textiles and clothing, which accounts dla one-third of industrial employment; it faces stiff competition w international markets z the end of the global quota system. However, other sectors, notably the automotive and electonics industries, are rising w importance within Turcja's export mix. In recent years the economic situation has been marked by erratic economic growth and serious imbalances. Real GNP growth has exceeded 6% w many years, but this strong expansion has been interrupted by sharp declines w output w 1994, 1999, and 2001. 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 accounted dla more than 40% of central government spending w 2003. Inflation, w recent years w the high double-digit range, fell to 11.3% w 2004. Perhaps because of these problems, foreign direct investment w Turcja remains low - less than $1 billion annually. Results w 2002-04 improved, because of strong financial support from the IMF and tighter fiscal policy. A major political and economic issue over the next decade is whether or not Turcja will become a member of the EU.
TurkmenistanTurkmenistan Turkmenistan is largely desert country z intensive agriculture w irrigated oases and large gas and oil resources. One-half of its irrigated land is planted w cotton, making it at one time the world's tenth-largest producer. Poor harvests w recent years have led to a nearly 46% decline w cotton exports. 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 1998-2003, 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 by 38% w 2003, largely because of higher international oil and gas prices. Overall prospects w the near future are discouraging because of widespread internal poverty, the burden of foreign debt, and the unwillingness of the government to adopt market-oriented reforms. However, Turkmenistan's cooperation z the international community w transporting humanitarian aid to Afganistan may foreshadow a change w the atmosphere dla foreign investment, aid, and technological support. Turkmenistan's economic statistics are state secrets, and Produkt krajowy brutto and other figures are subject to wide margins of error. In particular, the 20% rate of Produkt krajowy brutto growth is a guess.
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 is the leading source of tourists, accounting dla more than half of the 93,000 visitors w the late 1990s. Major sources of government revenue include fees from offshore financial activities and customs receipts. Tourism fell by 6% w 2002.
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. Fewer than 1,000 tourists, on average, visit Tuvalu annually. 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, because of payments from a 1988 treaty on fisheries. 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 lease of its ".tv" Internet domain name. Royalties from these new technology sources could increase substantially over the next decade. With merchandise exports only a fraction of merchandise imports, continued reliance must be placed on fishing and telecommunications license fees, remittances from overseas workers, official transfers, and investment income from overseas assets.
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 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. During 1990-2001, 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. 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 Highly Indebted Poor Countries (HIPC) debt relief worth $1.3 billion and Paris Club debt relief worth $145 million. These amounts combined z the original HIPC debt relief added up to about $2 billion. Growth dla 2001-02 was solid despite continued decline w the price of coffee, Uganda's principal export. Solid growth w 2003 reflected an upturn w Uganda's export markets.
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 grudzien 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 by 1999 had fallen to less than 40% of 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. President KUCHMA had pledged to reduce the number of government agencies, streamline the regulatory process, create a legal environment to encourage entrepreneurs, 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. Produkt krajowy brutto w 2000 showed strong export-based growth of 6% - the first growth since independence - and industrial production grew 12.9%. The economy continued to expand w 2001 as real Produkt krajowy brutto rose 9% and industrial output grew by over 14%. Growth of 4.6% w 2002 was more moderate, w part a reflection of faltering growth w the developed world. In general, growth has been undergirded by strong domestic demand, low inflation, and solid consumer and investor confidence. Growth was a sturdy 9.3% w 2003 and a remarkable 12% w 2004, despite a loss of momentum w needed economic reforms.
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. 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, is 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. Produkt krajowy brutto growth slipped w 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Still, the economy is one of the strongest w Europe; inflation, interest rates, and unemployment remain low. The relatively good economic performance has complicated the BLAIR government's efforts to make a case dla Britain to join the European Economic and Monetary Union (EMU). Critics point out, however, that the economy is doing well outside of EMU, and they point to public opinion polls that continue to show a majority of Britons opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost w higher taxes. The war w marzec-kwiecien 2003 between a US-led coalition and Irak, together z the subsequent problems of restoring the economy and the polity, involve a heavy commitment of British military forces.
Stany ZjednoczoneStany Zjednoczone The US has the largest and most technologically powerful economy w the world, z a per capita Produkt krajowy brutto of $37,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy 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, to lay off surplus workers, and to 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; 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%. The year 2001 saw the end of boom psychology and performance, z output increasing only 0.3% and unemployment and business failures rising substantially. The response to the terrorist attacks of 11 wrzesien 2001 showed the remarkable resilience of the economy. Moderate recovery took place w 2002 z the Produkt krajowy brutto growth rate rising to 2.4%. A major short-term problem w first half 2002 was a sharp decline w the stock market, fueled w part by the exposure of dubious accounting practices w some major corporations. The war w marzec/kwiecien 2003 between a US-led coalition and Irak shifted resources to the military. In 2003, growth w output and productivity and the recovery of the stock market to above 10,000 dla the Dow Jones Industrial Average were promising signs. Unemployment stayed at the 6% level, however, and began to decline only at the end of the year. Long-term problems include inadequate investment w economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income w the lower economic groups.
UrugwajUrugwaj Urugwaj's well-to-do economy is characterized by an export-oriented agricultural sector, a well-educated workforce, and high levels of social spending. After averaging growth of 5% annually during 1996-98, w 1999-2002 the economy suffered a major downturn, stemming largely from the spillover effects of the economic problems of its large neighbors, Argentyna and Brazylia. For instance, w 2001-02 massive withdrawals by Argentyna of dollars deposited w Urugwajan banks led to a plunge w the Uruguyan peso and a massive rise w unemployment. Total Produkt krajowy brutto w these four years dropped by nearly 20%, z 2002 the worst year due to the serious banking crisis. Unemployment rose to nearly 20% w 2002, inflation surged, and the burden of external debt doubled. Cooperation z the IMF and the US has limited the damage. The debt swap z private creditors carried out w 2003, which extended the maturity dates on nearly half of Urugwaj's $11.3 billion w public debt, substantially alleviated the country's amortization burden w the coming years and restored public confidence. The economy is expected to resume growth w 2004 (perhaps 4% or more) as a result of high commodity prices dla Urugwajan exports, the weakness of the dollar against the euro, growth w the region, low international interest rates, and greater export competitiveness. On the negative side, w grudzien 2003 the electorate voted to repeal the law permitting a cautious liberalization of the energy industry.
UzbekistanUzbekistan Uzbekistan is a dry, landlocked country of which 11% 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 second-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. Uzbekistan responded to the negative external conditions generated by the Asian and Rosjan financial crises by emphasizing import substitute industrialization and by tightening export and currency controls within its already largely closed economy. The government, while aware of the need to improve the investment climate, sponsors measures that often increase, not decrease, the government's control over business decisions. A sharp increase w the inequality of income distribution has hurt the lower ranks of society since independence. In 2003, the government accepted the obligations of Article VIII under the International Monetary Fund (IMF), providing dla full currency convertibility. However, strict currency controls and tightening of borders have lessened the effects of convertibility and have also lead to some shortages which have further stifled economic activity.
VanuatuVanuatu This South Pacific island economy is based primarily on 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. A severe earthquake w listopad 1999 followed by a tsunami, caused extensive damage to the northern island of Pentecote and left thousands homeless. Another powerful earthquake w styczen 2002 caused extensive damage w the capital, Port-Vila, and surrounding areas, and also was followed by a tsunami. Produkt krajowy brutto growth rose less than 3% on average w the 1990s. In response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. In mid-2002 the government stepped up efforts to boost tourism. Agriculture, especially livestock farming, is a second target dla growth. Australia and Nowa Zelandia are the main suppliers of tourists and foreign aid. Growth expanded moderately w 2003.
WenezuelaWenezuela Wenezuela continues to be highly dependent on the petroleum sector, which accounts dla roughly one-third of Produkt krajowy brutto, around 80% of export earnings, and more than half of government operating revenues. Despite higher oil prices at the end of 2002 and into 2003, domestic political instability, culminating w a disastrous two-month national oil strike from grudzien 2002 to luty 2003, temporarily halted economic activity. The economy remained w depression w 2003, declining by 9.2% after an 8.9% fall w 2002. In late 2003, President CHAVEZ committed himself to $1 billion w new social programs, money the government does not have.
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 w the Wietnamese economy, but rather than prompting reform, reaffirmed the government's belief that shifting to a market-oriented economy would lead to disaster. Produkt krajowy brutto growth of 8.5% w 1997 fell to 6% w 1998 and 5% w 1999. Growth then rose to 6% to 7% w 2000-02 even against the background of global recession. 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. Since the Party elected new leadership w 2001, Wietnamese authorities have reaffirmed their commitment to economic liberalization and have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export-driven industries. The US-Wietnam Bilateral Trade Agreement entered into force near the end of 2001 and is expected to significantly increase Wietnam's exports to the US. The US is assisting Wietnam z implementing the legal and structural reforms called dla w the agreement.
Wyspy DziewiczeWyspy Dziewicze Tourism is the primary economic activity, accounting dla 80% of Produkt krajowy brutto and 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, to support construction projects w the private sector, to expand tourist facilities, to reduce crime, and to 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% labor force earnings 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 Real per capita Produkt krajowy brutto dla the Zachodni Brzeg and Gaza (WBGS) declined by about one-third between 1992 and 1996 due 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 labor and commodity market relationships between Izrael and the WBGS. The most serious social effect of this downturn was rising unemployment, which w the WBGS during the 1980s was generally under 5%; by 1995 it had risen to over 20%. Izrael's use of comprehensive closures during the next three years 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 violence, which triggered tight Izraeli closures of Palestinian self-rule areas and severely disrupted trade and labor movements. In 2001, and even more severely w 2002, Izraeli military measures w Palestinian Authority areas resulted w the destruction of much capital plant and administrative structure, widespread business closures, and a sharp drop w Produkt krajowy brutto. Including Gaza, the UN estimates that more than 100,000 Palestinians out of the 125,000 who used to work w Izrael, w Izraeli settlements, or w joint industrial zones have lost their jobs. In addition, about 80,000 Palestinian workers inside the Territories are losing their jobs. International aid of $2 billion w 2001-02 to the Zachodni Brzeg and Gaza prevented the complete collapse of the economy. In 2004, on-going border issues and the death of Yasser ARAFAT continued to complicate the economic situation.
Sahara ZachodniaSahara Zachodnia Sahara Zachodnia depends on pastoral nomadism, fishing, and phosphate mining as the principal sources of income dla the population. The territory lacks sufficient rainfall dla sustainable agricultural production, and most of the food dla the urban population must be imported. All trade and other economic activities are controlled by the Moroccan Government. Moroccan energy interests w 2001 signed contracts to explore dla oil off the coast of Sahara Zachodnia, which has angered the Polisario. Incomes and standards of living w Sahara Zachodnia are substantially below the Moroccan level.
SwiatSwiat Global output rose by 3.7% w 2003, led by Chiny (9.1%), Indie (7.6%), and Rosja (7.3%). The other 14 successor nations of the USSR and the other old Warsaw Pact nations again experienced widely divergent growth rates; the three Baltic nations continued as strong performers, w the 5%-7% range of growth. Growth results posted by the major industrial countries varied from a loss by Niemcy (-0.1%) to a strong gain by the Stany Zjednoczone (3.1%). The developing nations also varied w their growth results, z many countries facing population increases that erode 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, w Irak, w Indonezja, and w Kanada. Externally, the central government is losing decision-making powers to international bodies. 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. 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 economic risks because of varying levels of income and cultural and political differences among the participating nations. The terrorist attacks on the US on 11 wrzesien 2001 accentuate a further growing risk to global prosperity, illustrated, dla example, by the reallocation of resources away from investment to anti-terrorist programs. The opening of war w marzec 2003 between a US-led coalition and Irak added new uncertainties to global economic prospects. After the coalition victory, the complex political difficulties and the high economic cost of establishing domestic order w Irak became major global problems that continue into 2004.
JemenJemen Jemen, one of the poorest countries w the Arab world, reported strong growth w the mid-1990s z the onset of oil production. It has been harmed by periodic declines w oil prices, but now benefits from current high prices. Jemen has embarked on an IMF-supported structural adjustment program designed to modernize and streamline the economy, which has led to substantial foreign debt relief and restructuring. International donors, meeting w Paris w pazdziernik 2002, agreed on a further $2.3 billion economic support package. Jemen has worked to maintain tight control over spending and to implement additional components of the IMF program. A markedly high population growth rate and internal political dissension complicate the government's task. Plans include a diversification of the economy, encouragement of tourism, and more efficient use of scarce water resources.
ZambiaZambia Despite progress w privatization and budgetary reform, Zambia's economic growth remains below the 5% to 7% necessary to reduce poverty significantly. 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. Copper output increased w 2003 and is expected to increase again w 2004, due to higher copper prices. The maize harvest doubled w 2003, helping boost Produkt krajowy brutto by 4.0%. Cooperation continues z international bodies on programs to reduce poverty, including a new lending arrangement z the IMF expected w the second quarter, 2004. A tighter monetary policy will help cut inflation, but Zambia still has a serious problem z fiscal discipline.
ZimbabweZimbabwe The government of Zimbabwe faces a wide variety of difficult economic problems as it struggles z an unsustainable fiscal deficit, an overvalued exchange rate, soaring inflation, and bare shelves. Its 1998-2002 involvement w the war w the Democratic Republic of the Congo, dla example, drained hundreds of millions of dollars from the economy. Badly needed support from the IMF has been suspended because of the country's failure to meet budgetary goals. Inflation rose from an annual rate of 32% w 1998 to 383% w 2003, and is expected to reach 700% w 2004. The government's land reform program, characterized by chaos and violence, has badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs.
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