Mauritiusvarious labor unions
MayotteNA
MexicoConfederation of Employers of the Mexican Republic orCOPARMEX; Confederation of Industrial Chambers or CONCAMIN;Confederation of Mexican Workers or CTM; Confederation of NationalChambers of Commerce or CONCANACO; Coordinator for Foreign TradeBusiness Organizations or COECE; Federation of Unions ProvidingGoods and Services or FESEBES; National Chamber of TransformationIndustries or CANACINTRA; National Peasant Confederation or CNC;National Union of Workers or UNT; Regional Confederation of MexicanWorkers or CROM; Revolutionary Confederation of Workers and Peasantsor CROC; Roman Catholic Church
MoldovaNA
MonacoNA
MongoliaNA
MontserratNA
MoroccoDemocratic Confederation of Labor or CDT [Noubir AMAOUI];General Union of Moroccan Workers or UGTM [Abderrazzak AFILAL];Moroccan Employers Association or CGEM [Hassan CHAMI]; NationalLabor Union of Morocco or UNMT [Abdelslam MAATI]; Union of MoroccanWorkers or UMT [Mahjoub BENSEDDIK]
MozambiqueInstitute for Peace and Democracy (Instituto para Paz eDemocracia) or IPADE [Raul DOMINGOS, president]; Etica [Abdul CARIMOIssa, chairman]; Movement for Peace and Citizenship (Movimento paraPaz e Cidadania); Mozambican League of Human Rights (LigaMocambicana dos Direitos Humanos) or LDH [Alice MABOTE, president];Human Rights and Development (Direitos Humanos e Desenvolvimento) orDHD [Artemisia FRANCO, secretary general]
NamibiaNA
NauruNA
NepalMaoist guerrilla-based insurgency [Pushpa Kamal DAHAL alsoknown as Prahanda, chairman; and chief negotiator, Dr. BaburamBHATTARAI, from Communist Party of Nepal/Maoist]; numerous small,left-leaning student groups in the capital; several small, radicalNepalese antimonarchist groups
NetherlandsFederation of Netherlands Trade Union Movement(comprising Socialist and Catholic trade unions) and a Protestanttrade union; Federation of Catholic and Protestant EmployersAssociations; Interchurch Peace Council or IKV; large multinationalfirms; the nondenominational Federation of Netherlands Enterprises
Netherlands AntillesNA
New CaledoniaNA
New ZealandNA
NicaraguaNational Workers Front or FNT is a Sandinista umbrellagroup of eight labor unions including - Farm Workers Association orATC, Health Workers Federation or FETASALUD, Heroes and MartyrsConfederation of Professional Associations or CONAPRO, NationalAssociation of Educators of Nicaragua or ANDEN, National Union ofEmployees or UNE, National Union of Farmers and Ranchers or UNAG,Sandinista Workers Central or CST, and Union of Journalists ofNicaragua or UPN; Permanent Congress of Workers or CPT is anumbrella group of four non-Sandinista labor unions including -Autonomous Nicaraguan Workers Central or CTN-A, Confederation ofLabor Unification or CUS, Independent General Confederation of Laboror CGT-I, and Labor Action and Unity Central or CAUS; NicaraguanWorkers' Central or CTN is an independent labor union; SuperiorCouncil of Private Enterprise or COSEP is a confederation ofbusiness groups
NigerNA
NigeriaNigerian Labor Congress or NLC [Adams OSHIOMOLE]
NiueNA
Norfolk Islandnone
Northern Mariana IslandsNA
NorwayNA
Omannone
Pakistanmilitary remains most important political force; ulema(clergy), landowners, industrialists, and small merchants alsoinfluential
PalauNA
PanamaChamber of Commerce; National Civic Crusade; National Councilof Organized Workers or CONATO; National Union of Construction andSimilar Workers (SUNTRACS); National Council of Private Enterpriseor CONEP; Panamanian Association of Business Executives or APEDE;Panamanian Industrialists Society or SIP; Workers Confederation ofthe Republic of Panama or CTRP
Papua New GuineaNA
ParaguayAhorristas Estafados or AE; National Workers Central orCNT; Paraguayan Workers Confederation or CPT; Roman Catholic Church;Unitary Workers Central or CUT
Peruleftist guerrilla groups include Shining Path [Abimael GUZMANReynoso (imprisoned), Gabriel MACARIO (top leader at-large)]; TupacAmaru Revolutionary Movement or MRTA [Victor POLAY (imprisoned),Hugo AVALLENEDA Valdez (top leader at-large)]
PhilippinesNA
Pitcairn Islandsnone
PolandAll Poland Trade Union Alliance or OPZZ (trade union) [MaciejMANICKI]; Roman Catholic Church [Cardinal Jozef GLEMP]; SolidarityTrade Union [Janusz SNIADEK]
PortugalNA
Puerto RicoArmed Forces for National Liberation or FALN; ArmedForces of Popular Resistance; Boricua Popular Army (also known asthe Macheteros); Volunteers of the Puerto Rican Revolution
Qatarnone
ReunionNA
Romaniavarious human rights and professional associations
RussiaNA
RwandaIBUKA - association of genocide survivors
Saint Helenanone
Saint Kitts and NevisNA
Saint LuciaNA
Saint Pierre and MiquelonNA
Saint Vincent and the GrenadinesNA
SamoaNA
San MarinoNA
Sao Tome and PrincipeNA
Saudi Arabianone
Senegallabor; Muslim brotherhoods; students; teachers
Serbia and MontenegroAlliance for the Future of Kosovo or AAK[Ramush HARADINAJ]; Democratic League of Kosovo or LDK [IbrahimRUGOVA]; Democratic Party of Kosovo or PDK [Hashim THACI]; Group of17 Independent Economists or G-17 [leader NA]; National Movement forthe Liberation of Kosovo or LKCK [Sabit GASHI]; Otpor StudentResistance Movement [leader NA]; Political Council for Presevo,Meveda and Bujanovac or PCPMB [leader NA]; The People's Movement forKosovo or LPK [Emrush XHEMAJLI]
SeychellesRoman Catholic Church; trade unions
Sierra LeoneTrade Unions and Student Unions
SingaporeNA
SlovakiaAssociation of Employers of Slovakia; Association of Townsand Villages or ZMOS; Confederation of Trade Unions or KOZ; MetalWorkers Unions or KOVO and METALURG
SloveniaNA
Solomon IslandsNA
Somalianumerous clan and subclan factions are currently vying forpower
South AfricaCongress of South African Trade Unions or COSATU[Zwelinzima VAVI, general secretary]; South African Communist Partyor SACP [Blade NZIMANDE, general secretary]; South African NationalCivics Organization or SANCO [Mlungisi HLONGWANE, nationalpresident]; note - COSATU and SACP are in a formal alliance with theANC
Spainbusiness and landowning interests; Catholic Church; free laborunions (authorized in April 1977); Socialist General Union ofWorkers or UGT and the smaller independent Workers Syndical Union orUSO; university students; Workers Confederation or CC.OO; Nunca Mais(Galician for "Never Again"; formed in response to the oil tankerPrestige oil spill)
Sri LankaBuddhist clergy; labor unions; Liberation Tigers of TamilEelam or LTTE [Velupillai PRABHAKARAN](insurgent group fighting fora separate state); radical chauvinist Sinhalese groups such as theNational Movement Against Terrorism; Sinhalese Buddhist lay groups
SudanDemocratic Unionist Party [Muhammed Uthman AL-MIRGHANI];National Congress Party [Ibrahim Ahmed UMAR]; National DemocraticAlliance [Muhammed Uthman AL-MIRGHANI, chairman]; Sudan People'sLiberation Movement/Army [Dr. John GARANG]; Umma [Sadiq al-MAHDI]
SurinameGeneral Liberation and Development Party or ABOP [RonnieBRUNSWIJK]; Mandela Bushnegro Liberation Movement [Leendert ADAMS];Tucayana Amazonica [Alex JUBITANA, Thomas SABAJO]; Union forLiberation and Democracy [Kofi AFONGPONG]
SwazilandNA
SwedenNA
SwitzerlandNA
Syriaconservative religious leaders; Muslim Brotherhood (operatesin exile in Jordan and Yemen); non-Ba'th parties have littleeffective political influence
TaiwanTaiwan independence movement, various business andenvironmental groupsnote: debate on Taiwan independence has become acceptable within themainstream of domestic politics on Taiwan; political liberalizationand the increased representation of opposition parties in Taiwan'slegislature have opened public debate on the island's nationalidentity; a broad popular consensus has developed that Taiwancurrently enjoys de facto independence and - whatever the ultimateoutcome regarding reunification or independence - that Taiwan'speople must have the deciding voice; advocates of Taiwanindependence oppose the stand that the island will eventually unifywith mainland China; goals of the Taiwan independence movementinclude establishing a sovereign nation on Taiwan and entering theUN; other organizations supporting Taiwan independence include theWorld United Formosans for Independence and the Organization forTaiwan Nation Building
Tajikistanthere are two unregistered political parties with 1,000or more members: Progressive Party [Suton QUVVATOV]; Unity Party[Hikmatuko SAIDOV]
TanzaniaNA
ThailandNA
TogoNA
Tokelaunone
TongaTonga Human Rights and Democracy Movement or THRDM [AkilisiPOHIVA, president]
Trinidad and TobagoJamaat-al Musilmeen [Yasin BAKR]
Tunisiathe Islamic fundamentalist party, Al Nahda (Renaissance), isoutlawed
TurkeyConfederation of Public Sector Unions or KESK [Sami EVREN];Confederation of Revolutionary Workers Unions or DISK [SuleymanCELEBI]; Independent Industrialists' and Businessmen's Associationor MUSIAD [Erol YARAR]; Moral Rights Workers Union or Hak-Is [SalimUSLU]; Turkish Industrialists' and Businessmen's Association orTUSIAD [Muharrem KAYHAN]; Turkish Confederation of Employers' Unionsor TISK [Refik BAYDUR]; Turkish Confederation of Labor or Turk-Is[Bayram MERAL]; Turkish Confederation of Tradesmen and Craftsmen orTESK [Dervis GUNDAY; Turkish Union of Chambers of Commerce andCommodity Exchanges or TOBB [M. Rifat HISARCIKLIOGLU]
TurkmenistanNA
Turks and Caicos IslandsNA
Tuvalunone
UgandaNA
UkraineNA
United Arab EmiratesNA
United KingdomCampaign for Nuclear Disarmament; Confederation ofBritish Industry; National Farmers' Union; Trades Union Congress
United StatesNA
UruguayNA
UzbekistanBirlik (Unity) Movement [Abdurakhim POLAT, chairman]; Erk(Freedom) Democratic Party [Muhammad SOLIH, chairman] was banned 9December 1992; Human Rights Society of Uzbekistan [Tolib YAKUBOV,chairman]; Independent Human Rights Society of Uzbekistan[Abduhoshim GHAFUROV, chairman]; Ezgulik [Vasilia INOYATOVA]
VanuatuNA
VenezuelaFEDECAMARAS, a conservative business group; VECINOSgroups; Venezuelan Confederation of Workers or CTV (labororganization dominated by the Democratic Action)
Vietnamnone
Virgin IslandsNA
Wallis and FutunaNA
Western Saharanone
YemenNA
ZambiaNA
ZimbabweNational Constitutional Assembly or NCA [Lovemore MADHUKU];Crisis in Zimbabwe Coalition [Brian KAGORO]; Zimbabwe Congress ofTrade Unions or ZCTU [Lovemore MATOMBO]
This page was last updated on 18 December, 2003
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@2116 Economy - overview
AfghanistanAfghanistan is an extremely poor, landlocked country,highly dependent on foreign aid, farming and livestock raising(sheep and goats), and trade with neighboring countries. Economicconsiderations have played second fiddle to political and militaryupheavals during more than two decades of war, including the nearly10-year Soviet military occupation (which ended 15 February 1989).During that conflict, one-third of the population fled the country,with Pakistan and Iran sheltering a combined peak of 4 to 6 millionrefugees. Gross domestic product has fallen substantially over thepast 20 years because of the loss of labor and capital and thedisruption of trade and transport; severe drought added to thenation's difficulties in 1998-2002. The majority of the populationcontinues to suffer from insufficient food, clothing, housing, andmedical care, and a dearth of jobs, problems exacerbated bypolitical uncertainties and the general level of lawlessness.International efforts to rebuild Afghanistan were addressed at theTokyo Donors Conference for Afghan Reconstruction in January 2002,when $4.5 billion was pledged, $1.7 billion for 2002. Of thatapproximately $900 million was directed to humanitarian aid - food,clothing, and shelter - and another $90 million for the AfghanTransitional Authority. Further World Bank and other aid came in2003. Priority areas for reconstruction include upgrading education,health, and sanitation facilities; providing income generatingopportunities; enhancing administrative and security arrangements,especially in regional areas; developing the agricultural sector;rebuilding transportation, energy, and telecommunicationinfrastructure; and reabsorbing 2 million returning refugees. Thereplacement of the opium trade - which may account for one-third ofGDP - and the search for oil and gas resources in the northernregion are two major long-term issues.
AlbaniaPoor and backward by European standards, Albania is makingthe difficult transition to a more modern open-market economy. Thegovernment has taken measures to curb violent crime and to spureconomic activity and trade. The economy is bolstered by remittancesfrom abroad of $400-$600 million annually, mostly from Greece andItaly; this helps offset the sizable trade deficit. Agriculture,which accounts for half of GDP, is held back because of frequentdrought and the need to modernize equipment and consolidate smallplots of land. Severe energy shortages are forcing small firms outof business, increasing unemployment, scaring off foreign investors,and spurring inflation. The government plans to boost energy importsto relieve the shortages. In addition, the government is moving toimprove the poor national road network, a long-standing barrier tosustained economic growth.
AlgeriaThe hydrocarbons sector is the backbone of the economy,accounting for roughly 60% of budget revenues, 30% of GDP, and over95% of export earnings. Algeria has the fifth-largest reserves ofnatural gas in the world and is the second-largest gas exporter; itranks 14th in oil reserves. Algeria's financial and economicindicators improved during the mid-1990s, in part because of policyreforms supported by the IMF and debt rescheduling from the ParisClub. Algeria's finances in 2000-03 benefited from substantial tradesurpluses, record foreign exchange reserves, and reductions inforeign debt. Real GDP has risen due to higher oil output andincreased government spending. The government's continued efforts todiversify the economy by attracting foreign and domestic investmentoutside the energy sector, however, has had little success inreducing high unemployment and improving living standards.
American SamoaThis is a traditional Polynesian economy in whichmore than 90% of the land is communally owned. Economic activity isstrongly linked to the US, with which American Samoa conducts mostof its foreign trade. Tuna fishing and tuna processing plants arethe backbone of the private sector, with canned tuna the primaryexport. Transfers from the US Government add substantially toAmerican Samoa's economic well-being. Attempts by the government todevelop a larger and broader economy are restrained by Samoa'sremote location, its limited transportation, and its devastatinghurricanes. Tourism, a developing sector, has been held back by therecurring financial difficulties in East Asia.
AndorraTourism, the mainstay of Andorra's tiny, well-to-do economy,accounts for roughly 80% of GDP. An estimated 9 million touristsvisit annually, attracted by Andorra's duty-free status and by itssummer and winter resorts. Andorra's comparative advantage hasrecently eroded as the economies of neighboring France and Spainhave been opened up, providing broader availability of goods andlower tariffs. The banking sector, with its "tax haven" status, alsocontributes substantially to the economy. Agricultural production islimited - only 2% of the land is arable - and most food has to beimported. The principal livestock activity is sheep raising.Manufacturing output consists mainly of cigarettes, cigars, andfurniture. Andorra is a member of the EU Customs Union and istreated as an EU member for trade in manufactured goods (no tariffs)and as a non-EU member for agricultural products.
AngolaAngola has been an economy in disarray because of a quartercentury of nearly continuous warfare. An apparently durable peacewas established after the death of rebel leader Jonas SAVIMBI onFebruary 22, 2002, but consequences from the conflict continueincluding the impact of wide-spread land mines. Subsistenceagriculture provides the main livelihood for 85% of the population.Oil production and the supporting activities are vital to theeconomy, contributing about 45% to GDP and more than half ofexports. Much of the country's food must still be imported. To fullytake advantage of its rich natural resources - gold, diamonds,extensive forests, Atlantic fisheries, and large oil deposits -Angola will need to continue reforming government policies. WhileAngola made progress in bringing inflation down further, from 325%in 2000 to about 106% in 2002, the government has failed to makesufficient progress on reforms recommended by the IMF such asincreasing foreign exchange reserves and promoting greatertransparency in government spending. Increased oil production shouldbring about 6% GDP growth in 2003.
AnguillaAnguilla has few natural resources, and the economy dependsheavily on luxury tourism, offshore banking, lobster fishing, andremittances from emigrants. Increased activity in the tourismindustry, which has spurred the growth of the construction sector,has contributed to economic growth. Anguillan officials have putsubstantial effort into developing the offshore financial sector,which is small, but growing. In the medium term, prospects for theeconomy will depend largely on the tourism sector and, therefore, onrevived income growth in the industrialized nations as well as onfavorable weather conditions.
AntarcticaFishing off the coast and tourism, both based abroad,account for the limited economic activity. Antarctic fisheries in2000-01 (1 July-30 June) reported landing 112,934 metric tons.Unregulated fishing, particularly of tooth fish, is a seriousproblem. Allegedly illegal fishing in antarctic waters in 1998resulted in the seizure (by France and Australia) of at least eightfishing ships. The Convention on the Conservation of AntarcticMarine Living Resources determines the recommended catch limits formarine species. A total of 12,248 tourists visited in the 2000-01antarctic summer, down from the 14,762 who visited the previousyear. Nearly all of them were passengers on 21 commercial(nongovernmental) ships and several yachts that made trips duringthe summer. Most tourist trips lasted approximately two weeks.
Antigua and BarbudaTourism continues to dominate the economy,accounting for more than half of GDP. Weak tourist arrival numberssince early 2000 have slowed the economy, however, and pressed thegovernment into a tight fiscal corner. The dual-island nation'sagricultural production is focused on the domestic market andconstrained by a limited water supply and a labor shortage stemmingfrom the lure of higher wages in tourism and construction.Manufacturing comprises enclave-type assembly for export with majorproducts being bedding, handicrafts, and electronic components.Prospects for economic growth in the medium term will continue todepend on income growth in the industrialized world, especially inthe US, which accounts for slightly more than one-third of touristarrivals.
Arctic OceanEconomic activity is limited to the exploitation ofnatural resources, including petroleum, natural gas, fish, and seals.
ArgentinaArgentina benefits from rich natural resources, a highlyliterate population, an export-oriented agricultural sector, and adiversified industrial base. Over the past decade, however, thecountry has suffered recurring economic problems of inflation,external debt, capital flight, and budget deficits. Growth in 2000was a negative 0.8%, as both domestic and foreign investors remainedskeptical of the government's ability to pay debts and maintain thepeso's fixed exchange rate with the US dollar. The economicsituation worsened in 2001 with the widening of spreads on Argentinebonds, massive withdrawals from the banks, and a further decline inconsumer and investor confidence. Government efforts to achieve a"zero deficit," to stabilize the banking system, and to restoreeconomic growth proved inadequate in the face of the mountingeconomic problems. The peso's peg to the dollar was abandoned inJanuary 2002, and the peso was floated in February; the exchangerate plunged and inflation picked up rapidly, but by mid-2002 theeconomy had stabilized, albeit at a lower level. Strong demand forthe peso compelled the Central Bank to intervene in foreign exchangemarkets to curb its appreciation in early 2003. Led by recordexports, the economy began to recover with output up 5.5% in 2003,unemployment falling, and inflation sliced to 4.2% at year-end.
ArmeniaUnder the old Soviet central planning system, Armenia haddeveloped a modern industrial sector, supplying machine tools,textiles, and other manufactured goods to sister republics inexchange for raw materials and energy. Since the implosion of theUSSR in December 1991, Armenia has switched to small-scaleagriculture away from the large agroindustrial complexes of theSoviet era. The agricultural sector has long-term needs for moreinvestment and updated technology. The privatization of industry hasbeen at a slower pace, but has been given renewed emphasis by thecurrent administration. Armenia is a food importer, and its mineraldeposits (copper, gold, bauxite) are small. The ongoing conflictwith Azerbaijan over the ethnic Armenian-dominated region ofNagorno-Karabakh and the breakup of the centrally directed economicsystem of the former Soviet Union contributed to a severe economicdecline in the early 1990s. By 1994, however, the ArmenianGovernment had launched an ambitious IMF-sponsored economic programthat has resulted in positive growth rates in 1995-2003. Armeniaalso 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 in the early andmid-1990s have been offset by the energy supplied by one of itsnuclear power plants at Metsamor. Armenia is now a net energyexporter, although it does not have sufficient generating capacityto replace Metsamor, which is under international pressure to close.The electricity distribution system was privatized in 2002.Armenia's severe trade imbalance has been offset somewhat byinternational aid, domestic restructuring of the economy, andforeign direct investment. Economic ties with Russia remain close,especially in the energy sector.
ArubaTourism is the mainstay of the small, open Aruban economy,with offshore banking and oil refining and storage also important.The rapid growth of the tourism sector over the last decade hasresulted in a substantial expansion of other activities.Construction has boomed, with hotel capacity five times the 1985level. In addition, the reopening of the country's oil refinery in1993, a major source of employment and foreign exchange earnings,has further spurred growth. Aruba's small labor force and lowunemployment rate have led to a large number of unfilled jobvacancies, despite sharp rises in wage rates in recent years.Tourist arrivals have declined in the aftermath of the 11 September2001 terrorist attacks on the US. The government now must deal witha budget deficit and a negative trade balance.
Ashmore and Cartier Islandsno economic activity
Atlantic OceanThe Atlantic Ocean provides some of the world's mostheavily trafficked sea routes, between and within the Eastern andWestern Hemispheres. Other economic activity includes theexploitation of natural resources, e.g., fishing, the dredging ofaragonite sands (The Bahamas), and production of crude oil andnatural gas (Caribbean Sea, Gulf of Mexico, and North Sea).
AustraliaAustralia has a prosperous Western-style capitalisteconomy, with a per capita GDP on par with the four dominant WestEuropean economies. Rising output in the domestic economy has beenoffsetting the global slump, and business and consumer confidenceremains robust. Australia's emphasis on reforms is another keyfactor behind the economy's strength. The stagnant economicconditions in major export partners and the impact of the worstdrought in 100 years cast a shadow over prospects for 2003.
AustriaAustria, with its well-developed market economy and highstandard of living, is closely tied to other EU economies,especially Germany's. Membership in the EU has drawn an influx offoreign investors attracted by Austria's access to the singleEuropean market and proximity to EU aspirant economies. Slowinggrowth in Germany and elsewhere in the world held the economy toonly 1.2% growth in 2001, 0.6% in 2002, and 0.8% in 2003.. To meetincreased competition from both EU and Central European countries,Austria will need to emphasize knowledge-based sectors of theeconomy, continue to deregulate the service sector, and lower itstax burden. A key issue is the encouragement of much greaterparticipation in the labor market by its ageing population.
AzerbaijanAzerbaijan's number one export is oil. Azerbaijan's oilproduction declined through 1997 but has registered an increaseevery year since. Negotiation of production-sharing arrangements(PSAs) with foreign firms, which have thus far committed $60 billionto long-term oilfield development, should generate the funds neededto spur future industrial development. Oil production under thefirst of these PSAs, with the Azerbaijan International OperatingCompany, began in November 1997. Azerbaijan shares all theformidable problems of the former Soviet republics in making thetransition from a command to a market economy, but its considerableenergy resources brighten its long-term prospects. Baku has onlyrecently begun making progress on economic reform, and old economicties and structures are slowly being replaced. One obstacle toeconomic progress is the need for stepped up foreign investment inthe non-energy sector. A second obstacle is the continuing conflictwith Armenia over the Nagorno-Karabakh region. Trade with Russia andthe other former Soviet republics is declining in importance whiletrade is building with Turkey and the nations of Europe. Long-termprospects will depend on world oil prices, the location of newpipelines in the region, and Azerbaijan's ability to manage its oilwealth.
Bahamas, TheThe Bahamas is a stable, developing nation with aneconomy heavily dependent on tourism and offshore banking. Tourismalone accounts for more than 60% of GDP and directly or indirectlyemploys half of the archipelago's labor force. Steady growth intourism receipts and a boom in construction of new hotels, resorts,and residences had led to solid GDP growth in recent years, but theslowdown in the US economy and the attacks of 11 September 2001 heldback growth in these sectors in 2002. Manufacturing and agriculturetogether contribute approximately a tenth of GDP and show littlegrowth, despite government incentives aimed at those sectors.Overall growth prospects in the short run rest heavily on thefortunes of the tourism sector, which depends on growth in the US,the source of most of the visitors.
BahrainIn Bahrain, petroleum production and refining account forabout 60% of export receipts, 60% of government revenues, and 30% ofGDP. With its highly developed communication and transportfacilities, Bahrain is home to numerous multinational firms withbusiness in the Gulf. Bahrain is dependent on Saudi Arabia for oilgranted as aid. A large share of exports consists of petroleumproducts made from refining imported crude. Construction proceeds onseveral major industrial projects. Unemployment, especially amongthe young, and the depletion of oil and underground water resourcesare major long-term economic problems.
Baker Islandno economic activity
BangladeshDespite sustained domestic and international efforts toimprove economic and demographic prospects, Bangladesh remains apoor, overpopulated, and ill-governed nation. Although half of GDPis generated through the service sector, nearly two-thirds ofBangladeshis are employed in the agriculture sector, with rice asthe single-most-important product. Major impediments to growthinclude frequent cyclones and floods, inefficient state-ownedenterprises, inadequate port facilities, a rapidly growing laborforce that cannot be absorbed by agriculture, delays in exploitingenergy resources (natural gas), insufficient power supplies, andslow implementation of economic reforms. Economic reform is stalledin many instances by political infighting and corruption at alllevels of government. Progress also has been blocked by oppositionfrom the bureaucracy, public sector unions, and other vestedinterest groups. The BNP government, led by Prime Minister KhaledaZIA, has the parliamentary strength to push through needed reforms,but the party's political will to do so has been lacking in keyareas.
BarbadosHistorically, the Barbadian economy had been dependent onsugarcane cultivation and related activities, but production inrecent years has diversified into manufacturing and tourism.Offshore finance and information services are important foreignexchange earners, and there is also a light-manufacturing sector.The government continues its efforts to reduce unemployment, toencourage direct foreign investment, and to privatize remainingstate-owned enterprises. The economy contracted in 2002 mainly dueto a 3% decline in tourism. Growth should be positive in 2003, theprecise level largely dependent on economic conditions in the US andEurope.
Bassas da Indiano economic activity
BelarusBelarus has seen little structural reform since 1995, whenPresident LUKASHENKO launched the country on the path of "marketsocialism." In keeping with this policy, LUKASHENKO reimposedadministrative controls over prices and currency exchange rates andexpanded the state's right to intervene in the management of privateenterprise. In addition to the burdens imposed by high inflation andpersistent trade deficits, businesses have been subject to pressureon the part of central and local governments, e.g., arbitrarychanges in regulations, numerous rigorous inspections, retroactiveapplication of new business regulations, and arrests of "disruptive"businessmen and factory owners. A wide range of redistributivepolicies has helped those at the bottom of the ladder. Closerelations with Russia, possibly leading to reunion, color thepattern of economic developments. For the time being, Belarusremains self-isolated from the West and its open-market economies.
BelgiumThis modern private enterprise economy has capitalized onits central geographic location, highly developed transport network,and diversified industrial and commercial base. Industry isconcentrated mainly in the populous Flemish area in the north. Withfew natural resources, Belgium must import substantial quantities ofraw materials and export a large volume of manufactures, making itseconomy unusually dependent on the state of world markets. Roughlythree-quarters of its trade is with other EU countries. Public debtis about 100% of GDP, and the government has succeeded in balancingits budget. Belgium, together with 11 of its EU partners, begancirculating the euro currency in January 2002. Economic growth in2001-03 dropped sharply due to the global economic slowdown.Prospects for 2004 again depend largely on recovery in the EU andthe US.
BelizeIn this small, essentially private enterprise economy thetourism industry is the number one foreign exchange earner followedby cane sugar, citrus, marine products, bananas, and garments. Thegovernment's expansionary monetary and fiscal policies, initiated inSeptember 1998, led to GDP growth of 6.5% in 1999, 10.8% in 2000,4.6% in 2001, and 3.7% in 2002. Major concerns continue to be thesizable trade deficit and foreign debt. A key short-term objectiveremains the reduction of poverty with the help of internationaldonors.
BeninThe economy of Benin remains underdeveloped and dependent onsubsistence agriculture, cotton production, and regional trade.Growth in real output has averaged a stable 5% in the past sixyears, but rapid population rise has offset much of this increase.Inflation has subsided over the past several years. In order toraise growth still further, Benin plans to attract more foreigninvestment, place more emphasis on tourism, facilitate thedevelopment of new food processing systems and agriculturalproducts, and encourage new information and communicationtechnology. The 2001 privatization policy should continue intelecommunications, water, electricity, and agriculture in spite ofinitial government reluctance. The Paris Club and bilateralcreditors have eased the external debt situation, while pressing forspeeded-up structural reforms.
BermudaBermuda enjoys one of the highest per capita incomes in theworld, with its economy primarily based on providing financialservices for international business and luxury facilities fortourists. The effects of 11 September 2001 have had both positiveand negative ramifications for Bermuda. On the positive side, anumber of new reinsurance companies have located on the island,contributing to the expansion of an already robust internationalbusiness sector. On the negative side, Bermuda's tourism industry -which derives over 80% of its visitors from the US - has beenseverely hit as American tourists have chosen not to travel. Tourismrebounded somewhat in 2002, but remains below the pre-11 Septemberlevel. Most capital equipment and food must be imported. Bermuda'sindustrial sector is small, although construction continues to beimportant. Agriculture is limited, only 6% of the land being arable.
BhutanThe economy, one of the world's smallest and least developed,is based on agriculture and forestry, providing the main livelihoodfor more than 90% of the population. Agriculture consists largely ofsubsistence farming and animal husbandry. Rugged mountains dominatethe terrain and make the building of roads and other infrastructuredifficult and expensive. The economy is closely aligned with India'sthrough strong trade and monetary links and dependence on India'sfinancial assistance. The industrial sector is technologicallybackward, with most production of the cottage industry type. Mostdevelopment projects, such as road construction, rely on Indianmigrant labor. Bhutan's hydropower potential and its attraction fortourists are key resources. The government has made some progress inexpanding the nation's productive base and improving social welfare.Model education, social, and environment programs are underway withsupport from multilateral development organizations. Each economicprogram takes into account the government's desire to protect thecountry's environment and cultural traditions. Detailed controls anduncertain policies in areas like industrial licensing, trade, labor,and finance continue to hamper foreign investment.
BoliviaBolivia, long one of the poorest and least developed LatinAmerican countries, made considerable progress in the 1990s towardthe development of a market-oriented economy. Successes underPresident SANCHEZ DE LOZADA (1993-97) included the signing of a freetrade agreement with Mexico and becoming an associate member of theSouthern Cone Common Market (Mercosur), as well as the privatizationof the state airline, telephone company, railroad, electric powercompany, and oil company. Growth slowed in 1999, in part due totight government budget policies, which limited neededappropriations for anti-poverty programs, and the fallout from theAsian financial crisis. In 2000, major civil disturbances held downgrowth to 2.5%. Bolivia's GDP failed to grow in 2001 due to theglobal slowdown and laggard domestic activity. Growth picked upslightly in 2002, but the first quarter of 2003 saw extensive civilriots and looting and loss of confidence in the government. Boliviawill remain highly dependent on foreign aid unless and until it candevelop its substantial natural resources.
Bosnia and HerzegovinaBosnia and Herzegovina ranked next to TheFormer Yugoslav Republic of Macedonia as the poorest republic in theold Yugoslav federation. Although agriculture is almost all inprivate hands, farms are small and inefficient, and the republictraditionally is a net importer of food. Industry has been greatlyoverstaffed, one reflection of the socialist economic structure ofYugoslavia. TITO had pushed the development of military industriesin the republic with the result that Bosnia hosted a number ofYugoslavia's defense plants. The bitter interethnic warfare inBosnia caused production to plummet by 80% from 1990 to 1995,unemployment to soar, and human misery to multiply. With an uneasypeace in place, output recovered in 1996-99 at high percentage ratesfrom a low base; but output growth slowed in 2000-02. GDP remainsfar below the 1990 level. Economic data are of limited use because,although both entities issue figures, national-level statistics arelimited. Moreover, official data do not capture the large share ofblack market activity. The marka - the national currency introducedin 1998 - is now pegged to the euro, and the Central Bank of Bosniaand Herzegovina has dramatically increased its reserve holdings.Implementation of privatization, however, has been slow, and localentities only reluctantly support national-level institutions.Banking reform accelerated in 2001 as all the Communist-era paymentsbureaus were shut down. The country receives substantial amounts ofreconstruction assistance and humanitarian aid from theinternational community but will have to prepare for an era ofdeclining assistance.
BotswanaBotswana has maintained one of the world's highest growthrates since independence in 1966. Through fiscal discipline andsound management, Botswana has transformed itself from one of thepoorest countries in the world to a middle-income country with a percapita GDP of $9,500 in 2002. Two major investment services rankBotswana as the best credit risk in Africa. Diamond mining hasfueled much of the expansion and currently accounts for more thanone-third of GDP and for nine-tenths of export earnings. Tourism,subsistence farming, and cattle raising are other key sectors. Onthe downside, the government must deal with high rates ofunemployment and poverty. Unemployment officially is 21%, butunofficial estimates place it closer to 40%. HIV/AIDS infectionrates are the highest in the world and threaten Botswana'simpressive economic gains. Long-term prospects are overshadowed bythe prospects of a leveling off in diamond mining production.
Bouvet Islandno economic activity; declared a nature reserve
BrazilPossessing large and well-developed agricultural, mining,manufacturing, and service sectors, Brazil's economy outweighs thatof all other South American countries and is expanding its presencein world markets. The maintenance of large current account deficitsvia capital account surpluses became problematic as investors becamemore risk averse to emerging markets as a consequence of the Asianfinancial crisis in 1997 and the Russian bond default in August1998. After crafting a fiscal adjustment program and pledgingprogress on structural reform, Brazil received a $41.5 billionIMF-led international support program in November 1998. In January1999, the Brazilian Central Bank announced that the real would nolonger be pegged to the US dollar. The consequent devaluation helpedmoderate the downturn in economic growth in 1999, and the countryposted moderate GDP growth in 2000. Economic growth slowedconsiderably in 2001-03 - to less than 2% - because of a slowdown inmajor markets and the hiking of interest rates by the Central Bankto combat inflationary pressures. New president DA SILVA, who tookoffice 1 January 2003, has given priority to reforming the complextax code, trimming the overblown civil service pension system, andcontinuing the fight against inflation.
British Indian Ocean Territory 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 Philippines, 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.
British Virgin IslandsThe economy, one of the most stable andprosperous in the Caribbean, is highly dependent on tourism,generating an estimated 45% of the national income. An estimated350,000 tourists, mainly from the US, visited the islands in 1998.Tourism suffered in 2002 because of the lackluster US economy. Inthe mid-1980s, the government began offering offshore registrationto companies wishing to incorporate in the islands, andincorporation fees now generate substantial revenues. Roughly400,000 companies were on the offshore registry by yearend 2000. Theadoption of a comprehensive insurance law in late 1994, whichprovides a blanket of confidentiality with regulated statutorygateways for investigation of criminal offenses, is expected to makethe British Virgin Islands even more attractive to internationalbusiness. Livestock raising is the most important agriculturalactivity; poor soils limit the islands' ability to meet domesticfood requirements. Because of traditionally close links with the USVirgin Islands, the British Virgin Islands has used the dollar asits currency since 1959.
BruneiThis small, wealthy economy encompasses a mixture of foreignand domestic entrepreneurship, government regulation, welfaremeasures, and village tradition. Crude oil and natural gasproduction account for nearly half of GDP. Per capita GDP is farabove most other Third World countries, and substantial income fromoverseas investment supplements income from domestic production. Thegovernment provides for all medical services and subsidizes rice andhousing. Brunei's leaders are concerned that steadily increasedintegration in the world economy will undermine internal socialcohesion, although it became a more prominent player by serving aschairman for the 2000 APEC (Asian Pacific Economic Cooperation)forum. Plans for the future include upgrading the labor force,reducing unemployment, strengthening the banking and touristsectors, and, in general, further widening the economic base beyondoil and gas.
BulgariaBulgaria, a former communist country striving to enter theEuropean Union, has experienced macroeconomic stability and stronggrowth since a major economic downturn in 1996 led to the fall ofthe then socialist government. As a result, the government becamecommitted to economic reform and responsible fiscal planning. A $300million stand-by agreement negotiated with the IMF at the end of2001 has supported government efforts to overcome high rates ofpoverty and unemployment.
Burkina FasoOne of the poorest countries in the world, landlockedBurkina Faso has few natural resources, a fragile soil, and a highlyunequal distribution of income. About 90% of the population isengaged in (mainly subsistence) agriculture, which is vulnerable tovariations in rainfall. Industry remains dominated by unprofitablegovernment-controlled corporations. Following the African franccurrency devaluation in January 1994 the government updated itsdevelopment program in conjunction with international agencies, andexports and economic growth have increased. Maintenance ofmacroeconomic progress depends on continued low inflation, reductionin the trade deficit, and reforms designed to encourage privateinvestment. The internal crisis in neighboring Cote d'Ivoirecontinues to hurt trade and industrial prospects and deepens theneed for international assistance.
BurmaBurma is a resource-rich country that suffers from abjectrural poverty. The military regime took steps in the early 1990s toliberalize the economy after decades of failure under the "BurmeseWay to Socialism", but those efforts have since stalled. Burma hasbeen unable to achieve monetary or fiscal stability, resulting in aneconomy that suffers from serious macroeconomic imbalances -including a steep inflation rate and an official exchange rate thatovervalues the Burmese kyat by more than 100 times the market rate.In addition, most overseas development assistance ceased after thejunta suppressed the democracy movement in 1988 and subsequentlyignored the results of the 1990 election. Burma is data poor, andofficial statistics are often dated and inaccurate. Publishedestimates of Burma's foreign trade are greatly understated becauseof the size of the black market and border trade - often estimatedto be one to two times the official economy.
BurundiBurundi is a landlocked, resource-poor country with anunderdeveloped manufacturing sector. The economy is predominantlyagricultural with roughly 90% of the population dependent onsubsistence agriculture. Economic growth depends on coffee and teaexports, which account for 90% of foreign exchange earnings. Theability to pay for imports, therefore, rests primarily on weatherconditions and international coffee and tea prices. The Tutsiminority, 14% of the population, dominates the government and thecoffee trade at the expense of the Hutu majority, 85% of thepopulation. Since October 1993 an ethnic-based war has resulted inthe death of over 200,000 persons, sent 800,000 refugees intoTanzania, and displaced 525,000 others internally. Doubts about theprospects for sustainable peace continue to impede development. Onlyone in two children go to school, and approximately one in tenadults has HIV/AIDS. Food, medicine, and electricity remain in shortsupply.
CambodiaCambodia's economy slowed dramatically in 1997-1998 due tothe regional economic crisis, civil violence, and politicalinfighting. Foreign investment and tourism fell off. In 1999, thefirst full year of peace in 30 years, progress was made on economicreforms and growth resumed at 5.0%. Despite severe flooding, GDPgrew at 5.0% in 2000, 6.3% in 2001, and 5.2% in 2002. Tourism wasCambodia's fastest growing industry, with arrivals up 34% in 2000and up another 40% in 2001 before the September 11, 2001 terroristattacks in the US. Even given these stout growth estimates, thelong-term development of the economy after decades of war remains adaunting challenge. The population lacks education and productiveskills, particularly in the poverty-ridden countryside, whichsuffers from an almost total lack of basic infrastructure. Fear ofrenewed political instability and corruption within the governmentdiscourage foreign investment and delay foreign aid. The governmentis addressing these issues with assistance from bilateral andmultilateral donors.
CameroonBecause of its oil resources and favorable agriculturalconditions, Cameroon has one of the best-endowed primary commodityeconomies in sub-Saharan Africa. Still, it faces many of the seriousproblems facing other underdeveloped countries, such as a top-heavycivil service and a generally unfavorable climate for businessenterprise. Since 1990, the government has embarked on various IMFand World Bank programs designed to spur business investment,increase efficiency in agriculture, improve trade, and recapitalizethe nation's banks. In June 2000, the government completed anIMF-sponsored, three-year structural adjustment program; however,the IMF is pressing for more reforms, including increased budgettransparency, privatization, and poverty reduction programs.International oil and cocoa prices have considerable impact on theeconomy.
CanadaAs an affluent, high-tech industrial society, Canada todayclosely resembles the US in its market-oriented economic system,pattern of production, and high living standards. Since World WarII, the impressive growth of the manufacturing, mining, and servicesectors has transformed the nation from a largely rural economy intoone primarily industrial and urban. The 1989 US-Canada Free TradeAgreement (FTA) and the 1994 North American Free Trade Agreement(NAFTA) (which includes Mexico) touched off a dramatic increase intrade and economic integration with the US. As a result of the closecross-border relationship, the economic sluggishness in the UnitedStates in 2001-02 had a negative impact on the Canadian economy.Real growth averaged nearly 3% during 1993-2000, but declined in2001, with moderate recovery in 2002. Unemployment is up, withcontraction in the manufacturing and natural resource sectors.Nevertheless, given its great natural resources, skilled laborforce, and modern capital plant Canada enjoys solid economicprospects. Two shadows loom, the first being the continuingconstitutional impasse between English- and French-speaking areas,which has been raising the specter of a split in the federation.Another long-term concern is the flow south to the US ofprofessionals lured by higher pay, lower taxes, and the immensehigh-tech infrastructure. A key strength in the economy is thesubstantial trade surplus.
Cape VerdeThis island economy suffers from a poor natural resourcebase, including serious water shortages exacerbated by cycles oflong-term drought. The economy is service-oriented, with commerce,transport, tourism, and public services accounting for 72% of GDP.Although nearly 70% of the population lives in rural areas, theshare of agriculture in GDP in 2001 was only 11%, of which fishingaccounts for 1.5%. About 82% of food must be imported. The fishingpotential, mostly lobster and tuna, is not fully exploited. CapeVerde annually runs a high trade deficit, financed by foreign aidand remittances from emigrants; remittances supplement GDP by morethan 20%. Economic reforms are aimed at developing the privatesector and attracting foreign investment to diversify the economy.Prospects for 2003 depend heavily on the maintenance of aid flows,tourism, remittances, and the momentum of the government'sdevelopment program.
Cayman IslandsWith no direct taxation, the islands are a thrivingoffshore financial center. More than 40,000 companies wereregistered in the Cayman Islands as of 1998, including almost 600banks and trust companies; banking assets exceed $500 billion. Astock exchange was opened in 1997. Tourism is also a mainstay,accounting for about 70% of GDP and 75% of foreign currencyearnings. The tourist industry is aimed at the luxury market andcaters mainly to visitors from North America. Total tourist arrivalsexceeded 1.2 million in 1997, with 600,000 from the US. About 90% ofthe islands' food and consumer goods must be imported. TheCaymanians enjoy one of the highest outputs per capita and one ofthe highest standards of living in the world.
Central African RepublicSubsistence agriculture, together withforestry, remains the backbone of the economy of the Central AfricanRepublic (CAR), with more than 70% of the population living inoutlying areas. The agricultural sector generates half of GDP.Timber has accounted for about 16% of export earnings and thediamond industry for 54%. Important constraints to economicdevelopment include the CAR's landlocked position, a poortransportation system, a largely unskilled work force, and a legacyof misdirected macroeconomic policies. Factional fighting betweenthe government and its opponents remains a drag on economicrevitalization, with GDP growth likely to be no more than 1.3% in2003. Distribution of income is extraordinarily unequal. Grants fromFrance and the international community can only partially meethumanitarian needs.
ChadChad's primarily agricultural economy will continue to beboosted by major oilfield and pipeline projects that began in 2000.Over 80% of Chad's population relies on subsistence farming andstock raising for its livelihood. Cotton, cattle, and gum arabicprovide the bulk of Chad's export earnings, but Chad will begin toexport oil in 2004. Chad's economy has long been handicapped by itslandlocked position, high energy costs, and a history ofinstability. Chad relies on foreign assistance and foreign capitalfor most public and private sector investment projects. A consortiumled by two US companies has been investing $3.7 billion to developoil reserves estimated at 1 billion barrels in southern Chad. Oilproduction is scheduled to come on stream in late 2003.
ChileChile has a market-oriented economy characterized by a highlevel of foreign trade. During the early 1990s, Chile's reputationas a role model for economic reform was strengthened when thedemocratic government of Patricio AYLWIN - which took over from themilitary in 1990 - deepened the economic reform initiated by themilitary government. Growth in real GDP averaged 8% during 1991-97,but fell to half that level in 1998 because of tight monetarypolicies implemented to keep the current account deficit in checkand because of lower export earnings - the latter a product of theglobal financial crisis. A severe drought exacerbated the recessionin 1999, reducing crop yields and causing hydroelectric shortfallsand electricity rationing, and Chile experienced negative economicgrowth for the first time in more than 15 years. Despite the effectsof the recession, Chile maintained its reputation for strongfinancial institutions and sound policy that have given it thestrongest sovereign bond rating in South America. By the end of1999, exports and economic activity had begun to recover, and growthrebounded to 4.4% in 2000. Growth fell back to 2.8% in 2001 and 1.8%in 2002, largely due to lackluster global growth and the devaluationof the Argentine peso. Unemployment remains stubbornly high, puttingpressure on President LAGOS to improve living standards. One brightspot was the signing of a free trade agreement with the US, whichwill take effect on 1 January 2004.
China In late 1978 the Chinese leadership began moving the economy from a sluggish, Soviet-style centrally planned economy to a more market-oriented system. Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state organizations and individual citizens has been steadily increasing. The authorities switched to a system of household and village responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprises in services and light manufacturing, and opened the economy to increased foreign trade and investment. The result has been a quadrupling of GDP since 1978. In 2003, with its 1.3 billion people but a GDP of just $5,000 per capita, China stood as the second-largest economy in the world after the US (measured on a purchasing power parity basis). Agriculture and industry have posted major gains, especially in coastal areas near Hong Kong and opposite Taiwan, 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 (windfall gains and growing income disparities). China thus has periodically backtracked, retightening central controls at intervals. The government has struggled to (a) collect revenues due from provinces, businesses, and individuals; (b) reduce corruption and other economic crimes; and (c) keep afloat the large state-owned enterprises, many of which had been shielded from competition by 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 in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to maintaining long-term growth in living standards. Another long-term threat to growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. China 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 control and power grids - and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers. Accession to the World Trade Organization helps strengthen China's 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. China has benefited from a huge expansion in computer internet use. Foreign investment remains a strong element in China's remarkable economic growth.
Christmas IslandPhosphate mining had been the only significanteconomic activity, but in December 1987 the Australian Governmentclosed the mine. In 1991, the mine was reopened. With the support ofthe government, a $34 million casino opened in 1993. The casinoclosed in 1998. The Australian Government in 2001 agreed to supportthe creation of a commercial space-launching site on the island,slated to begin operation in 2003.
Clipperton IslandAlthough 115 species of fish have been identifiedin the territorial waters of Clipperton Island, the only economicactivity is tuna fishing.
Cocos (Keeling) IslandsGrown throughout the islands, coconuts arethe sole cash crop. Small local gardens and fishing contribute tothe food supply, but additional food and most other necessities mustbe imported from Australia. There is a small tourist industry.
ColombiaColombia's economy suffers from weak domestic and foreigndemand, austere government budgets, and serious internal armedconflict. Other economic problems facing the new president URIBErange from reforming the pension system to reducing highunemployment. Two of Colombia's leading exports, oil and coffee,face an uncertain future; new exploration is needed to offsetdeclining oil production, while coffee harvests and prices aredepressed. Colombian business leaders are calling for greaterprogress in solving the conflict with insurgent groups. On thepositive side, several international financial institutions havepraised the economic reforms introduced by President URIBE and havepledged enough funding to cover Colombia's debt servicing costs in2003.
ComorosOne of the world's poorest countries, Comoros is made up ofthree islands that have inadequate transportation links, a young andrapidly increasing population, and few natural resources. The loweducational level of the labor force contributes to a subsistencelevel of economic activity, high unemployment, and a heavydependence on foreign grants and technical assistance. Agriculture,including fishing, hunting, and forestry, contributes 40% to GDP,employs 80% of the labor force, and provides most of the exports.The country is not self-sufficient in food production; rice, themain staple, accounts for the bulk of imports. The government -which is hampered by internal political disputes - is struggling toupgrade education and technical training, to privatize commercialand industrial enterprises, to improve health services, to diversifyexports, to promote tourism, and to reduce the high populationgrowth rate. Increased foreign support is essential if the goal of4% annual GDP growth is to be met. Remittances from 150,000 Comoransabroad help supplement GDP.
Congo, Democratic Republic of theThe economy of the DemocraticRepublic of the Congo - a nation endowed with vast potential wealth- has declined drastically since the mid-1980s. The war, which beganin August 1998, has dramatically reduced national output andgovernment revenue, has increased external debt, and has resulted inthe deaths from war, famine, and disease of perhaps 3.5 millionpeople. Foreign businesses have curtailed operations due touncertainty about the outcome of the conflict, lack ofinfrastructure, and the difficult operating environment. The war hasintensified the impact of such basic problems as an uncertain legalframework, corruption, inflation, and lack of openness in governmenteconomic policy and financial operations. Conditions improved inlate 2002 with the withdrawal of a large portion of the invadingforeign troops. A number of IMF and World Bank missions have metwith the government to help it develop a coherent economic plan, andPresident KABILA has begun implementing reforms. Much economicactivity lies outside the GDP data.
Congo, Republic of theThe economy is a mixture of villageagriculture and handicrafts, an industrial sector based largely onoil, support services, and a government characterized by budgetproblems and overstaffing. Oil has supplanted forestry as themainstay of the economy, providing a major share of governmentrevenues and exports. In the early 1980s, rapidly rising oilrevenues enabled the government to finance large-scale developmentprojects with GDP growth averaging 5% annually, one of the highestrates in Africa. The government has mortgaged a substantial portionof its oil earnings, contributing to a shortage of revenues. The 12January 1994 devaluation of Franc Zone currencies by 50% resulted ininflation of 61% in 1994, but inflation has subsided since. Economicreform efforts continued with the support of internationalorganizations, notably the World Bank and the IMF. The reformprogram came to a halt in June 1997 when civil war erupted. DenisSASSOU-NGUESSO, who returned to power when the war ended in October1997, publicly expressed interest in moving forward on economicreforms and privatization and in renewing cooperation withinternational financial institutions. However, economic progress wasbadly hurt by slumping oil prices and the resumption of armedconflict in December 1998, which worsened the republic's budgetdeficit. The current administration presides over an uneasy internalpeace and faces difficult economic problems of stimulating recoveryand reducing poverty.