Guernseynone
GuineaLabor Union of Guinean Workers - National Confederation ofGuinean Workers or USTG-NCTG Alliance [Ibrahima FOFANA]; Student andteacher unions
Guinea-BissauNA
GuyanaAmerindian People's Association; Guyana Citizens Initiative;Guyana Bar Association; Guyana Human Rights Association; GuyanaPublic Service Union or GPSU; Private Sector Commission; TradesUnion Congress
HaitiAutonomous Organizations of Haitian Workers or CATH [FignoleST-CYR]; Confederation of Haitian Workers or CTH; Federation ofWorkers Trade Unions or FOS; General Organization of IndependentHaitian Workers [Patrick NUMAS]; Grand-Anse Resistance Committee, orKOREGA; National Popular Assembly or APN; Papaye Peasants Movementor MPP [Chavannes JEAN-BAPTISTE]; Popular Organizations GatheringPower or PROP; Roman Catholic Church; Protestant Federation of Haiti
Holy See (Vatican City)none (exclusive of influence exercised bychurch officers)
HondurasCommittee for the Defense of Human Rights in Honduras orCODEH; Confederation of Honduran Workers or CTH; CoordinatingCommittee of Popular Organizations or CCOP; General WorkersConfederation or CGT; Honduran Council of Private Enterprise orCOHEP; National Association of Honduran Campesinos or ANACH;National Union of Campesinos or UNC; Popular Bloc or BP; UnitedConfederation of Honduran Workers or CUTH
Hong KongChinese General Chamber of Commerce (pro-China); ChineseManufacturers' Association of Hong Kong; Confederation of TradeUnions or CTU (pro-democracy) [LAU Chin-shek, president; LEECheuk-yan, general secretary]; Federation of Hong Kong Industries;Federation of Trade Unions or FTU (pro-China) [CHENG Yiu-tong,executive councilor]; Hong Kong Alliance in Support of the PatrioticDemocratic Movement in China [Szeto WAH, chairman]; Hong Kong andKowloon Trade Union Council (pro-Taiwan); Hong Kong General Chamberof Commerce; Hong Kong Professional Teachers' Union [CHEUNGMan-kwong, president]; Neighborhood and Workers' Service Center orNWSC (pro-democracy); The Alliance [Bernard CHAN, exco member]
HungaryNA
IcelandNA
Indianumerous religious or militant/chauvinistic organizations,including Vishwa Hindu Parishad, Bajrang Dal, and RashtriyaSwayamsevak Sangh; various separatist groups seeking greatercommunal and/or regional autonomy, including the All PartiesHurriyat Conference in the Kashmir Valley and the National SocialistCouncil of Nagaland in the Northeast
IndonesiaNA
Iranpolitical pressure groups conduct most of Iran's politicalactivities; groups that generally support the Islamic Republicinclude Ansar-e Hizballah, Muslim Students Following the Line of theImam, Tehran Militant Clergy Association (Ruhaniyat), IslamicCoalition Party (Motalefeh), and Islamic Engineers Society; activepro-reform student groups include the Office of Strengthening Unity(OSU); opposition groups include Freedom Movement of Iran, theNational Front, Marz-e Por Gohar, and various ethnic and Monarchistorganizations; armed political groups that have been almostcompletely repressed by the government include Mujahidin-e KhalqOrganization (MEK), People's Fedayeen, Democratic Party of IranianKurdistan, and Komala
Iraqan insurgency against the Government of Iraq and Coalitionforces is primarily concentrated in Baghdad and in areas north,northeast, and west of the capital; the diverse, multigroupinsurgency consists principally of Sunni Arabs whose only commondenominator is a shared desire to oust the Coalition and end USinfluence in Iraq; a number of predominantly Shia militias, some ofwhich are associated with political parties, challenge governmentalauthority in Baghdad and southern Iraq
IrelandNA
Isle of Mannone
IsraelIsraeli nationalists advocating Jewish settlement on the WestBank and Gaza Strip; Peace Now [Yariv OPPENHEIMER, SecretaryGeneral]supports territorial concessions in the West Bank and GazaStrip; Yesha Council of Settlements [Bentzi LIEBERMAN, Chairman]promotes settler interests and opposes territorial compromise;B'Tselem monitors human rights abuses
ItalyItalian manufacturers and merchants associations(Confindustria, Confcommercio); organized farm groups(Confcoltivatori, Confagricoltura); Roman Catholic Church; threemajor trade union confederations (Confederazione Generale Italianadel Lavoro or CGIL [Guglielmo EPIFANI] which is left wing,Confederazione Italiana dei Sindacati Lavoratori or CISL [SavinoPEZZOTTA], which is Roman Catholic centrist, and Unione Italiana delLavoro or UIL [Luigi ANGELETTI] which is lay centrist)
JamaicaNew Beginnings Movement or NBM; Rastafarians (blackreligious/racial cultists, pan-Africanists)
JapanNA
Jerseynone
JordanAnti-Normalization Committee [Ali Abu SUKKAR, president vicechairman]; Jordan Bar Association [Hussein Mujalli, chairman];Jordanian Press Association [Sayf al-SHARIF, president]; MuslimBrotherhood [Salem AL-FALAHAT, controller general]
KazakhstanAdil-Soz [Tamara KALEYEVA]; Almaty Helsinki Group [NinelFOKINA]; Confederation of Free Trade Unions [Sergei BELKIN]; For aJust Kazakhstan [Bolat ABILOV]; For Fair Elections [YevgeniyZHOVTIS, Sabit ZHUSUPOV, Sergey DUVANOV, Ibrash NUSUPBAYEV];Kazakhstan International Bureau on Human Rights [Yevgeniy ZHOVTIS,executive director]; Pan-National Social Democratic Party ofKazakhstan [Zharmakhan TUYAKBAI]; Pensioners Movement or Pokoleniye[Irina SAVOSTINA, chairwoman]; Republican Network of InternationalMonitors [Dos KUSHIM]; Transparency International [Sergei ZLOTNIKOV]
Kenyahuman rights groups; labor unions; Muslim organizations;National Convention Executive Council or NCEC, a proreform coalitionof political parties and nongovernment organizations [Ndung'uWAINANA]; Protestant National Council of Churches of Kenya or NCCK[Mutava MUSYIMI]; Roman Catholic and other Christian churches;Supreme Council of Kenya Muslims or SUPKEM [Shaykh Abdul Gafural-BUSAIDY]
KiribatiNA
Korea, Northnone
Korea, SouthFederation of Korean Industries; Federation of KoreanTrade Unions; Korean Confederation of Trade Unions; Korean NationalCouncil of Churches; Korean Traders Association; Korean Veterans'Association; National Council of Labor Unions; National DemocraticAlliance of Korea; National Federation of Farmers' Associations;National Federation of Student Associations
Kuwaita number of political groups act as de facto parties; severallegislative blocs operate in the National Assembly: tribal groups,merchants, Shi'a activists, Islamists, and secular liberals; inmid-2006, a coalition of Islamists, liberals, and Shia campaignedsuccessfully for electoral reform to reduce corruption
KyrgyzstanAdilet Legal Clinic [Cholpon JAKUPOVA]; Coalition forDemocracy and Civil Society [Edil BAISALOV]; For Reforms [OmurbekTEKEBAYEV and Almazbek ATAMBAYEV]; Interbilim [Asiya SASYKBAYEVA]
Laosnoncommunist political groups proscribed; most oppositionleaders fled the country in 1975
LatviaHeadquarters for the Protection of Russian Schools (SHTAB)[Aleksandr KAZAKOV]
Lebanonnone
LesothoNA
LiberiaDemobilized former military officers
Libyavarious Arab nationalist movements with almost negligiblememberships may be functioning clandestinely, as well as someIslamic elements; an anti-QADHAFI Libyan exile movement exists,primarily based in London, but has little influence
LiechtensteinNA
LithuaniaNA
LuxembourgABBL (bankers' association); ALEBA (financial sectortrade union); Centrale Paysanne (federation of agriculturalproducers); CEP (professional sector chamber); CGFP (trade unionrepresenting civil service); Chambre de Commerce (Chamber ofCommerce); Chambre des Metiers (Chamber of Artisans); FEDIL(federation of industrialists); Greenpeace (environment protection);LCGP (center-right trade union); Mouvement Ecologique (protection ofecology); OGBL (center-left trade union)
MacauNA
MacedoniaFederation of Free Trade Unions [Svetlana PETROVIC];Federation of Trade Unions [Vanco MURATOVSKI]; World MacedonianCongress [Todor PETROV]
MadagascarCommittee for the Defense of Truth and Justice or KMMR;Committee for National Reconciliation or CRN [Albert Zafy]; NationalCouncil of Christian Churches or FFKM
MalawiNA
MalaysiaNA
Maldivesvarious unregistered political parties
MaliAlliance for Democratic Change or ACD; Patriotic Movement ofthe Ghanda Koye or MPGK; United Movement and Fronts of Azawad or MFUA
MaltaNA
Marshall IslandsNA
MauritaniaArab nationalists; Ba'thists; General Confederation ofMauritanian Workers or CGTM [Abdallahi Ould MOHAMED, secretarygeneral]; Independent Confederation of Mauritanian Workers or CLTM[Samory Ould BEYE]; Islamists; Mauritanian Workers Union or UTM[Mohamed Ely Ould BRAHIM, secretary general]
Mauritiusvarious labor unions
MayotteNA
MexicoBroad Progressive Front or FAP; Businessman's CoordinatingCouncil or CCE; Confederation of Employers of the Mexican Republicor COPARMEX; 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 Small Business Chamber or CANACOPE; National Syndicate ofEducation Workers or SNTE; National Union of Workers or UNT; PopularAssembly of the People of Oaxaca or APPO; 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, a.k.a.PRACHANDA, chairman; Dr. Baburam BHATTARAI, deputy]; numerous small,left-leaning student groups in the capital; several small, radicalNepalese antimonarchist groups
NetherlandsNetherlands Trade Union Federation or FNV (consisting ofa merger of Socialist and Catholic trade unions); Christian TradeUnion Federation or CNV; Trade Union Federation of Middle and HighPersonnel or MHP; Federation of Catholic and Protestant EmployersAssociations; Interchurch Peace Council or IKV; large multinationalfirms; the nondenominational Federation of Netherlands Enterprises
Netherlands AntillesUnions (AVBO) and Employers Association (VBC)
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
NigerCoalition Against a High Cost of Living [Nouhou ARZIKA]
NigeriaNA
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 Council of PrivateEnterprise or CONEP; National Union of Construction and SimilarWorkers (SUNTRACS); Panamanian Association of Business Executives orAPEDE; Panamanian Industrialists Society or SIP; WorkersConfederation of the Republic of Panama or CTRP
Papua New GuineaNA
ParaguayAhorristas Estafados or AE; National Coordinating Board ofCampesino Organizations or MCNOC [Luis AGUAYO]; National Federationof Campesinos or FNC [Odilon ESPINOLA]; National Workers Central orCNT [Secretary General Juan TORRALES]; Paraguayan WorkersConfederation or CPT; Roman Catholic Church; Unitary Workers Centralor CUT [Jorge Guzman ALVARENGA Malgarejo]
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)]
PhilippinesAKBAYAN [Reps. Etta ROSALES, Mario AGUJA, and RisaHONTIVEROS-BARAQUIEL]; ALAGAD [Rep. Rodante MARROLITA]; ALIF [Rep.Acmad TOMAWIS]; An Waray [Rep. Horencio NOEL]; Anak Mindanao [MujivHATAMIN]; ANAKPAWIS [Reps. Crispin BELTRAN and Rafael MARIANO]; APEC[Reps. Ernesto PABLO, Edgar VALDEZ]; Association of PhilippineElectric Cooperatives (APEC) [Reps. Edgar VALDEZ, Ernesto PABLO, andSunny Rose MADAMBA]; AVE [Rep. Eulogio MAGSAYSAY]; Bayan Muna [Reps.Satur OCAMPO, Joel VIRADOR, and Teodoro CASINO, Jr.]; BUHAY [Reps.Rene VELARDE and Hans Christian SENERES]; BUTIL [Rep. BenjaminCRUZ]; CIBAC [Rep. Emmanuel Joel VILLANUEVA]; COOP-NATCO [Rep.Guillermo CUA]; GABRIELA [Rep. Liza MAZA]; Partido Ng Manggagawa[Rep. Renato MAGTUBO]; Veterans Federation of the Philippines [Rep.Ernesto GIDAYA] (2006)
Pitcairn Islandsnone
PolandAll Poland Trade Union Alliance or OPZZ (trade union) [JanGUZ]; Roman Catholic Church [Cardinal Jozef GLEMP]; Solidarity TradeUnion [Janusz SNIADEK]
PortugalNA
Puerto RicoBoricua Popular Army or EPB (a revolutionary group alsoknown as Los Macheteros); note - the following radical groups areconsidered dormant by Federal law enforcement: Armed Forces forNational Liberation or FALN, Armed Forces of Popular Resistance,Volunteers of the Puerto Rican Revolution
Qatarnone
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
SeychellesRoman Catholic Church; trade unions
Sierra Leonetrade unions and student unions
SingaporeNA
SlovakiaFederation of Employers' Associations of the SlovakRepublic; Association of Towns and Villages or ZMOS; Confederationof Trade Unions or KOZ; National Union of Employers or RUZ; SlovakChamber of Commerce and Industry or SOPK; Entrepreneurs Associationof Slovakia or ZPS; The Business Alliance of Slovakia or PAS
SloveniaNA
Solomon IslandsIsatabu Freedom Movement (IFM); Malaita Eagle Force(MEF); note - these rival armed ethnic factions crippled the SolomonIslands in a wave of violence from 1999 to 2003
Somalianumerous clan and sub-clan factions are currently vying forpower; Supreme Council of Islamic Courts (SCIC)
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; Trade Union Confederation of Workers'Commissions or CC.OO.
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
SudanUmma Party [Sadiq al-MAHDI]; Popular Congress Party or PCP[Hassan al-TURABI]
SurinameAssociation of Indigenous Village Chiefs [Ricardo PANE];Association of Saramaccan Authorities or Maroon [Head Captain WASE];Women's Parliament Forum or PVF [Iris GILLIAD]
SwazilandNA
SwedenNA
SwitzerlandNA
SyriaDamascus Declaration [Riyad SEIF, secretary general] (a broadalliance of opposition groups including: Committee for Revival ofCivil Society [Michel KILO, Riyad SEIF]; Kurdish DemocraticAlliance; Kurdish Democratic Front; National Democratic Front;Syrian Human Rights Society or HRAS [Fawed FAWUZ]); NationalSalvation Front (alliance between former Vice President Abd al-HalimKHADDAM, the SMB, and other small opposition groups); Syrian MuslimBrotherhood or SMB [Sadr al-Din al-BAYANUNI]; (operates in exile inLondon; endorsed the Damascus Declaration but is not an officialmember)
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 the islandcurrently enjoys sovereign independence and - whatever the ultimateoutcome regarding reunification or independence - that Taiwan'speople must have the deciding voice; public opinion pollsconsistently show a substantial majority of Taiwan people supportsmaintaining Taiwan's status quo for the foreseeable future;advocates of Taiwan independence oppose the stand that the islandwill eventually unify with mainland China; goals of the Taiwanindependence movement include establishing a sovereign nation onTaiwan and entering the UN; other organizations supporting Taiwanindependence include the World United Formosans for Independence andthe Organization for Taiwan Nation Building
Tajikistanunregistered political parties: Agrarian Party[Hikmatullo NASREDDINOV]; Party of Justice [Abdurahim KARIMOV];People's Unity Party [Abdumalik ABDULLOJONOV]; Progressive Party[Sulton QUVVATOV]; Socialist Party [Mirhuseyn NAZRIYEV]; note - thisis the SPT that was disbanded, another pro-government SPT (listedabove under political parties) replaced it; Unity Party [HikmatulloSAIDOV]
TanzaniaNA
ThailandNA
TogoNA
Tokelaunone
TongaHuman Rights and Democracy Movement Tonga or HRDMT [Rev.Simote VEA, chairman]; Public Servant's Association [Finau TUTONE]
Trinidad and TobagoJamaat-al Muslimeen [Yasin BAKR]
Tunisia18 October Group [collective leadership]; Democratic Forumfor Labor and Liberties or FDTL [Mustapha Ben JAFAAR]; TunisianLeague for Human Rights or LTDH [Mokhtar TRIFI]; note - the Islamicfundamentalist party, Al Nahda (Renaissance), is outlawed
TurkeyConfederation of Public Sector Unions or KESK [Ismail HakkiTOMBUL]; Confederation of Revolutionary Workers Unions or DISK[Suleyman CELEBI]; Independent Industrialists' and Businessmen'sAssociation or MUSIAD [Omer BOLAT]; Moral Rights Workers Union orHak-Is [Salim USLU]; Turkish Confederation of Employers' Unions orTISK [Tugurl KUDATGOBILIK]; Turkish Confederation of Labor orTurk-Is [Salih KILIC]; Turkish Confederation of Tradesmen andCraftsmen or TESK [Dervis GUNDAY]; Turkish Industrialists' andBusinessmen's Association or TUSIAD [Omer SABANCI]; Turkish Union ofChambers of Commerce and Commodity Exchanges or TOBB [M. RifatHISARCIKLIOGLU]
TurkmenistanNA
Turks and Caicos IslandsNA
Tuvalunone
UgandaPopular Resistance Against a Life President or PRALP
UkraineCommittee of Voters of Ukraine [Ihor POPOV]; Peoples'Self-Defense [Yuriy LUTSENKO]; Ne Tak [Leonid KRAVCHUK]
United Arab EmiratesNA
United KingdomCampaign for Nuclear Disarmament; Confederation ofBritish Industry; National Farmers' Union; Trades Union Congress
United StatesNA
UruguayArchitect's Society of Uruguay (professional organization);Catholic Church; Chamber of Uruguayan Industries (manufacturer'sassociation); Chemist and Pharmaceutical Association (professionalorganization); PIT-CNT (powerful federation of Uruguayan unions);Rural Association of Uruguay (rancher's association); students;Uruguayan Construction League
UzbekistanAgrarian and Entrepreneurs' Party [Marat ZAHIDOV]; Birlik(Unity) Movement [Abdurakhim POLAT, chairman]; Committee for theProtection of Human Rights [Marat ZAHIDOV]; Erk (Freedom) DemocraticParty [Muhammad SOLIH, chairman] was banned 9 December 1992; EzgulikHuman Rights Society [Vasila INOYATOVA]; Free Farmers' Party or OzodDehqonlar [Nigora KHIDOYATOVA]; Human Rights Society of Uzbekistan[Talib YAKUBOV, chairman]; Independent Human Rights Organization ofUzbekistan [Mikhail ARDZINOV, chairman]; Mazlum; Sunshine Coalition[Sanjar UMAROV, chairman]
VanuatuNA
VenezuelaFEDECAMARAS, a conservative business group; VECINOSgroups; Venezuelan Confederation of Workers or CTV (labororganization dominated by the Democratic Action)
Vietnam8406 Bloc; Democratic Party of Vietnam or DPV; People'sDemocratic Party Vietnam or PDP-VN; Alliance for Democracy; groupsadvocate for democracy, are not recognized by government (2006)
Virgin IslandsNA
Wallis and FutunaNA
Western Saharanone
YemenNA
ZambiaNA
ZimbabweCrisis in Zimbabwe Coalition [Wellington CHIBEBE]; NationalConstitutional Assembly or NCA [Lovemore MADHUKU]; Zimbabwe Congressof Trade Unions or ZCTU [Lovemore MATOMBO]
This page was last updated on 8 February, 2007
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@2116 Economy - overview
AfghanistanAfghanistan's economy is recovering from decades ofconflict. The economy has improved significantly since the fall ofthe Taliban regime in 2001 largely because of the infusion ofinternational assistance, the recovery of the agricultural sector,and service sector growth. Real GDP growth probably exceeded 8% in2006. Despite the progress of the past few years, Afghanistan isextremely poor, landlocked, and highly dependent on foreign aid,agriculture, and trade with neighboring countries. Much of thepopulation continues to suffer from shortages of housing, cleanwater, electricity, medical care, and jobs. Criminality, insecurity,and the Afghan Government's inability to extend rule of law to allparts of the country pose challenges to future economic growth. Itwill probably take the remainder of the decade and continuing donoraid and attention to significantly raise Afghanistan's livingstandards from its current status, among the lowest in the world.While the international community remains committed to Afghanistan'sdevelopment, pledging over $24 billion at three donors' conferencessince 2002, Kabul will need to overcome a number of challenges.Expanding poppy cultivation and a growing opium trade generateroughly $3 billion in illicit economic activity and looms as one ofKabul's most serious policy concerns. Other long-term challengesinclude: budget sustainability, job creation, corruption, governmentcapacity, and rebuilding war torn infrastructure.
AkrotiriEconomic activity is limited to providing services to themilitary and their families located in Akrotiri. All food andmanufactured goods must be imported.
AlbaniaLagging behind its Balkan neighbors, Albania is making thedifficult transition to a more modern open-market economy. Thegovernment has taken measures to curb violent crime and reduce thelarge grey economy. The economy is bolstered by annual remittancesfrom abroad of $600-$800 million, mostly from Albanians residing inGreece and Italy; this helps offset the towering trade deficit.Agriculture, which accounts for about one-quarter of GDP, is heldback because of lack of modern equipment, unclear property rights,and the prevalence of small, inefficient plots of land. Energyshortages and antiquated and inadequate infrastructure contribute toAlbania's poor business environment, which make it difficult toattract and sustain foreign investment. The planned construction ofa new thermal power plant near Vlore and improved transmission anddistribution facilities eventually will help relieve the energyshortages. Also, the government is moving slowly to improve the poornational road and rail network, a long-standing barrier to sustainedeconomic growth. On the positive side: growth was strong in 2003-06and inflation is low and stable.
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 seventh-largest reserves ofnatural gas in the world and is the second-largest gas exporter; itranks 14th in oil reserves. Sustained high oil prices in recentyears, along with macroeconomic policy reforms supported by the IMF,have helped improve Algeria's financial and macroeconomicindicators. Algeria is running substantial trade surpluses andbuilding up record foreign exchange reserves. Algeria has decreasedits external debt to less than 10% of GDP after repaying its ParisClub and London Club debt in 2006. Real GDP has risen due to higheroil output and increased government spending. The government'scontinued efforts to diversify the economy by attracting foreign anddomestic investment outside the energy sector, however, has hadlittle success in reducing high unemployment and improving livingstandards. Structural reform within the economy, such as developmentof the banking sector and the construction of infrastructure, movesahead slowly hampered by corruption and bureaucratic resistance.
American SamoaAmerican Samoa has a traditional Polynesian economyin which more than 90% of the land is communally owned. Economicactivity is strongly linked to the US with which American Samoaconducts most of its foreign trade. Tuna fishing and tuna processingplants are the backbone of the private sector, with canned tuna theprimary export. Transfers from the US Government add substantiallyto American Samoa's economic well being. Attempts by the governmentto develop a larger and broader economy are restrained by Samoa'sremote location, its limited transportation, and its devastatinghurricanes. Tourism is a promising developing sector.
AndorraTourism, the mainstay of Andorra's tiny, well-to-do economy,accounts for more than 80% of GDP. An estimated 11.6 milliontourists visit annually, attracted by Andorra's duty-free status andby its summer and winter resorts. Andorra's comparative advantagehas recently eroded as the economies of neighboring France and Spainhave been opened up, providing broader availability of goods andlower tariffs. The banking sector, with its partial "tax haven"status, also contributes substantially to the economy. Agriculturalproduction is limited - only 2% of the land is arable - and mostfood has to be imported. The principal livestock activity is sheepraising. Manufacturing output consists mainly of cigarettes, cigars,and furniture. 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's high growth rate is driven by its oil sector, withrecord oil prices and rising petroleum production. Oil productionand its supporting activities contribute about half of GDP and 90%of exports. Increased oil production supported 12% growth in 2004,19% growth in 2005, and nearly 17% growth in 2006. A postwarreconstruction boom and resettlement of displaced persons has led tohigh rates of growth in construction and agriculture as well. Muchof the country's infrastructure is still damaged or undeveloped fromthe 27-year-long civil war. Remnants of the conflict such aswidespread land mines still mar the countryside even though anapparently durable peace was established after the death of rebelleader Jonas SAVIMBI in February 2002. Subsistence agricultureprovides the main livelihood for half of the population, but half ofthe country's food must still be imported. In 2005, the governmentstarted using a $2 billion line of credit from China to rebuildAngola's public infrastructure, and several large-scale projectswere completed in 2006. The central bank in 2003 implemented anexchange rate stabilization program using foreign exchange reservesto buy kwanzas out of circulation, a policy that was moresustainable in 2005 because of strong oil export earnings, and hassignificantly reduced inflation. Consumer inflation declined from325% in 2000 to about 13% in 2006, but the stabilization policyplaces pressure on international net liquidity. To fully takeadvantage of its rich national resources - gold, diamonds, extensiveforests, Atlantic fisheries, and large oil deposits - Angola willneed to continue reforming government policies and to reducecorruption. The government has made little progress on reformsrecommended by the IMF such as promoting greater transparency ingovernment spending and continues to be without a formal monitoringagreement with the institution. Corruption, especially in theextractive sectors, is a major challenge facing Angola.
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 Antarctica's limited economic activity. Antarcticfisheries in 2003-04 (1 July-30 June) reported landing 136,262metric tons (estimated fishing from the area covered by theConvention on the Conservation of Antarctic Marine Living Resources(CCAMLR), which extends slightly beyond the Antarctic Treaty area).Unregulated fishing, particularly of Patagonian toothfish, is aserious problem. The CCAMLR determines the recommended catch limitsfor marine species. A total of 23,175 tourists visited in the2004-05 Antarctic summer, up from the 19,486 visitors the previousyear. Nearly all of them were passengers on commercial(nongovernmental) ships and several yachts that make trips duringthe summer. Most tourist trips last 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 and pressed the governmentinto a tight fiscal corner. The dual-island nation's agriculturalproduction is focused on the domestic market and constrained by alimited water supply and a labor shortage stemming from the lure ofhigher wages in tourism and construction. Manufacturing comprisesenclave-type assembly for export with major products being bedding,handicrafts, and electronic components. Prospects for economicgrowth in the medium term will continue to depend on income growthin the industrialized world, especially in the US, which accountsfor slightly more than one-third of tourist arrivals.
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. Although one of the world's wealthiestcountries 100 years ago, Argentina suffered during most of thetwentieth century from recurring economic crises, persistent fiscaland current account deficits, high inflation, mounting externaldebt, and capital flight. Beginning in 1998, with external debtequivalent to more than 400 percent of annual exports, economicgrowth slowed and ultimately fell into a full-blown depression, asinvestors' fears grew in the wake of Russia's debt default,political discord caused by then-President Carlos MENEM's unpopularefforts to run for a constitutionally prohibited third term, andBrazil's devaluation. The government of Fernando DE LA RUA, electedPresident in late 1999, tried several measures to cut the fiscaldeficit and instill confidence and received large IMF creditfacilities, but nothing worked to revive the economy. Depositorsbegan withdrawing money from the banks in late 2001, and thegovernment responded with strict limits on withdrawals. When streetprotests turned deadly, DE LA RUA was forced to resign in December2001. Interim President Adolfo Rodriguez SAA declared a default, thelargest in history, on Argentina's foreign debt, but he stepped downonly a few days later when he failed to garner political supportfrom the country's governors. Eduardo DUHALDE became President inJanuary 2002 and announced an end to the peso's decade-long 1-to-1peg to the US dollar. When the peso depreciated and inflation rose,DUHALDE's government froze utility tariffs indefinitely, curtailedcreditors' rights, and imposed high taxes on exports. The economyrebounded strongly from the crisis, inflation started falling, andDUHALDE called for special elections. Nestor KIRCHNER was electedPresident, taking office in May 2003, and continued the restrictionsimposed by DUHALDE. With the reemergence of double-digit inflationin 2005, the KIRCHNER administration pressured businesses into aseries of agreements to hold down prices. The government alsorestructured its defaulted debt in 2005, convincing most bondholdersto accept a large cut on the value of their holdings, and paid offits IMF obligations from reserves in full in early 2006, both ofwhich have reduced Argentina's external debt burden. Real GDP hascontinued growing strongly, averaging 9 percent during the period2003-2006, bolstering government revenues and keeping the fiscalaccounts-a key vulnerability in the past-in surplus.
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 economicliberalization program that resulted in positive growth rates in1995-2006. Armenia joined the WTO in January 2003. Armenia also hasmanaged to slash inflation, stabilize its currency, and privatizemost small- and medium-sized enterprises. Armenia's unemploymentrate, however, remains high, despite strong economic growth. Thechronic energy shortages Armenia suffered in the early and mid-1990shave been offset by the energy supplied by one of its nuclear powerplants at Metsamor. Armenia is now a net energy exporter, althoughit does not have sufficient generating capacity to replace Metsamor,which is under international pressure to close. The electricitydistribution system was privatized in 2002 and bought by Russia'sRAO-UES in 2005. Armenia's severe trade imbalance has been offsetsomewhat by international aid, remittances from Armenians workingabroad, and foreign direct investment. Economic ties with Russiaremain close, especially in the energy sector. The government madesome improvements in tax and customs administration in 2005, butanti-corruption measures will be more difficult to implement.Construction of a natural gas pipeline between Iran and Armenia hasbeen completed and it is scheduled to be commissioned by April 2007.Investment in the construction and industrial sectors is expected tocontinue in 2007 and will help to ensure annual average real GDPgrowth of more than 10%.
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. Over 1.5million tourists per year visit Aruba, with 75% of those from theUS. Construction continues to boom, with hotel capacity five timesthe 1985 level. In addition, the reopening of the country's oilrefinery in 1993, a major source of employment and foreign exchangeearnings, has further spurred growth. Tourist arrivals haverebounded strongly following a dip after the 11 September 2001attacks. The island experiences only a brief low season, and hoteloccupancy in 2004 averaged 80%, compared to 68% throughout the restof the Caribbean. The government has made cutting the budget andtrade deficits a high priority.
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, dredging ofaragonite sands (The Bahamas), and production of crude oil andnatural gas (Caribbean Sea, Gulf of Mexico, and North Sea).
AustraliaAustralia has an enviable Western-style capitalist economywith a per capita GDP on par with the four dominant West Europeaneconomies. Rising output in the domestic economy, robust businessand consumer confidence, and high export prices for raw materialsand agricultural products are fueling the economy. Australia'semphasis on reforms, low inflation, and growing ties with China areother key factors behind the economy's strength. The impact ofdrought and strong import demand pushed the trade deficit up inrecent years, although the trade balance improved in 2006. Housingprices probably peaked in 2005, diminishing the prospect thatinterest rates would be raised to prevent a speculative bubble.Conservative fiscal policies have kept Australia's budget in surplussince 2002.
AustriaAustria, with its well-developed market economy and highstandard of living, is closely tied to other EU economies,especially Germany's. The Austrian economy also benefits greatlyfrom strong commercial relations, especially in the banking andinsurance sectors, with central, eastern, and southeastern Europe.The economy features a large service sector, a sound industrialsector, and a small, but highly developed agricultural sector.Membership in the EU has drawn an influx of foreign investorsattracted by Austria's access to the single European market andproximity to the new EU economies. The outgoing government hassuccessfully pursued a comprehensive economic reform program, aimedat streamlining government, creating a more competitive businessenvironment, further strengthening Austria's attractiveness as aninvestment location, and implementing effective pension reforms;however, lower taxes in 2005-2006 have lead to a small budgetdeficit in 2006. Weak domestic consumption and slow growth in Europehave held the economy to growth rates below 3% in 2002-05. Due tohigher growth across Europe, Austrian grew 3.3 percent in 2006. Tomeet increased competition from both EU and Central Europeancountries, particularly the new EU members, Austria will need tocontinue restructuring, emphasizing knowledge-based sectors of theeconomy, and encouraging greater labor flexibility and greater laborparticipation by its aging 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. A consortium of Western oilcompanies began pumping 1 million barrels a day from a largeoffshore field in early 2006, through a $4 billion pipeline it builtfrom Baku to Turkey's Mediterranean port of Ceyhan. Economistsestimate that by 2010 revenues from this project will double thecountry's current GDP. Azerbaijan shares all the formidable problemsof the former Soviet republics in making the transition from acommand to a market economy, but its considerable energy resourcesbrighten its long-term prospects. Baku has only recently begunmaking progress on economic reform, and old economic ties andstructures are slowly being replaced. Several other obstacles impedeAzerbaijan's economic progress: the need for stepped up foreigninvestment in the non-energy sector, the continuing conflict withArmenia over the Nagorno-Karabakh region, and the pervasivecorruption. Trade with Russia and the other former Soviet republicsis declining in importance while trade is building with Turkey andthe nations of Europe. Long-term prospects will depend on world oilprices, the location of new pipelines in the region, andAzerbaijan's ability to manage its oil wealth.
Bahamas, TheThe Bahamas is a stable, developing nation with aneconomy heavily dependent on tourism and offshore banking. Tourismtogether with tourism-driven construction and manufacturing accountsfor approximately 60% of GDP and directly or indirectly employs halfof the archipelago's labor force. Steady growth in tourism receiptsand a boom in construction of new hotels, resorts, and residenceshad led to solid GDP growth in recent years, but the slowdown in theUS economy and the attacks of 11 September 2001 held back growth inthese sectors in 2001-03. The current government has presided over aperiod of economic recovery and an upturn in large-scale privatesector investments in tourism. Financial services constitute thesecond-most important sector of the Bahamian economy, accounting forabout 15% of GDP. However, since December 2000, when the governmentenacted new regulations on the financial sector, many internationalbusinesses have left The Bahamas. 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 more than 80% of the visitors.
BahrainWith its highly developed communication and transportfacilities, Bahrain is home to numerous multinational firms withbusiness in the Gulf. Petroleum production and refining account forabout 60% of Bahrain's export receipts, 70% of government revenues,and 20% of GDP, underpinning Bahrain's strong economic growth inrecent years. The financial and construction sectors have alsobolstered GDP growth. Bahrain is actively pursuing thediversification and privatization of its economy to reduce thecountry's dependence on oil. As part of this effort, Bahrain and theUS in August 2006 implemented a Free Trade Agreement (FTA), thefirst FTA between the US and a Gulf state. Unemployment, especiallyamong the young, and the depletion of oil and underground waterresources are 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 inefficiently-governed nation. Althoughmore than half of GDP is generated through the service sector,nearly two-thirds of Bangladeshis are employed in the agriculturesector, with rice as the single-most-important product. Majorimpediments to growth include frequent cyclones and floods,inefficient state-owned enterprises, inadequate port facilities, arapidly growing labor force that cannot be absorbed by agriculture,delays in exploiting energy resources (natural gas), insufficientpower supplies, and slow implementation of economic reforms. Reformis stalled in many instances by political infighting and corruptionat all levels of government. Progress also has been blocked byopposition from the bureaucracy, public sector unions, and othervested interest groups. The BNP government, led by Prime MinisterKhaleda ZIA, has the parliamentary strength to push through neededreforms, but the party's political will to do so has been lacking inkey areas. On an encouraging note, growth has been a steady 5-6% forthe past several years.
BarbadosHistorically, the Barbadian economy had been dependent onsugarcane cultivation and related activities, but production inrecent years has diversified into light industry and tourism.Offshore finance and information services are important foreignexchange earners. The government continues its efforts to reduceunemployment, to encourage direct foreign investment, and toprivatize remaining state-owned enterprises. The economy contractedin 2002-03 mainly due to a decline in tourism. Growth was positivein 2005-06, as economic conditions in the US and Europe moderatelyimproved.
Bassas da Indiano economic activity
BelarusBelarus's economy in 2006 posted more than 8% growth. Thegovernment has succeeded in lowering inflation over the past severalyears. Trade with Russia - by far its largest single trade partner -decreased in 2006, largely as a result of a change in the way theValue Added Tax (VAT) on trade was collected. Trade with Europeancountries increased. Belarus has seen little structural reform since1995, when President LUKASHENKO launched the country on the path of"market socialism." In keeping with this policy, LUKASHENKOreimposed administrative controls over prices and currency exchangerates and expanded the state's right to intervene in the managementof private enterprises. Since 2005, the government hasre-nationalized a number of private companies. In addition,businesses have been subject to pressure by central and localgovernments, e.g., arbitrary changes in regulations, numerousrigorous inspections, retroactive application of new businessregulations, and arrests of "disruptive" businessmen and factoryowners. A wide range of redistributive policies has helped those atthe bottom of the ladder; the Gini coefficient is among the lowestin the world. Because of these restrictive economic policies,Belarus has had trouble attracting foreign investment, which remainslow. Growth has been strong in recent years, despite the roadblocksin a tough, centrally directed economy with a high, but decreasing,rate of inflation. Belarus receives heavily discounted oil andnatural gas from Russia and much of Belarus' growth can beattributed to the re-export of Russian oil at market prices. Thisgrowth will be threatened in 2007, however, when Russia raisesenergy prices closer to world market prices for Belarus. Russia isplanning to increase Belarusian gas prices from $47 per thousandcubic meters (tcm) to $200 per tcm and introduce a first-time exportduty of $180 per ton on oil shipped to Belarus.
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 more than 90% of GDP. On the positive side, the government hassucceeded in balancing its budget, and income distribution isrelatively equal. Belgium began circulating the euro currency inJanuary 2002. Economic growth in 2001-03 dropped sharply because ofthe global economic slowdown, with moderate recovery in 2004-06.
BelizeIn this small, essentially private-enterprise economy thetourism industry is the number one foreign exchange earner followedby marine products, citrus, cane sugar, bananas, and garments. Thegovernment's expansionary monetary and fiscal policies, initiated inSeptember 1998, led to sturdy GDP growth averaging nearly 4% in1999-2006. Major concerns continue to be the sizable trade deficitand unsustainable foreign debt. The government in 2006 announced itwould seek a restructuring of its sovereign debt and has beennegotiating with international creditors to find an acceptableformula for doing so. A key short-term objective remains thereduction of poverty with the help of international donors.
BeninThe economy of Benin remains underdeveloped and dependent onsubsistence agriculture, cotton production, and regional trade.Growth in real output has averaged around 5% in the past six years,but rapid population growth 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. Many of these proposals were included in Benin's $307million Millennium Challenge Account grant signed in February 2006.The 2001 privatization policy continues in telecommunications,water, electricity, and agriculture in spite of governmentreluctance. The Paris Club and bilateral creditors have eased theexternal debt situation, with Benin benefiting from a G8 debtreduction announced in July 2005, while pressing for more rapidstructural reforms. Benin continues to be hurt by Nigerian tradeprotection that bans imports of a growing list of products fromBenin and elsewhere, which has resulted in increased smuggling andcriminality in the border region.
BermudaBermuda enjoys the highest per capita income in the world,more than 50% higher than that of the US. Its economy is primarilybased on providing financial services for international business andluxury facilities for tourists. A number of reinsurance companiesrelocated to the island following 11 September 2001 and again afterHurricane Katrina, contributing to the expansion of an alreadyrobust international business sector. Bermuda's tourism industry -which derives over 80% of its visitors from the US - continues tostruggle but remains the island's number two industry. Most capitalequipment and food must be imported. Bermuda's industrial sector issmall, although construction continues to be important; the averagecost of a house in June 2003 had risen to $976,000. Agriculture islimited with only 20% of the land being arable.
BhutanThe economy, one of the world's smallest and least developed,is based on agriculture and forestry, which provide the mainlivelihood for more than 80% of the population. Agriculture consistslargely of subsistence farming and animal husbandry. Ruggedmountains dominate the terrain and make the building of roads andother infrastructure difficult and expensive. The economy is closelyaligned with India's through strong trade and monetary links anddependence on India's financial assistance. The industrial sector istechnologically backward, with most production of the cottageindustry type. Most development projects, such as road construction,rely on Indian migrant labor. Bhutan's hydropower potential and itsattraction for tourists are key resources. Model education, social,and environment programs are underway with support from multilateraldevelopment organizations. Each economic program takes into accountthe government's desire to protect the country's environment andcultural traditions. For example, the government, in its cautiousexpansion of the tourist sector, encourages visits by upscale,environmentally conscientious tourists. 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, reformed its economy after suffering adisastrous economic crisis in the early 1980s. The reforms spurredreal GDP growth, which averaged 4% in the 1990s, and poverty ratesfell. Economic growth, however, lagged again beginning in 1999because of a global slowdown and homegrown factors such as politicalturmoil, civil unrest, and soaring fiscal deficits, all of whichhurt investor confidence. In 2003, violent protests against thepro-foreign investment economic policies of President SANCHEZ DELOZADA led to his resignation and the cancellation of plans toexport Bolivia's newly discovered natural gas reserves to largenorthern hemisphere markets. In 2005, the government passed acontroversial natural gas law that imposes on the oil and gas firmssignificantly higher taxes as well as new contracts that give thestate control of their operations. Bolivian officials are in theprocess of implementing the law; meanwhile, foreign investors havestopped investing and have taken the first legal steps to securetheir investments. Real GDP growth in 2003-06 - helped by increaseddemand for natural gas in neighboring Brazil - was positive, butstill below the levels seen during the 1990s. Bolivia's fiscalposition has improved in recent years, but the country remainsdependent on foreign aid from multilateral lenders and foreigngovernments to meet budget shortfalls. In 2005, the G8 announced a$2 billion debt-forgiveness plan over the next few decades thatshould help reduce some fiscal pressures on the government in thenear term.
Bosnia and HerzegovinaBosnia and Herzegovina ranked next toMacedonia as the poorest republic in the old Yugoslav federation.Although agriculture is almost all in private hands, farms are smalland inefficient, and the republic traditionally is a net importer offood. Industry remains greatly overstaffed, a holdover from thesocialist economic structure of Yugoslavia. TITO had pushed thedevelopment of military industries in the republic with the resultthat Bosnia was saddled with a host of industrial firms with littlecommercial potential. The interethnic warfare in Bosnia causedproduction to plummet by 80% from 1992 to 1995 and unemployment tosoar. With an uneasy peace in place, output recovered in 1996-99 athigh percentage rates from a low base; but output growth slowed in2000-02. Part of the lag in output was made up in 2003-06.National-level statistics are limited and do not capture the largeshare of black market activity. The konvertibilna marka (convertiblemark or BAM)- the national currency introduced in 1998 - is peggedto the euro, and confidence in the currency and the banking sectorhas increased. Implementation of privatization, however, has beenslow, and local entities only reluctantly support national-levelinstitutions. Banking reform accelerated in 2001 as all theCommunist-era payments bureaus were shut down; foreign banks,primarily from Western Europe, now control most of the bankingsector. A sizeable current account deficit and high unemploymentrate remain the two most serious economic problems. The countryreceives substantial amounts of reconstruction assistance andhumanitarian aid from the international community but will have toprepare for an era of declining assistance.
BotswanaBotswana has maintained one of the world's highest economicgrowth rates since independence in 1966. Through fiscal disciplineand sound management, Botswana has transformed itself from one ofthe poorest countries in the world to a middle-income country with aper capita GDP of $11,200 in 2006. Two major investment servicesrank Botswana 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 70-80% of export earnings. Tourism,financial services, subsistence farming, and cattle raising areother key sectors. On the downside, the government must deal withhigh rates of unemployment and poverty. Unemployment officially was23.8% in 2004, but unofficial estimates place it closer to 40%.HIV/AIDS infection rates are the second highest in the world andthreaten Botswana's impressive economic gains. An expected levelingoff in diamond mining production overshadows long-term prospects.
Bouvet Islandno economic activity; declared a nature reserve
BrazilCharacterized by large and well-developed agricultural,mining, manufacturing, and service sectors, Brazil's economyoutweighs that of all other South American countries and isexpanding its presence in world markets. From 2001-03 real wagesfell and Brazil's economy grew, on average only 2.2% per year, asthe country absorbed a series of domestic and international economicshocks. That Brazil absorbed these shocks without financial collapseis a tribute to the resiliency of the Brazilian economy and theeconomic program put in place by former President CARDOSO andstrengthened by President LULA DA SILVA. Since 2004, Brazil hasenjoyed more robust growth that yielded increases in employment andreal wages. The three pillars of the economic program are a floatingexchange rate, an inflation-targeting regime, and tight fiscalpolicy, all reinforced by a series of IMF programs. The currencydepreciated sharply in 2001 and 2002, which contributed to adramatic current account adjustment; from 2003 to 2006, Brazil ranrecord trade surpluses and recorded its first current accountsurpluses since 1992. Productivity gains - particularly inagriculture - also contributed to the surge in exports. Whileeconomic management has been good, there remain important economicvulnerabilities. The most significant are debt-related: thegovernment's largely domestic debt increased steadily from 1994 to2003 - straining government finances - before falling as apercentage of GDP in 2005. Brazil has improved its debt profile overthe past year by shifting its debt burden toward real denominatedand domestically held instruments. LULA DA SILVA restated hiscommitment to fiscal austerity by maintaining the country's primarysurplus during the 2006 election and plans to pass a package offurther economic reforms upon entering office for his second term.Another challenge is maintaining economic growth over a period oftime to generate employment and make the government debt burden moremanageable.
British Indian Ocean TerritoryAll economic activity is concentratedon the largest island of Diego Garcia, where joint UK-US defensefacilities are located. Construction projects and various servicesneeded to support the military installations are done by militaryand contract employees from the UK, Mauritius, the Philippines, andthe US. There are no industrial or agricultural activities on theislands. When the Ilois return, they plan to reestablish sugarcaneproduction and fishing. The country makes money by selling fishinglicenses and postage stamps.