United States. Central Intelligence Agency

“ Congo's economy is a mixture of village agriculture and handicrafts, a
beginning industrial sector based largely on oil, supporting services, and a
government characterized by budget problems and overstaffing. A reform
program, supported by the IMF and World Bank, ran into difficulties in
1990-91 because of problems in changing to a democratic political regime and
a heavy debt-servicing burden. Oil has supplanted forestry as the mainstay
of the economy, providing about two-thirds of government revenues and
exports. ”

“ One of the world's poorest countries, Comoros is made up of several islands
that have poor transportation links, a young and rapidly increasing
population, and few natural resources. The low educational level of the
labor force contributes to a low level of economic activity, high
unemployment, and a heavy dependence on foreign grants and technical
assistance. Agriculture, including fishing, hunting, and forestry, is the
leading sector of the economy. It contributes 40% to GDP, employs 80% of the
labor force, and provides most of the exports. ”

“ Plantation crops - rubber and palm oil - and
textiles and plywood are being encouraged for both export and job
generation. Industrial output now accounts for almost 40% of GDP and is
based on a supply of diverse natural resources, including crude oil, natural
gas, timber, metals, and coal. Of these, the oil sector dominates the
external economy, generating more than 20% of the government's revenues and
40% of export earnings in 1989. However, the economy's growth is highly
dependent on the continuing expansion of nonoil exports. ”

“ Hungary is in the midst of a difficult transition from a command to a market
economy. Agriculture is an important sector, providing sizable export
earnings and meeting domestic food needs. Industry accounts for about 40% of
GDP and 30% of employment. Hungary claims that less than 25% of foreign
trade is now with former CEMA countries, while about 70% is with OECD
members. Hungary's economic reform programs during the Communist era gave it
a head start in creating a market economy and attracting foreign investment. ”

“ Austria boasts a prosperous and stable socialist market economy with a
sizable proportion of nationalized industry and extensive welfare benefits.
Thanks to an excellent raw material endowment, a technically skilled labor
force, and strong links to German industrial firms, Austria occupies
specialized niches in European industry and services (tourism, banking) and
produces almost enough food to feed itself with only 8% of the labor force
in agriculture. Increased export sales resulting from German unification,
continued to boost Austria's economy through 1991. ”

“ The most gratifying
result has been a strong spurt in production, particularly in agriculture in
the early 1980s. Industry also has posted major gains, especially in coastal
areas near Hong Kong and opposite Taiwan, where foreign investment and
modern production methods have helped spur production of both domestic and
export goods. Aggregate output has more than doubled since 1978. On the
darker side, the leadership has often experienced in its hybrid system the
worst results of socialism (bureaucracy, lassitude, corruption) and of
capitalism (windfall gains and stepped-up inflation) . ”

“ One thousand dollars will buy the same market basket of goods in the US as one thousand dollars—converted to the local currency at the PPP conversion rate— will buy in the other country. GNP/GDP estimates for the LDCs, on the other hand, are based on the conversion of GNP/GDP estimates in local currencies to dollars at the official currency exchange rates. Because currency exchange rates depend on a variety of international and domestic financial forces that often have little relation to domestic output, use of these rates is less satisfactory for calculating GNP/GDP than the PPP method. ”

“ Armenia under the old centrally planned Soviet system had built up textile,
machine-building, and other industries and had become a key supplier to
sister republics. In turn, Armenia had depended on supplies of raw materials
and energy from the other republics. Most of these supplies enter the
republic by rail through Azerbaijan (85%) and Georgia (15%) . The economy has
been severely hurt by ethnic strife with Azerbaijan over control of the
Nagorno-Karabakh Autonomous Oblast, a mostly Armenian-populated enclave
within the national boundaries of Azerbaijan. ”

“ Kenya's 3.6% annual population growth rate - one of the highest in the world
- presents a serious problem for the country's economy. In the meantime, GDP
growth in the near term has kept slightly ahead of population - annually
averaging 4.9% in the 1986-90 period. Undependable weather conditions and a
shortage of arable land hamper long-term growth in agriculture, the leading
economic sector. ”

“ The region's economy is mature: services and
manufacturing account for the dominant share of economic activity, and raw
materials and semimanufactured goods constitute a large portion of imports.
In recent years, manufacturing has accounted for about 31% of GDP, with
other sectors contributing lesser amounts. Gross fixed investment in 1992
accounted for about 21.5% of GDP. GDP in the western region is now $20,000
per capita, or 85% of US per capita GDP. Eastern Germany's economy appears
to be changing from one anchored on manufacturing into a more
service-oriented economy. ”

“ Large tracts of fertile land, the application of modern technology, and
subsidies have combined to make it the leading agricultural producer in
Western Europe. France is largely self-sufficient in agricultural products
and is a major exporter of wheat and dairy products. The industrial sector
generates about one-quarter of GDP, and the growing services sector has
become crucial to the economy. The French economy is entering its fourth
consecutive year of sluggish growth after a strong expansion in the late
1980s. ”

“ The recession - which
continued in 1992 with growth contracting by 3.5% - has been caused by
economic overheating, depressed foreign markets, and the dismantling of the
barter system between Finland and the former Soviet Union under which Soviet
oil and gas had been exchanged for Finnish manufactured goods. The Finnish
Government has proposed efforts to increase industrial competitiveness and
efficiency by an increase in exports to Western markets, cuts in public
expenditures, partial privatization of state enterprises, and changes in
monetary policy. ”

“ Among the former Soviet republics, Georgia has been noted for its Black Sea
tourist industry, its large output of citrus fruits and tea, and an
industrial sector that accounted, however, for less than 2% of the USSR's
output. Another salient characteristic of the economy has been a flourishing
private sector (compared with the other republics) . About 25% of the labor
force is employed in agriculture. Mineral resources consist of manganese and
copper, and, to a lesser extent, molybdenum, arsenic, tungsten, and mercury. ”

“ The climate, geographic location, and lack of infrastructure and natural
resources make Chad one of the most underdeveloped countries in the world.
Its economy is burdened by the ravages of civil war, conflict with Libya,
drought, and food shortages. In 1986 real GDP returned to its 1977 level,
with cotton, the major cash crop, accounting for 48% of exports. Over 80% of
the work force is employed in subsistence farming and fishing. Industry is
based almost entirely on the processing of agricultural products, including
cotton, sugarcane, and cattle. ”

“ Moreover, a serious drawdown in inventories and critical
shortages in the energy sector have led to increasing interruptions in
industrial production. Abundant mineral resources and hydropower have formed
the basis of industrial development since WWII. Output of the extractive
industries includes coal, iron ore, magnesite, graphite, copper, zinc, lead,
and precious metals. Manufacturing is centered on heavy industry, including
military industry, with light industry lagging far behind. ”

“ Egypt has one of the largest public sectors of all the Third World
economies, most industrial plants being owned by the government.
Overregulation holds back technical modernization and foreign investment.
Even so, the economy grew rapidly during the late 1970s and early 1980s, but
in 1986 the collapse of world oil prices and an increasingly heavy burden of
debt servicing led Egypt to begin negotiations with the IMF for
balance-of-payments support. ”

“ To ease unemployment, Dublin aggressively courts foreign investors and
recently created a new industrial development agency to aid small indigenous
firms. Government assistance is constrained by Dublin's continuing deficit
reduction measures. After five years of fiscal restraint, total government
debt still exceeds GDP. Growth probably will moderate in 1993 as the heavily
indebted and trade-dependent economy is highly sensitive to changes in
exchange rates and world interest rates. ”

“ Supported by substantial international assistance, Ghana has been
implementing a steady economic rebuilding program since 1983, including
moves toward privatization and relaxation of government controls. Heavily
dependent on cocoa, gold, and timber exports, economic growth so far has not
spread substantially to other areas of the economy. The costs of sending
peacekeeping forces to Liberia and preparing for the transition to a
democratic government have boosted government expenditures and undercut
structural adjustment reforms. Ghana opened a stock exchange in 1990. ”

“ Finland has a highly industrialized, largely free market economy, with per
capita output two-thirds of the US figure. Its key economic sector is
manufacturing - principally the wood, metals, and engineering industries.
Trade is important, with the export of goods representing about 30% of GDP.
Except for timber and several minerals, Finland depends on imports of raw
materials, energy, and some components for manufactured goods. Because of
the climate, agricultural development is limited to maintaining
self-sufficiency in basic products. ”

“ Kyrgyzstan's small economy (less than 1% of the total for the former Soviet
Union) is oriented toward agriculture, producing mainly livestock such as
goats and sheep, as well as cotton, grain, and tobacco. Industry,
concentrated around Bishkek, produces small quantities of electric motors,
livestock feeding equipment, washing machines, furniture, cement, paper, and
bricks. Mineral extraction is small, the most important minerals being coal,
rare earth metals and gold. Kyrgyzstan is a net importer of many types of
food and fuel but is a net exporter of electricity. ”

“ The economy is based on sheep farming, which directly or indirectly employs
most of the work force. A few dairy herds are kept to meet domestic
consumption of milk and milk products, and crops grown are primarily those
for providing winter fodder. Exports feature shipments of high-grade wool to
the UK and the sale of postage stamps and coins. Rich stocks of fish in the
surrounding waters are not presently exploited by the islanders. So far,
efforts to establish a domestic fishing industry have been unsuccessful. ”