United States. Central Intelligence Agency

“ India's economy is a mixture of traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services. Faster economic growth in the 1980s permitted a significant increase in real per capita private consumption. A large share of the population, perhaps as much as 40%, remains too poor to afford an adequate diet. Financial strains in 1990 and 1991 prompted government austerity measures that slowed industrial growth but permitted India to meet its international payment obligations without rescheduling its debt. ”

“ The Former Yugoslav Republic of Macedonia, although the poorest republic in the former Yugoslav federation, can meet basic food and energy needs through its own agricultural and coal resources. Its economic decline will continue unless ties are reforged or enlarged with its neighbors Serbia and Montenegro, Albania, Greece, and Bulgaria. The economy depends on outside sources for all of its oil and gas and most of its modern machinery and parts. An important supplement of GDP is the remittances from thousands of Macedonians working in Germany and other West European nations. ”

“ Although agriculture has been almost all in private hands, farms have been small and inefficient, and the republic traditionally has been a net importer of food. Industry has been greatly overstaffed, one reflection of the rigidities of communist central planning and management. TITO had pushed the development of military industries in the republic with the result that Bosnia hosted a large share of Yugoslavia's defense plants. The bitter interethnic warfare in Bosnia caused production to plummet, unemployment and inflation to soar, and human misery to multiply. ”

“ El Salvador possesses a fast-growing entrepreneurial economy in which 90% of economic activity is in private hands, with growth averaging 5% since 1990. Yet, because the 1980s were a decade of civil war and stagnation, per capita GDP has not regained the level of the late 1970s. The rebound in the 1990s stems from the government program, in conjunction with the IMF, of privatization, deregulation, and fiscal stabilization. The economy now is oriented more toward manufacturing and services compared with agriculture. ”

“ The economy, one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about half of GDP. Agriculture consists largely of subsistence farming and animal husbandry. Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links. The industrial sector is small and technologically backward, with most production of the cottage industry type. ”

“ Argentina, rich in natural resources, benefits also from a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Nevertheless, following decades of mismanagement and statist policies, the economy in the late 1980s was plagued with huge external debts and recurring bouts of hyperinflation. Elected in 1989, in the depths of recession, President MENEM has implemented a comprehensive economic restructuring program that shows signs of putting Argentina on a path of stable, sustainable growth. ”

“ If the government can stay the course on economic reform and fiscal discipline - which may be politically difficult in the election year of 1996 - Lithuania could be set for strong economic growth in the near term. As for real resources, Lithuania's growth depends largely on its ability to exploit its strategic location - with its ice-free port at Klaipeda and its rail and highway hub in Vilnius connecting it with Eastern Europe, Belarus, Russia, and Ukraine. Lacking important natural resources, it will remain dependent on imports of fuels and raw materials. ”

“ The 1975-91 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and all but ended Lebanon's position as a Middle Eastern entrepot and banking hub. Peace has enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery has been helped by a financially sound banking system and resilient small- and medium-scale manufacturers. Family remittances, banking services, manufactured and farm exports, and international aid are the main sources of foreign exchange. ”

“ Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Mexico entered 1996 on the heels of its worst recession since the 1930s. Economic activity contracted about 7% in 1995 in the aftermath of the peso devaluation in late 1994. Although Mexico City was able to correct imbalances in its external accounts, meet international payments obligations, and dramatically improve its trade balance in 1995, the domestic economy suffered harshly as the ZEDILLO administration stuck to a strict austerity program. ”

“ Economy ———-
Economic overview: At the time of independence in late 1991, Belarus was one of the most developed of the former Soviet states, inheriting a modern - by Soviet standards - machine building sector and robust agricultural sector. However, the breakup of the Soviet Union and its traditional trade ties, as well as the government's failure to embrace market reforms, has resulted in a sharp economic decline. Privatization is virtually nonexistent and the system of state orders and distribution persists. ”

“ Richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products, while local manufacturing, mainly foreign owned, had been small in scope. Political instability threatens prospects for economic reconstruction and repatriation of some 750,000 Liberian refugees who have fled to neighboring countries. The continued political turmoil has prevented restoration of normal economic life, including the re-establishment of a strong central government with effective economic development programs. ”

“ Nevertheless, India should achieve economic growth of 5.5%-6.5% annually through the next several years. Even if a weak coalition government comes to power in 1996 and is unable to push reforms aggressively, parts of the economy that have already benefited from deregulation will continue to grow. Moreover, the country can build on other strengths, including its diverse industrial base, large scientific and technical pool, well-developed legal system, and its large middle class to achieve higher growth. ”

“ Growth has been fueled in recent years by the expansion of the construction and financial service industries and an influx of foreign capital. Some foreign investors have been deterred by an inadequate energy and transportation infrastructure and the violence stemming from drug trafficking and persistent rural guerrilla warfare, but direct foreign investment, especially in the oil industry, is still rising at a rapid rate. Although oil consequently is overtaking coffee as the main legal export, earnings from illicit drugs probably exceed those from any other export. ”

“ Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to the nation's long-term economic viability. One of the most dangerous long-term threats to continued rapid economic growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. The amount of arable land continues to decline because of erosion and economic development, the cumulative loss since the Communist takeover in 1949 being more than 15%. ”

“ With its large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil has South America's largest GDP by far and has the potential to become a major player in the world economy. Prior to the institution of a stabilization plan in mid-1994, stratospheric inflation rates had devastated the economy and discouraged foreign investment. Since then, tight monetary policy has apparently brought inflation under control - consumer prices increased by 23% in 1995 compared to more than 1,000% in 1994. ”

“ A majority of the population still depends on agriculture and livestock for a livelihood, even though most of the nomads and many subsistence farmers were forced into the cities by recurrent droughts in the 1970s and 1980s. Mauritania has extensive deposits of iron ore, which account for almost 50% of total exports. The decline in world demand for this ore, however, has led to cutbacks in production. The nation's coastal waters are among the richest fishing areas in the world, but overexploitation by foreigners threatens this key source of revenue. ”

“ As part of its economic reform agenda, launched in February 1991 with IMF and World Bank support, Burundi is trying to diversify its agricultural exports, attract foreign investment in industry, and modernize government budgetary practices. Since October 1993 the nation has suffered from massive ethnic-based violence which has resulted in the death of perhaps 100,000 persons and the displacement of a million others; production has fallen sharply, and an impoverished and disorganized government can hardly implement these needed reform programs. ”

“ Tourism is the mainstay of the Aruban economy, although offshore banking and oil refining and storage are also important. The rapid growth of the tourism sector over the last decade has resulted in a substantial expansion of other activities. Construction has boomed, with hotel capacity five times the 1985 level. In addition, the reopening of the country's oil refinery in 1993, a major source of employment and foreign exchange earnings, has further spurred growth. ”

“ Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR) , with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Timber has accounted for about 13% of export earnings and the diamond industry for nearly 80%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. ”

“ With independence from Ethiopia on 27 April 1993, Eritrea faces the bitter economic problems of a small, desperately poor African country. Most of the population will continue to depend on subsistence farming. Domestic output is substantially augmented by worker remittances from abroad. Government revenues come from custom duties and income and sales taxes. Eritrea has inherited the entire coastline of Ethiopia and has long-term prospects for revenues from the development of offshore oil, offshore fishing, and tourism. ”

“ In 1989, the government launched a comprehensive, IMF-supported program to achieve economic stabilization and to introduce market mechanisms into the economy. Despite substantial progress toward economic adjustment, in 1992 the reform drive stalled as Algiers became embroiled in political turmoil. In September 1993, a new government was formed, and one priority was the resumption and acceleration of the structural adjustment process. Buffeted by the slump in world oil prices and burdened with a heavy foreign debt, Algiers concluded a one-year standby arrangement with the IMF in April 1994. ”

“ Assistance to the east of about $100 billion annually has helped the region average nearly 8% annual economic growth since 1991, even though the overall German economy has averaged less than 2% growth. The economic recovery in the east has been led by the construction industries, with growth increasingly supported by the service sectors and light manufacturing industries. Western Germany, which accounts for 90% of overall German GDP and has three times the per capita income of eastern Germany, is perennially the first- or second-largest exporter, after the US, in the world. ”