United States. Central Intelligence Agency

“ Economy—overview: Iceland's Scandinavian-type economy is basically capitalistic, yet with an extensive welfare system, low unemployment, and remarkably even distribution of income. The economy depends heavily on the fishing industry, which provides 75% of export earnings and employs 12% of the work force. In the absence of other natural resources—except energy—Iceland's economy is vulnerable to changing world fish prices. The economy remains sensitive to declining fish stocks as well as to drops in world prices for its main exports: fish and fish products, aluminum, and ferrosilicon. ”

“ Economy
Economy—overview: As an affluent, high-tech industrial society, Canada today closely resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. Real rates of growth have averaged nearly 3.0% since 1993. Unemployment is falling and government budget surpluses are being partially devoted to reducing the large public sector debt. ”

“ Economy—overview: The breakup of Yugoslavia in 1991 deprived Macedonia, its poorest republic, of key protected markets and large transfer payments from the center. Worker remittances and foreign aid have softened the subsequent volatile recovery period. Continued recovery depends on Macedonia's ability to attract investment, to redevelop trade ties with Greece and Serbia and Montenegro, and to maintain its commitment to economic liberalization. The economy can meet its basic food needs but depends on outside sources for all of its oil and gas and most of its modern machinery and parts. ”

“ He wrote in The Future of American Secret Intelligence (Infantry Journal Press, 1946, page 46) that world leadership in peace requires even more elaborate intelligence than war. "The conduct of peace involves all countries, all human activities—not just the enemy and his war production." ”

“ Greenland today is critically dependent on fishing and fish exports; the shrimp fishery is by far the largest income earner. Despite resumption of several interesting hydrocarbon and minerals exploration activities, it will take several years before production can materialize. Tourism is the only sector offering any near-term potential and even this is limited due to a short season and high costs. The public sector, including publicly owned enterprises and the municipalities, plays the dominant role in Greenland's economy. ”

“ Economy—overview: 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 16% of export earnings and the diamond industry for nearly 54%. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic policies. ”

“ Western aid and investment, especially in the tourist and oil industries, would help restore the economy. The government has been successful in some reform efforts—partially macroeconomic stabilization policies—and it has normalized relations with its creditors. Yet it still is struggling with privatization of large state enterprises and with bank reform. In 1998, Croatia made progress in reducing its current account deficit to about 8% of GDP from 12% the previous year. Economic growth continues to lag, however, and growing levels of inter-enterprise debt plague the domestic economy. ”

“ Economy—overview: The socialist-oriented economy depends primarily upon revenues from the oil sector, which contributes practically all export earnings and about one-third of GDP. These oil revenues and a small population give Libya one of the highest per capita GDPs in Africa, but little of this income flows down to the lower orders of society. Low oil prices in 1998 cut back revenue sharply, and GDP growth fell by 1%. In this statist society, import restrictions and inefficient resource allocations have led to periodic shortages of basic goods and foodstuffs. ”

“ Greece is a major beneficiary of EU aid, equal to about 4% of GDP. The economy has improved steadily over the last few years, as the government has tightened policy with the goal of qualifying Greece to join the EU's single currency (the euro) in 2001. In particular, Greece has cut its budget deficit to just over 2% of GDP and tightened monetary policy, with the result that inflation fell below 4% by the end of 1998—the lowest rate in 26 years. ”

“ Australia became a British commonwealth in 1901. Blessed by rich natural resources, the country enjoyed rapid gains in herding, agriculture, and manufacturing and made a major contribution to the British effort in World Wars I and II. Australia subsequently developed its minerals, metals, and fossil fuel markets, all of which have become key Australian exports. Long-term concerns include pollution, particularly depletion of the ozone layer, and management and conservation of coastal areas, especially the Great Barrier Reef. ”

“ Commodities account for 57% of the value of total exports, so that a downturn in world commodity prices can have a big impact on the economy. The government is pushing for increased exports of manufactured goods, but competition in international markets continues to be severe. Australia has suffered from the low growth and high unemployment characterizing the OECD countries in the early 1990s, but the economy has expanded at reasonably steady rates in recent years. ”

“ 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 40% 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 technologically backward, with most production of the cottage industry type. ”

“ Economy—overview: This small, wealthy economy is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village tradition. It is almost totally supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of GDP. Per capita GDP is far above most other Third World countries, and substantial income from overseas investment supplements income from domestic production. ”

“ Economy—overview: The small, essentially private enterprise economy is based primarily on agriculture, agro-based industry, and merchandising, with tourism and construction assuming greater importance. Sugar, the chief crop, accounts for nearly half of exports, while the banana industry is the country's largest employer. The government's tough austerity program in 1997 resulted in an economic slowdown that continued in 1998. The trade deficit has been growing, mostly as a result of low export prices for sugar and bananas. The new government faces important challenges to economic stability. ”

“ Economy—overview: A civil war in 1989-97 has destroyed much of Liberia's economy, especially the infrastructure in and around Monrovia. Many businessmen have fled the country, taking capital and expertise with them. Some returned during 1997. Many will not return. 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. ”

“ Bulgaria fought on the losing side in both World Wars. After World War II it fell within the Soviet sphere of influence. Communist domination ended in 1991 with the dissolution of the USSR, and Bulgaria began the contentious process of moving toward political democracy and a market economy. In addition to the problems of structural economic reform, particularly privatization, Bulgaria faces the serious issues of keeping inflation under control and unemployment, combatting corruption, and curbing black-market and mafia-style crime. ”

“ Economy
Economy—overview: In December 1996, incoming President FERNANDEZ presented a bold reform package for this Caribbean economy—including the devaluation of the peso, income tax cuts, a 50% increase in sales taxes, reduced import tariffs, and increased gasoline prices—in an attempt to create a market-oriented economy that can compete internationally. Even though most reforms are stalled in the legislature, the economy grew vigorously in 1997-98, with tourism and telecommunications leading the advance. ”

“ India's exports, currency, and foreign institutional investment were affected by the East Asian crisis in late 1997 and 1998; but capital account controls, a low ratio of short-term debt to reserves, and enhanced supervision of the financial sector helped insulate it from near term balance-of-payments problems. Exports fell 5% in 1998 mainly because of the fall in Asian currencies relative to the rupee. Energy, telecommunications, and transportation bottlenecks continue to constrain growth. ”

“ Aid from Gulf Arab states, worker remittances, and trade contracted; and refugees flooded the country, producing serious balance-of-payments problems, stunting GDP growth, and straining government resources. The economy rebounded in 1992, largely due to the influx of capital repatriated by workers returning from the Gulf, but recovery was uneven. A preliminary agreement with the IMF in early 1999 will provide new loans over the next three years. Sluggish growth, along with debt, poverty, and unemployment are fundamental ongoing economic problems. ”

“ Oil production and the supporting activities are vital to the economy, contributing about 45% to GDP. Notwithstanding the signing of a peace accord in November 1994, sporadic violence continues, millions of land mines remain, and many farmers are reluctant to return to their fields. As a result, much of the country's food must still be imported. To take advantage of its rich resources—gold, diamonds, extensive forests, Atlantic fisheries, arable land, and large oil deposits—Angola will need to implement the peace agreement and reform government policies. ”

“ Georgia is pinning its hopes for long-term recovery on the development of an international transportation corridor through the key Black Sea ports of P'ot'i and Bat'umi. The construction of a Caspian oil pipeline through Georgia—scheduled to open in early 1999—should spur greater Western investment in the economy. The global economic slowdown, a growing trade deficit, continuing problems with corruption, and political uncertainties cloud the short-term economic picture. ”

“ The industrial sector, until recently dominated by steel, has become increasingly more diversified. During the past decades, growth in the financial sector has more than compensated for the decline in steel. Services, especially banking, account for a growing proportion of the economy. Agriculture is based on small family-owned farms. Luxembourg has especially close trade and financial ties to Belgium and the Netherlands, and as a member of the EU, enjoys the advantages of the open European market. It joined with 10 other EU members to launch the euro on 1 January 1999. ”

“ Inflation rose to 22.5% in 1995, dropped to 11.1% in 1997, and reached an estimated 12% in 1998. Unemployment appears moderate at 5.6%, but substantial underemployment continues. Furthermore, large government deficits—fueled by interest payments on the massive internal debt—have undermined efforts to maintain the quality of social services. Curbing inflation, reducing the deficit, and improving public sector efficiency remain key challenges to the government. ”

“ Inflation has been on a downward trend and hit a 60-year low in 1998. Chile's currency and foreign reserves also are strong, as sustained foreign capital inflows—including significant direct investment—have more than offset current account deficits and public debt buy-backs. President FREI, who took office in March 1994, has placed improving Chile's education system and developing foreign export markets at the top of his economic agenda. The Chilean economy remains largely dependent on a few sectors—particularly copper mining, fishing, and forestry. ”

“ Egypt's reform efforts—and its participation in the Gulf war coalition—also led to massive debt relief under the Paris Club arrangements. Substantial progress has been made in improving macroeconomic performance. Cairo tamed inflation, slashed budget deficits, and built up foreign reserves to an all-time high. Although the pace of structural reforms—such as privatization and new business legislation—has been slower than envisioned under the IMF program, Egypt's steps toward a more market-oriented economy have prompted increased foreign investment. ”

“ Azerbaijan shares all the formidable problems of the former Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. A major short-term obstacle to economic progress, including stepped up foreign investment, is the continuing conflict with Armenia over the Nagorno-Karabakh region. ”