United States. Central Intelligence Agency

“ Since the war ended, the government has maintained a firm grip on
the economy, expanding the use of the military and party-owned
businesses to complete Eritrea's development agenda. Erratic
rainfall and the delayed demobilization of agriculturalists from the
military kept cereal production well below normal, holding down
growth in 2002. Eritrea's economic future depends upon its ability
to master social problems such as illiteracy, unemployment, and low
skills, and to open its economy to private enterprise so the
diaspora's money and expertise can foster economic growth. ”

“ The Dominican Republic's economy experienced dramatic growth over
the last decade, even though the economy was hit hard by Hurricane
Georges in 1998. Although the country has long been viewed primarily
as an exporter of sugar, coffee, and tobacco, in recent years the
service sector has overtaken agriculture as the economy's largest
employer, due to growth in tourism and free trade zones. The country
suffers from marked income inequality; the poorest half of the
population receives less than one-fifth of GNP, while the richest
10% enjoy nearly 40% of national income. ”

“ Whereas the system operates within a political framework of strict Communist control, the economic influence of non-state organizations and individual citizens has been steadily increasing. The authorities switched to a system of household and village responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprises in services and light manufacturing, and opened the economy to increased foreign trade and investment. ”

“ The modernization and integration of the eastern German economy
continues to be a costly long-term problem, with annual transfers
from west to east amounting to roughly $70 billion. Germany's ageing
population, combined with high unemployment, has pushed social
security outlays to a level exceeding contributions from workers.
Structural rigidities in the labor market - including strict
regulations on laying off workers and the setting of wages on a
national basis - have made unemployment a chronic problem. Growth in
2002 and 2003 fell short of 1%. ”

“ 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. One obstacle to economic
progress is the need for stepped up foreign investment in the
non-energy sector. A second obstacle is the continuing conflict with
Armenia over the Nagorno-Karabakh region. ”

“ Beijing says it will intensify efforts to stimulate growth through spending on infrastructure - such as water control and power grids - and poverty relief and through rural tax reform aimed at eliminating arbitrary local levies on farmers. Accession to the World Trade Organization helps strengthen China's ability to maintain strong growth rates but at the same time puts additional pressure on the hybrid system of strong political controls and growing market influences. China has benefited from a huge expansion in computer internet use. ”

“ The economy of Benin remains underdeveloped and dependent on
subsistence agriculture, cotton production, and regional trade.
Growth in real output has averaged a stable 5% in the past six
years, but rapid population rise has offset much of this increase.
Inflation has subsided over the past several years. In order to
raise growth still further, Benin plans to attract more foreign
investment, place more emphasis on tourism, facilitate the
development of new food processing systems and agricultural
products, and encourage new information and communication
technology. ”

“ Economy - overview:
Before the dissolution of Yugoslavia, the Republic of Croatia,
after Slovenia, was the most prosperous and industrialized area,
with a per capita output perhaps one-third above the Yugoslav
average. The economy emerged from its mild recession in 2000 with
tourism the main factor, but massive structural unemployment remains
a key negative element. The government's failure to press the
economic reforms needed to spur growth is largely the result of
coalition politics and public resistance, particularly from the
trade unions. ”

“ Economy Congo, Republic of the
Economy - overview:
The economy is a mixture of village agriculture and handicrafts, an
industrial sector based largely on oil, support services, and a
government characterized by budget problems and overstaffing. Oil
has supplanted forestry as the mainstay of the economy, providing a
major share of government revenues and exports. In the early 1980s,
rapidly rising oil revenues enabled the government to finance
large-scale development projects with GDP growth averaging 5%
annually, one of the highest rates in Africa. ”

“ Economy - overview:
The Greek Cypriot economy is prosperous but highly susceptible to
external shocks. Erratic growth rates over the past decade reflect
the economy's vulnerability to swings in tourist arrivals, caused by
political instability in the region and fluctuations in economic
conditions in Western Europe. Economic policy is focused on meeting
the criteria for admission to the EU. As in the Turkish sector,
water shortages are a perennial problem; a few desalination plants
are now online. The Turkish Cypriot economy has roughly one-third of
the per capita GDP of the south. ”

“ An excess of persons entering the country is referred to as net immigration (e.g., 3.56 migrants/1,000 population) ; an excess of persons leaving the country as net emigration (e.g., -9.26 migrants/1,000 population) . The net migration rate indicates the contribution of migration to the overall level of population change. High levels of migration can cause problems such as increasing unemployment and potential ethnic strife (if people are coming in) or a reduction in the labor force, perhaps in certain key sectors (if people are leaving) . ”

“ The country is not self-sufficient in food production; rice, the
main staple, accounts for the bulk of imports. The government -
which is hampered by internal political disputes - is struggling to
upgrade education and technical training, to privatize commercial
and industrial enterprises, to improve health services, to diversify
exports, to promote tourism, and to reduce the high population
growth rate. Increased foreign support is essential if the goal of
4% annual GDP growth is to be met. Remittances from 150,000 Comorans
abroad help supplement GDP. ”

“ From 80 to 120 million surplus rural workers are adrift between the villages and the cities, many subsisting through part-time low-paying jobs. Popular resistance, changes in central policy, and loss of authority by rural cadres have weakened China's population control program, which is essential to maintaining long-term growth in living standards. Another long-term threat to growth is the deterioration in the environment, notably air pollution, soil erosion, and the steady fall of the water table especially in the north. ”

“ Two major investment services rank Botswana
as the best credit risk in Africa. Diamond mining has fueled much of
the expansion and currently accounts for more than one-third of GDP
and for nine-tenths of export earnings. Tourism, subsistence
farming, and cattle raising are other key sectors. On the downside,
the government must deal with high rates of unemployment and
poverty. Unemployment officially is 21%, but unofficial estimates
place it closer to 40%. HIV/AIDS infection rates are the highest in
the world and threaten Botswana's impressive economic gains. ”

“ The economy is bolstered by remittances
from abroad of $400-$600 million annually, mostly from Greece and
Italy; this helps offset the sizable trade deficit. Agriculture,
which accounts for half of GDP, is held back because of frequent
drought and the need to modernize equipment and consolidate small
plots of land. Severe energy shortages are forcing small firms out
of business, increasing unemployment, scaring off foreign investors,
and spurring inflation. The government plans to boost energy imports
to relieve the shortages. ”

“ Introduction China
Background:
For centuries China stood as a leading civilization, outpacing the
rest of the world in the arts and sciences. But in the 19th and
early 20th centuries, China was beset by civil unrest, major
famines, military defeats, and foreign occupation. After World War
II, the Communists under MAO Zedong established a dictatorship that,
while ensuring China's sovereignty, imposed strict controls over
everyday life and cost the lives of tens of millions of people. ”

“ Tourism was Cambodia's fastest
growing industry, with arrivals up 34% in 2000 and up another 40% in
2001 before the September 11, 2001 terrorist attacks in the US. Even
given these stout growth estimates, the long-term development of the
economy after decades of war remains a daunting challenge. The
population lacks education and productive skills, particularly in
the poverty-ridden countryside, which suffers from an almost total
lack of basic infrastructure. Fear of renewed political instability
and corruption within the government discourage foreign investment
and delay foreign aid. ”

“ Population growth rate The average annual percent change in the population, resulting from a surplus (or deficit) of births over deaths and the balance of migrants entering and leaving a country. The rate may be positive or negative. The growth rate is a factor in determining how great a burden would be imposed on a country by the changing needs of its people for infrastructure (e.g., schools, hospitals, housing, roads) , resources (e.g., food, water, electricity) , and jobs. ”

“ Inflation is under control. The EU
put the Czech Republic just behind Poland and Hungary in
preparations for accession, which will give further impetus and
direction to structural reform. Moves to complete banking,
telecommunications, and energy privatization will encourage
additional foreign investment, while intensified restructuring among
large enterprises and banks and improvements in the financial sector
should strengthen output growth. But revival in the European
economies remains essential to stepped-up growth.
GDP:
purchasing power parity - $157.1 billion (2002 est.) ”

“ Finland has a highly industrialized, largely free-market economy,
with per capita output roughly that of the UK, France, Germany, and
Italy. Its key economic sector is manufacturing - principally the
wood, metals, engineering, telecommunications, and electronics
industries. Trade is important, with exports equaling almost
one-third 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. ”

“ Economy Equatorial Guinea
Economy - overview:
The discovery and exploitation of large oil reserves have
contributed to dramatic economic growth in recent years. Forestry,
farming, and fishing are also major components of GDP. Subsistence
farming predominates. Although pre-independence Equatorial Guinea
counted on cocoa production for hard currency earnings, the neglect
of the rural economy under successive regimes has diminished
potential for agriculture-led growth (the government has stated its
intention to reinvest some oil revenue into agriculture) . ”

“ Economy - overview:
The economy is based on service activities connected with the
country's strategic location and status as a free trade zone in
northeast Africa. Two-thirds of the inhabitants live in the capital
city, the remainder being mostly nomadic herders. Scanty rainfall
limits crop production to fruits and vegetables, and most food must
be imported. Djibouti provides services as both a transit port for
the region and an international transshipment and refueling center.
It has few natural resources and little industry. ”

“ Although half of GDP is
generated through the service sector, nearly two-thirds of
Bangladeshis are employed in the agriculture sector, with rice as
the single-most-important product. Major impediments to growth
include frequent cyclones and floods, inefficient state-owned
enterprises, inadequate port facilities, a rapidly growing labor
force that cannot be absorbed by agriculture, delays in exploiting
energy resources (natural gas) , insufficient power supplies, and
slow implementation of economic reforms. ”

“ The country imports the bulk of
its energy needs, including natural gas and oil products. Its only
sizable internal energy resource is hydropower. Despite the severe
damage the economy has suffered due to civil strife, Georgia, with
the help of the IMF and World Bank, has made substantial economic
gains since 1995, achieving positive GDP growth and curtailing
inflation. However, the Georgian Government suffers from limited
resources due to a chronic failure to collect tax revenues. Georgia
also suffers from energy shortages ”

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