@Economy - overview
Afghanistan:
Afghanistan is an extremely poor, landlocked country,
highly dependent on farming and livestock raising (sheep and goats).
Economic considerations have played second fiddle to political and
military upheavals during two decades of war, including the nearly
10-year Soviet military occupation (which ended 15 February 1989).
During that conflict one-third of the population fled the country,
with Pakistan and Iran sheltering a combined peak of more than 6
million refugees. In early 2000, 2 million Afghan refugees remained
in Pakistan and about 1.4 million in Iran. Gross domestic product
has fallen substantially over the past 20 years because of the loss
of labor and capital and the disruption of trade and transport;
severe drought added to the nation's difficulties in 1998-2000. The
majority of the population continues to suffer from insufficient
food, clothing, housing, and medical care. Inflation remains a
serious problem throughout the country. International aid can deal
with only a fraction of the humanitarian problem, let alone promote
economic development. In 1999-2000, internal civil strife continued,
hampering both domestic economic policies and international aid
efforts. Numerical data are likely to be either unavailable or
unreliable. Afghanistan was by far the largest producer of opium
poppies in 2000, and narcotics trafficking is a major source of
revenue.
Albania:
Poor by European standards, Albania is making the difficult
transition to a more open-market economy. The economy rebounded in
1993-95 after a severe depression accompanying the end of the
previous centrally planned system in 1990 and 1991. However, a
weakening of government resolve to maintain stabilization policies
in the election year of 1996 contributed to renewal of inflationary
pressures, spurred by the budget deficit which exceeded 12% of GDP.
The collapse of financial pyramid schemes in early 1997 - which had
attracted deposits from a substantial portion of Albania's
population - triggered severe social unrest which led to more than
1,500 deaths, widespread destruction of property, and a 7% drop in
GDP. The government has taken measures to curb violent crime and to
revive economic activity and trade. The economy is bolstered by
remittances from some 20% of the labor force that works abroad,
mostly in Greece and Italy. These remittances supplement GDP and
help offset the large foreign trade deficit. Most agricultural land
was privatized in 1992, substantially improving peasant incomes. In
1998, Albania recovered the 7% drop in GDP of 1997 and pushed ahead
by 8% in 1999 and by 7.5% in 2000. International aid helped defray
the high costs of receiving and returning refugees from the Kosovo
conflict. Privatization scored some successes in 2000, but other
reforms lagged.
Algeria:
The hydrocarbons sector is the backbone of the economy,
accounting for roughly 60% of budget revenues, 30% of GDP, and over
95% of export earnings. Algeria has the fifth-largest reserves of
natural gas in the world and is the second largest gas exporter; it
ranks fourteenth for oil reserves. Algiers' efforts to reform one of
the most centrally planned economies in the Arab world stalled in
1992 as the country became embroiled in political turmoil. Algeria's
financial and economic indicators improved during the mid-1990s, in
part because of policy reforms supported by the IMF and debt
rescheduling from the Paris Club. Algeria's finances in 2000
benefited from the spike in oil prices and the government's tight
fiscal policy, leading to a large increase in the trade surplus, the
near tripling of foreign exchange reserves, and reduction in foreign
debt. The government continues efforts to diversify the economy by
attracting foreign and domestic investment outside the energy
sector, but has had little success in reducing high unemployment and
improving living standards.
American Samoa:
This is a traditional Polynesian economy in which
more than 90% of the land is communally owned. Economic activity is
strongly linked to the US, with which American Samoa conducts the
great bulk of its foreign trade. Tuna fishing and tuna processing
plants are the backbone of the private sector, with canned tuna the
primary export. Transfers from the US Government add substantially
to American Samoa's economic well-being. Attempts by the government
to develop a larger and broader economy are restrained by Samoa's
remote location, its limited transportation, and its devastating
hurricanes. Tourism, a developing sector, has been held back by the
recurring financial difficulties in East Asia.
Andorra:
Tourism, the mainstay of Andorra's tiny, well-to-do
economy, accounts for roughly 80% of GDP. An estimated 9 million
tourists visit annually, attracted by Andorra's duty-free status and
by its summer and winter resorts. Andorra's comparative advantage
has recently eroded as the economies of neighboring France and Spain
have been opened up, providing broader availability of goods and
lower tariffs. The banking sector, with its "tax haven" status, also
contributes substantially to the economy. Agricultural production is
limited by a scarcity of arable land, and most food has to be
imported. The principal livestock activity is sheep raising.
Manufacturing output consists mainly of cigarettes, cigars, and
furniture. Andorra is a member of the EU Customs Union and is
treated as an EU member for trade in manufactured goods (no tariffs)
and as a non-EU member for agricultural products.
Angola:
Angola is an economy in disarray because of a quarter
century of nearly continuous warfare. Despite its abundant natural
resources, output per capita is among the world's lowest.
Subsistence agriculture provides the main livelihood for 85% of the
population. Oil production and the supporting activities are vital
to the economy, contributing about 45% to GDP and 90% of exports.
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 fully take advantage of
its rich resources - gold, diamonds, extensive forests, Atlantic
fisheries, and large oil deposits - Angola will need to end its
conflict and continue reforming government policies. Despite the
increase in the pace of civil warfare in late 1998, the economy grew
by an estimated 5% in 2000. The government introduced new currency
denominations in 1999, including 1 and 5 kwanza notes. Internal
strife discourages investment outside of the petroleum sector, which
is producing roughly 800,000 barrels of oil per day. Angola has
entered into a Staff Monitored Program (SMP) with the IMF. Continued
growth depends on sharp cuts in inflation, further economic reform,
and a lessening of fighting.
Anguilla:
Anguilla has few natural resources, and the economy
depends heavily on luxury tourism, offshore banking, lobster
fishing, and remittances from emigrants. The economy, and especially
the tourism sector, suffered a setback in late 1995 due to the
effects of Hurricane Luis in September but recovered in 1996.
Increased activity in the tourism industry, which has spurred the
growth of the construction sector, has contributed to economic
growth. Anguillan officials have put substantial effort into
developing the offshore financial sector. A comprehensive package of
financial services legislation was enacted in late 1994. In the
medium term, prospects for the economy will depend on the tourism
sector and, therefore, on continuing income growth in the
industrialized nations as well as favorable weather conditions.
Antarctica:
Fishing off the coast and tourism, both based abroad,
account for the limited economic activity. Antarctic fisheries in
1998-99 (1 July-30 June) reported landing 119,898 metric tons.
Unregulated fishing landed five to six times more than the regulated
fishery, and allegedly illegal fishing in antarctic waters in 1998
resulted in the seizure (by France and Australia) of at least eight
fishing ships. Companies interested in commercial fishing activities
in Antarctica have put forward proposals. The Convention on the
Conservation of Antarctic Marine Living Resources determines the
recommended catch limits for marine species. A total of 13,193
tourists visited in the 1999-2000 summer, up from the 10,013 who
visited the previous year. Nearly all of them were passengers on 24
commercial (nongovernmental) ships and several yachts that made 143
trips during the summer. Most tourist trips lasted approximately two
weeks.
Antigua and Barbuda:
Tourism continues to be the dominant activity
in the economy accounting directly or indirectly for more than half
of GDP. The budding offshore financial sector has been seriously
hurt by financial sanctions imposed by the US and UK as a result of
the loosening of its money-laundering controls. The government has
made efforts to comply with international demands in order to get
the sanctions lifted. Antigua and Barbuda was listed as a tax haven
by the OECD in 2000. The dual island nation's agricultural
production is mainly directed to the domestic market; the sector is
constrained by the limited water supply and labor shortages that
reflect the pull of higher wages in tourism and construction.
Manufacturing comprises enclave-type assembly for export with major
products being bedding, handicrafts, and electronic components.
Prospects for economic growth in the medium term will continue to
depend on income growth in the industrialized world, especially in
the US, which accounts for about one-third of all tourist arrivals.