Burkina Faso:
One of the poorest countries in the world, landlocked
Burkina Faso has a high population density, few natural resources,
and a fragile soil. About 90% of the population is engaged in
(mainly subsistence) agriculture which is highly vulnerable to
variations in rainfall. Industry remains dominated by unprofitable
government-controlled corporations. Following the African franc
currency devaluation in January 1994 the government updated its
development program in conjunction with international agencies, and
exports and economic growth have increased. Maintenance of its
macroeconomic progress in 2001-02 depends on continued low
inflation, reduction in the trade deficit, and reforms designed to
encourage private investment.
Burma:
Burma has a mixed economy with private activity dominant in
agriculture, light industry, and transport, and with substantial
state-controlled activity, mainly in energy, heavy industry, and the
rice trade. Government policy in the 1990s has aimed at revitalizing
the economy after three decades of tight central planning. Private
activity markedly increased in the early to mid-1990s, but began to
decline in the past several years due to frustrations with the
unfriendly business environment and political pressure from western
nations. Published estimates of Burma's foreign trade are greatly
understated because of the volume of black-market, illicit, and
border trade. A major ongoing problem is the failure to achieve
monetary and fiscal stability. Burma remains a poor Asian country
and living standards for the majority have not improved over the
past decade. Short-term growth will continue to be restrained
because of poor government planning and minimal foreign investment.
Burundi:
Burundi is a landlocked, resource-poor country with an
underdeveloped manufacturing sector. The economy is predominantly
agricultural with roughly 90% of the population dependent on
subsistence agriculture. Its economic health depends on the coffee
crop, which accounts for 80% of foreign exchange earnings. The
ability to pay for imports therefore rests largely on the vagaries
of the climate and the international coffee market. Since October
1993 the nation has suffered from massive ethnic-based violence
which has resulted in the death of perhaps 250,000 persons and the
displacement of about 800,000 others. Only one in four children go
to school, and one in nine adults has HIV/AIDS. Foods, medicines,
and electricity remain in short supply.
Cambodia:
Cambodia's economy slowed dramatically in 1997-98 due to
the regional economic crisis, civil violence, and political
infighting. Foreign investment and tourism fell off. In 1999, the
first full year of peace in 30 years, progress was made on economic
reforms and growth resumed at 4%. GDP growth for 2000 had been
projected to reach 5.5%, but the worst flooding in 70 years severely
damaged agricultural crops, and high oil prices hurt industrial
production, and growth for the year is estimated at only 4%. Tourism
is Cambodia's fastest growing industry, with arrivals up 34% in
2000. 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. On
the brighter side, the government is addressing these issues with
assistance from bilateral and multilateral donors.
Cameroon:
Because of its oil resources and favorable agricultural
conditions, Cameroon has one of the best-endowed primary commodity
economies in sub-Saharan Africa. Still, it faces many of the serious
problems facing other underdeveloped countries, such as a top-heavy
civil service and a generally unfavorable climate for business
enterprise. Since 1990, the government has embarked on various IMF
and World Bank programs designed to spur business investment,
increase efficiency in agriculture, improve trade, and recapitalize
the nation's banks. In June 2000, the government completed an
IMF-sponsored, three-year structural adjustment program; however,
the IMF is pressing for more reforms, including increased budget
transparency and privatization. Higher oil prices in 2000 helped to
offset the country's lower cocoa export revenues. A rebound in the
cocoa market should increase growth to over 5% in 2001.
Canada:
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. The 1989 US-Canada Free Trade
Agreement (FTA) and 1994 North American Free Trade Agreement (NAFTA)
(which included Mexico) have touched off a dramatic increase in
trade and economic integration with the US. With its great natural
resources, skilled labor force, and modern capital plant Canada
enjoys solid economic prospects. Two shadows loom, the first being
the continuing constitutional impasse between English- and
French-speaking areas, which has been raising the possibility of a
split in the federation. Another long-term concern is the flow south
to the US of professional persons lured by higher pay, lower taxes,
and the immense high-tech infrastructure.
Cape Verde:
Cape Verde's low per capita GDP reflects a poor natural
resource base, including serious water shortages exacerbated by
cycles of long-term drought. The economy is service-oriented, with
commerce, transport, and public services accounting for almost 70%
of GDP. Although nearly 70% of the population lives in rural areas,
the share of agriculture in GDP in 1998 was only 13%, of which
fishing accounts for 1.5%. About 90% of food must be imported. The
fishing potential, mostly lobster and tuna, is not fully exploited.
Cape Verde annually runs a high trade deficit, financed by foreign
aid and remittances from emigrants; remittances constitute a
supplement to GDP of more than 20%. Economic reforms, launched by
the new democratic government in 1991, are aimed at developing the
private sector and attracting foreign investment to diversify the
economy. Prospects for 2001 depend heavily on the maintenance of aid
flows, remittances, and the momentum of the government's development
program.
Cayman Islands:
With no direct taxation, the islands are a thriving
offshore financial center. More than 40,000 companies were
registered in the Cayman Islands as of 1997, including almost 600
banks and trust companies; banking assets exceed $500 billion. A
stock exchange was opened in 1997. Tourism is also a mainstay,
accounting for about 70% of GDP and 75% of foreign currency
earnings. The tourist industry is aimed at the luxury market and
caters mainly to visitors from North America. Total tourist arrivals
exceeded 1.2 million visitors in 1997. About 90% of the islands'
food and consumer goods must be imported. The Caymanians enjoy one
of the highest outputs per capita and one of the highest standards
of living in the world.
Central African Republic:
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. The 50% devaluation of the
currencies of 14 Francophone African nations on 12 January 1994 had
mixed effects on the CAR's economy. Diamond, timber, coffee, and
cotton exports increased, leading an estimated rise of GDP of 7% in
1994 and nearly 5% in 1995. Military rebellions and social unrest in
1996 were accompanied by widespread destruction of property and a
drop in GDP of 2%. The IMF approved an Extended Structure Adjustment
Facility in 1998 and the World Bank extended further credits in 1999
and approved a $10 million loan in early 2001. The government has
set targets of 3.5% GDP growth in 2001 and 2002. As of January 2001,
many civil servants were owed as much as 30 months pay, leading them
to go on strike and further damaging the economy.
Chad:
Landlocked Chad's economic development suffers from its
geographic remoteness, drought, lack of infrastructure, and
political turmoil. About 85% of the population depends on
agriculture, including the herding of livestock. Of Africa's
Francophone countries, Chad benefited least from the 50% devaluation
of their currencies in January 1994. Financial aid from the World
Bank, the African Development Fund, and other sources is directed
largely at the improvement of agriculture, especially livestock
production. The World Bank's decision to back the Doba oil field
development and the Chad-Cameroon pipeline will add Chad to the
group of already booming West African oil exporters. However, the
rank and file may not benefit much from the oil development projects.