The 2001 CIA World Factbook

by United States. Central Intelligence Agency

United Kingdom:
The UK, a leading trading power and financial
center, deploys an essentially capitalistic economy, one of the
quartet of trillion dollar economies of Western Europe. Over the
past two decades the government has greatly reduced public ownership
and contained the growth of social welfare programs. Agriculture is
intensive, highly mechanized, and efficient by European standards,
producing about 60% of food needs with only 1% of the labor force.
The UK has large coal, natural gas, and oil reserves; primary energy
production accounts for 10% of GDP, one of the highest shares of any
industrial nation. Services, particularly banking, insurance, and
business services, account by far for the largest proportion of GDP
while industry continues to decline in importance. The economy has
grown steadily, at just above or below 3%, for the last several
years. The BLAIR government has put off the question of
participation in the euro system until after the next election, in
June of 2001; Chancellor of the Exchequer BROWN has identified some
key economic tests to determine whether the UK should join the
common currency system, but it will largely be a political decision.
A serious short-term problem is foot-and-mouth disease, which by
early 2001 had broken out in nearly 600 farms and slaughterhouses
and had resulted in the killing of 400,000 animals.

United States:
The US has the largest and most technologically
powerful economy in the world, with a per capita GDP of $36,200. In
this market-oriented economy, private individuals and business firms
make most of the decisions, and government buys needed goods and
services predominantly in the private marketplace. US business firms
enjoy considerably greater flexibility than their counterparts in
Western Europe and Japan in decisions to expand capital plant, lay
off surplus workers, and develop new products. At the same time,
they face higher barriers to entry in their rivals' home markets
than the barriers to entry of foreign firms in US markets. US firms
are at or near the forefront in technological advances, especially
in computers and in medical, aerospace, and military equipment,
although their advantage has narrowed since the end of World War II.
The onrush of technology largely explains the gradual development of
a "two-tier labor market" in which those at the bottom lack the
education and the professional/technical skills of those at the top
and, more and more, fail to get comparable pay raises, health
insurance coverage, and other benefits. Since 1975, practically all
the gains in household income have gone to the top 20% of
households. The years 1994-2000 witnessed solid increases in real
output, low inflation rates, and a drop in unemployment to below 5%.
Long-term problems include inadequate investment in economic
infrastructure, rapidly rising medical costs of an aging population,
sizable trade deficits, and stagnation of family income in the lower
economic groups. Growth weakened in the fourth quarter of 2000;
growth for the year 2001 almost certainly will be substantially
lower than the strong 5% of 2000. The outlook for 2001 is further
clouded by the continued economic problems of Japan, Russia,
Indonesia, Brazil, and many other countries.

Uruguay:
Uruguay's economy is characterized by an export-oriented
agricultural sector, a well-educated workforce, relatively even
income distribution, and high levels of social spending. After
averaging growth of 5% annually in 1996-98, in 1999-2000 the economy
suffered from lower demand in Argentina and Brazil, which together
account for about half of Uruguay's exports. Despite the severity of
the trade shocks, Uruguay's financial indicators remained more
stable than those of its neighbors, a reflection of its solid
reputation among investors and its investment-grade sovereign bond
rating - one of only two in Latin America. Challenges for the
government of President Jorge BATLLE include expanding Uruguay's
trade ties beyond its MERCOSUR trade partners and reducing the costs
of public services. GDP fell by 1.1% in 2000 and will grow by
perhaps 1.5% in 2001.

Uzbekistan:
Uzbekistan is a dry, landlocked country of which 10%
consists of intensely cultivated, irrigated river valleys. More than
60% of its population lives in densely populated rural communities.
Uzbekistan is now the world's third largest cotton exporter, a large
producer of gold and oil, and a regionally significant producer of
chemicals and machinery. Following independence in December 1991,
the government sought to prop up its Soviet-style command economy
with subsidies and tight controls on production and prices. Faced
with high rates of inflation, however, the government began to
reform in mid-1994, by introducing tighter monetary policies,
expanding privatization, slightly reducing the role of the state in
the economy, and improving the environment for foreign investors.
The state continues to be a dominating influence in the economy and
has so far failed to bring about much-needed structural changes. The
IMF suspended Uzbekistan's $185 million standby arrangement in late
1996 because of governmental steps that made impossible fulfillment
of Fund conditions. Uzbekistan has responded to the negative
external conditions generated by the Asian and Russian financial
crises by tightening export and currency controls within its already
largely closed economy. Economic policies that have repelled foreign
investment are a major factor in the economy's stagnation. A growing
debt burden, persistent inflation, and a poor business climate led
to stagnant growth in 2000, with little improvement predicted for
2001.

Vanuatu:
The economy is based primarily on subsistence or
small-scale agriculture which provides a living for 65% of the
population. Fishing, offshore financial services, and tourism, with
about 50,000 visitors in 1997, are other mainstays of the economy.
Mineral deposits are negligible; the country has no known petroleum
deposits. A small light industry sector caters to the local market.
Tax revenues come mainly from import duties. Economic development is
hindered by dependence on relatively few commodity exports,
vulnerability to natural disasters, and long distances from main
markets and between constituent islands. The most recent natural
disaster, a severe earthquake in November 1999 followed by a
tsunami, caused extensive damage to the northern island of Pentecote
and left thousands homeless. GDP growth has risen less than 3% on
average in the 1990s. In response to foreign concerns, the
government is moving to tighten regulation of its offshore financial
center.

Venezuela:
The petroleum sector dominates the economy, accounting
for roughly a third of GDP, around 80% of export earnings, and more
than half of government operating revenues. Venezuelan officials
estimate that GDP grew by 3.2% in 2000. A strong rebound in
international oil prices fueled the recovery from the steep
recession in 1999. Nevertheless, a weak nonoil sector and capital
flight undercut the recovery. The bolivar is widely believed to be
overvalued by as much as 50%. The government is still rebuilding
after massive flooding and landslides in December 1999 caused an
estimated $15 billion to $20 billion in damage.

Vietnam:
Vietnam is a poor, densely populated country that has had
to recover from the ravages of war, the loss of financial support
from the old Soviet Bloc, and the rigidities of a centrally planned
economy. Substantial progress was achieved from 1986 to 1996 in
moving forward from an extremely low starting point - growth
averaged around 9% per year from 1993 to 1997. The 1997 Asian
financial crisis highlighted the problems existing in the Vietnamese
economy but, rather than prompting reform, reaffirmed the
government's belief that shifting to a market oriented economy leads
to disaster. GDP growth of 8.5% in 1997 fell to 6% in 1998 and 5% in
1999. Growth continued at the moderately strong level of 5.5%, a
level that should be matched in 2001. These numbers mask some major
difficulties in economic performance. Many domestic industries,
including coal, cement, steel, and paper, have reported large
stockpiles of inventory and tough competition from more efficient
foreign producers; this problem apparently eased in 2000. Foreign
direct investment fell dramatically, from $8.3 billion in 1996 to
about $1.6 billion in 1999. Meanwhile, Vietnamese authorities have
moved slowly in implementing the structural reforms needed to
revitalize the economy and produce more competitive, export-driven
industries.

Virgin Islands:
Tourism is the primary economic activity, accounting
for more than 70% of GDP and 70% of employment. The islands normally
host 2 million visitors a year. The manufacturing sector consists of
petroleum refining, textiles, electronics, pharmaceuticals, and
watch assembly. The agricultural sector is small, with most food
being imported. International business and financial services are a
small but growing component of the economy. One of the world's
largest petroleum refineries is at Saint Croix. The islands are
subject to substantial damage from storms. The government is working
to improve fiscal discipline, support construction projects in the
private sector, expand tourist facilities, and protect the
environment.

Wake Island:
Economic activity is limited to providing services to
contractors located on the island. All food and manufactured goods
must be imported.

Wallis and Futuna:
The economy is limited to traditional subsistence
agriculture, with about 80% of the labor force earning its
livelihood from agriculture (coconuts and vegetables), livestock
(mostly pigs), and fishing. About 4% of the population is employed
in government. Revenues come from French Government subsidies,
licensing of fishing rights to Japan and South Korea, import taxes,
and remittances from expatriate workers in New Caledonia.