Afghanistan
Afghanistan is an extremely poor, landlocked country,
highly dependent on foreign aid, farming and livestock raising
(sheep and goats), and trade with neighboring countries. Economic
considerations have played second fiddle to political and military
upheavals during more than 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 4 to 6 million
refugees. 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 1998-2002. The majority of the population
continues to suffer from insufficient food, clothing, housing, and
medical care, and a dearth of jobs, problems exacerbated by
political uncertainties and the general level of lawlessness.
International efforts to rebuild Afghanistan were addressed at the
Tokyo Donors Conference for Afghan Reconstruction in January 2002,
when $4.5 billion was pledged, $1.7 billion for 2002. Of that
approximately $900 million was directed to humanitarian aid - food,
clothing, and shelter - and another $90 million for the Afghan
Transitional Authority. Further World Bank and other aid came in
2003. Priority areas for reconstruction include upgrading education,
health, and sanitation facilities; providing income generating
opportunities; enhancing administrative and security arrangements,
especially in regional areas; developing the agricultural sector;
rebuilding transportation, energy, and telecommunication
infrastructure; and reabsorbing 2 million returning refugees. The
replacement of the opium trade - which may account for one-third of
GDP - and the search for oil and gas resources in the northern
region are two major long-term issues.
Albania
Poor and backward by European standards, Albania is making
the difficult transition to a more modern open-market economy. The
government has taken measures to curb violent crime and to spur
economic activity and trade. 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. In addition, the government is moving to
improve the poor national road network, a long-standing barrier to
sustained economic growth.
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 14th in oil reserves. 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 2000-03 benefited from substantial trade
surpluses, record foreign exchange reserves, and reductions in
foreign debt. Real GDP has risen due to higher oil output and
increased government spending. The government's continued efforts to
diversify the economy by attracting foreign and domestic investment
outside the energy sector, however, 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 most
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 - only 2% of the land is arable - 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 has been an economy in disarray because of a quarter
century of nearly continuous warfare. An apparently durable peace
was established after the death of rebel leader Jonas SAVIMBI on
February 22, 2002, but consequences from the conflict continue
including the impact of wide-spread land mines. 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 more than half of
exports. Much of the country's food must still be imported. To fully
take advantage of its rich natural resources - gold, diamonds,
extensive forests, Atlantic fisheries, and large oil deposits -
Angola will need to continue reforming government policies. While
Angola made progress in bringing inflation down further, from 325%
in 2000 to about 106% in 2002, the government has failed to make
sufficient progress on reforms recommended by the IMF such as
increasing foreign exchange reserves and promoting greater
transparency in government spending. Increased oil production should
bring about 6% GDP growth in 2003.
Anguilla
Anguilla has few natural resources, and the economy depends
heavily on luxury tourism, offshore banking, lobster fishing, and
remittances from emigrants. 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,
which is small, but growing. In the medium term, prospects for the
economy will depend largely on the tourism sector and, therefore, on
revived income growth in the industrialized nations as well as on
favorable weather conditions.
Antarctica
Fishing off the coast and tourism, both based abroad,
account for the limited economic activity. Antarctic fisheries in
2000-01 (1 July-30 June) reported landing 112,934 metric tons.
Unregulated fishing, particularly of tooth fish, is a serious
problem. Allegedly illegal fishing in antarctic waters in 1998
resulted in the seizure (by France and Australia) of at least eight
fishing ships. The Convention on the Conservation of Antarctic
Marine Living Resources determines the recommended catch limits for
marine species. A total of 12,248 tourists visited in the 2000-01
antarctic summer, down from the 14,762 who visited the previous
year. Nearly all of them were passengers on 21 commercial
(nongovernmental) ships and several yachts that made trips during
the summer. Most tourist trips lasted approximately two weeks.
Antigua and Barbuda
Tourism continues to dominate the economy,
accounting for more than half of GDP. Weak tourist arrival numbers
since early 2000 have slowed the economy, however, and pressed the
government into a tight fiscal corner. The dual-island nation's
agricultural production is focused on the domestic market and
constrained by a limited water supply and a labor shortage stemming
from the lure 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 slightly more than one-third of tourist
arrivals.
Arctic Ocean
Economic activity is limited to the exploitation of
natural resources, including petroleum, natural gas, fish, and seals.