The 2003 CIA World Factbook

by United States. Central Intelligence Agency

Bolivia
Bolivia, long one of the poorest and least developed Latin
American countries, made considerable progress in the 1990s toward
the development of a market-oriented economy. Successes under
President SANCHEZ DE LOZADA (1993-97) included the signing of a free
trade agreement with Mexico and becoming an associate member of the
Southern Cone Common Market (Mercosur), as well as the privatization
of the state airline, telephone company, railroad, electric power
company, and oil company. Growth slowed in 1999, in part due to
tight government budget policies, which limited needed
appropriations for anti-poverty programs, and the fallout from the
Asian financial crisis. In 2000, major civil disturbances held down
growth to 2.5%. Bolivia's GDP failed to grow in 2001 due to the
global slowdown and laggard domestic activity. Growth picked up
slightly in 2002, but the first quarter of 2003 saw extensive civil
riots and looting and loss of confidence in the government. Bolivia
will remain highly dependent on foreign aid unless and until it can
develop its substantial natural resources.

Bosnia and Herzegovina
Bosnia and Herzegovina ranked next to The
Former Yugoslav Republic of Macedonia as the poorest republic in the
old Yugoslav federation. Although agriculture is almost all in
private hands, farms are small and inefficient, and the republic
traditionally is a net importer of food. Industry has been greatly
overstaffed, one reflection of the socialist economic structure of
Yugoslavia. TITO had pushed the development of military industries
in the republic with the result that Bosnia hosted a number of
Yugoslavia's defense plants. The bitter interethnic warfare in
Bosnia caused production to plummet by 80% from 1990 to 1995,
unemployment to soar, and human misery to multiply. With an uneasy
peace in place, output recovered in 1996-99 at high percentage rates
from a low base; but output growth slowed in 2000-02. GDP remains
far below the 1990 level. Economic data are of limited use because,
although both entities issue figures, national-level statistics are
limited. Moreover, official data do not capture the large share of
black market activity. The marka - the national currency introduced
in 1998 - is now pegged to the euro, and the Central Bank of Bosnia
and Herzegovina has dramatically increased its reserve holdings.
Implementation of privatization, however, has been slow, and local
entities only reluctantly support national-level institutions.
Banking reform accelerated in 2001 as all the Communist-era payments
bureaus were shut down. The country receives substantial amounts of
reconstruction assistance and humanitarian aid from the
international community but will have to prepare for an era of
declining assistance.

Botswana
Botswana has maintained one of the world's highest growth
rates since independence in 1966. Through fiscal discipline and
sound management, Botswana has transformed itself from one of the
poorest countries in the world to a middle-income country with a per
capita GDP of $9,500 in 2002. 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. Long-term prospects are overshadowed by
the prospects of a leveling off in diamond mining production.

Bouvet Island
no economic activity; declared a nature reserve

Brazil
Possessing large and well-developed agricultural, mining,
manufacturing, and service sectors, Brazil's economy outweighs that
of all other South American countries and is expanding its presence
in world markets. The maintenance of large current account deficits
via capital account surpluses became problematic as investors became
more risk averse to emerging markets as a consequence of the Asian
financial crisis in 1997 and the Russian bond default in August
1998. After crafting a fiscal adjustment program and pledging
progress on structural reform, Brazil received a $41.5 billion
IMF-led international support program in November 1998. In January
1999, the Brazilian Central Bank announced that the real would no
longer be pegged to the US dollar. The consequent devaluation helped
moderate the downturn in economic growth in 1999, and the country
posted moderate GDP growth in 2000. Economic growth slowed
considerably in 2001-03 - to less than 2% - because of a slowdown in
major markets and the hiking of interest rates by the Central Bank
to combat inflationary pressures. New president DA SILVA, who took
office 1 January 2003, has given priority to reforming the complex
tax code, trimming the overblown civil service pension system, and
continuing the fight against inflation.

British Indian Ocean Territory All economic activity is concentrated on the largest island of Diego Garcia, where joint UK-US defense facilities are located. Construction projects and various services needed to support the military installations are done by military and contract employees from the UK, Mauritius, the Philippines, and the US. There are no industrial or agricultural activities on the islands. When the Ilois return, they plan to reestablish sugarcane production and fishing.

British Virgin Islands
The economy, one of the most stable and
prosperous in the Caribbean, is highly dependent on tourism,
generating an estimated 45% of the national income. An estimated
350,000 tourists, mainly from the US, visited the islands in 1998.
Tourism suffered in 2002 because of the lackluster US economy. In
the mid-1980s, the government began offering offshore registration
to companies wishing to incorporate in the islands, and
incorporation fees now generate substantial revenues. Roughly
400,000 companies were on the offshore registry by yearend 2000. The
adoption of a comprehensive insurance law in late 1994, which
provides a blanket of confidentiality with regulated statutory
gateways for investigation of criminal offenses, is expected to make
the British Virgin Islands even more attractive to international
business. Livestock raising is the most important agricultural
activity; poor soils limit the islands' ability to meet domestic
food requirements. Because of traditionally close links with the US
Virgin Islands, the British Virgin Islands has used the dollar as
its currency since 1959.

Brunei
This small, wealthy economy encompasses a mixture of foreign
and domestic entrepreneurship, government regulation, welfare
measures, and village tradition. Crude oil and natural gas
production account for nearly half of GDP. Per capita GDP is far
above most other Third World countries, and substantial income from
overseas investment supplements income from domestic production. The
government provides for all medical services and subsidizes rice and
housing. Brunei's leaders are concerned that steadily increased
integration in the world economy will undermine internal social
cohesion, although it became a more prominent player by serving as
chairman for the 2000 APEC (Asian Pacific Economic Cooperation)
forum. Plans for the future include upgrading the labor force,
reducing unemployment, strengthening the banking and tourist
sectors, and, in general, further widening the economic base beyond
oil and gas.

Bulgaria
Bulgaria, a former communist country striving to enter the
European Union, has experienced macroeconomic stability and strong
growth since a major economic downturn in 1996 led to the fall of
the then socialist government. As a result, the government became
committed to economic reform and responsible fiscal planning. A $300
million stand-by agreement negotiated with the IMF at the end of
2001 has supported government efforts to overcome high rates of
poverty and unemployment.

Burkina Faso
One of the poorest countries in the world, landlocked
Burkina Faso has few natural resources, a fragile soil, and a highly
unequal distribution of income. About 90% of the population is
engaged in (mainly subsistence) agriculture, which is 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
macroeconomic progress depends on continued low inflation, reduction
in the trade deficit, and reforms designed to encourage private
investment. The internal crisis in neighboring Cote d'Ivoire
continues to hurt trade and industrial prospects and deepens the
need for international assistance.