Burma
Burma is a resource-rich country that suffers from abject
rural poverty. The military regime took steps in the early 1990s to
liberalize the economy after decades of failure under the "Burmese
Way to Socialism", but those efforts have since stalled. Burma has
been unable to achieve monetary or fiscal stability, resulting in an
economy that suffers from serious macroeconomic imbalances -
including a steep inflation rate and an official exchange rate that
overvalues the Burmese kyat by more than 100 times the market rate.
In addition, most overseas development assistance ceased after the
junta suppressed the democracy movement in 1988 and subsequently
ignored the results of the 1990 election. Burma is data poor, and
official statistics are often dated and inaccurate. Published
estimates of Burma's foreign trade are greatly understated because
of the size of the black market and border trade - often estimated
to be one to two times the official economy.
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. Economic growth depends on coffee and tea
exports, which account for 90% of foreign exchange earnings. The
ability to pay for imports, therefore, rests primarily on weather
conditions and international coffee and tea prices. The Tutsi
minority, 14% of the population, dominates the government and the
coffee trade at the expense of the Hutu majority, 85% of the
population. Since October 1993 an ethnic-based war has resulted in
the death of over 200,000 persons, sent 800,000 refugees into
Tanzania, and displaced 525,000 others internally. Doubts about the
prospects for sustainable peace continue to impede development. Only
one in two children go to school, and approximately one in ten
adults has HIV/AIDS. Food, medicine, and electricity remain in short
supply.
Cambodia
Cambodia's economy slowed dramatically in 1997-1998 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 5.0%. Despite severe flooding, GDP
grew at 5.0% in 2000, 6.3% in 2001, and 5.2% in 2002. Tourism was
Cambodia's fastest growing industry, with arrivals up 34% in 2000
and up another 40% in 2001 before the September 11, 2001 terrorist
attacks in the US. Even given these stout growth estimates, 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. 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, privatization, and poverty reduction programs.
International oil and cocoa prices have considerable impact on the
economy.
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. The 1989 US-Canada Free Trade
Agreement (FTA) and the 1994 North American Free Trade Agreement
(NAFTA) (which includes Mexico) touched off a dramatic increase in
trade and economic integration with the US. As a result of the close
cross-border relationship, the economic sluggishness in the United
States in 2001-02 had a negative impact on the Canadian economy.
Real growth averaged nearly 3% during 1993-2000, but declined in
2001, with moderate recovery in 2002. Unemployment is up, with
contraction in the manufacturing and natural resource sectors.
Nevertheless, given 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 specter of a split in the federation.
Another long-term concern is the flow south to the US of
professionals lured by higher pay, lower taxes, and the immense
high-tech infrastructure. A key strength in the economy is the
substantial trade surplus.
Cape Verde
This island economy suffers from a poor natural resource
base, including serious water shortages exacerbated by cycles of
long-term drought. The economy is service-oriented, with commerce,
transport, tourism, and public services accounting for 72% of GDP.
Although nearly 70% of the population lives in rural areas, the
share of agriculture in GDP in 2001 was only 11%, of which fishing
accounts for 1.5%. About 82% 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 supplement GDP by more
than 20%. Economic reforms are aimed at developing the private
sector and attracting foreign investment to diversify the economy.
Prospects for 2003 depend heavily on the maintenance of aid flows,
tourism, 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 1998, 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 in 1997, with 600,000 from the US. 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 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. Factional fighting between
the government and its opponents remains a drag on economic
revitalization, with GDP growth likely to be no more than 1.3% in
2003. Distribution of income is extraordinarily unequal. Grants from
France and the international community can only partially meet
humanitarian needs.
Chad
Chad's primarily agricultural economy will continue to be
boosted by major oilfield and pipeline projects that began in 2000.
Over 80% of Chad's population relies on subsistence farming and
stock raising for its livelihood. Cotton, cattle, and gum arabic
provide the bulk of Chad's export earnings, but Chad will begin to
export oil in 2004. Chad's economy has long been handicapped by its
landlocked position, high energy costs, and a history of
instability. Chad relies on foreign assistance and foreign capital
for most public and private sector investment projects. A consortium
led by two US companies has been investing $3.7 billion to develop
oil reserves estimated at 1 billion barrels in southern Chad. Oil
production is scheduled to come on stream in late 2003.
Chile
Chile has a market-oriented economy characterized by a high
level of foreign trade. During the early 1990s, Chile's reputation
as a role model for economic reform was strengthened when the
democratic government of Patricio AYLWIN - which took over from the
military in 1990 - deepened the economic reform initiated by the
military government. Growth in real GDP averaged 8% during 1991-97,
but fell to half that level in 1998 because of tight monetary
policies implemented to keep the current account deficit in check
and because of lower export earnings - the latter a product of the
global financial crisis. A severe drought exacerbated the recession
in 1999, reducing crop yields and causing hydroelectric shortfalls
and electricity rationing, and Chile experienced negative economic
growth for the first time in more than 15 years. Despite the effects
of the recession, Chile maintained its reputation for strong
financial institutions and sound policy that have given it the
strongest sovereign bond rating in South America. By the end of
1999, exports and economic activity had begun to recover, and growth
rebounded to 4.4% in 2000. Growth fell back to 2.8% in 2001 and 1.8%
in 2002, largely due to lackluster global growth and the devaluation
of the Argentine peso. Unemployment remains stubbornly high, putting
pressure on President LAGOS to improve living standards. One bright
spot was the signing of a free trade agreement with the US, which
will take effect on 1 January 2004.