Svalbard
Coal mining is the major economic activity on Svalbard. The
treaty of 9 February 1920 gives the 41 signatories equal rights to
exploit mineral deposits, subject to Norwegian regulation. Although
US, UK, Dutch, and Swedish coal companies have mined in the past,
the only companies still mining are Norwegian and Russian. The
settlements on Svalbard are essentially company towns. The Norwegian
state-owned coal company employs nearly 60% of the Norwegian
population on the island, runs many of the local services, and
provides most of the local infrastructure. There is also some
trapping of seal, polar bear, fox, and walrus.
Swaziland
In this small, landlocked economy, subsistence agriculture
occupies more than 80% of the population. The manufacturing sector
has diversified since the mid-1980s. Sugar and wood pulp remain
important foreign exchange earners. Mining has declined in
importance in recent years with only coal and quarry stone mines
remaining active. Surrounded by South Africa, except for a short
border with Mozambique, Swaziland is heavily dependent on South
Africa from which it receives nine-tenths of its imports and to
which it sends more than two-thirds of its exports. Customs duties
from the Southern African Customs Union and worker remittances from
South Africa substantially supplement domestically earned income.
The government is trying to improve the atmosphere for foreign
investment. Overgrazing, soil depletion, drought, and sometimes
floods persist as problems for the future. More than one-fourth of
the population needed emergency food aid in 2002 because of drought,
and more than one-third of the adult population was infected by
HIV/AIDS.
Sweden
Aided by peace and neutrality for the whole 20th century,
Sweden has achieved an enviable standard of living under a mixed
system of high-tech capitalism and extensive welfare benefits. It
has a modern distribution system, excellent internal and external
communications, and a skilled labor force. Timber, hydropower, and
iron ore constitute the resource base of an economy heavily oriented
toward foreign trade. Privately owned firms account for about 90% of
industrial output, of which the engineering sector accounts for 50%
of output and exports. Agriculture accounts for only 2% of GDP and
2% of the jobs. The government's commitment to fiscal discipline
resulted in a substantial budgetary surplus in 2001, which was cut
by more than half in 2002, due to the global economic slowdown,
revenue declines, and spending increases. The Swedish central bank
(the Riksbank) is focusing on price stability with its inflation
target of 2%. Growth remained sluggish in 2003. On September 14,
2003, Swedish voters turned down entry into the euro system,
concerned about the impact on democracy and sovereignty.
Switzerland
Switzerland is a prosperous and stable modern market
economy with low unemployment, a highly skilled labor force, and a
per capita GDP larger than that of the big western European
economies. The Swiss in recent years have brought their economic
practices largely into conformity with the EU's to enhance their
international competitiveness. Switzerland remains a safe haven for
investors, because it has maintained a degree of bank secrecy and
has kept up the franc's long-term external value. Reflecting the
anemic economic conditions of Europe, GDP growth dropped in 2001 to
about 0.8%, to 0.2% in 2002, and to -0.3% in 2003.
Syria
Syria's predominantly statist economy has been growing, on
average, more slowly than its 2.4% annual population growth rate,
causing a persistent decline in per capita GDP. Recent legislation
allows private banks to operate in Syria, although a private banking
sector will take years and further government cooperation to
develop. External factors such as the international war on
terrorism, the Israeli-Palestinian conflict, and the war between the
US-led coalition and Iraq probably will drive real annual GDP growth
levels back below their 3.5% spike in 2002. A long-run economic
constraint is the pressure on water supplies caused by rapid
population growth, industrial expansion, and increased water
pollution.
Taiwan
Taiwan has a dynamic capitalist economy with gradually
decreasing guidance of investment and foreign trade by government
authorities. In keeping with this trend, some large government-owned
banks and industrial firms are being privatized. Exports have
provided the primary impetus for industrialization. The trade
surplus is substantial, and foreign reserves are the world's third
largest. Agriculture contributes 2% to GDP, down from 32% in 1952.
While Taiwan is a major investor throughout Southeast Asia, China
has become the largest destination for investment and has overtaken
the US to become Taiwan's largest export market. Because of its
conservative financial approach and its entrepreneurial strengths,
Taiwan suffered little compared with many of its neighbors from the
Asian financial crisis in 1998. The global economic downturn,
combined with problems in policy coordination by the administration
and bad debts in the banking system, pushed Taiwan into recession in
2001, the first year of negative growth ever recorded. Unemployment
also reached record levels. Output recovered moderately in 2002 in
the face of continued global slowdown, fragile consumer confidence,
and bad bank loans. Growing economic ties with China are a dominant
long-term factor. Exports to China - mainly parts and equipment for
the assembly of goods for export to developed countries - drove
Taiwan's economic recovery in 2002.
Tajikistan
Tajikistan has the lowest per capita GDP among the 15
former Soviet republics. Only 8% to 10% of the land area is arable.
Cotton is the most important crop. Mineral resources, varied but
limited in amount, include silver, gold, uranium, and tungsten.
Industry consists only of a large aluminum plant, hydropower
facilities, and small obsolete factories mostly in light industry
and food processing. The civil war (1992-97) severely damaged the
already weak economic infrastructure and caused a sharp decline in
industrial and agricultural production. Even though 60% of its
people continue to live in abject poverty, Tajikistan has
experienced steady economic growth since 1997. Continued
privatization of medium and large state-owned enterprises will
further increase productivity. Tajikistan's economic situation,
however, remains fragile due to uneven implementation of structural
reforms, weak governance, widespread unemployment, and the external
debt burden. A debt restructuring agreement was reached with Russia
in December 2002, including an interest rate of 4%, a 3-year grace
period, and a US $49.8 million credit to the Central Bank of
Tajikistan.
Tanzania
Tanzania is one of the poorest countries in the world. The
economy depends heavily on agriculture, which accounts for half of
GDP, provides 85% of exports, and employs 80% of the work force.
Topography and climatic conditions, however, limit cultivated crops
to only 4% of the land area. Industry traditionally featured the
processing of agricultural products and light consumer goods. The
World Bank, the International Monetary Fund, and bilateral donors
have provided funds to rehabilitate Tanzania's out-of-date economic
infrastructure and to alleviate poverty. Growth in 1991-2002
featured a pickup in industrial production and a substantial
increase in output of minerals, led by gold. Oil and gas exploration
and development played an important role in this growth. Recent
banking reforms have helped increase private sector growth and
investment. Continued donor support and solid macroeconomic policies
should support continued real GDP growth of 5% in 2003.
Thailand
Thailand has a free enterprise economy and welcomes foreign
investment. Exports feature computers and electrical appliances.
After enjoying the world's highest growth rate from 1985 to 1995 -
averaging almost 9% annually - increased speculative pressure on
Thailand's currency in 1997 led to a crisis that uncovered financial
sector weaknesses and forced the government to float the baht. Long
pegged at 25 to the dollar, the baht reached its lowest point of 56
to the dollar in January 1998, and the economy contracted by 10.2%
that same year. Thailand then entered a recovery stage, expanding by
4.2% in 1999 and 4.4% in 2000, largely due to strong exports. An
ailing financial sector and the slow pace of corporate debt
restructuring, combined with a softening of global demand, slowed
growth to 1.4% in 2001. Increased consumption and investment
spending pushed GDP growth up to 5.2% in 2002 despite a sluggish
global economy.
Togo
This small sub-Saharan economy is heavily dependent on both
commercial and subsistence agriculture, which provides employment
for 65% of the labor force. Some basic foodstuffs must still be
imported. Cocoa, coffee, and cotton generate about 40% of export
earnings, with cotton being the most important cash crop. Togo is
the world's fourth-largest producer of phosphate, but production
fell an estimated 22% in 2002 due to power shortages and the cost of
developing new deposits. The government's decade-long effort,
supported by the World Bank and the IMF, to implement economic
reform measures, encourage foreign investment, and bring revenues in
line with expenditures has moved slowly. Progress depends on
following through on privatization, increased openness in government
financial operations, progress toward legislative elections, and
continued support from foreign donors.