The 2004 CIA World Factbook

by United States. Central Intelligence Agency

Bassas da India
no economic activity

Belarus
Belarus' economy in 2003 posted 6.1 percent growth and is
likely to continue expanding through 2004, albeit at a slower growth
rate. The Belarusian economy in 2004 is likely to be hampered by
high inflation, persistent trade deficits, and ongoing rocky
relations with Russia, Belarus' largest trading partner and energy
supplier. Belarus has seen little structural reform since 1995, when
President LUKASHENKO launched the country on the path of "market
socialism." In keeping with this policy, LUKASHENKO reimposed
administrative controls over prices and currency exchange rates and
expanded the state's right to intervene in the management of private
enterprises. In addition, businesses have been subject to pressure
on the part of central and local governments, e.g., arbitrary
changes in regulations, numerous rigorous inspections, retroactive
application of new business regulations, and arrests of "disruptive"
businessmen and factory owners. A wide range of redistributive
policies has helped those at the bottom of the ladder. For the time
being, Belarus remains self-isolated from the West and its
open-market economies.

Belgium
This modern private enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north. With
few natural resources, Belgium must import substantial quantities of
raw materials and export a large volume of manufactures, making its
economy unusually dependent on the state of world markets. Roughly
three-quarters of its trade is with other EU countries. Public debt
is about 100% of GDP, and the government has succeeded in balancing
its budget. Belgium, together with 11 of its EU partners, began
circulating the euro currency in January 2002. Economic growth in
2001-03 dropped sharply because of the global economic slowdown.
Prospects for 2004 again depend largely on recovery in the EU and
the US.

Belize
In this small, essentially private enterprise economy the
tourism industry is the number one foreign exchange earner followed
by cane sugar, citrus, marine products, bananas, and garments. The
government's expansionary monetary and fiscal policies, initiated in
September 1998, led to GDP growth of 6.5% in 1999, 10.8% in 2000,
4.6% in 2001, and 3.7% in 2002. Major concerns continue to be the
sizable trade deficit and foreign debt. A key short-term objective
remains the reduction of poverty with the help of international
donors.

Benin
The economy of Benin remains underdeveloped and dependent on
subsistence agriculture, cotton production, and regional trade.
Growth in real output has averaged a stable 5% in the past six
years, but rapid population rise has offset much of this increase.
Inflation has subsided over the past several years. In order to
raise growth still further, Benin plans to attract more foreign
investment, place more emphasis on tourism, facilitate the
development of new food processing systems and agricultural
products, and encourage new information and communication
technology. The 2001 privatization policy should continue in
telecommunications, water, electricity, and agriculture in spite of
initial government reluctance. The Paris Club and bilateral
creditors have eased the external debt situation, while pressing for
speeded-up structural reforms.

Bermuda
Bermuda enjoys one of the highest per capita incomes in the
world, equal to that of the US. Its economy is primarily based on
providing financial services for international business and luxury
facilities for tourists. The effects of 11 September 2001 have had
both positive and negative ramifications for Bermuda. On the
positive side, a number of new reinsurance companies have located on
the island, contributing to the expansion of an already robust
international business sector. On the negative side, Bermuda's
tourism industry - which derives over 80% of its visitors from the
US - was severely hit as American tourists chose not to travel.
Tourism rebounded somewhat in 2002-03. Most capital equipment and
food must be imported. Bermuda's industrial sector is small,
although construction continues to be important; the average cost of
a house in June 2003 had risen to $976,000. Agriculture is limited,
only 6% of the land being arable.

Bhutan
The economy, one of the world's smallest and least developed,
is based on agriculture and forestry, which provide the main
livelihood for more than 90% of the population. Agriculture consists
largely of subsistence farming and animal husbandry. Rugged
mountains dominate the terrain and make the building of roads and
other infrastructure difficult and expensive. The economy is closely
aligned with India's through strong trade and monetary links and
dependence on India's financial assistance. The industrial sector is
technologically backward, with most production of the cottage
industry type. Most development projects, such as road construction,
rely on Indian migrant labor. Bhutan's hydropower potential and its
attraction for tourists are key resources. Model education, social,
and environment programs are underway with support from multilateral
development organizations. Each economic program takes into account
the government's desire to protect the country's environment and
cultural traditions. For example, the government in its cautious
expansion of the tourist sector encourages the visits of upscale,
environmentally conscientious visitors. Detailed controls and
uncertain policies in areas like industrial licensing, trade, labor,
and finance continue to hamper foreign investment.

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 interethnic warfare in Bosnia
caused production to plummet by 80% from 1992 to 1995 and
unemployment to soar. 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. Part of the lag in output was made
up in 2003-04. National-level statistics are limited. Moreover,
official data do not capture the large share of black market
activity. The konvertibilna marka (convertible mark or BAM)- 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 $8,800 in 2003. 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 expected leveling off in diamond mining production.