Cocos (Keeling) Islands
Grown throughout the islands, coconuts are
the sole cash crop. Small local gardens and fishing contribute to
the food supply, but additional food and most other necessities must
be imported from Australia. There is a small tourist industry.
Colombia
Colombia's economy suffers from weak domestic and foreign
demand, austere government budgets, and serious internal armed
conflict, but seems poised for recovery. Other economic problems
facing President URIBE range from reforming the pension system to
reducing high unemployment. Two of Colombia's leading exports, oil
and coffee, face an uncertain future; new exploration is needed to
offset declining oil production, while coffee harvests and prices
are depressed. On the positive side, several international financial
institutions have praised the economic reforms introduced by URIBE,
which includes measures designed to reduce the public-sector deficit
below 2.5% of GDP in 2004. The government's economic policy and
democratic security strategy have engendered a growing sense of
confidence in the economy, particularly within the business sector,
and GDP growth in 2003 was among the highest in Latin America.
Comoros
One of the world's poorest countries, Comoros is made up of
three islands that have inadequate transportation links, a young and
rapidly increasing population, and few natural resources. The low
educational level of the labor force contributes to a subsistence
level of economic activity, high unemployment, and a heavy
dependence on foreign grants and technical assistance. Agriculture,
including fishing, hunting, and forestry, contributes 40% to GDP,
employs 80% of the labor force, and provides most of the exports.
The country is not self-sufficient in food production; rice, the
main staple, accounts for the bulk of imports. The government -
which is hampered by internal political disputes - is struggling to
upgrade education and technical training, to privatize commercial
and industrial enterprises, to improve health services, to diversify
exports, to promote tourism, and to reduce the high population
growth rate. Increased foreign support is essential if the goal of
4% annual GDP growth is to be met. Remittances from 150,000 Comorans
abroad help supplement GDP.
Congo, Democratic Republic of the
The economy of the Democratic
Republic of the Congo - a nation endowed with vast potential wealth
- has declined drastically since the mid-1980s. The war, which began
in August 1998, has dramatically reduced national output and
government revenue, has increased external debt, and has resulted in
the deaths from war, famine, and disease of perhaps 3.5 million
people. Foreign businesses have curtailed operations due to
uncertainty about the outcome of the conflict, lack of
infrastructure, and the difficult operating environment. The war has
intensified the impact of such basic problems as an uncertain legal
framework, corruption, inflation, and lack of openness in government
economic policy and financial operations. Conditions improved in
late 2002 with the withdrawal of a large portion of the invading
foreign troops. Several IMF and World Bank missions have met with
the government to help it develop a coherent economic plan, and
President KABILA has begun implementing reforms. Much economic
activity lies outside the GDP data. Economic stability, aided by
international donors, improved in 2003. New mining contracts have
been approved, which - combined with high mineral and metal prices -
could improve Kinshasa's fiscal position and GDP growth.
Congo, Republic of the
The economy is a mixture of village
agriculture and handicrafts, an industrial sector based largely on
oil, support services, and a government characterized by budget
problems and overstaffing. Oil has supplanted forestry as the
mainstay of the economy, providing a major share of government
revenues and exports. In the early 1980s, rapidly rising oil
revenues enabled the government to finance large-scale development
projects with GDP growth averaging 5% annually, one of the highest
rates in Africa. The government has mortgaged a substantial portion
of its oil earnings, contributing to a shortage of revenues. The 12
January 1994 devaluation of Franc Zone currencies by 50% resulted in
inflation of 61% in 1994, but inflation has subsided since. Economic
reform efforts continued with the support of international
organizations, notably the World Bank and the IMF. The reform
program came to a halt in June 1997 when civil war erupted. Denis
SASSOU-NGUESSO, who returned to power when the war ended in October
1997, publicly expressed interest in moving forward on economic
reforms and privatization and in renewing cooperation with
international financial institutions. However, economic progress was
badly hurt by slumping oil prices and the resumption of armed
conflict in December 1998, which worsened the republic's budget
deficit. The current administration presides over an uneasy internal
peace and faces difficult economic problems of stimulating recovery
and reducing poverty.
Cook Islands
Like many other South Pacific island nations, the Cook
Islands' economic development is hindered by the isolation of the
country from foreign markets, the limited size of domestic markets,
lack of natural resources, periodic devastation from natural
disasters, and inadequate infrastructure. Agriculture provides the
economic base with major exports made up of copra and citrus fruit.
Manufacturing activities are limited to fruit processing, clothing,
and handicrafts. Trade deficits are offset by remittances from
emigrants and by foreign aid, overwhelmingly from New Zealand. In
the 1980s and 1990s, the country lived beyond its means, maintaining
a bloated public service and accumulating a large foreign debt.
Subsequent reforms, including the sale of state assets, the
strengthening of economic management, the encouragement of tourism,
and a debt restructuring agreement, have rekindled investment and
growth.
Coral Sea Islands
no economic activity
Costa Rica
Costa Rica's basically stable economy depends on tourism,
agriculture, and electronics exports. Poverty has been substantially
reduced over the past 15 years, and a strong social safety net has
been put into place. Foreign investors remain attracted by the
country's political stability and high education levels, and tourism
continues to bring in foreign exchange. Low prices for coffee and
bananas have hurt the agricultural sector. The government continues
to grapple with its large deficit and massive internal debt. The
reduction of inflation remains a difficult problem because of rises
in the price of imports, labor market rigidities, and fiscal
deficits. Costa Rica recently concluded negotiations to participate
in the US - Central American Free Trade Agreement, which, if
ratified by the Costa Rican Legislature, would result in economic
reforms and an improved investment climate.
Cote d'Ivoire
Cote d'Ivoire is among the world's largest producers
and exporters of coffee, cocoa beans, and palm oil. Consequently,
the economy is highly sensitive to fluctuations in international
prices for these products and to weather conditions. Despite
government attempts to diversify the economy, it is still heavily
dependent on agriculture and related activities, which engage
roughly 68% of the population. After several years of lagging
performance, the Ivorian economy began a comeback in 1994, due to
the 50% devaluation of the CFA franc and improved prices for cocoa
and coffee, growth in nontraditional primary exports such as
pineapples and rubber, limited trade and banking liberalization,
offshore oil and gas discoveries, and generous external financing
and debt rescheduling by multilateral lenders and France. Moreover,
government adherence to donor-mandated reforms led to a jump in
growth to 5% annually during 1996-99. Growth was negative in 2000-03
because of the difficulty of meeting the conditions of international
donors, continued low prices of key exports, and severe civil war.
Political uncertainty will continue to cloud the economic outlook in
2004, but rising world prices for cocoa will help both the current
account and the government balances.
Croatia
Before the dissolution of Yugoslavia, the Republic of
Croatia, after Slovenia, was the most prosperous and industrialized
area, with a per capita output perhaps one-third above the Yugoslav
average. The economy emerged from a mild recession in 2000 with
tourism, banking, and public investments leading the way.
Unemployment remains high, at over 13 percent, with structural
factors slowing its decline. While macroeconomic stabilization has
largely been achieved, structural reforms lag because of deep
resistance on the part of the public and lack of strong support from
politicians. Growth, while impressively over 4% for the last several
years, has been achieved through high fiscal and current account
deficits. The government is gradually reducing a heavy back log of
civil cases, many involving land tenure. The EU accession process
should accelerate fiscal and structural reform.