Sudan
Sudan has turned around a struggling economy with sound
economic policies and infrastructure investments, but it still faces
formidable economic problems, starting from its low level of per
capita output. From 1997 to date, Sudan has been implementing IMF
macroeconomic reforms. In 1999, Sudan began exporting crude oil and
in the last quarter of 1999 recorded its first trade surplus, which,
along with monetary policy, has stabilized the exchange rate.
Increased oil production, revived light industry, and expanded
export processing zones helped sustain GDP growth at 6.4% in 2004.
Agriculture production remains Sudan's most important sector,
employing 80% of the work force, contributing 39% of GDP, and
accounting for most of GDP growth, but most farms remain rain-fed
and susceptible to drought. Chronic instability - including the
long-standing civil war between the Muslim north and the
Christian/pagan south, adverse weather, and weak world agricultural
prices - ensure that much of the population will remain at or below
the poverty line for years.
Suriname
The economy is dominated by the alumina industry, which
accounts for more than 15% of GDP and 70% of export earnings.
Suriname's economic prospects for the medium term will depend on
continued commitment to responsible monetary and fiscal policies and
to the introduction of structural reforms to liberalize markets and
promote competition. The government of Ronald VENETIAAN has begun an
austerity program, raised taxes, and attempted to control spending.
While - in 2002 - President VENETIAAN agreed to a large pay raise
for civil servants, threatening his earlier gains in stabilizing the
economy, he has not repeated this promise in the run-up to the May
2005 elections. The Dutch Government has agreed to restart the aid
flow, which will allow Suriname to access international development
financing, but plans to phase out funds over the next five years.
The short-term economic outlook depends on the government's ability
to control inflation and on the development of projects in the
bauxite and gold mining sectors. Prospects for local onshore oil
production are good, as a drilling program is underway. Offshore oil
drilling was given a boost in 2004 when the State Oil Company
(Staatsolie) signed exploration agreements with Repsol and Mearsk.
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
hunting of seal, reindeer, and fox.
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 about nine-tenths of its imports and
to which it sends nearly three-quarters 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 2004
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,
declining revenue, and increased spending. The Swedish central bank
(the Riksbank) focuses on price stability with its inflation target
of 2%. Growth remained sluggish in 2003, but picked up in 2004.
Presumably because of generous sicktime benefits, Swedish workers
report in sick more often than other Europeans. On 14 September
2003, Swedish voters turned down entry into the euro system,
concerned about the impact on democracy and sovereignty.
Switzerland
Switzerland is a peaceful, 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, with a small rise
to 1.8% in 2004. Even so, unemployment has remained at less than
half the EU average.
Syria
Real GDP growth rose to 2.3 percent in 2004, a slight increase
from 2003 when the predominantly statist economy suffered from
disruptions caused by the war in Iraq and other developments in the
region. Annual real GDP growth has averaged 2.3 percent for the last
seven years. The Government of Syria has implemented modest economic
reforms in the last few years, including cutting interest rates,
opening private banks, consolidating some of the multiple exchange
rates, and raising prices on some subsidized foodstuffs.
Nevertheless, the economy remains highly controlled by the
government. Long run economic constraints include declining oil
production and exports and 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 less than 2% to GDP, down from 32%
in 1952. Taiwan is a major investor throughout Southeast Asia. China
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; and the
essentially vibrant economy pushed ahead in 2003-04. Growing
economic ties with China are a dominant long-term factor, e.g.,
exports to China of parts and equipment for the assembly of goods
for export to developed countries.
Tajikistan
Tajikistan has one of the lowest per capita GDPs among
the 15 former Soviet republics. Only 5% to 6% 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 almost
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. Recent
banking reforms have helped increase private sector growth and
investment. Continued donor assistance and solid macroeconomic
policies supported real GDP growth of nearly 6% in 2004.