Zimbabwe
Crisis in Zimbabwe Coalition [Wellington CHIBEBE]; National
Constitutional Assembly or NCA [Lovemore MADHUKU]; Zimbabwe Congress
of Trade Unions or ZCTU [Lovemore MATOMBO]
This page was last updated on 19 December, 2006
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@2116 Economy - overview
Afghanistan
Afghanistan's economic outlook has improved
significantly since the fall of the Taliban regime in 2001 because
of the infusion of over $8 billion in international assistance,
recovery of the agricultural sector and growth of the service
sector, and the reestablishment of market institutions. Real GDP
growth is estimated to have slowed in the last fiscal year primarily
because adverse weather conditions cut agricultural production, but
is expected to rebound over 2005-06 because of foreign donor
reconstruction and service sector growth. Despite the progress of
the past few years, Afghanistan remains extremely poor, landlocked,
and highly dependent on foreign aid, farming, and trade with
neighboring countries. It will probably take the remainder of the
decade and continuing donor aid and attention to significantly raise
Afghanistan's living standards from its current status, among the
lowest in the world. Much of the population continues to suffer from
shortages of housing, clean water, electricity, medical care, and
jobs, but the Afghan government and international donors remain
committed to improving access to these basic necessities by
prioritizing infrastructure development, education, housing
development, jobs programs, and economic reform over the next year.
Growing political stability and continued international commitment
to Afghan reconstruction create an optimistic outlook for continuing
improvements in the Afghan economy in 2006. Expanding poppy
cultivation and a growing opium trade may account for one-third of
GDP and looms as one of Kabul's most serious policy challenges.
Other long-term challenges include: boosting the supply of skilled
labor, reducing vulnerability to severe natural disasters, expanding
health services, and rebuilding a war torn infrastructure.
Akrotiri
Economic activity is limited to providing services to the
military and their families located in Akrotiri. All food and
manufactured goods must be imported.
Albania
Lagging behind its Balkan neighbors, Albania is making the
difficult transition to a more modern open-market economy. The
government has taken measures to curb violent crime and to spur
economic activity and trade. The economy is bolstered by annual
remittances from abroad of $600-$800 million, mostly from Greece and
Italy; this helps offset the towering trade deficit. Agriculture,
which accounts for about one-quarter of GDP, is held back because of
frequent drought and the need to modernize equipment, to clarify
property rights, and to consolidate small plots of land. Energy
shortages and antiquated and inadequate infrastructure contribute to
Albania's poor business environment, which make it difficult to
attract and sustain foreign investment. The planned construction of
a new thermal power plant near Vlore and improved transmission and
distribution facilities will help relieve the energy shortages.
Also, the government is moving slowly to improve the poor national
road and rail network, a long-standing barrier to sustained economic
growth. On the positive side: growth was strong in 2003-05 and
inflation is not a problem.
Algeria
The hydrocarbons sector is the backbone of the economy,
accounting for roughly 60% of budget revenues, 30% of GDP, and over
95% of export earnings. Algeria has the seventh-largest reserves of
natural gas in the world and is the second-largest gas exporter; it
ranks 14th in oil reserves. Sustained high oil prices in recent
years, along with macroeconomic policy reforms supported by the IMF,
have helped improve Algeria's financial and macroeconomic
indicators. Algeria is running substantial trade surpluses and
building up record foreign exchange reserves. Real GDP has risen due
to higher oil output and increased government spending. The
government's continued efforts to diversify the economy by
attracting foreign and domestic investment outside the energy
sector, however, has had little success in reducing high
unemployment and improving living standards. The population is
becoming increasingly restive due to the lack of jobs and housing
and frequently stages protests, which have resulted in arrests and
injuries, including some deaths as government forces intervened to
restore order. Structural reform within the economy, such as
development of the banking sector and the construction of
infrastructure, moves ahead slowly hampered by corruption and
bureaucratic resistance.
American Samoa
American Samoa has a traditional Polynesian economy
in which more than 90% of the land is communally owned. Economic
activity is strongly linked to the US with which American Samoa
conducts most of its foreign trade. Tuna fishing and tuna processing
plants are the backbone of the private sector, with canned tuna the
primary export. Transfers from the US Government add substantially
to American Samoa's economic well being. Attempts by the government
to develop a larger and broader economy are restrained by Samoa's
remote location, its limited transportation, and its devastating
hurricanes. Tourism is a promising developing sector.
Andorra
Tourism, the mainstay of Andorra's tiny, well-to-do economy,
accounts for more than 80% of GDP. An estimated 11.6 million
tourists visit annually, attracted by Andorra's duty-free status and
by its summer and winter resorts. Andorra's comparative advantage
has recently eroded as the economies of neighboring France and Spain
have been opened up, providing broader availability of goods and
lower tariffs. The banking sector, with its partial "tax haven"
status, also contributes substantially to the economy. Agricultural
production is limited - only 2% of the land is arable - and most
food has to be imported. The principal livestock activity is sheep
raising. Manufacturing output consists mainly of cigarettes, cigars,
and furniture. Andorra is a member of the EU Customs Union and is
treated as an EU member for trade in manufactured goods (no tariffs)
and as a non-EU member for agricultural products.