British Indian Ocean Territory
All economic activity is concentrated
on the largest island of Diego Garcia, where joint UK-US defense
facilities are located. Construction projects and various services
needed to support the military installations are done by military
and contract employees from the UK, Mauritius, the Philippines, and
the US. There are no industrial or agricultural activities on the
islands. When the Ilois return, they plan to reestablish sugarcane
production and fishing. The country makes money by selling fishing
licenses and postage stamps.
British Virgin Islands
The economy, one of the most stable and
prosperous in the Caribbean, is highly dependent on tourism,
generating an estimated 45% of the national income. An estimated
350,000 tourists, mainly from the US, visited the islands in 1998.
Tourism suffered in 2002 because of the lackluster US economy. In
the mid-1980s, the government began offering offshore registration
to companies wishing to incorporate in the islands, and
incorporation fees now generate substantial revenues. Roughly
400,000 companies were on the offshore registry by yearend 2000. The
adoption of a comprehensive insurance law in late 1994, which
provides a blanket of confidentiality with regulated statutory
gateways for investigation of criminal offenses, made the British
Virgin Islands even more attractive to international business.
Livestock raising is the most important agricultural activity; poor
soils limit the islands' ability to meet domestic food requirements.
Because of traditionally close links with the US Virgin Islands, the
British Virgin Islands has used the US dollar as its currency since
1959.
Brunei
This small, well-to-do economy encompasses a mixture of
foreign and domestic entrepreneurship, government regulation,
welfare measures, and village tradition. Crude oil and natural gas
production account for nearly half of GDP and more than 90% of
government revenues. Per capita GDP is far above most other Third
World countries, and substantial income from overseas investment
supplements income from domestic production. The government provides
for all medical services and free education through the university
level and subsidizes rice and housing. Brunei's leaders are
concerned that steadily increased integration in the world economy
will undermine internal social cohesion, although it became a more
prominent player by serving as chairman for the 2000 APEC (Asian
Pacific Economic Cooperation) forum. Plans for the future include
upgrading the labor force, reducing unemployment, strengthening the
banking and tourist sectors, and, in general, further widening the
economic base beyond oil and gas.
Bulgaria
Bulgaria, a former communist country soon to enter the
European Union, has experienced macroeconomic stability and strong
growth since a major economic downturn in 1996 led to the fall of
the then socialist government. As a result, the government became
committed to economic reform and responsible fiscal planning.
Minerals, including coal, copper, and zinc, play an important role
in industry. In 1997, macroeconomic stability was reinforced by the
imposition of a fixed exchange rate of the lev against the German
D-mark - the currency is now fixed against the euro - and the
negotiation of an IMF standby agreement. Low inflation and steady
progress on structural reforms improved the business environment;
Bulgaria has averaged 4% growth since 2000 and has begun to attract
significant amounts of foreign direct investment. Corruption in the
public administration, a weak judiciary, and the presence of
organized crime remain the largest challenges for Bulgaria.
Burkina Faso
One of the poorest countries in the world, landlocked
Burkina Faso has few natural resources and a weak industrial base.
About 90% of the population is engaged in subsistence agriculture,
which is vulnerable to harsh climatic conditions. Cotton is the key
crop and the government has joined with other cotton producing
countries in the region to lobby for improved access to Western
markets. GDP growth has largely been driven by increases in world
cotton prices. Industry remains dominated by unprofitable
government-controlled corporations. Following the CFA franc currency
devaluation in January 1994, the government updated its development
program in conjunction with international agencies; exports and
economic growth have increased. The government devolved
macroeconomic policy and inflation targeting to the West African
regional central bank (BCEAO), but maintains control over fiscal and
microeconomic policies, including implementing reforms to encourage
private investment. The bitter internal crisis in neighboring Cote
d'Ivoire continues to hurt trade and industrial prospects and
deepens the need for international assistance.
Burma
Burma, a resource-rich country, suffers from pervasive
government controls, inefficient economic policies, and rural
poverty. The junta took steps in the early 1990s to liberalize the
economy after decades of failure under the "Burmese Way to
Socialism," but those efforts stalled, and some of the
liberalization measures were rescinded. Burma does not have monetary
or fiscal stability, so the economy suffers from serious
macroeconomic imbalances - including inflation, multiple official
exchange rates that overvalue the Burmese kyat, and a distorted
interest rate regime. Most overseas development assistance ceased
after the junta began to suppress the democracy movement in 1988 and
subsequently refused to honor the results of the 1990 legislative
elections. In response to the government of Burma's attack in May
2003 on AUNG SAN SUU KYI and her convoy, the US imposed new economic
sanctions against Burma - including a ban on imports of Burmese
products and a ban on provision of financial services by US persons.
A poor investment climate further slowed the inflow of foreign
exchange. The most productive sectors will continue to be in
extractive industries, especially oil and gas, mining, and timber.
Other areas, such as manufacturing and services, are struggling with
inadequate infrastructure, unpredictable import/export policies,
deteriorating health and education systems, and corruption. A major
banking crisis in 2003 shuttered the country's 20 private banks and
disrupted the economy. As of December 2005, the largest private
banks operate under tight restrictions limiting the private sector's
access to formal credit. Official statistics are inaccurate.
Published statistics on foreign trade are greatly understated
because of the size of the black market and unofficial border trade
- often estimated to be as large as the official economy. Burma's
trade with Thailand, China, and India is rising. Though the Burmese
government has good economic relations with its neighbors, better
investment and business climates and an improved political situation
are needed to promote foreign investment, exports, and tourism.
Burundi
Burundi is a landlocked, resource-poor country with an
underdeveloped manufacturing sector. The economy is predominantly
agricultural with more than 90% of the population dependent on
subsistence agriculture. Economic growth depends on coffee and tea
exports, which account for 90% of foreign exchange earnings. The
ability to pay for imports, therefore, rests primarily on weather
conditions and international coffee and tea prices. The Tutsi
minority, 14% of the population, dominates the government and the
coffee trade at the expense of the Hutu majority, 85% of the
population. An ethnic-based war that lasted for over a decade
resulted in more than 200,000 deaths, forced more than 48,000
refugees into Tanzania, and displaced 140,000 others internally.
Only one in two children go to school, and approximately one in 10
adults has HIV/AIDS. Food, medicine, and electricity remain in short
supply. Political stability and the end of the civil war have
improved aid flows and economic activity has increased, but
underlying weaknesses - a high poverty rate, poor education rates, a
weak legal system, and low administrative capacity - risk
undermining planned economic reforms.
Cambodia
In 1999, the first full year of peace in 30 years, the
government made progress on economic reforms. The US and Cambodia
signed a Bilateral Textile Agreement, which gave Cambodia a
guaranteed quota of US textile imports and established a bonus for
improving working conditions and enforcing Cambodian labor laws and
international labor standards in the industry. From 2001 to 2004,
the economy grew at an average rate of 6.4%, driven largely by an
expansion in the garment sector and tourism. With the January 2005
expiration of a WTO Agreement on Textiles and Clothing,
Cambodia-based textile producers were forced to compete directly
with lower-priced producing countries such as China and India.
Although initial 2005 GDP growth estimates were less than 3%,
better-than-expected garment sector performance led the IMF to
forecast 6% growth in 2005. Faced with the possibility that its
vibrant garment industry, with more than 200,000 jobs, could be in
serious danger, the Cambodian government has committed itself to a
policy of continued support for high labor standards in an attempt
to maintain favor with buyers. The tourism industry continues to
grow rapidly, with foreign visitors surpassing 1 million for the
year by September 2005. In 2005, exploitable oil and natural gas
deposits were found beneath Cambodia's territorial waters,
representing a new revenue stream for the government once commercial
extraction begins in the coming years. The long-term development of
the economy remains a daunting challenge. The Cambodian government
continues to work with bilateral and multilateral donors, including
the World Bank and IMF, to address the country's many pressing
needs. In December 2004, official donors pledged $504 million in aid
for 2005 on the condition that the Cambodian government implement
steps to reduce corruption. The major economic challenge for
Cambodia over the next decade will be fashioning an economic
environment in which the private sector can create enough jobs to
handle Cambodia's demographic imbalance. More than 50% of the
population is 20 years or younger. The population lacks education
and productive skills, particularly in the poverty-ridden
countryside, which suffers from an almost total lack of basic
infrastructure. Fully 75% of the population remains engaged in
subsistence farming.
Cameroon
Because of its oil resources and favorable agricultural
conditions, Cameroon has one of the best-endowed primary commodity
economies in sub-Saharan Africa. Still, it faces many of the serious
problems facing other underdeveloped countries, such as a top-heavy
civil service and a generally unfavorable climate for business
enterprise. Since 1990, the government has embarked on various IMF
and World Bank programs designed to spur business investment,
increase efficiency in agriculture, improve trade, and recapitalize
the nation's banks. In June 2000, the government completed an
IMF-sponsored, three-year structural adjustment program; however,
the IMF is pressing for more reforms, including increased budget
transparency, privatization, and poverty reduction programs.
International oil and cocoa prices have considerable impact on the
economy.
Canada
As an affluent, high-tech industrial society in the trillion
dollar class, Canada resembles the US in its market-oriented
economic system, pattern of production, and affluent living
standards. Since World War II, the impressive growth of the
manufacturing, mining, and service sectors has transformed the
nation from a largely rural economy into one primarily industrial
and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the
1994 North American Free Trade Agreement (NAFTA) (which includes
Mexico) touched off a dramatic increase in trade and economic
integration with the US. Given its great natural resources, skilled
labor force, and modern capital plant, Canada enjoys solid economic
prospects. Top-notch fiscal management has produced consecutive
balanced budgets since 1997, although public debate continues over
how to manage the rising cost of the publicly funded healthcare
system. Exports account for roughly a third of GDP. Canada enjoys a
substantial trade surplus with its principal trading partner, the
US, which absorbs more than 85% of Canadian exports. Canada is the
US' largest foreign supplier of energy, including oil, gas, uranium,
and electric power.