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 two-thirds 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 2004-05 because of
drought, and nearly two-fifths of the adult population has been
infected by HIV/AIDS.
Sweden
Aided by peace and neutrality for the whole of the 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
of 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 and
2005. Presumably because of generous sick-leave benefits, Swedish
workers report in sick more often than other Europeans. In 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 safehaven 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 2004-05. Even so, unemployment has remained at less than
half the EU average.
Syria
The Syrian Government estimates the economy grew by 4.5
percent in real terms in 2005, led by the petroleum and agricultural
sectors, which together account for about half of GDP. Economic
performance and the exchange rate on the informal market were hit by
international political developments following the assassination in
February of former Lebanese Prime Minister Rafiq al-HARIRI and the
specter of international sanctions. Higher crude oil prices
countered declining oil production and exports and helped to narrow
the budget deficit and widen the current account surplus. 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,
increasing pressure on water supplies caused by rapid population
growth, industrial expansion, and 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 and, in 2005, Taiwan's third-largest source of imports after
Japan and the US. Taiwan has benefited from cross-Strait economic
integration and a sharp increase in world demand to achieve
substantial growth in its export sector and a seven-year-high real
GDP growth of 6.1% in 2004. However, excess inventory, higher
international oil prices, and rising interest rates dampened
consumption in developed markets, and GDP growth dropped to 3.8% in
2005. The service sector, which accounts for 69% of Taiwan's GDP,
has continued to expand, while unemployment and inflation rates have
declined.
Tajikistan
Tajikistan has one of the lowest per capita GDPs among
the 15 former Soviet republics. Only 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 64% of its
people continue to live in abject poverty, Tajikistan has
experienced steady economic growth since 1997, but experienced a
slight drop in its growth rate to 8% in 2005 from 10.6% in 2004.
Continued privatization of medium and large state-owned enterprises
would 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 a $250 million write-off of
Tajikistan's $300 million debt to Russia. Tajikistan ranks third in
the world in terms of water resources per head. A proposed
investment to finish the hydropower dams Rogun and Sangtuda would
substantially add to electricity production. If finished, Rogun will
be the world's tallest dam.
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. Long-term growth
through 2005 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 more than 6% in 2005.
Thailand
With a well-developed infrastructure, a free-enterprise
economy, and pro-investment policies, Thailand appears to have fully
recovered from the 1997-98 Asian Financial Crisis. The country was
one of East Asia's best performers in 2002-04. Boosted by increased
consumption and strong export growth, the Thai economy grew 6.9% in
2003 and 6.1% in 2004 despite a sluggish global economy. Bangkok has
pursued preferential trade agreements with a variety of partners in
an effort to boost exports and to maintain high growth. In 2004,
Thailand and the US began negotiations on a Free Trade Agreement. In
late December 2004, a major tsunami took 8,500 lives in Thailand and
caused massive destruction of property in the southern provinces of
Krabi, Phangnga, and Phuket. Growth slowed to 4.4% in 2005. The
downturn can be attributed to high oil prices, weaker demand from
Western markets, severe drought in rural regions, tsunami-related
declines in tourism, and lower consumer confidence. Moreover, the
THAKSIN administration's expansionist economic policies, including
plans for multi-billion-dollar mega-projects in infrastructure and
social development, has raised concerns about fiscal discipline and
the health of financial institutions. On the positive side, the Thai
economy performed well beginning in the third quarter of 2005.
Export-oriented manufacturing - in particular automobile production
- and farm output are driving these gains. In 2006, the economy
should benefit from an influx of investment and a revived tourism
sector; however, a possible avian flu epidemic could significantly
harm economic prospects throughout the region.
Togo
This small, sub-Saharan economy is heavily dependent on both
commercial and subsistence agriculture, which provides employment
for 65% of the labor force. Some basic foodstuffs must still be
imported. Cocoa, coffee, and cotton generate about 40% of export
earnings, with cotton being the most important cash crop. Togo is
the world's fourth-largest producer of phosphate. The government's
decade-long effort, supported by the World Bank and the IMF, to
implement economic reform measures, encourage foreign investment,
and bring revenues in line with expenditures has moved slowly.
Progress depends on follow-through on privatization, increased
openness in government financial operations, progress toward
legislative elections, and continued support from foreign donors.
Togo is working with donors to write a PRGF that could eventually
lead to a debt reduction plan.
Tokelau
Tokelau's small size (three villages), isolation, and lack
of resources greatly restrain economic development and confine
agriculture to the subsistence level. The people rely heavily on aid
from New Zealand - about $4 million annually - to maintain public
services, with annual aid being substantially greater than GDP. The
principal sources of revenue come from sales of copra, postage
stamps, souvenir coins, and handicrafts. Money is also remitted to
families from relatives in New Zealand.