Baker Island
no economic activity
Bangladesh
Despite sustained domestic and international efforts to
improve economic and demographic prospects, Bangladesh remains a
poor, overpopulated, and inefficiently-governed nation. Although
more than half of GDP is generated through the service sector,
nearly two-thirds of Bangladeshis are employed in the agriculture
sector, with rice as the single-most-important product. Major
impediments to growth include frequent cyclones and floods,
inefficient state-owned enterprises, inadequate port facilities, a
rapidly growing labor force that cannot be absorbed by agriculture,
delays in exploiting energy resources (natural gas), insufficient
power supplies, and slow implementation of economic reforms. Reform
is stalled in many instances by political infighting and corruption
at all levels of government. Progress also has been blocked by
opposition from the bureaucracy, public sector unions, and other
vested interest groups. The BNP government, led by Prime Minister
Khaleda ZIA, has the parliamentary strength to push through needed
reforms, but the party's political will to do so has been lacking in
key areas. On an encouraging note, growth has been a steady 5-6% for
the past several years.
Barbados
Historically, the Barbadian economy had been dependent on
sugarcane cultivation and related activities, but production in
recent years has diversified into light industry and tourism.
Offshore finance and information services are important foreign
exchange earners. The government continues its efforts to reduce
unemployment, to encourage direct foreign investment, and to
privatize remaining state-owned enterprises. The economy contracted
in 2002-03 mainly due to a decline in tourism. Growth was positive
in 2005-06, as economic conditions in the US and Europe moderately
improved.
Bassas da India
no economic activity
Belarus
Belarus's economy in 2006 posted more than 8% growth. The
government has succeeded in lowering inflation over the past several
years. Trade with Russia - by far its largest single trade partner -
decreased in 2006, largely as a result of a change in the way the
Value Added Tax (VAT) on trade was collected. Trade with European
countries increased. Belarus has seen little structural reform since
1995, when President LUKASHENKO launched the country on the path of
"market socialism." In keeping with this policy, LUKASHENKO
reimposed administrative controls over prices and currency exchange
rates and expanded the state's right to intervene in the management
of private enterprises. Since 2005, the government has
re-nationalized a number of private companies. In addition,
businesses have been subject to pressure by central and local
governments, e.g., arbitrary changes in regulations, numerous
rigorous inspections, retroactive application of new business
regulations, and arrests of "disruptive" businessmen and factory
owners. A wide range of redistributive policies has helped those at
the bottom of the ladder; the Gini coefficient is among the lowest
in the world. Because of these restrictive economic policies,
Belarus has had trouble attracting foreign investment, which remains
low. Growth has been strong in recent years, despite the roadblocks
in a tough, centrally directed economy with a high, but decreasing,
rate of inflation. Belarus receives heavily discounted oil and
natural gas from Russia and much of Belarus' growth can be
attributed to the re-export of Russian oil at market prices. This
growth will be threatened in 2007, however, when Russia raises
energy prices closer to world market prices for Belarus. Russia is
planning to increase Belarusian gas prices from $47 per thousand
cubic meters (tcm) to $200 per tcm and introduce a first-time export
duty of $180 per ton on oil shipped to Belarus.
Belgium
This modern, private-enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north. With
few natural resources, Belgium must import substantial quantities of
raw materials and export a large volume of manufactures, making its
economy unusually dependent on the state of world markets. Roughly
three-quarters of its trade is with other EU countries. Public debt
is more than 90% of GDP. On the positive side, the government has
succeeded in balancing its budget, and income distribution is
relatively equal. Belgium began circulating the euro currency in
January 2002. Economic growth in 2001-03 dropped sharply because of
the global economic slowdown, with moderate recovery in 2004-06.
Belize
In this small, essentially private-enterprise economy the
tourism industry is the number one foreign exchange earner followed
by marine products, citrus, cane sugar, bananas, and garments. The
government's expansionary monetary and fiscal policies, initiated in
September 1998, led to sturdy GDP growth averaging nearly 4% in
1999-2006. Major concerns continue to be the sizable trade deficit
and unsustainable foreign debt. The government in 2006 announced it
would seek a restructuring of its sovereign debt and has been
negotiating with international creditors to find an acceptable
formula for doing so. A key short-term objective remains the
reduction of poverty with the help of international donors.
Benin
The economy of Benin remains underdeveloped and dependent on
subsistence agriculture, cotton production, and regional trade.
Growth in real output has averaged around 5% in the past six years,
but rapid population growth has offset much of this increase.
Inflation has subsided over the past several years. In order to
raise growth still further, Benin plans to attract more foreign
investment, place more emphasis on tourism, facilitate the
development of new food processing systems and agricultural
products, and encourage new information and communication
technology. Many of these proposals were included in Benin's $307
million Millennium Challenge Account grant signed in February 2006.
The 2001 privatization policy continues in telecommunications,
water, electricity, and agriculture in spite of government
reluctance. The Paris Club and bilateral creditors have eased the
external debt situation, with Benin benefiting from a G8 debt
reduction announced in July 2005, while pressing for more rapid
structural reforms. Benin continues to be hurt by Nigerian trade
protection that bans imports of a growing list of products from
Benin and elsewhere, which has resulted in increased smuggling and
criminality in the border region.
Bermuda
Bermuda enjoys the highest per capita income in the world,
more than 50% higher than that of the US. Its economy is primarily
based on providing financial services for international business and
luxury facilities for tourists. A number of reinsurance companies
relocated to the island following 11 September 2001 and again after
Hurricane Katrina, contributing to the expansion of an already
robust international business sector. Bermuda's tourism industry -
which derives over 80% of its visitors from the US - continues to
struggle but remains the island's number two industry. Most capital
equipment and food must be imported. Bermuda's industrial sector is
small, although construction continues to be important; the average
cost of a house in June 2003 had risen to $976,000. Agriculture is
limited with only 20% of the land being arable.
Bhutan
The economy, one of the world's smallest and least developed,
is based on agriculture and forestry, which provide the main
livelihood for more than 80% of the population. Agriculture consists
largely of subsistence farming and animal husbandry. Rugged
mountains dominate the terrain and make the building of roads and
other infrastructure difficult and expensive. The economy is closely
aligned with India's through strong trade and monetary links and
dependence on India's financial assistance. The industrial sector is
technologically backward, with most production of the cottage
industry type. Most development projects, such as road construction,
rely on Indian migrant labor. Bhutan's hydropower potential and its
attraction for tourists are key resources. Model education, social,
and environment programs are underway with support from multilateral
development organizations. Each economic program takes into account
the government's desire to protect the country's environment and
cultural traditions. For example, the government, in its cautious
expansion of the tourist sector, encourages visits by upscale,
environmentally conscientious tourists. Detailed controls and
uncertain policies in areas like industrial licensing, trade, labor,
and finance continue to hamper foreign investment.