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 more than nine-tenths of its imports
and to which it sends 60% 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 1% of GDP and
2% of employment. 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 during
2004-06. 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 the economy 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 stagnated during
the 2001-03 period, improved during 2004-05 to 1.8% annually and to
2.9% in 2006. Even so, unemployment has remained at less than half
the EU average.
Syria
The Syrian economy grew by an estimated 2.9% in real terms in
2006, led by the petroleum and agricultural sectors, which together
account for about one-half of GDP. Higher crude oil prices countered
declining oil production and exports and led to higher budgetary and
export receipts. Total foreign assets of the Central Bank and
domestic banking system rose to about $20 billion in 2006, and the
government strengthened the private sector foreign exchange rate by
about 7 percent from the start of the year. The Government of Syria
has implemented modest economic reforms in the past 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, weak
investment, and increasing pressure on water supplies caused by
heavy use in agriculture, 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
island runs a trade surplus, and foreign reserves are the world's
third largest. Despite restrictions cross-strait links, China has
overtaken the US to become Taiwan's largest export market and, in
2006, its second-largest source of imports after Japan. China is
also the island's number one destination for foreign direct
investment. Strong trade performance in 2006 pushed Taiwan's GDP
growth rate above 4%, and unemployment is below 4%. Consumer
spending recovered following a slowdown early in 2006, when banks
tightened lending to address a sharp increase in delinquent consumer
debt.
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. While Tajikistan has
experienced steady economic growth since 1997, nearly two-thirds of
the population continue to live in abject poverty. Economic growth
reached 10.6% in 2004, but dropped to 8% in 2005, and to 7% in 2006.
Tajikistan's economic situation, however, remains fragile due to
uneven implementation of structural reforms, weak governance,
widespread unemployment, and the external debt burden. Continued
privatization of medium and large state-owned enterprises could
increase productivity. 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 I and II
would substantially add to electricity production, which could be
exported for profit. If finished, Rogun will be the world's tallest
dam. In 2006, Tajikistan was the recipient of substantial Shanghai
Cooperation Organization infrastructure development credits to
improve its roads and electricity transmission network.
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 nearly 6% in 2006.
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 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. In 2006, investment stagnated as
investors, spooked by the Thaksin administration's political
problems, stayed on the sidelines. The military coup in September
brought in a new economic team, led by the former central bank
governor. In December, the Thai Board of Investment reported the
value of investment applications from January to November had
declined by 27% year-on-year. On the positive side, exports have
performed at record levels, rising nearly 17% in 2006.
Export-oriented manufacturing - in particular automobile production
- and farm output are driving these gains.
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.