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 60% 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. 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. Complicated controls and
uncertain policies in areas such as industrial licensing, trade,
labor, and finance continue to hamper foreign investment. Hydropower
exports to India have boosted Bhutan's overall growth. New
hydropower projects will be the driving force behind Bhutan's
ability to create employment and sustain growth in the coming years.
Bolivia
Bolivia is one of the poorest and least developed countries
in Latin America. Following a disastrous economic crisis during the
early 1980s, reforms spurred private investment, stimulated economic
growth, and cut poverty rates in the 1990s. The period 2003-05 was
characterized by political instability, racial tensions, and violent
protests against plans - subsequently abandoned - to export
Bolivia's newly discovered natural gas reserves to large northern
hemisphere markets. In 2005, the government passed a controversial
hydrocarbons law that imposed significantly higher royalties and
required foreign firms then operating under risk-sharing contracts
to surrender all production to the state energy company in exchange
for a predetermined service fee. After higher prices for mining and
hydrocarbons exports produced a fiscal surplus in 2008, the global
recession in 2009 slowed growth. A decline in commodity prices that
began in late 2008, a lack of foreign investment in the mining and
hydrocarbon sectors, a poor infrastructure, and the suspension of
trade benefits with the United States will pose challenges for the
Bolivian economy.
Bosnia and Herzegovina
The interethnic warfare in Bosnia and
Herzegovina caused production to plummet by 80% from 1992 to 1995
and unemployment to soar. With an uneasy peace in place, output
recovered in 1996-99 at high percentage rates from a low base; but
output growth slowed in 2000-02. Part of the lag in output was made
up in 2003-08 when GDP growth exceeded 5% per year. However, the
country experienced negative GDP growth of almost 3% in 2009 due in
large part to a reduction in exports caused by the global economic
crisis. One of Bosnia's main economic challenges in 2010 has been to
reduce spending on public sector wages and social benefits to meet
the IMF's criteria for obtaining funding for budget shortfalls.
Banking reform accelerated in 2001 as all the Communist-era payments
bureaus were shut down; foreign banks, primarily from Austria and
Italy, now control most of the banking sector. The konvertibilna
marka (convertible mark or BAM)- the national currency introduced in
1998 - is pegged to the euro, and confidence in the currency and the
banking sector has increased. Bosnia's private sector is growing and
foreign investment is slowly increasing, but government spending, at
roughly 50% of GDP, remains high because of redundant government
offices at the state, entity and municipal level. Privatization of
state enterprises, however, has been slow, particularly in the
Federation where political division between ethnically-based
political parties makes agreement on economic policy more difficult.
A sizeable current account deficit and high unemployment rate remain
the two most serious macroeconomic problems. Successful
implementation of a value-added tax in 2006 provided a predictable
source of revenue for the government and helped rein in gray market
activity. National-level statistics have also improved over time but
a large share of economic activity remains unofficial and
unrecorded. Bosnia and Herzegovina became a full member of the
Central European Free Trade Agreement in September 2007.
Botswana
Botswana has maintained one of the world's highest economic
growth rates since independence in 1966, though growth fell below 5%
in 2007-08, and turned sharply negative in 2009, with industry
falling nearly 30%. Through fiscal discipline and sound management,
Botswana transformed itself from one of the poorest countries in the
world to a middle-income country with a per capita GDP of $13,100 in
2010. Two major investment services rank Botswana as the best credit
risk in Africa. Diamond mining has fueled much of the expansion and
currently accounts for more than one-third of GDP, 70-80% of export
earnings, and about half of the government's revenues. Botswana's
heavy reliance on a single luxury export was a critical factor in
the sharp economic contraction of 2009. Tourism, financial services,
subsistence farming, and cattle raising are other key sectors.
Although unemployment was 7.5% in 2007 according to official
reports, unofficial estimates place it closer to 40%. The prevalence
of HIV/AIDS is second highest in the world and threatens Botswana's
impressive economic gains. An expected leveling off in diamond
mining production within the next two decades overshadows long-term
prospects.
Bouvet Island
no economic activity; declared a nature reserve
Brazil
Characterized by large and well-developed agricultural,
mining, manufacturing, and service sectors, Brazil's economy
outweighs that of all other South American countries, and Brazil is
expanding its presence in world markets. Since 2003, Brazil has
steadily improved its macroeconomic stability, building up foreign
reserves, and reducing its debt profile by shifting its debt burden
toward real denominated and domestically held instruments. In 2008,
Brazil became a net external creditor and two ratings agencies
awarded investment grade status to its debt. After record growth in
2007 and 2008, the onset of the global financial crisis hit Brazil
in September 2008. Brazil experienced two quarters of recession, as
global demand for Brazil's commodity-based exports dwindled and
external credit dried up. However, Brazil was one of the first
emerging markets to begin a recovery. Consumer and investor
confidence revived and GDP growth returned to positive in 2010,
boosted by an export recovery. Brazil's strong growth and high
interest rates make it an attractive destination for foreign
investors. Large capital inflows over the past year have contributed
to the rapid appreciation of its currency and led the government to
raise taxes on some foreign investments. President Dilma ROUSSEFF
has pledged to retain the previous administration's commitment to
inflation targeting by the Central Bank, a floating exchange rate,
and fiscal restraint.
British Indian Ocean Territory All economic activity is concentrated on the largest island of Diego Garcia, where a joint UK-US military facility is located. Construction projects and various services needed to support the military installation are performed by military and contract employees from the UK, Mauritius, the Philippines, and the US. There are no industrial or agricultural activities on the islands. The territory earns foreign exchange 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. More than
934,000 tourists, mainly from the US, visited the islands in 2008.
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
Brunei has a small well-to-do economy that encompasses a
mixture of foreign and domestic entrepreneurship, government
regulation, welfare measures, and village tradition. Crude oil and
natural gas production account for just over half of GDP and more
than 90% of exports. Per capita GDP is among the highest in Asia,
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. A new monetary authority was
established in January 2011 with responsibilities that include
monetary policy, monitoring of financial institutions, and currency
trading activities. Other plans for the future include upgrading the
labor force, reducing unemployment, strengthening the banking and
tourist sectors, increasing agricultural production, and, in
general, further widening the economic base beyond oil and gas.
Bulgaria
Bulgaria, a former Communist country that entered the EU on
1 January 2007, averaged more than 6% growth from 2004 to 2008,
driven by significant amounts of foreign direct investment and
consumption. Successive governments have demonstrated a commitment
to economic reforms and responsible fiscal planning, but the global
downturn sharply reduced domestic demand, exports, capital inflows,
and industrial production. GDP contracted by approximately 5% in
2009, and stagnated in 2010, despite a significant recovery in
exports. The economy is expected to grow modestly in 2011, however.
Corruption in the public administration, a weak judiciary, and the
presence of organized crime remain significant challenges.