With a well-developed infrastructure, a free-enterprise
economy, and generally 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 from 2002-04. Boosted
by strong export growth, the Thai economy grew 4.5% in 2007. Bangkok
has pursued preferential trade agreements with a variety of partners
in an effort to boost exports and to maintain high growth. By 2007,
the tourism sector had largely recovered from the major 2004
tsunami. Following the military coup in September 2006, investment
and consumer confidence stagnated due to the uncertain political
climate that lasted through the December 2007 elections. Foreign
investor sentiment was further tempered by a 30% reserve requirement
on capital inflows instituted in December 2006, and discussion of
amending Thailand's rules governing foreign-owned businesses.
Economic growth in 2007 was due almost entirely to robust export
performance - despite the pressure of an appreciating currency.
Exports have performed at record levels, rising nearly 17% in 2006
and 12% in 2007. Export-oriented manufacturing - in particular
automobile production - and farm output are driving these gains.
Timor-Leste
In late 1999, about 70% of the economic infrastructure
of Timor-Leste was laid waste by Indonesian troops and
anti-independence militias. Three hundred thousand people fled
westward. Over the next three years a massive international program,
manned by 5,000 peacekeepers (8,000 at peak) and 1,300 police
officers, led to substantial reconstruction in both urban and rural
areas. By the end of 2005, refugees had returned or had settled in
Indonesia. The country continues to face great challenges in
rebuilding its infrastructure, strengthening the civil
administration, and generating jobs for young people entering the
work force. The development of oil and gas resources in offshore
waters has begun to supplement government revenues ahead of schedule
and above expectations - the result of high petroleum prices. The
technology-intensive industry, however, has done little to create
jobs for the unemployed because there are no production facilities
in Timor. Gas is piped to Australia. In June 2005 the National
Parliament unanimously approved the creation of a Petroleum Fund to
serve as a repository for all petroleum revenues and preserve the
value of Timor-Leste's petroleum wealth for future generations. The
Fund held assets of US$1.8 billion as of September 2007. The
mid-2006 outbreak of violence and civil unrest disrupted both
private and public sector economic activity and created 100,000
internally displaced persons - about 10 percent of the population.
While real non-oil GDP growth in 2006 was negative, the economy
probably rebounded in 2007. The underlying economic policy challenge
the country faces remains how best to use oil-and-gas wealth to lift
the non-oil economy onto a higher growth path and reduce poverty. In
late 2007, the new government announced plans aimed at increasing
spending, reducing poverty, and improving the country's
infrastructure, but it continues to face capacity constraints. In
the short term, the government must also address continuing problems
related to the crisis of 2006, especially the displaced Timorese.
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 Poverty Reduction and Growth
Facility (PRGF) that could eventually lead to a debt reduction plan.
Economic growth remains marginal due to declining cotton production,
underinvestment in phosphate mining, and strained relations with
donors.
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.
Tonga
Tonga has a small, open, South Pacific island economy. It has
a narrow export base in agricultural goods. Squash, vanilla beans,
and yams are the main crops, and agricultural exports, including
fish, make up two-thirds of total exports. The country must import a
high proportion of its food, mainly from New Zealand. The country
remains dependent on external aid and remittances from Tongan
communities overseas to offset its trade deficit. Tourism is the
second-largest source of hard currency earnings following
remittances. The government is emphasizing the development of the
private sector, especially the encouragement of investment, and is
committing increased funds for health and education. Tonga has a
reasonably sound basic infrastructure and well-developed social
services. High unemployment among the young, a continuing upturn in
inflation, pressures for democratic reform, and rising civil service
expenditures are major issues facing the government.
Trinidad and Tobago
Trinidad and Tobago has earned a reputation as
an excellent investment site for international businesses and has
one of the highest growth rates and per capita incomes in Latin
America. Recent growth has been fueled by investments in liquefied
natural gas (LNG), petrochemicals, and steel. Additional
petrochemical, aluminum, and plastics projects are in various stages
of planning. Trinidad and Tobago is the leading Caribbean producer
of oil and gas, and its economy is heavily dependent upon these
resources but it also supplies manufactured goods, notably food and
beverages, as well as cement to the Caribbean region. Oil and gas
account for about 40% of GDP and 80% of exports, but only 5% of
employment. The country is also a regional financial center, and
tourism is a growing sector, although it is not proportionately as
important as in many other Caribbean islands. The economy benefits
from a growing trade surplus. Economic growth reached 12.6% in 2006
and 5.5% in 2007 as prices for oil, petrochemicals, and LNG remained
high, and as foreign direct investment continued to grow to support
expanded capacity in the energy sector.
Tunisia
Tunisia has a diverse economy, with important agricultural,
mining, tourism, and manufacturing sectors. Governmental control of
economic affairs while still heavy has gradually lessened over the
past decade with increasing privatization, simplification of the tax
structure, and a prudent approach to debt. Progressive social
policies also have helped raise living conditions in Tunisia
relative to the region. Real growth, which averaged almost 5% over
the past decade, reached 6.3% in 2007 because of development in
non-textile manufacturing, a recovery in agricultural production,
and strong growth in the services sector. However, Tunisia will need
to reach even higher growth levels to create sufficient employment
opportunities for an already large number of unemployed as well as
the growing population of university graduates. Broader
privatization, further liberalization of the investment code to
increase foreign investment, improvements in government efficiency,
and reduction of the trade deficit are among the challenges ahead.
Turkey
Turkey's dynamic economy is a complex mix of modern industry
and commerce along with a traditional agriculture sector that still
accounts for more than 35% of employment. It has a strong and
rapidly growing private sector, yet the state still plays a major
role in basic industry, banking, transport, and communication. The
largest industrial sector is textiles and clothing, which accounts
for one-third of industrial employment; it faces stiff competition
in international markets with the end of the global quota system.
However, other sectors, notably the automotive and electronics
industries, are rising in importance within Turkey's export mix.
Real GNP growth has exceeded 6% in many years, but this strong
expansion has been interrupted by sharp declines in output in 1994,
1999, and 2001. The economy is turning around with the
implementation of economic reforms, and 2004 GDP growth reached 9%,
followed by roughly 5% annual growth from 2005-07. Inflation fell to
7.7% in 2005 - a 30-year low - but climbed back to 8.5% in 2007.
Despite the strong economic gains from 2002-07, which were largely
due to renewed investor interest in emerging markets, IMF backing,
and tighter fiscal policy, the economy is still burdened by a high
current account deficit and high external debt. Further economic and
judicial reforms and prospective EU membership are expected to boost
foreign direct investment. The stock value of FDI currently stands
at about $85 billion. Privatization sales are currently approaching
$21 billion. Oil began to flow through the Baku-Tblisi-Ceyhan
pipeline in May 2006, marking a major milestone that will bring up
to 1 million barrels per day from the Caspian to market. In 2007,
Turkish financial markets weathered significant domestic political
turmoil, including turbulence sparked by controversy over the
selection of former Foreign Minister Abdullah GUL as Turkey's 11th
president. Economic fundamentals are sound, marked by strong
economic growth and foreign direct investment. Turkey's high current
account deficit leaves the economy vulnerable to destabilizing
shifts in investor confidence, however.
Turkmenistan
Turkmenistan is a largely desert country with intensive
agriculture in irrigated oases and large gas and oil resources.
One-half of its irrigated land is planted in cotton; formerly it was
the world's 10th-largest producer. Poor harvests in recent years
have led to an almost 50% decline in cotton exports. With an
authoritarian ex-Communist regime in power and a tribally based
social structure, Turkmenistan has taken a cautious approach to
economic reform, hoping to use gas and cotton sales to sustain its
inefficient economy. Privatization goals remain limited. From
1998-2005, Turkmenistan suffered from the continued lack of adequate
export routes for natural gas and from obligations on extensive
short-term external debt. At the same time, however, total exports
rose by an average of roughly 15% per year from 2003-07, largely
because of higher international oil and gas prices. Overall
prospects in the near future are discouraging because of widespread
internal poverty, a poor educational system, government misuse of
oil and gas revenues, and Ashgabat's reluctance to adopt
market-oriented reforms. In the past, Turkmenistan's economic
statistics were state secrets. The new government has established a
State Agency for Statistics, but GDP numbers and other figures are
subject to wide margins of error. In particular, the rate of GDP
growth is uncertain. Since his election, President BERDIMUHAMEDOW
has sought to improve the health and education systems, ordered
unification of the country's dual currency exchange rate, begun
decreasing state subsidies for gasoline, signed an agreement to
build a gas line to China, and created a special tourism zone on the
Caspian Sea. All of these moves hint that the new post-NYYAZOW
government will work to create a friendlier foreign investment
environment.
Turks and Caicos Islands
The Turks and Caicos economy is based on
tourism, offshore financial services, and fishing. Most capital
goods and food for domestic consumption are imported. The US is the
leading source of tourists, accounting for more than three-quarters
of the 175,000 visitors that arrived in 2004. Major sources of
government revenue also include fees from offshore financial
activities and customs receipts.
Tuvalu
Tuvalu consists of a densely populated, scattered group of
nine coral atolls with poor soil. The country has no known mineral
resources and few exports. Subsistence farming and fishing are the
primary economic activities. Fewer than 1,000 tourists, on average,
visit Tuvalu annually. Job opportunities are scarce and public
sector workers make up the majority of those employed. About 15% of
the adult male population work as seamen on merchant ships abroad
and remittances are a vital source of income, contributing around $4
million in 2006. Substantial income is received annually from the
Tuvalu Trust Fund (TTF), an international trust fund established in
1987 by Australia, NZ, and the UK and supported also by Japan and
South Korea. Thanks to wise investments and conservative
withdrawals, this fund grew from an initial $17 million to an
estimated value of $77 million in 2006. The TFF contributed nearly
$9 million towards the government budget in 2006 and is an important
cushion for meeting shortfalls in the government's budget. The US
Government is also a major revenue source for Tuvalu because of
payments from a 1988 treaty on fisheries. In an effort to ensure
financial stability and sustainability, the government is pursuing
public sector reforms, including privatization of some government
functions and personnel cuts. Tuvalu also derives royalties from the
lease of its ".tv" Internet domain name, with revenue of more than
$2 million in 2006. A minor source of government revenue comes from
the sale of stamps and coins. With merchandise exports only a
fraction of merchandise imports, continued reliance must be placed
on fishing and telecommunications license fees, remittances from
overseas workers, official transfers, and income from overseas
investments. Growing income disparities and the vulnerability of the
country to climatic change are among leading concerns for the nation.
Uganda
Uganda has substantial natural resources, including fertile
soils, regular rainfall, and sizable mineral deposits of copper,
cobalt, gold, and other minerals. Agriculture is the most important
sector of the economy, employing over 80% of the work force. Coffee
accounts for the bulk of export revenues. Since 1986, the government
- with the support of foreign countries and international agencies -
has acted to rehabilitate and stabilize the economy by undertaking
currency reform, raising producer prices on export crops, increasing
prices of petroleum products, and improving civil service wages. The
policy changes are especially aimed at dampening inflation and
boosting production and export earnings. During 1990-2001, the
economy turned in a solid performance based on continued investment
in the rehabilitation of infrastructure, improved incentives for
production and exports, reduced inflation, gradually improved
domestic security, and the return of exiled Indian-Ugandan
entrepreneurs. Growth continues to be solid, despite variability in
the price of coffee, Uganda's principal export, and a consistent
upturn in Uganda's export markets. In 2000, Uganda qualified for
enhanced Highly Indebted Poor Countries (HIPC) debt relief worth
$1.3 billion and Paris Club debt relief worth $145 million. These
amounts combined with the original HIPC debt relief added up to
about $2 billion.
Ukraine
After Russia, the Ukrainian republic was far and away the
most important economic component of the former Soviet Union,
producing about four times the output of the next-ranking republic.
Its fertile black soil generated more than one-fourth of Soviet
agricultural output, and its farms provided substantial quantities
of meat, milk, grain, and vegetables to other republics. Likewise,
its diversified heavy industry supplied the unique equipment (for
example, large diameter pipes) and raw materials to industrial and
mining sites (vertical drilling apparatus) in other regions of the
former USSR. Shortly after independence was ratified in December
1991, the Ukrainian Government liberalized most prices and erected a
legal framework for privatization, but widespread resistance to
reform within the government and the legislature soon stalled reform
efforts and led to some backtracking. Output by 1999 had fallen to
less than 40% of the 1991 level. Ukraine's dependence on Russia for
energy supplies and the lack of significant structural reform have
made the Ukrainian economy vulnerable to external shocks. Ukraine
depends on imports to meet about three-fourths of its annual oil and
natural gas requirements. A dispute with Russia over pricing in late
2005 and early 2006 led to a temporary gas cut-off; Ukraine
concluded a deal with Russia in January 2006 that almost doubled the
price Ukraine pays for Russian gas. Outside institutions -
particularly the IMF - have encouraged Ukraine to quicken the pace
and scope of reforms. Ukrainian Government officials eliminated most
tax and customs privileges in a March 2005 budget law, bringing more
economic activity out of Ukraine's large shadow economy, but more
improvements are needed, including fighting corruption, developing
capital markets, and improving the legislative framework. Ukraine's
economy remains buoyant despite political turmoil between the Prime
Minister and President. Real GDP growth reached about 7% in 2006-07,
fueled by high global prices for steel - Ukraine's top export - and
by strong domestic consumption, spurred by rising pensions and
wages. Although the economy is likely to expand in 2008, long-term
growth could be threatened by the government's plans to reinstate
tax, trade, and customs privileges and to maintain restrictive grain
export quotas.
United Arab Emirates
The UAE has an open economy with a high per
capita income and a sizable annual trade surplus. Despite largely
successful efforts at economic diversification, nearly 40% of GDP is
still directly based on oil and gas output. Since the discovery of
oil in the UAE more than 30 years ago, the UAE has undergone a
profound transformation from an impoverished region of small desert
principalities to a modern state with a high standard of living. The
government has increased spending on job creation and infrastructure
expansion and is opening up utilities to greater private sector
involvement. In April 2004, the UAE signed a Trade and Investment
Framework Agreement with Washington and in November 2004 agreed to
undertake negotiations toward a Free Trade Agreement with the US.
The country's Free Trade Zones - offering 100% foreign ownership and
zero taxes - are helping to attract foreign investors. Higher oil
revenue, strong liquidity, housing shortages, and cheap credit in
2005-07 led to a surge in asset prices (shares and real estate) and
consumer inflation. Rising prices are increasing the operating costs
for businesses in the UAE and adversely impacting government
employees and others on fixed incomes. Dependence on oil and a large
expatriate workforce are significant long-term challenges. The UAE's
strategic plan for the next few years focuses on diversification and
creating more opportunities for nationals through improved education
and increased private sector employment.
United Kingdom
The UK, a leading trading power and financial center,
is one of the quintet of trillion dollar economies of Western
Europe. Over the past two decades, the government has greatly
reduced public ownership and contained the growth of social welfare
programs. Agriculture is intensive, highly mechanized, and efficient
by European standards, producing about 60% of food needs with less
than 2% of the labor force. The UK has large coal, natural gas, and
oil reserves; primary energy production accounts for 10% of GDP, one
of the highest shares of any industrial nation. Services,
particularly banking, insurance, and business services, account by
far for the largest proportion of GDP while industry continues to
decline in importance. Since emerging from recession in 1992,
Britain's economy has enjoyed the longest period of expansion on
record; growth has remained in the 2-3% range since 2004, outpacing
most of Europe. The economy's strength has complicated the Labor
government's efforts to make a case for Britain to join the European
Economic and Monetary Union (EMU). Critics point out that the
economy is doing well outside of EMU, and public opinion polls show
a majority of Britons are opposed to the euro. The BROWN government
has been speeding up the improvement of education, health services,
and affordable housing at a cost in higher taxes and a widening
public deficit.
United States
The US has the largest and most technologically
powerful economy in the world, with a per capita GDP of $46,000. In
this market-oriented economy, private individuals and business firms
make most of the decisions, and the federal and state governments
buy needed goods and services predominantly in the private
marketplace. US business firms enjoy greater flexibility than their
counterparts in Western Europe and Japan in decisions to expand
capital plant, to lay off surplus workers, and to develop new
products. At the same time, they face higher barriers to enter their
rivals' home markets than foreign firms face entering US markets. US
firms are at or near the forefront in technological advances,
especially in computers and in medical, aerospace, and military
equipment; their advantage has narrowed since the end of World War
II. The onrush of technology largely explains the gradual
development of a "two-tier labor market" in which those at the
bottom lack the education and the professional/technical skills of
those at the top and, more and more, fail to get comparable pay
raises, health insurance coverage, and other benefits. Since 1975,
practically all the gains in household income have gone to the top
20% of households. The response to the terrorist attacks of 11
September 2001 showed the remarkable resilience of the economy. The
war in March-April 2003 between a US-led coalition and Iraq, and the
subsequent occupation of Iraq, required major shifts in national
resources to the military. The rise in GDP in 2004-07 was
undergirded by substantial gains in labor productivity. Hurricane
Katrina caused extensive damage in the Gulf Coast region in August
2005, but had a small impact on overall GDP growth for the year.
Soaring oil prices in 2005-2007 threatened inflation and
unemployment, yet the economy continued to grow through year-end
2007. Imported oil accounts for about two-thirds of US consumption.
Long-term problems include inadequate investment in economic
infrastructure, rapidly rising medical and pension costs of an aging
population, sizable trade and budget deficits, and stagnation of
family income in the lower economic groups. The merchandise trade
deficit reached a record $847 billion in 2007. Together, these
problems caused a marked reduction in the value and status of the
dollar worldwide in 2007.
United States Pacific Island Wildlife Refuges
no economic activity