Taiwan_The 2009 CIA World Factbook

Organization for Taiwan Nation Building; World United

Formosans for Independence

other: environmental groups; independence movement; various business

groups

note: debate on Taiwan independence has become acceptable within the

mainstream of domestic politics on Taiwan; political liberalization

and the increased representation of opposition parties in Taiwan's

legislature have opened public debate on the island's national

identity; a broad public consensus has developed that the government

enjoys popular sovereignty and - whatever the ultimate outcome

regarding unification or independence - that Taiwan's people must

have the deciding voice; public opinion polls consistently show a

substantial majority of Taiwan people supports maintaining Taiwan's

status quo for the foreseeable future; advocates of Taiwan

independence oppose the stand that the island will eventually unify

with mainland China; goals of the Taiwan independence movement

include establishing a sovereign nation on Taiwan and entering the

UN; advocates of eventual unification predicate their goal on the

democratic transformation of the mainland

Tajikistan

splinter parties recognized by the government but not by

the base of the party: Democratic Party or DPT [Masud SOBIROV]

(splintered from ISKANDAROV's DPT); Socialist Party or SPT

[Abduhalim GHAFFOROV] (splintered from NARZIEV's SPT)

unregistered political parties: Agrarian Party [Hikmatullo

NASREDDINOV]; Progressive Party [Sulton QUVVATOV]; Unity Party

[Hikmatullo SAIDOV]

Tanzania

Economic and Social Research Foundation or ESRF; Free

Zanzibar; Tanzania Media Women's Association or TAMWA

Thailand

People's Alliance for Democracy or PAD; United Front for

Democracy Against Dictatorship

Timor-Leste

Togo

Tokelau

none

Tonga

Human Rights and Democracy Movement Tonga or HRDMT [Rev.

Simote VEA, chairman]; Public Servant's Association [Finau TUTONE]

Trinidad and Tobago

Jamaat-al Muslimeen [Yasin BAKR]

Tunisia

18 October Group [collective leadership]; Tunisian League

for Human Rights or LTDH [Mokhtar TRIFI]

Turkey

Confederation of Public Sector Unions or KESK [Sami EVREN];

Confederation of Revolutionary Workers Unions or DISK [Suleyman

CELEBI]; Independent Industrialists' and Businessmen's Association

or MUSIAD [Omer Cihad VARDAN]; Moral Rights Workers Union or Hak-Is

[Salim USLU]; Turkish Confederation of Employers' Unions or TISK

[Tugurl KUDATGOBILIK]; Turkish Confederation of Labor or Turk-Is

[Mustafa KUMLU]; Turkish Confederation of Tradesmen and Craftsmen or

TESK [Dervis GUNDAY]; Turkish Industrialists' and Businessmen's

Association or TUSIAD [Arzuhan Dogan YALCINDAG]; Turkish Union of

Chambers of Commerce and Commodity Exchanges or TOBB [M. Rifat

HISARCIKLIOGLU]

Turkmenistan

Turks and Caicos Islands

Tuvalu

none

Uganda

Lord's Resistance Army or LRA [Joseph KONY]; Young

Parliamentary Association [Henry BANYENZAKI]; Parliamentary Advocacy

Forum or PAFO; National Association of Women Organizations in Uganda

or NAWOU [Florence NEKYON]; The Ugandan Coalition for Political

Accountability to Women or COPAW

Ukraine

Committee of Voters of Ukraine [Ihor POPOV]

United Arab Emirates

United Kingdom

Campaign for Nuclear Disarmament; Confederation of

British Industry; National Farmers' Union; Trades Union Congress

United States

environmentalists; business groups; labor unions;

churches; ethnic groups; political action committees or PAC; health

groups; education groups; civic groups; youth groups; transportation

groups; agricultural groups; veterans groups; women's groups; reform

lobbies

Uruguay

Architect's Society of Uruguay (professional organization);

Chamber of Uruguayan Industries (manufacturer's association);

Chemist and Pharmaceutical Association (professional organization);

PIT/CNT (powerful federation of Uruguayan Unions - umbrella labor

organization); Rural Association of Uruguay (rancher's association);

Uruguayan Construction League; Uruguayan Network of Political Women

other: Catholic Church; students

Uzbekistan

Agrarian and Entrepreneurs' Party [Marat ZAHIDOV]; Birlik

(Unity) Movement [Abdurahim POLAT, chairman]; Committee for the

Protection of Human Rights [Marat ZAHIDOV]; Erk (Freedom) Democratic

Party [Muhammad SOLIH, chairman] (was banned 9 December 1992);

Ezgulik Human Rights Society [Vasila INOYATOVA]; Free Farmers' Party

or Ozod Dehqonlar [Nigora HIDOYATOVA]; Human Rights Society of

Uzbekistan [Talib YAKUBOV, chairman]; Independent Human Rights

Organization of Uzbekistan [Mikhail ARDZINOV, chairman]; Mazlum;

Sunshine Coalition [Sanjar UMAROV, chairman]

Vanuatu

Venezuela

FEDECAMARAS, a conservative business group; VECINOS

groups; Venezuelan Confederation of Workers or CTV (labor

organization dominated by the Democratic Action)

Vietnam

8406 Bloc; Democratic Party of Vietnam or DPV; People's

Democratic Party Vietnam or PDP-VN; Alliance for Democracy

note: these groups advocate democracy but are not recognized by the

government

Virgin Islands

Wallis and Futuna

Western Sahara

none

Yemen

Muslim Brotherhood; Women National Committee

other: conservative tribal groups

Zambia

Zimbabwe

Crisis in Zimbabwe Coalition [Xolani ZITHA]; National

Constitutional Assembly or NCA [Lovemore MADHUKU]; Women of Zimbabwe

Arise or WOZA [Jenny WILLIAMS]; Zimbabwe Congress of Trade Unions or

ZCTU [Wellington CHIBEBE]

======================================================================

@2116

Field Listing :: Economy - overview

This entry briefly describes the type of economy, including the

degree of market orientation, the level of economic development, the

most important natural resources, and the unique areas of

specialization. It also characterizes major economic events and

policy changes in the most recent 12 months and may include a

statement about one or two key future macroeconomic trends.

Country

Economy - overview

Afghanistan

Afghanistan's economy is recovering from decades of

conflict. The economy has improved significantly since the fall of

the Taliban regime in 2001 largely because of the infusion of

international assistance, the recovery of the agricultural sector,

and service sector growth. Real GDP growth fell from the 10% level

in 2006-07 to a little more than 3% in 2008. Despite the progress of

the past few years, Afghanistan is extremely poor, landlocked, and

highly dependent on foreign aid, agriculture, and trade with

neighboring countries. Much of the population continues to suffer

from shortages of housing, clean water, electricity, medical care,

and jobs. Criminality, insecurity, and the Afghan Government's

inability to extend rule of law to all parts of the country pose

challenges to future economic growth. It will probably take the

remainder of the decade and continuing donor aid and attention to

significantly raise Afghanistan's living standards from its current

level, among the lowest in the world. International pledges made by

more than 60 countries and international financial institutions at

the Berlin Donors Conference for Afghan reconstruction in March 2004

reached $8.9 billion for 2004-09. While the international community

remains committed to Afghanistan's development, pledging over $57

billion at three donors' conferences since 2002, Kabul will need to

overcome a number of challenges. Expanding poppy cultivation and a

growing opium trade generate roughly $3 billion in illicit economic

activity and looms as one of Kabul's most serious policy concerns.

Other long-term challenges include: budget sustainability, job

creation, corruption, government capacity, and rebuilding war torn

infrastructure.

Akrotiri

Economic activity is limited to providing services to the

military and their families located in Akrotiri. All food and

manufactured goods must be imported.

Albania

Lagging behind its Balkan neighbors, Albania is making the

difficult transition to a more modern open-market economy.

Macroeconomic growth has averaged around 5% over the last five years

and inflation is low and stable. The government has taken measures

to curb violent crime, and recently adopted a fiscal reform package

aimed at reducing the large gray economy and attracting foreign

investment. The economy is bolstered by annual remittances from

abroad representing about 15% of GDP, mostly from Albanians residing

in Greece and Italy; this helps offset the towering trade deficit.

The agricultural sector, which accounts for over half of employment

but only about one-fifth of GDP, is limited primarily to small

family operations and subsistence farming because of lack of modern

equipment, unclear property rights, and the prevalence of small,

inefficient plots of land. Energy shortages because of a reliance on

hydropower, and antiquated and inadequate infrastructure contribute

to Albania's poor business environment and lack of success in

attracting new foreign investment. The completion of a new thermal

power plant near Vlore has helped diversify generation capacity, and

plans to upgrade transmission lines between Albania and Montenegro

and Kosovo would help relieve the energy shortages. Also, with help

from EU funds, the government is taking steps to improve the poor

national road and rail network, a long-standing barrier to sustained

economic growth.

Algeria

The hydrocarbons sector is the backbone of the economy,

accounting for roughly 60% of budget revenues, 30% of GDP, and over

95% of export earnings. Algeria has the eighth-largest reserves of

natural gas in the world and is the fourth-largest gas exporter; it

ranks 15th in oil reserves. Sustained high oil prices in recent

years have helped improve Algeria's financial and macroeconomic

indicators. Algeria is running substantial trade surpluses and

building up record foreign exchange reserves. Algeria has decreased

its external debt to less than 5% of GDP after repaying its Paris

Club and London Club debt in 2006. Real GDP has risen due to higher

oil output and increased government spending. The government's

continued efforts to diversify the economy by attracting foreign and

domestic investment outside the energy sector, however, has had

little success in reducing high unemployment and improving living

standards. Structural reform within the economy, such as development

of the banking sector and the construction of infrastructure, moves

ahead slowly hampered by corruption and bureaucratic resistance.

American Samoa

American Samoa has a traditional Polynesian economy

in which more than 90% of the land is communally owned. Economic

activity is strongly linked to the US with which American Samoa

conducts most of its commerce. Tuna fishing and tuna processing

plants are the backbone of the private sector, with canned tuna the

primary export. Transfers from the US Government add substantially

to American Samoa's economic well being. Attempts by the government

to develop a larger and broader economy are restrained by Samoa's

remote location, its limited transportation, and its devastating

hurricanes. Tourism is a promising developing sector.

Andorra

Tourism, the mainstay of Andorra's tiny, well-to-do economy,

accounts for more than 80% of GDP. An estimated 11.6 million

tourists visit annually, attracted by Andorra's duty-free status and

by its summer and winter resorts. Andorra's comparative advantage

has recently eroded as the economies of neighboring France and Spain

have been opened up, providing broader availability of goods and

lower tariffs. The banking sector, with its partial "tax haven"

status, also contributes substantially to the economy. Agricultural

production is limited - only 2% of the land is arable - and most

food has to be imported. The principal livestock activity is sheep

raising. Manufacturing output consists mainly of cigarettes, cigars,

and furniture. Andorra is a member of the EU Customs Union and is

treated as an EU member for trade in manufactured goods (no tariffs)

and as a non-EU member for agricultural products.

Angola

Angola's high growth rate is driven by its oil sector, which

has taken advantage of high international oil prices. Oil production

and its supporting activities contribute about 85% of GDP. Increased

oil production supported growth averaging more than 15% per year

from 2004 to 2007. A postwar reconstruction boom and resettlement of

displaced persons has led to high rates of growth in construction

and agriculture as well. Much of the country's infrastructure is

still damaged or undeveloped from the 27-year-long civil war.

Remnants of the conflict such as widespread land mines still mar the

countryside even though an apparently durable peace was established

after the death of rebel leader Jonas SAVIMBI in February 2002.

Subsistence agriculture provides the main livelihood for most of the

people, but half of the country's food must still be imported. In

2005, the government started using a $2 billion line of credit,

since increased to $7 billion, from China to rebuild Angola's public

infrastructure, and several large-scale projects were completed in

2006. Angola also has large credit lines from Brazil, Portugal,

Germany, Spain, and the EU. The central bank in 2003 implemented an

exchange rate stabilization program using foreign exchange reserves

to buy kwanzas out of circulation. This policy became more

sustainable in 2005 because of strong oil export earnings; it has

significantly reduced inflation. Although consumer inflation

declined from 325% in 2000 to under 13% in 2008, the stabilization

policy has put pressure on international net liquidity. Angola

became a member of OPEC in late 2006 and in late 2007 was assigned a

production quota of 1.9 million barrels a day, somewhat less than

the 2-2.5 million bbl Angola's government had wanted. To fully take

advantage of its rich national resources - gold, diamonds, extensive

forests, Atlantic fisheries, and large oil deposits - Angola will

need to implement government reforms, increase transparency, and

reduce corruption. The government has rejected a formal IMF

monitored program, although it continues Article IV consultations

and ad hoc cooperation. Corruption, especially in the extractive

sectors, and the negative effects of large inflows of foreign

exchange, are major challenges facing Angola.

Anguilla

Anguilla has few natural resources, and the economy depends

heavily on luxury tourism, offshore banking, lobster fishing, and

remittances from emigrants. Increased activity in the tourism

industry has spurred the growth of the construction sector

contributing to economic growth. Anguillan officials have put

substantial effort into developing the offshore financial sector,

which is small but growing. In the medium term, prospects for the

economy will depend largely on the tourism sector and, therefore, on

revived income growth in the industrialized nations as well as on

favorable weather conditions.

Antarctica

Fishing off the coast and tourism, both based abroad,

account for Antarctica's limited economic activity. Antarctic

fisheries in 2006-07 (1 July-30 June) reported landing 126,976

metric tons (estimated fishing from the area covered by the

Convention on the Conservation of Antarctic Marine Living Resources

(CCAMLR), which extends slightly beyond the Antarctic Treaty area).

Unregulated fishing, particularly of Patagonian toothfish

(Dissostichus eleginoides - also known as Chilean sea bass), is a

serious problem. The CCAMLR determines the recommended catch limits

for marine species. A total of 45,652 tourists visited the Antarctic

Treaty area in the 2007-08 Antarctic summer, up from the 36,460

visitors in 2006-2007, and the 30,877 visitors in 2005-2006

(estimates provided to the Antarctic Treaty by the International

Association of Antarctica Tour Operators (IAATO); this does not

include passengers on overflights). Nearly all of them were

passengers on commercial (nongovernmental) ships and several yachts

that make trips during the summer. Most tourist trips last

approximately two weeks.

Antigua and Barbuda

Antigua has a relatively high GDP per capita in

comparison to most other Caribbean nations. The economy experienced

solid growth from 2003 to 2007, reaching over 12% in 2006 driven by

a construction boom in hotels and housing associated with the

Cricket World Cup. Growth dropped off in 2008 with the end of the

boom. Tourism continues to dominate the economy, accounting for

nearly 60% of GDP and 40% of investment. The dual-island nation's

agricultural production is focused on the domestic market and

constrained by a limited water supply and a labor shortage stemming

from the lure of higher wages in tourism and construction.

Manufacturing comprises enclave-type assembly for export with major

products being bedding, handicrafts, and electronic components.

Prospects for economic growth in the medium term will continue to

depend on tourist arrivals from the US, Canada, and Europe and

potential damages from natural disasters. Since taking office in

2004, the SPENCER government has adopted an ambitious fiscal reform

program, and has been successful in reducing its public debt-to-GDP

ratio from 120% to about 90%.

Arctic Ocean

Economic activity is limited to the exploitation of

natural resources, including petroleum, natural gas, fish, and seals.

Argentina

Argentina benefits from rich natural resources, a highly

literate population, an export-oriented agricultural sector, and a

diversified industrial base. Although one of the world's wealthiest

countries 100 years ago, Argentina suffered during most of the 20th

century from recurring economic crises, persistent fiscal and

current account deficits, high inflation, mounting external debt,

and capital flight. A severe depression, growing public and external

indebtedness, and a bank run culminated in 2001 in the most serious

economic, social, and political crisis in the country's turbulent

history. Interim President Adolfo RODRIGUEZ SAA declared a default -

the largest in history - on the government's foreign debt in

December of that year, and abruptly resigned only a few days after

taking office. His successor, Eduardo DUHALDE, announced an end to

the peso's decade-long 1-to-1 peg to the US dollar in early 2002.

The economy bottomed out that year, with real GDP 18% smaller than

in 1998 and almost 60% of Argentines under the poverty line. Real

GDP rebounded to grow by an average 9% annually over the subsequent

five years, taking advantage of previously idled industrial capacity

and labor, an audacious debt restructuring and reduced debt burden,

excellent international financial conditions, and expansionary

monetary and fiscal policies. Inflation also increased, however,

during the administration of President Nestor KIRCHNER, which

responded with price restraints on businesses, as well as export

taxes and restraints, and beginning in early 2007, with understating

inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband

as President in late 2007, but was stymied in her efforts to hike

export taxes still further by protesting farmers. Her government

nationalized private pension funds in late 2008, which bolstered

government coffers, but failed to assuage investors' concerns about

the direction of economic policy.

Armenia

Since the breakup of the Soviet Union in 1991, Armenia has

made progress in implementing many economic reforms including

privatization, price reforms, and prudent fiscal policies. The

conflict with Azerbaijan over the ethnic Armenian-dominated region

of Nagorno-Karabakh contributed to a severe economic decline in the

early 1990s. By 1994, however, the Armenian Government launched an

ambitious IMF-sponsored economic liberalization program that

resulted in positive growth rates. Economic growth has averaged over

10% in recent years. However, with the global economic downturn,

Armenia's growth rate dropped to 6.8% in 2008. Armenia has managed

to reduce poverty, slash inflation, stabilize its currency, and

privatize most small- and medium-sized enterprises. Under the old

Soviet central planning system, Armenia developed a modern

industrial sector, supplying machine tools, textiles, and other

manufactured goods to sister republics, in exchange for raw

materials and energy. Armenia has since switched to small-scale

agriculture and away from the large agroindustrial complexes of the

Soviet era. Nuclear power plants built at Metsamor in the 1970s were

closed following the 1988 Spitak Earthquake, though they sustained

no damage. One of the two reactors was re-opened in 1995, but the

Armenian government is under international pressure to close it due

to concerns that the Soviet era design lacks important safeguards.

Metsamor provides 40 percent of the country's electricity -

hydropower accounts for about one-fourth. Economic ties with Russia

remain close, especially in the energy sector. The electricity

distribution system was privatized in 2002 and bought by Russia's

RAO-UES in 2005. Construction of a pipeline to deliver natural gas

from Iran to Armenia was completed in December 2008 and after

testing is expected to be operational in Spring 2009, though it is

unlikely significant quantities of gas will flow through it until

the Yerevan Thermal Power Plant renovation is completed in 2010.

Armenia has some mineral deposits (copper, gold, bauxite). Pig iron,

unwrought copper, and other nonferrous metals are Armenia's highest

valued exports. Armenia's severe trade imbalance has been offset

somewhat by international aid, remittances from Armenians working

abroad, and foreign direct investment. Armenia joined the WTO in

January 2003. The government made some improvements in tax and

customs administration in recent years, but anti-corruption measures

will be more difficult to implement. Despite strong economic growth,

Armenia's unemployment rate remains high. Armenia will need to

pursue additional economic reforms in order to improve its economic

competitiveness and to build on recent improvements in poverty and

unemployment, especially given its economic isolation from two of

its nearest neighbors, Turkey and Azerbaijan. The disruption of rail

transit into Armenia during the Georgia-Russia conflict in August

2008 highlighted how vulnerable Armenia's supply chains for key

goods - such as gasoline - are to instances of regional instability.

Aruba

Tourism is the mainstay of the small open Aruban economy with

offshore banking and oil refining and storage also important. The

rapid growth of the tourism sector over the last decade has resulted

in a substantial expansion of other activities. Over 1.5 million

tourists per year visit Aruba with 75% of those from the US.

Construction continues to boom with hotel capacity five times the

1985 level. In addition, the country's oil refinery reopened in 1993

providing a major source of employment, foreign exchange earnings,

and growth. Tourist arrivals have rebounded strongly following a dip

after the 11 September 2001 attacks. The island experiences only a

brief low season. Hotel occupancy in 2004 averaged 80% compared to

68% throughout the rest of the Caribbean. The government has made

cutting the budget and trade deficits a high priority.

Ashmore and Cartier Islands

no economic activity

Atlantic Ocean

The Atlantic Ocean provides some of the world's most

heavily trafficked sea routes, between and within the Eastern and

Western Hemispheres. Other economic activity includes the

exploitation of natural resources, e.g., fishing, dredging of

aragonite sands (The Bahamas), and production of crude oil and

natural gas (Caribbean Sea, Gulf of Mexico, and North Sea).