Ethiopian economy: Growing, but still impoverished.

One of the poorest countries in the world, Ethiopia is not much affected by the global recession, and projected to record economic growth of 10% this fiscal. Even though commodity prices have come down in the international market, it still had a minimal impact on the Ethiopian economy.

Ethiopia is an agricultural economy, with coffee being its major cash crop, and foreign exchange earner. Apart from coffee, the country produces cereals, oilseeds, cotton, sugarcane, pulses, etc. Livestock breeding is also an important activity.

The country exports coffee, gold, leather, tea, sugar, etc. And imports chemicals, machinery, industrial capital goods, foodstuffs, etc. Among the major industries are food processing, textiles, metals processing, cement, etc.

The impact of the global recession on Ethiopia, though not very high, has nevertheless, affected its revenues mainly on account of lower commodity prices, apart from impacting on foreign inward remittances. On the other hand, the country has also incurred lesser expenditure for the import of oil and other capital goods.

The major problem faced by the country is its dependence on agriculture for over 60% of its export earnings, and 80% employment. And agriculture is not highly mechanized and efficient. Dependence on rainfall makes it difficult to plan ahead and make projections. Inflation is another problem that puts a lot of pressure on the economy though it has eased to a good extent from 40% in 2008 to around 15% in 2009.

A high birth rate and high unemployment have been a fixture of the national like in Ethiopia for long. Lack of foreign exchange has hampered the growth of the country and it has had to depend on foreign aid time and again to keep its economy oiled. On one occasion, it has also been a beneficiary of a write down of foreign loans extended by the IMF.

The Ethiopian economy presents a contradictory picture of growth without percolation of prosperity down the line, among the people.

Sri Lankan economy: Badly bruised, but recovering.

After the end of the twenty five year old civil war between the Sri Lankan Government and the Tamil Tigers, the Sri Lankan economy has started looking up once again, though it is a along way off from recovery, much less its earlier vibrancy.

The Island nation, a tourist paradise, is set on the path to regain its past glow and glory as a preferred tourist destination, that would tremendously aid in its recovery.

The country is expected to touch 6% GDP growth this fiscal. But inflation at nearly 23% is a worrisome factor for the economic planners. While the trade deficit is coming down steadily, unemployment is going up at 5.2% presently. Among the major economic activities of the country are tourism, agriculture, and industry.

Tea, coconut, rubber, etc., are among the major agricultural produce. The country exports, tea, coconuts, apparel, rubber goods, fish, diamonds, emeralds, etc., and imports transport equipment, textiles and fabrics for its garment export units, petroleum products, machinery, etc.

Remittances from Sri Lankans working abroad have gone up steadily, and are helping in countering the trade deficit. With the end of the civil war, the resources that were earlier diverted to the war effort are now available for development purposes, and should bear fruit in the next one to two years.

The end of the civil war has also given a fillip to the economic activities in various parts of the country, especially those areas that were affected by the civil war. New businesses are coming up, and Banks are lending more and more money to businesses and opening up new Branches to cater to increased demand.

At long last, Sri Lankans can look forward to an upswing in their economic fortunes.

Nepal economy: Aiming for steady growth.

The Himalayan Kingdom of Nepal is one of the poorest countries of the world, with over 40% of the population living below the poverty line, and over 46% of the workforce out of work. The fact that the country is landlocked adds to its problems in terms of free access to markets around the world.

An agricultural economy, Nepal producesd barely, fruits, medicinal herbs, rice, tobacco, etc. Among the important industries are cement, cigarettes, garments, jute spinning, and of course tourism. Tourism is a major foreign exchange earner, and Nepal is not embarking on a controversial plan to boost alternate sex tourism. That is to attract gay and lesbian tourists from around the world, through special tourist packages. Until now, adventure toursim was the mainstay of the tourism industry, attratcting the adventorous from around the globe that are fascinated by the Himalayas. The country received over half a million tourists this year, and aims for the one million figure by 2011.

Nepal exports carpets, jute, leather goods, rice, sugar, timber, etc., and imports foodstuffs, machinery, transport equipment, etc. India is Nepal’s major trading partner.

The country’s GDP is expected to grow by 4.7% in fiscal 2009, while inflation is running at 7.7%. Industrial growth is around 7% for 2009. Deforestration is a major problem that is having several side effects, including flooding. Political instability, of late, has aggravated the economic problems of the country.

Nepal is a regular receipient of foreign aid that has helped the country in its developmental efforts. However, the tough geographical location, and the shortage of skilled manpower, coupled with infrastructural bottlenecks hinders the country’s march towards economic development and progress.

Nepal faces tough choices in its efforts at economic development, and must adopt prudent economic policies, aimed at creating a pool of trained manpower, and attracting foreign investment, especially in the infrastructure field, to ensure its future development. The Government appears to be alive to this challenge and taking tentative steps in this direction.

Yemen economy: Trailing behind the rest.

Think of the Gulf, and you visualize super-rich Kingdoms and Emirates awash with oil wealth, and abuzz with multi billion dollar projects, moving and shaking the international economic system.

Not so Yemen, the poor cousin of the richer Gulf states in the Middle East, like Saudi Arabia, Kuwait, etc. According to a recent study, nearly one third of Yemenis endure chronic hunger, and 35% of the population lives below the infamous poverty line. And an equal percentage of the workforce is unemployed.

Quite ironic, given the fact that its other Gulf cousins are deficient in labor and import them in large numbers. As a matter of fact, hundreds of thousands of Yemenis work in the Gulf states, remitting over a billion dollars every year. In fact, that is the major source of revenues to the country, with oil revenues, as such modest, coming down further, on account of the fall in oil prices. The per capita income of the country is abysmally low compared to its richer cousins in the Middle East.

Poverty, unemployment, illiteracy, etc, the standard features of the least developed countries, are to be found in Yemen. With inflation running in double digits, it is an uphill task for the population to maintain a reasonable lifestyle.

Yemen is a modest producer of oil, though its gas reserves are considerable, though unexploited. Among the major agricultural produce of the country is coffee, cotton, wheat, sugar, etc. Yemen exports coffee, cotton, refined oil, sugar, processed fish, etc., and imports a wide array of consumer products, industrial machinery, foodstuffs, etc.

Recently the World Bank, in its quarterly study of the Yemeni economy projected a GDP growth rate of 7.7%. The development process in Yemen can take off and be sustained in the long run by integrating its economy with the Gulf economies, and attracting investment from them for infrastructure projects, and other projects that can earn foreign exchange for the country, while generating employment.

Ugandan economy: Potential for growth.

In the present desperate economic situation, countries are trying to squeeze out every bit of juice from their economies to keep going forward on the path to economic progress, and to avoid falling by the wayside.

In the same fashion, advanced countries, that hitherto didn’t give a second look to the potential of poor countries, to contribute to the economic well-being of the world at large, and consequently to their own, are now waking up to this possibility and re-working their priorities in this direction. Uganda is one such country that has great potential to contribute significantly to the development to East Africa, in its own way.

Uganda is a primarily agricultural economy, and has enjoyed consistent growth in its GDP for more than a decade, at around 7%, and is expected to keep this trend for the current fiscal. The country is a major producer and exporter of coffee, tea, cotton, etc and among its major industries are cement, food processing, textiles, coffee processing, agro industries, etc. Among its imports are foodstuffs, machinery, pharma products, cereals, etc.

Presently, the country is battling double digit inflation, and serious unemployment, that could become a social problem. AIDS is another problem that the country officially acknowledges to have serious consequences for its future. The financial outlay required to treat a very large number of AIDS patients could strain the economy of the country.

The proposed opening of the East African Common Market in July 2010 offers tremendous scope to Uganda to leverage its strength to fill its coffers. However, one major problem in realizing this potential is that the sectors that are expected to cash in on this opportunity, like Information Technology, Medicine, etc, are under-financed, and may not be able to give their best to the economy.

If the Ugandan Government addresses such problems, in time, and takes pragmatic economic decisions, there is hope that Uganda may play an increasing role in shaping the economic environment in the East African region.

Bangladesh economy: Doing well against odds.

For long a “basket case”, Bangladesh seems to be doing well economically, despite the global recession and its after-effects. Of course, it is not such an important player on the world economic scene to be badly affected, too.

However, it goes to the credit of the country’s establishment that its people have been spared of a nightmarish situation that citizens of some of the more advanced economies find themselves in, today.

Agriculture, for Bangladesh, is the major economic activity, and employs the majority of the workforce. And a good crop in the recent past have contributed to the economic stability of the country, and society at large. The country has a very modest industrial base, and it is still agriculture that sustains the people through good and bad times.

Bangladesh has enjoyed a fairly consistent growth in its GDP, and is expected to clock around 6% in the year 2010, having recorded 6.2% so far this year. Next year’s target for GDP growth appears to be within reach, provided the country enjoys good monsoons, and foreign remittances from millions of Bangladeshis working abroad continue to flow in. If there is a further improvement in the international economic environment, it will help further with economic development.

As for industries, Bangladesh’s major export in this sector is the Garments industry, that has grown well, despite the economic crisis in the importing countries, especially the United States. In fact, it appears that the economic downturn in the U.S. has increased demand for Value for Money goods and services, away from branded items.

The garment industry of Bangladesh is real success story, and of special significance for the least developed, and the developing economies, that can leverage their low wages, and high quality goods and services, to offer a better deal to the consumers in the importing countries.

If Bangladesh continues with its prudent economic policies, and is favored by good rains, and continued foreign remittances, the country should be in a position to climb up the economic ladder to the next level in a few years time.

Honduran economy: Crisis situation.

Ever since the ouster of its President Manuel Zeyala, Honduras is drifting into a crisis situation. All economic activities have taken a hit, and are affecting the well-being of the citizens of this country.

Tourism, one of the major industries, and the major foreign exchange earner, mainly on account of the ancient Mayan ruins, is said to be down by about 40%. The overall economic growth is expected to contract by over 2.5%. Unemployment is up at 3.5%. Inflation is running at a high 11.4%. Public debt is up at 22% of the GDP. The country’s exports have taken a hit, and international development and aid agencies have stopped extending their services.

One of the original Banana Republics, so called for their dependence on the banana crop for their economic prosperity, Honduras is experiencing a downslide triggered by the economic downslide in the United States, on account of its over-dependence on the U.S.

Apart from bananas, the other agricultural produce of the country includes coffee, citrus fruits, corn, etc. Timber is also produced in large quantities. Among the major industries sugar, coffee, textiles, clothing, wood products, etc. The country exports coffee, gold, bananas, plam oil, timber, etc, and imports raw materials for industries, foodstuffs, chemicals, fuels, etc.

The industrial growth for 2009 was projected at 4.4% and the GDP growth at 4%. However, this was before the coup in June 2009. The next election is slated for 29th November, by which time the eocnomy is likely to have deteriorated further. In this bleak national landscape, the only reason to cheer was Honduras’ qualification for the Soccer World Cup.

Unemployment is a major problem, as one sector after other buckles under the pressure of economic adversities. An end to the political uncertainty and restoration of the economic activities is going to take some time. All concerned are anxiously waiting for the November election to bring about a welcome change in the country.

Tajik economy: In big trouble.

Tajikistan is considered to be the poorest of the fifteen former Soviet Republics, and is fighting an uphill battle against adverse economic forces, that has forced nearly half of its workforce out of the country, in search of jobs, mainly to Russia. But Russia’s own economic woes have again thrown many of these Tajiks out of jobs, compounding their problems.

The present precarious state of the Tajik economy is a result of the sudden withdrawal of the support system from its former rulers, the Soviet Union, upon gaining independence from it, the bitter civil war from 1992 to 1997, and falling remittances from Tajiks working abroad, mainly Russia.

As it is, Tajikistan has only about 5% arable land, and does not have an industrial infrastructure, except for an aluminum manufacturing complex built during the Soviet times. That apart, there are some agro manufacturing complexes that are past their prime. And among the other industries of some note are textiles. The country exports aluminum, precious and semi-precious stones, cotton, electricity, fruits, vegetables, leather, etc. And it imports petroleum, gas, machinery, equipment, etc.

Tajikistan has received assistance from China as well as Russia, apart from the United States, over the years, to develop its infrastructure. But the present recessionary situation around the world is affecting Tajikistan’s ability to overcome its problems, to move towards progress and development.

The fall in commodity prices has adversely affected the country’s revenues from its cotton exports, which is its major cash crop.

Unless Tajikistan comes up with a viable economic plan for increasing employment opportunities for its workforce, and diversify its economic activities to increase its revenues, it is difficult to see how the country can get out of the present difficult economic situation.

Mongolian economy: Waiting for the catalyst to fire.

Mongolia, which is better known for the exploits of Changez Khan, has now a new calling card. As the owner of the world’s largest gold and copper deposits, that are waiting to be brought out into the sun. The Oyu Tolgoi deposits of copper and gold are expected to give such a boost to the Mongolian economy as to make it the world’s fastest growing economy in the near future.

Even today, mining is the major economic activity of the country, and is the major foreign exchange earner, with neighboring China lapping up a fair amount ofthe production of copper, Mongolia’s chief export. Apart from copper, the country also exports wool, hides, apparel, livestock, metals, etc. And it imports fuels, food products, vehicles, chemicals, consumer products, etc.

The global recession has hit the Mongolian economy hard with prices of copper falling quite a bit. Inflation is running at 28%, whereas unemployment is a manageable 2.8%. Inflation is the country’s major problem now, with food and fuel costs going up causing hardship to the people. On the other hand, the budget deficit is widening and the country has had to avail financial assistance from the World Bank to bridge the gap to the tune of USD 40.00 million.

Mongolia is trying to attract FDI, and has amended many of its laws relating to investment and taxation, to make itself more attractive to foreign investors.

The country is pinning its hopes on developing the Oyu Tolgoi mines to zoom into the next level of economic development, from where it would be relatively easier to take the economy forward. As such, mining is the mainstay of the country’s economy, and it is looking forward to another mining project to ensure its future economic development.

It remains to be seen how Mongolia takes advantage of its good fortune to build up a more stable and sustainable base for its economic progress.

Azerbaijan economy: Sees positive growth.

One of the former Republics of the Soviet Union, Azerbaijan is an oil and gas rich state that has registered positive growth in 2009, rather than just a reduction in the negative figures, unlike many other recession-hit countries.

Azerbaijan occupies a strategic position in Central Asia, and is a leading light of the Commonwealth of Independent States, and is being wooed by one and all, to forge a opportunistic relationship with it.

The country is a major exporter of oil and gas, apart from exporting cotton, and machineries of various types. It, in turn, imports, capital goods, foodstuffs, fuels, etc.

In a recent cabinet meeting, presided over by the Azeri President, all the good things and positive developments of the country’s economy were discussed and disseminated to the media. Some of the important points that emerged out of the meeting are: In the last three quarters of this fiscal, the country’s GDP grew by 6.1%; industrial production grew by 5%; and inflation was contained at 2.1%. The Government is actively taking steps to increase investment in the non-oil sector, and to diversify the economy. However, the budget deficit of nearly 20% is cause for concern. And unemployment is also increasing steadily, though the Government is sensitive to this issue and taking steps to alleviate the problem.

As pointed out, the strategic location of the country, and its oil and gas riches have brought a lot of international attention to it. The World Bank had recently recorded its appreciation of the economic development in the country, while exhorting it to diversify into non-oil sectors. The EBRD is investing good money in the energy and financial fields, apart from others. The World Economic Forum, Davos, has placed Azerbaijan at number 51 in competitiveness internationally, and at number 1 within the CIS.

Azerbaijan seems to have everything going for it right now. How it capitalizes on this, and extracts the maximum mileage out of it, remains to be seen.

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