Portal:Business and economics/Selected economy
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- March 2008
The Economy of Burma has suffered from decades of stagnation, mismanagement, and isolation. Burma’s GDP grows only 2.9% annually — the lowest rate of economic growth in the Greater Mekong Subregion. Under British administration, Burma was one of the wealthiest countries in Southeast Asia. It was once the world's largest exporter of rice. During British administration, Burma supplied oil through the Burmah Oil Company. Burma also had a wealth of natural and labor resources. It produced 75% of the world's teak, and had a highly literate population. The country was believed to be on the fast track to development. After a parliamentary government was formed in 1948, Prime Minister U Nu attempted to make Burma a welfare state. His administration adopted the Two-Year Economic Development Plan, which was a failure. When Burma gained independence in 1948, it was believed to be on its way to become the first Asian Tiger in the region. However, after the military dictatorship seized power in 1962, Burma became an isolated and impoverished nation.
After the 1962 military coup d'état, the military government introduced an economic plan called the Burmese Way to Socialism, under which the military regime nationalized all industries with the exception of agriculture. In 1989, the Burmese government began decentralizing economic control. It has since liberalized certain sectors of the economy. The government heavily regulates lucrative industries, such as gems, oil, and forestry. These sectors have recently been exploited by foreign corporations, which have partnered with the government to gain access to Burmese natural resources. The economy of Burma is currently mixed. The private sector dominates in agriculture, light industry, and transport activities, while the military government controls mainly energy, heavy industry, and rice trade.
Burma was designated a least developed country in 1987. Private enterprises are often co-owned or indirectly owned by the Tatmadaw. In recent years, both China and India have attempted to strengthen ties with the government for economic benefit. Many nations, including the United States, Canada, and the European Union, have imposed investment and trade sanctions on Burma. Foreign investment comes primarily from China, Singapore, South Korea, India, and Thailand. In the eleven years from 1989 to 1999, the military government tried to revitalize the economy after three decades of tight central planning. However the regime has recently canceled its reforms. Despite this, the private sector continues to grow albeit slowly.
- February 2008
The Economy of Macau has remained one of the most open in the world since its reversion to China in 1999. Apparel exports and gambling-related tourism are mainstays of the economy. Since Macau has little arable land and few natural resources, it depends on mainland China for most of its food, fresh water, and energy imports. Japan and Hong Kong are the main suppliers of raw materials and capital goods. Although Macau was hit hard by the 1997-98 Asian financial crisis and the global downturn in 2001, its economy grew approximately 13.1% annually on average between 2001 and 2006.
During the first three quarters of 2007, Macau registered year-on-year GDP increases of 31.4%. A rapid rise in the number of mainland visitors due to China's easing of travel restrictions, increased public works expenditures, and significant investment inflows associated with the liberalization of Macau's gaming industry drove the five-year recovery. The budget also returned to surplus since 2002 because of the surge in visitors from China and a hike in taxes on gambling profits, which generated about 70% of government revenue.
- January 2008
The economy of Pakistan includes the automotive, textiles, chemicals, food processing, agriculture and other industries.
The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking sector have helped the economy. Pakistan has seen a growing middle class population since then and poverty levels have decreased by 10% since 2001. GDP growth, spurred by gains in the industrial and service sectors, remained in the 6-8% range in 2004-06. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally.
Islamabad has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07, a necessary step toward reversing the broad underdevelopment of its social sector. The fiscal deficit - the result of chronically low tax collection and increased spending, including reconstruction costs from the 2005 Kashmir earthquake was manageable. Development in urban areas of Pakistan has remained high but is low in rural areas. Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. The central bank is pursuing tighter monetary policy while trying to preserve growth. Foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit - driven by a widening trade gap as import growth outstrips export expansion - could draw down reserves and dampen GDP growth in the medium term.
- December 2007
The economy of Africa consists of the trade, industry, and resources of the peoples of Africa. As of July 2005, approximately 887 million people were living in 54 different states. Africa is by far the world's poorest inhabited continent, and it is, on average, poorer than it was 25 years ago. Of the 175 countries reviewed in the United Nations' Human Development Report 2003, 25 African nations ranked lowest.
Africa's current poverty is rooted, in part, in its history. The decolonization of Africa was fraught with instability aggravated by cold war conflict. Since mid-20th century the Cold War and increased corruption and despotism have also contributed to Africa's poor economy. While China and India have grown rapidly and Latin America has experienced moderate growth, lifting millions above subsistence living, Africa has stagnated and even regressed in terms of foreign trade, investment, and per capita income. This poverty has widespread effects, including low life expectancy, violence, and instability, which in turn perpetuate the continent's poverty. Over the decades, attempts to improve the economy of Africa have been met with little success. However, recent data suggest African economies are experiencing faster growth. The World Bank reports the economy of Sub-Saharan African countries grew at rates that match global rates. The economies of the fastest growing African nations experienced growth significantly above the global average rates. The top nations in 2007 include Mauritania with growth at 19.8%, Angola at 17.6% and Mozambique at 7.9%.
- November 2007
The Economy of Zimbabwe faces a variety of economic problems after having abandoned earlier efforts to develop a market-oriented economy. Problems include a shortage of foreign exchange, soaring inflation, and supply shortages. Zimbabwe's involvement from 1998 to 2002 in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy.
Mineral exports, agriculture, and tourism are the main foreign currency earners of Zimbabwe. Zimbabwe is the biggest trading partner of South Africa south of the equator. Since land redistribution began, agricultural exports, especially tobacco, have declined sharply. The Zimbabwe Conservation Task Force released a report in June 2007, estimating 60% of Zimbabwe's wildlife has died since 2000. The report warns that the loss of life combined with widespread deforestation may negatively impact the tourist industry. The downward spiral of the economy has been attributed mainly to mismanagement and corruption of the Mugabe regime and the eviction of more than 4,000 white farmers in the controversial land redistribution of 2000.
Inflation rose from an annual rate of 32% in 1998 to an official estimated high of 7,634.8% in August 2007. The IMF predicted inflation will reach 6,430% by the end of 2008. Estimates from private sector economists estimate inflation at about four times the official figures. On June 21, 2007 the U.S. ambassador to Zimbabwe, Christopher Dell, told The Guardian newspaper that inflation could reach 1.5 million per cent (1,500,000%) by the end of the year. The current unofficial inflation rate is above 11,000% and the black-market exchange rate is Z$400,000 to the pound.On July 13, 2007 the Zimbabwe government said it had temporarily stopped publishing (official) inflation figures, a move that observers said was meant to draw attention away from runaway inflation which has come to symbolize the country's unprecedented economic meltdown.
In August 2006 a new revalued Zimbabwean dollar was introduced, equal to 1000 old Zimbabwean dollars. The exchange rate fell from 24 old Zimbabwean dollars per U.S. dollar (USD) in 1998 to 250,000 old or 250 new Zimbabwean dollars per USD at the official rate.
- October 2007
The Economy of Bhutan is one of the world's smallest and least developed, is based on agriculture and forestry, which provide the main livelihood for 90% of the population and account for about 40% of GDP. 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. 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.
Bhutan's hydropower potential and its attraction for tourists are key resources. The Bhutanese Government has made some progress in expanding the nation's productive base and improving social welfare. Model education, social, and environment programs in Bhutan 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. Detailed controls and uncertain policies in such areas as industrial licensing, trade, labor, and finance continue to hamper foreign investment.
- September 2007
The Economy of Iraq is dominated by the petroleum sector, which has traditionally provided about 95% of foreign exchange earnings. In the 1980s, financial problems caused by massive expenditures in the eight-year war with Iran and damage to oil export facilities by Iran led the government to implement austerity measures, borrow heavily, and later reschedule foreign debt payments; Iraq suffered economic losses of at least $100 billion from the war. After the end of hostilities in 1988, oil exports gradually increased with the construction of new pipelines and restoration of damaged facilities.
Iraq's invasion of Kuwait in August 1990, subsequent international sanctions, and damage from military action by an international coalition beginning in January 1991 drastically reduced economic activity. Government policies of diverting income to key supporters of the regime while sustaining a large military and internal security force further impaired finances, leaving the average Iraqi citizen facing desperate hardships. Implementation of the UN oil-for-food program in December 1996 improved conditions for the average Iraqi citizen. Since 1999, Iraq was authorized to export unlimited quantities of oil to finance humanitarian needs including food, medicine, and infrastructure repair parts. Oil exports fluctuate as the regime alternately starts and stops exports, but, in general, oil exports have now reached three-quarters of their pre-Gulf War levels; per capital output and living standards remain well below pre-Gulf War levels.
The economic sanctions were fully lifted in 24 May 2003, shortly after Saddam Hussein Hussein was overthrown. This resulted in economic growth of 53% topping the list of the world's fastest growing economy.Paul Bremer, chief executive of Iraq, planned to restructure Iraq's state owned economy with free market thinking. Order 39 laid out the framework for full privatization in Iraq, except for "primary extraction and initial processing" of oil, and permitted 100% foreign ownership of Iraqi assets. Paul Bremer also ordered a flat tax rate of 15% and allowed foreign corporations to repatriate all profits earned in Iraq. Opposition from senior Iraqi officials, together with the poor security situation, meant that Bremer's privatization plan was not implemented during his tenure, though his orders remain in place. In addition to approximately 200 other state-owned businesses, privatization of the oil industry was scheduled to begin sometime in late 2005, though it is opposed by the Federation of Oil Unions in Iraq.
- August 2007
The Economy of Hong Kong is widely believed to be the most economically free in the world. It has often been cited by economists such as Milton Friedman and the Cato Institute as an example of the benefits of laissez-faire capitalism. While the government, both under British and PRC rule, has occasionally intervened in the economy, the free market policy of Positive non-interventionism espoused by former financial secretary John James Cowperthwaite still largely drives economic policy today. It has ranked as the world's freest economy in the Index of Economic Freedom for 13 consecutive years, since the inception of the index in 1995. It also places first in the Economic Freedom of the World Report.
No official GDP was measured by the government until 1971. Any GDP formed prior to this period was based on international trade statistics that came after 1971. This is a chart of trend of real gross domestic product of Hong Kong at constant market prices by the International Monetary Fund with figures in millions of Hong Kong Dollars. In 2006, Hong Kong's GDP ranked as the 40th highest in the world at US$253.1 billion. Its per-capita GDP ranked as the 15th highest at US$36,500, notably ahead of countries such as Canada, Japan, Switzerland, and the United Kingdom, and still well ahead of the People's Republic of China. The very center of Hong Kong's economic freedom comes from the government's hands-off policy. This model was developed in Hong Kong and Taiwan as a response to analyzing the cultural revolution affect in China. The Maoist era forecasted the production of steel, and the inability to produce led to the immediate collapse of the economy. Hong Kong's model allowed for the flexibility and renovation of any given industry in a very short time. Because of this, a 1994 World Bank report stated that Hong Kong's GDP per capita grew in real terms at an annual rate of 6.5% from 1965 to 1989. This consistent growth percentage over a span of almost 25 years is remarkable for any economic analysis. By 1990 Hong Kong's per capita income officially surpassed that of the ruling United Kingdom.
- July 2007
The Economy of Hong Kong is widely believed to be the most economically free in the world. It has often been cited by economists such as Milton Friedman and the Cato Institute as an example of the benefits of laissez-faire capitalism. While the government, both under British and PRC rule, has occasionally intervened in the economy, the free market policy of Positive non-interventionism espoused by former financial secretary John James Cowperthwaite still largely drives economic policy today. It has ranked as the world's freest economy in the Index of Economic Freedom for 13 consecutive years, since the inception of the index in 1995. It also places first in the Economic Freedom of the World Report.
No official GDP was measured by the government until 1971. Any GDP formed prior to this period was based on international trade statistics that came after 1971. This is a chart of trend of real gross domestic product of Hong Kong at constant market prices by the International Monetary Fund with figures in millions of Hong Kong Dollars. In 2006, Hong Kong's GDP ranked as the 40th highest in the world at US$253.1 billion. Its per-capita GDP ranked as the 15th highest at US$36,500, notably ahead of countries such as Canada, Japan, Switzerland, and the United Kingdom, and still well ahead of the People's Republic of China. The very center of Hong Kong's economic freedom comes from the government's hands-off policy. This model was developed in Hong Kong and Taiwan as a response to analyzing the cultural revolution affect in China. The Maoist era forecasted the production of steel, and the inability to produce led to the immediate collapse of the economy. Hong Kong's model allowed for the flexibility and renovation of any given industry in a very short time. Because of this, a 1994 World Bank report stated that Hong Kong's GDP per capita grew in real terms at an annual rate of 6.5% from 1965 to 1989. This consistent growth percentage over a span of almost 25 years is remarkable for any economic analysis. By 1990 Hong Kong's per capita income officially surpassed that of the ruling United Kingdom.
- June 2007
Mexico has a free market and export-oriented economy. Measured in purchasing power parity, its Gross Domestic Product recently surpassed a trillion dollars, making it the thirteenth largest economy in the world. Mexico is also firmly established as an upper middle-income country with the highest income per capita in Latin America, in market exchange rates. Mexico is the only Latin American country to be member of the Organisation for Economic Co-operation and Development.
Since the 1994 crisis subsequent administrations have improved the country's macroeconomic fundamentals. It was not influenced by the recent South American crises, and has maintained positive, though small, rate growths after the brief stagnation of 2001. Moody's (in March 2000) and Fitch IBCA (in January 2002) have issued investment-grade ratings for Mexico's sovereign debt. In spite of its unprecedented macroeconomic stability that has reduced inflation and interest rates to record lows and increased income per capita, huge gaps still remain between the urban and the rural population, the northern and the southern states, and the rich and the poor. Some of the governments challenges include the need to upgrade infrastructure, modernize the tax system and labor laws and reduce income inequality.
The economy contains a mixture of modern and outmoded industry and agriculture, both of which are increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution and airports with the aim of upgrading infrastructure. Being an export-oriented economy, more 90% of its trade is under free trade agreements (FTAs), with over 40 countries including the European Union, Japan, Israel and many countries in Central and South America. The most influential FTA, however, is NAFTA, which came into effect in 1994, and was signed in 1992 by the governments of the United States, Canada and Mexico. In 2006 trade with its northern partners accounted for close to 90% of Mexico's exports and 55% of its imports
- May 2007
Mexico has a free market and export-oriented economy. Measured in purchasing power parity, its Gross Domestic Product recently surpassed a trillion dollars, making it the thirteenth largest economy in the world. Mexico is also firmly established as an upper middle-income country with the highest income per capita in Latin America, in market exchange rates. Mexico is the only Latin American country to be member of the Organisation for Economic Co-operation and Development.
Since the 1994 crisis subsequent administrations have improved the country's macroeconomic fundamentals. It was not influenced by the recent South American crises, and has maintained positive, though small, rate growths after the brief stagnation of 2001. Moody's (in March 2000) and Fitch IBCA (in January 2002) have issued investment-grade ratings for Mexico's sovereign debt. In spite of its unprecedented macroeconomic stability that has reduced inflation and interest rates to record lows and increased income per capita, huge gaps still remain between the urban and the rural population, the northern and the southern states, and the rich and the poor. Some of the governments challenges include the need to upgrade infrastructure, modernize the tax system and labor laws and reduce income inequality.
The economy contains a mixture of modern and outmoded industry and agriculture, both of which are increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution and airports with the aim of upgrading infrastructure. Being an export-oriented economy, more 90% of its trade is under free trade agreements (FTAs), with over 40 countries including the European Union, Japan, Israel and many countries in Central and South America. The most influential FTA, however, is NAFTA, which came into effect in 1994, and was signed in 1992 by the governments of the United States, Canada and Mexico. In 2006 trade with its northern partners accounted for close to 90% of Mexico's exports and 55% of its imports
- April 2007
The economy of the People's Republic of China is the fourth largest in the world when measured by nominal GDP. Its economic output for 2006 was $2.68 trillion USD. Its per capita GDP in 2005 was approximately US $1,709 (US $7,204 with PPP), still low by world standards, but rising rapidly. As of 2005, 70% of China's GDP is in the private sector. The smaller public sector is dominated by about 200 large state enterprises concentrated mostly in utilities, heavy industries, and energy resources.
Since 1978 the People's Republic of China (PRC) government has been reforming its economy from a Soviet-style centrally planned economy to a more market-oriented economy but still within the political framework, provided by the Communist Party of China. This system has been called "Socialism with Chinese characteristics" and is one type of mixed economy. These reforms started since 1978 has helped lift millions of people out of poverty, bringing the poverty rate down from 53% of population in 1981 to 8% by 2001.
To this end the authorities have switched to a system of household responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and foreign investment. The government has emphasized raising personal income and consumption and introducing new management systems to help increase productivity. The government also has focused on foreign trade as a major vehicle for economic growth. While the accuracy of official PRC figures remain the subject of much debate, Chinese officials claim the result has been a tenfold increase in GDP since 1978. Some international economists believe that Chinese economic growth has been in fact understated during much of the 1990s and early 2000s, failing to fully factor in the growth driven by private enterprises.
- March 2007
The economy of the People's Republic of China is the fourth largest in the world when measured by nominal GDP. Its economic output for 2006 was $2.68 trillion USD. Its per capita GDP in 2005 was approximately US $1,709 (US $7,204 with PPP), still low by world standards, but rising rapidly. As of 2005, 70% of China's GDP is in the private sector. The smaller public sector is dominated by about 200 large state enterprises concentrated mostly in utilities, heavy industries, and energy resources.
Since 1978 the People's Republic of China (PRC) government has been reforming its economy from a Soviet-style centrally planned economy to a more market-oriented economy but still within the political framework, provided by the Communist Party of China. This system has been called "Socialism with Chinese characteristics" and is one type of mixed economy. These reforms started since 1978 has helped lift millions of people out of poverty, bringing the poverty rate down from 53% of population in 1981 to 8% by 2001.
To this end the authorities have switched to a system of household responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and foreign investment. The government has emphasized raising personal income and consumption and introducing new management systems to help increase productivity. The government also has focused on foreign trade as a major vehicle for economic growth. While the accuracy of official PRC figures remain the subject of much debate, Chinese officials claim the result has been a tenfold increase in GDP since 1978. Some international economists believe that Chinese economic growth has been in fact understated during much of the 1990s and early 2000s, failing to fully factor in the growth driven by private enterprises.
- February 2007
The economy of the People's Republic of China is the fourth largest in the world when measured by nominal GDP. Its economic output for 2006 was $2.68 trillion USD. Its per capita GDP in 2005 was approximately US $1,709 (US $7,204 with PPP), still low by world standards, but rising rapidly. As of 2005, 70% of China's GDP is in the private sector. The smaller public sector is dominated by about 200 large state enterprises concentrated mostly in utilities, heavy industries, and energy resources.
Since 1978 the People's Republic of China (PRC) government has been reforming its economy from a Soviet-style centrally planned economy to a more market-oriented economy but still within the political framework, provided by the Communist Party of China. This system has been called "Socialism with Chinese characteristics" and is one type of mixed economy. These reforms started since 1978 has helped lift millions of people out of poverty, bringing the poverty rate down from 53% of population in 1981 to 8% by 2001.
To this end the authorities have switched to a system of household responsibility in agriculture in place of the old collectivization, increased the authority of local officials and plant managers in industry, permitted a wide variety of small-scale enterprise in services and light manufacturing, and opened the economy to increased foreign trade and foreign investment. The government has emphasized raising personal income and consumption and introducing new management systems to help increase productivity. The government also has focused on foreign trade as a major vehicle for economic growth. While the accuracy of official PRC figures remain the subject of much debate, Chinese officials claim the result has been a tenfold increase in GDP since 1978. Some international economists believe that Chinese economic growth has been in fact understated during much of the 1990s and early 2000s, failing to fully factor in the growth driven by private enterprises.
The Economy of Singapore is a highly developed and successful free market economy in which the state plays a major role. It has an open business environment, relatively corruption-free and transparent, stable prices, and one of the highest per capita gross domestic products (GDP) in the world. Exports, particularly in electronics and chemicals, and services provide the main source of revenue for the economy, which allows it to purchase natural resources and raw goods which it does not have. Singapore could thus be said to rely on an extended concept of entrepot trade, by purchasing raw goods and refining them for re-export, such as in the wafer fabrication industry and oil refining. Singapore also has a strategic port which makes it more competitive than many of its neighbours to carry out such entrepot activities. The Port of Singapore is the busiest in the world, surpassing Hong Kong and Shanghai. In addition, Singapore's port infrastructure and skilled workforce, which is due to the success of the country's education policy in producing skilled workers, is also fundamental in this aspect as they provide easier access to markets for both importing and exporting, and also provide the skill(s) needed to refine imports into exports.Singapore's total trade in 2000 amounted to S$373 billion, an increase of 21% from 1999. Despite its small size, Singapore is the tenth-largest trading partner of the United States. In 2000, Singapore's imports totalled $135 billion, and exports totalled $138 billion. Malaysia was Singapore's main import source, as well as its largest export market, absorbing 18% of Singapore's exports, with the United States close behind. Re-exports accounted for 43% of Singapore's total sales to other countries in 2000. Singapore's principal exports are petroleum products, food/beverages, chemicals, textile/garments, electronic components, telecommunication apparatus, transport equipment. Singapore's main imports are aircraft, crude oil and petroleum products, electronic components, radio and television receivers/parts, motor vehicles, chemicals, food/beverages, iron/steel, textile yarns/fabrics.
The European Union has the world's largest economy, larger than that of the United States of America with a 2005 GDP of 12,865,602 million vs. 11,734,300 million (USD figures) according to the International Monetary Fund. Using the purchasing power parity method of computing GDP, the preferred comparative measure of economic output, the EU and the US economies are virtually the same size ($12.36 trillion for the US vs. $12.18 trillion for the EU). As the EU has 50% more people than the US, but produces about the same economically, the average EU citizen enjoys a per capita share of domestic product of about USD $28,100, while in the US the per person GDP is over USD $40,000.
It is estimated that in the period 2006-2020 the European Union's economy will grow at an average rate of 2.1% per annum, against the United States growing at an annual rate of almost 3.0%, however if growth is taken per head the figures are 2.5% per annum for the US and 2.0% for the EU.
The European Union's economic growth has been below that of the United States most years since 1990, while its unemployment rate has generally been higher. Many point out that there are benefits accruing to EU citizens (the "social wage") that are not visible in traditional economic data - like enhanced time off from work, social protection and other benefits. In recent years, the economic performance of several of its key members, including Germany and Italy, has been a matter of serious concern to policy makers.
Twelve members of the European Union use a common currency, the euro. This group of members (Austria, Belgium, Finland, Germany, Greece, Italy, Ireland, France, Luxembourg, Netherlands, Portugal, Spain) is known as the Eurozone. Three members (Denmark, Sweden, United Kingdom) have no current plans to join the euro, though the Danish Krone is pegged to it. The remaining members have a treaty obligation to join as soon as they meet the convergence criteria. Slovenia will adopt the euro on 1 January 2007.
India's economic reforms economy is the fourth largest in the world as measured by purchasing power parity (PPP), with a gross domestic product (GDP) of US $3.611 trillion. India is the second fastest growing major economy in the world, with a GDP growth rate of 8.4% at the end of the first quarter of 2005–2006.
The economy is diverse and encompasses agriculture, handicrafts, textile, manufacturing, and a multitude of services. Although two-thirds of the Indian workforce still earn their livelihood directly or indirectly through agriculture, services are a growing sector and are playing an increasingly important role of India's economy. The advent of the digital age, and the large number of young and educated populace fluent in English, is gradually transforming India as an important 'back office' destination for global companies for the outsourcing of their customer services and technical support. India is a major exporter of highly-skilled workers in software and financial services, and software engineering.
India followed a socialist-inspired approach for most of its independent history, with strict government control over private sector participation, foreign trade, and foreign direct investment. However, since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. The privatisation of publicly owned industries and the opening up of certain sectors to private and foreign interests has proceeded slowly amid political debate.
Libya's socialist-oriented economy depends primarily upon revenues from the petroleum sector, which contributes practically all export earnings and about one-quarter of GDP. These oil revenues and a small population give Libya one of the highest per capita GDPs in Africa.
Current GDP per capita of Libya soared by 676% in the Sixties and further 480% in the Seventies. However such fantastic growth rates proved unsustainable in the face of global oil recession and international sanctions. Consequently current GDP per capita shrank by 42% in the Eighties. Successful diversification and integration into the international community helped current GDP per capita to cut further deterioration to just 3.2% in the Nineties.
The government dominates Libya's socialist-oriented economy through complete control of the country's oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and 30% of the gross domestic product. Oil revenues constitute the principal source of foreign exchange. Much of the country's income has been lost to waste, corruption, conventional armaments purchases, and attempts to develop weapons of mass destruction, as well as to large donations made to developing countries in attempts to increase Qadhafi's influence in Africa and elsewhere. Despite the country's relatively high per capita GDP, the government's mismanagement of the economy has led to high inflation and increased import prices, resulting in a decline in the standard of living.
The economy of the Republic of Ireland is modern, relatively small, and trade-dependent with growth averaging a robust 10% in 1995–2000 (a more modest growth of 4.9% in 2005 est.). Agriculture, once the most important sector, is now dwarfed by industry, which accounts for 46% of GDP, about 80% of exports, and employs 29% of the labour force. Although exports remain the primary engine for the Republic's robust growth, the economy is also benefiting from a rise in consumer spending and recovery in both construction and business investment. Inflation stands at 2.3% as of 2005, but this is only a recent recovery from rates of between 4% and 5%. House price inflation has been a particular economic concern (average house price was €255,776 in February 2005 [1]) as well as service charges (utilities, insurance, healthcare, legal representation, etc.). Dublin, the nation's capital, was ranked 22nd in a worldwide cost of living survey in 2004 [2] - a rise of two places on 2003. Ireland has been reported to be the Second richest country in the EU (if not Europe) next to Luxembourg.
See also: Economic history, Transportation, Rail transport, Roads, Communications, Taxation, Health care, Education, Central Bank
