Chapter 36

Overview: With the collapse of communism in Eastern Europe in 1989, prospects seemed bright for a fairly rapid incorporation of East Germany into the highly successful West German economy. The Federal Republic, however, continues to experience difficulties in integrating and modernizing eastern Germany, and the tremendous costs of unification have sunk western Germany deeper into recession. The western German economy grew by less than 1% in 1992 as the Bundesbank set high interest rates to offset the inflationary effects of large government deficits and high wage settlements. Eastern Germany grew by 6.8% in 1992 but this was from a shrunken base. Despite government transfers to the east amounting to nearly $110 billion annually, a self-sustaining economy in the region is still some years away. The bright spots are eastern Germany's construction, transportation, telecommunications, and service sectors, which have experienced strong growth. Western Germany has an advanced market economy and is a world leader in exports. It has a highly urbanized and skilled population that enjoys excellent living standards, abundant leisure time, and comprehensive social welfare benefits. Western Germany is relatively poor in natural resources, coal being the most important mineral. Western Germany's world-class companies manufacture technologically advanced goods. The region's economy is mature: services and manufacturing account for the dominant share of economic activity, and raw materials and semimanufactured goods constitute a large portion of imports. In recent years, manufacturing has accounted for about 31% of GDP, with other sectors contributing lesser amounts. Gross fixed investment in 1992 accounted for about 21.5% of GDP. GDP in the western region is now $20,000 per capita, or 85% of US per capita GDP. Eastern Germany's economy appears to be changing from one anchored on manufacturing into a more service-oriented economy. The German government, however, is intent on maintaining a manufacturing base in the east and is considering a policy for subsidizing industrial cores in the region. Eastern Germany's share of all-German GDP is only 7% and eastern productivity is just 30% that of the west even though eastern wages are at roughly 70% of western levels. The privatization agency for eastern Germany, Treuhand, has privatized more than four-fifths of the almost 12,000 firms under its control and will likely wind down operations in 1994. Private investment in the region continues to be lackluster, resulting primarily from the deepening recession in western Germany and excessively high eastern wages. Eastern Germany has one of the world's largest reserves of low-grade lignite coal but little else in the way of mineral resources. The quality of statistics from eastern Germany is improving, yet many gaps remain; the federal government began producing all-German data for select economic statistics at the start of 1992. The most challenging economic problem is promoting eastern Germany's economic reconstruction - specifically, finding the right mix of fiscal, monetary, regulatory, and tax policies that will spur investment in eastern Germany - without destabilizing western Germany's economy or damaging relations with West European partners. The government hopes a "solidarity pact" among labor unions, business, state governments, and the SPD opposition will provide the right mix of wage restraints, investment incentives, and spending cuts to stimulate eastern recovery. Finally, the homogeneity of the German economic culture has been changed by the admission of large numbers of immigrants. National product: Germany: GDP - purchasing power equivalent - $1.398 trillion (1992) western: GDP - purchasing power equivalent - $1.294 trillion (1992) eastern: GDP - purchasing power equivalent - $104 billion (1992)

*Germany, Economy

National product real growth rate: Germany: 1.5% (1992) western: 0.9% (1992) eastern: 8% (1992) National product per capita: Germany: $17,400 (1992) western: $20,000 (1992) eastern: $6,500 (1992) Inflation rate (consumer prices): western: 4% (1992) eastern: NA% Unemployment rate: western: 7.1% (1992) eastern: 13.5% (December 1992) Budget: western (federal, state, local): revenues $684 billion; expenditures $704 billion, including capital expenditures $NA (1990) eastern: revenues $NA; expenditures $NA, including capital expenditures of $NA Exports: $378.0 billion (f.o.b., 1991) commodities: manufactures 86.6% (including machines and machine tools, chemicals, motor vehicles, iron and steel products), agricultural products 4.9%, raw materials 2.3%, fuels 1.3% partners: EC 54.3% (France 12.9%, Netherlands 8.3%, Italy 9.3%, UK 7.7%, Belgium-Luxembourg 7.4%), other Western Europe 17.0%, US 6.4%, Eastern Europe 5.6%, OPEC 3.4% (1992) Imports: $354.5 billion (f.o.b., 1991) commodities: manufactures 68.5%, agricultural products 12.0%, fuels 9.7%, raw materials 7.1% partners: EC 52.0 (France 12.0%, Netherlands 9.6%, Italy 9.2%, UK 6.8%, Belgium-Luxembourg 7.0%), other Western Europe 15.2%, US 6.6%, Eastern Europe 5.5%, OPEC 2.4% (1992) External debt: $NA Industrial production: western: growth rates -5% (1992 est.) eastern: $NA Electricity: 134,000,000 kW capacity; 580,000 million kWh produced, 7,160 kWh per capita (1992)

*Germany, Economy

Industries: western: among world's largest producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics; food and beverages eastern: metal fabrication, chemicals, brown coal, shipbuilding, machine building, food and beverages, textiles, petroleum refining Agriculture: western: accounts for about 2% of GDP (including fishing and forestry); diversified crop and livestock farming; principal crops and livestock include potatoes, wheat, barley, sugar beets, fruit, cabbage, cattle, pigs, poultry; net importer of food; fish catch of 202,000 metric tons in 1987 eastern: accounts for about 10% of GDP (including fishing and forestry); principal crops - wheat, rye, barley, potatoes, sugar beets, fruit; livestock products include pork, beef, chicken, milk, hides and skins; net importer of food; fish catch of 193,600 metric tons in 1987 Illicit drugs: source of precursor chemicals for South American cocaine processors Economic aid: western: donor - ODA and OOF commitments (1970-89), $75.5 billion eastern: donor - $4.0 billion extended bilaterally to non-Communist less developed countries (1956-89) Currency: 1 deutsche mark (DM) = 100 pfennige Exchange rates: deutsche marks (DM) per US$1 - 1.6158 (January 1993), 1.5617 (1992), 1.6595 (1991), 1.6157 (1990), 1.8800 (1989), 1.7562 (1988) Fiscal year: calendar year

*Germany, Communications

Railroads: western: 31,443 km total; 27,421 km government owned, 1.435-meter standard gauge (12,491 km double track, 11,501 km electrified); 4,022 km nongovernment owned, including 3,598 km 1.435-meter standard gauge (214 km electrified) and 424 km 1.000-meter gauge (186 km electrified) eastern: 14,025 km total; 13,750 km 1.435-meter standard gauge, 275 km 1.000-meter or other narrow gauge; 3,830 (est.) km 1.435-meter standard gauge double-track; 3,475 km overhead electrified (1988) Highways: western: 466,305 km total; 169,568 km primary, includes 6,435 km autobahn, 32,460 km national highways (Bundesstrassen), 65,425 km state highways (Landesstrassen), 65,248 km county roads (Kreisstrassen); 296,737 km of secondary communal roads (Gemeindestrassen) eastern: 124,604 km total; 47,203 km concrete, asphalt, stone block, of which 1,855 km are autobahn and limited access roads, 11,326 km are trunk roads, and 34,022 km are regional roads; 77,401 km municipal roads (1988) Inland waterways: western: 5,222 km, of which almost 70% are usable by craft of 1,000-metric-ton capacity or larger; major rivers include the Rhine and Elbe; Kiel Canal is an important connection between the Baltic Sea and North Sea eastern: 2,319 km (1988) Pipelines: crude oil 3,644 km; petroleum products 3,946 km; natural gas 97,564 km (1988) Ports: coastal - Bremerhaven, Brunsbuttel, Cuxhaven, Emden, Bremen, Hamburg, Kiel, Lubeck, Wilhelmshaven, Rostock, Wismar, Stralsund, Sassnitz; inland - 31 major on Rhine and Elbe rivers Merchant marine: 565 ships (1,000 GRT or over) totaling 4,928,759 GRT/6,292,193 DWT; includes 5 short-sea passenger, 3 passenger, 303 cargo, 10 refrigerated cargo, 134 container, 28 roll-on/roll-off cargo, 5 railcar carrier, 7 barge carrier, 9 oil tanker, 21 chemical tanker, 17 liquefied gas tanker, 5 combination ore/oil, 6 combination bulk, 12 bulk; note - the German register includes ships of the former East and West Germany; during 1991 the fleet underwent major restructuring as surplus ships were sold off Airports: total: 499 usable: 492 with permanent-surface runways: 271 with runways over 3,659 m: 5 with runways 2,440-3,659 m: 59 with runways 1,220-2,439 m: 67

*Germany, Communications

Telecommunications: western: highly developed, modern telecommunication service to all parts of the country; fully adequate in all respects; 40,300,000 telephones; intensively developed, highly redundant cable and microwave radio relay networks, all completely automatic; broadcast stations - 80 AM, 470 FM, 225 (6,000 repeaters) TV; 6 submarine coaxial cables; satellite earth stations - 12 Atlantic Ocean INTELSAT antennas, 2 Indian Ocean INTELSAT antennas, EUTELSAT, and domestic systems; 2 HF radiocommunication centers; tropospheric links eastern: badly needs modernization; 3,970,000 telephones; broadcast stations - 23 AM, 17 FM, 21 TV (15 Soviet TV repeaters); 6,181,860 TVs; 6,700,000 radios; 1 satellite earth station operating in INTELSAT and Intersputnik systems

*Germany, Defense Forces

Branches: Army, Navy, Air Force Manpower availability: males age 15-49 20,295,655; fit for military service 17,577,570; reach military age (18) annually 411,854 (1993 est.) Defense expenditures: exchange rate conversion - $42.4 billion, 2.2% of GDP (1992)

*Ghana, Geography

Location: Western Africa, bordering the North Atlantic Ocean between Cote d'Ivoire and Togo Map references: Africa, Standard Time Zones of the World Area: total area: 238,540 km2 land area: 230,020 km2 comparative area: slightly smaller than Oregon Land boundaries: total 2,093 km, Burkina 548 km, Cote d'Ivoire 668 km, Togo 877 km Coastline: 539 km Maritime claims: contiguous zone: 24 nm continental shelf: 200 nm exclusive economic zone: 200 nm territorial sea: 12 nm International disputes: none Climate: tropical; warm and comparatively dry along southeast coast; hot and humid in southwest; hot and dry in north Terrain: mostly low plains with dissected plateau in south-central area Natural resources: gold, timber, industrial diamonds, bauxite, manganese, fish, rubber Land use: arable land: 5% permanent crops: 7% meadows and pastures: 15% forest and woodland: 37% other: 36% Irrigated land: 80 km2 (1989) Environment: recent drought in north severely affecting marginal agricultural activities; deforestation; overgrazing; soil erosion; dry, northeasterly harmattan wind (January to March) Note: Lake Volta is the world's largest artificial lake

*Ghana, People

Population: 16,699,105 (July 1993 est.) Population growth rate: 3.12% (1993 est.) Birth rate: 44.66 births/1,000 population (1993 est.) Death rate: 12.52 deaths/1,000 population (1993 est.) Net migration rate: -1 migrant(s)/1,000 population (1993 est.) Infant mortality rate: 84.5 deaths/1,000 live births (1993 est.) Life expectancy at birth: total population: 55.19 years male: 53.27 years female: 57.17 years (1993 est.) Total fertility rate: 6.21 children born/woman (1993 est.) Nationality: noun: Ghanaian(s) adjective: Ghanaian Ethnic divisions: black African 99.8% (major tribes - Akan 44%, Moshi-Dagomba 16%, Ewe 13%, Ga 8%), European and other 0.2% Religions: indigenous beliefs 38%, Muslim 30%, Christian 24%, other 8% Languages: English (official), African languages (including Akan, Moshi-Dagomba, Ewe, and Ga) Literacy: age 15 and over can read and write (1990) total population: 60% male: 70% female: 51% Labor force: 3.7 million by occupation: agriculture and fishing 54.7%, industry 18.7%, sales and clerical 15.2%, services, transportation, and communications 7.7%, professional 3.7% note: 48% of population of working age (1983)

*Ghana, Government

Names: conventional long form: Republic of Ghana conventional short form: Ghana former: Gold Coast Digraph: GH Type: constitutional democracy Capital: Accra Administrative divisions: 10 regions; Ashanti, Brong-Ahafo, Central, Eastern, Greater Accra, Northern, Upper East, Upper West, Volta, Western Independence: 6 March 1957 (from UK) Constitution: new constitution approved 28 April 1992 Legal system: based on English common law and customary law; has not accepted compulsory ICJ jurisdiction National holiday: Independence Day, 6 March (1957) Political parties and leaders: National Democratic Congress, Jerry John Rawlings; New Patriotic Party, Albert Adu BOAHEN; People's Heritage Party, Alex Erskine; various other smaller parties Suffrage: universal at 18 Elections: President: last held 3 November 1992 (next to be held NA) National Assembly: last held 29 December 1992 (next to be held NA) Executive branch: president, cabinet Legislative branch: unicameral National Assembly Judicial branch: Supreme Court Leaders: Chief of State and Head of Government: President Jerry John RAWLINGS (since 3 November 1992) Member of: ACP, AfDB, C, CCC, ECA, ECOWAS, FAO, G-24, G-77, GATT, IAEA, IBRD, ICAO, IDA, IFAD, IFC, ILO, IMF, IMO, INTELSAT, INTERPOL, IOC, IOM (observer), ISO, ITU, LORCS, MINURSO, NAM, OAU, UN, UNCTAD, UNESCO, UNIDO, UNIFIL, UNIKOM, UNPROFOR, UNTAC, UPU, WCL, WHO, WIPO, WMO, WTO Diplomatic representation in US: chief of mission: Ambassador Dr. Joseph ABBEY chancery: 3512 International Drive NW, Washington, DC 20008 telephone: (202) 686-4520 consulate general: New York

*Ghana, Government

US diplomatic representation: chief of mission: Ambassador Kenneth L. BROWN embassy: Ring Road East, East of Danquah Circle, Accra mailing address: P. O. Box 194, Accra telephone: [233] (21) 775348, 775349, 775295 or 775298 FAX: [233] (21) 776008 Flag: three equal horizontal bands of red (top), yellow, and green with a large black five-pointed star centered in the gold band; uses the popular pan-African colors of Ethiopia; similar to the flag of Bolivia, which has a coat of arms centered in the yellow band

*Ghana, Economy

Overview: Supported by substantial international assistance, Ghana has been implementing a steady economic rebuilding program since 1983, including moves toward privatization and relaxation of government controls. Heavily dependent on cocoa, gold, and timber exports, economic growth so far has not spread substantially to other areas of the economy. The costs of sending peacekeeping forces to Liberia and preparing for the transition to a democratic government have boosted government expenditures and undercut structural adjustment reforms. Ghana opened a stock exchange in 1990. Meanwhile, declining world commodity prices for Ghana's exports has placed the government under severe financial pressure. National product: GDP - exchange rate conversion - $6.6 billion (1992 est.) National product real growth rate: 3.9% (1992 est.) National product per capita: $410 (1992 est.) Inflation rate (consumer prices): 10% (1992 est.) Unemployment rate: 10% (1991) Budget: revenues $1.0 billion; expenditures $905 million, including capital expenditures of $200 million (1991 est.) Exports: $1.1 billion (f.o.b., 1992) commodities: cocoa 45%, gold, timber, tuna, bauxite, and aluminum partners: Germany 29%, UK 12%, US 12%, Japan 5% Imports: $1.4 billion (c.i.f., 1992 est.) commodities: petroleum 16%, consumer goods, foods, intermediate goods, capital equipment partners: UK 23%, US 11%, Germany 10%, Japan 6% External debt: $4.6 billion (1992 est.) Industrial production: growth rate 4.6% in manufacturing (1991); accounts for almost 15% of GDP Electricity: 1,180,000 kW capacity; 4,490 million kWh produced, 290 kWh per capita (1991) Industries: mining, lumbering, light manufacturing, aluminum, food processing Agriculture: accounts for about 50% of GDP (including fishing and forestry); the major cash crop is cocoa; other principal crops - rice, coffee, cassava, peanuts, corn, shea nuts, timber; normally self-sufficient in food Illicit drugs: illicit producer of cannabis for the international drug trade Economic aid: US commitments, including Ex-Im (FY70-89), $455 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $2.6 billion; OPEC bilateral aid (1979-89), $78 million; Communist countries (1970-89), $106 million Currency: 1 cedi (C) = 100 pesewas Exchange rates: ceolis per US$1 - 437 (July 1992)

*Ghana, Economy

Fiscal year: calendar year

*Ghana, Communications

Railroads: 953 km, all 1.067-meter gauge; 32 km double track; railroads undergoing major renovation Highways: 32,250 km total; 6,084 km concrete or bituminous surface, 26,166 km gravel, laterite, and improved earth surfaces Inland waterways: Volta, Ankobra, and Tano Rivers provide 168 km of perennial navigation for launches and lighters; Lake Volta provides 1,125 km of arterial and feeder waterways Pipelines: none Ports: Tema, Takoradi Merchant marine: 6 ships (1,000 GRT or over) totaling 59,293 GRT/78,246 DWT; includes 5 cargo, 1 refrigerated cargo Airports: total: 10 usable: 9 with permanent-surface runways: 5 with runways over 3,659 m: 0 with runways 2,440-3,659 m: 2 with runways 1,220-2,439 m: 6 Telecommunications: poor to fair system handled primarily by microwave radio relay links; 42,300 telephones; broadcast stations - 4 AM, 1 FM, 4 (8 translators) TV; 1 Atlantic Ocean INTELSAT earth station

*Ghana, Defense Forces

Branches: Army, Navy, Air Force, Police Force, Civil Defense Manpower availability: males age 15-49 3,766,073; fit for military service 2,105,865; reach military age (18) annually 171,145 (1993 est.) Defense expenditures: exchange rate conversion - $30 million, less than 1% of GDP (1989 est.)

*Gibraltar, Header

Affiliation: (dependent territory of the UK)

*Gibraltar, Geography

Location: Southwestern Europe, bordering the Strait of Gibraltar, which links the North Atlantic Ocean and the Mediterranean Sea, on the southern coast of Spain Map references: Africa, Europe Area: total area: 6.5 km2 land area: 6.5 km2 comparative area: about 11 times the size of the Mall in Washington, DC Land boundaries: total 1.2 km, Spain 1.2 km Coastline: 12 km Maritime claims: exclusive fishing zone: 3 nm territorial sea: 3 nm International disputes: source of occasional friction between Spain and the UK Climate: Mediterranean with mild winters and warm summers Terrain: a narrow coastal lowland borders The Rock Natural resources: negligible Land use: arable land: 0% permanent crops: 0% meadows and pastures: 0% forest and woodland: 0% other: 100% Irrigated land: NA km2 Environment: natural freshwater sources are meager, so large water catchments (concrete or natural rock) collect rain water Note: strategic location on Strait of Gibraltar that links the North Atlantic Ocean and Mediterranean Sea

*Gibraltar, People

Population: 31,508 (July 1993 est.) Population growth rate: 0.53% (1993 est.) Birth rate: 15.68 births/1,000 population (1993 est.) Death rate: 8.89 deaths/1,000 population (1993 est.) Net migration rate: -1.46 migrant(s)/1,000 population (1993 est.) Infant mortality rate: 8.4 deaths/1,000 live births (1993 est.) Life expectancy at birth: total population: 76.06 years male: 73.18 years female: 78.91 years (1993 est.) Total fertility rate: 2.37 children born/woman (1993 est.) Nationality: noun: Gibraltarian(s) adjective: Gibraltar Ethnic divisions: Italian, English, Maltese, Portuguese, Spanish Religions: Roman Catholic 74%, Protestant 11% (Church of England 8%, other 3%), Moslem 8%, Jewish 2%, none or other 5% (1981) Languages: English (used in schools and for official purposes), Spanish, Italian, Portuguese, Russian Literacy: total population: NA% male: NA% female: NA% Labor force: 14,800 (including non-Gibraltar laborers) note: UK military establishments and civil government employ nearly 50% of the labor force

*Gibraltar, Government

Names: conventional long form: none conventional short form: Gibraltar Digraph: GI Type: dependent territory of the UK Capital: Gilbraltar Administrative divisions: none (dependent territory of the UK) Independence: none (dependent territory of the UK) Constitution: 30 May 1969 Legal system: English law National holiday: Commonwealth Day (second Monday of March) Political parties and leaders: Socialist Labor Party (SL), Joe BOSSANO; Gibraltar Labor Party/Association for the Advancement of Civil Rights (GCL/AACR), leader NA; Gibraltar Social Democrats, Peter CARUANA; Gibraltar National Party, Joe GARCIA Other political or pressure groups: Housewives Association; Chamber of Commerce; Gibraltar Representatives Organization Suffrage: 18 years of age; universal, plus other UK subjects resident six months or more Elections: House of Assembly: last held on 16 January 1992 (next to be held January 1996); results - SL 73.3%; seats - (18 total, 15 elected) number of seats by party NA Executive branch: British monarch, governor, chief minister, Gibraltar Council, Council of Ministers (cabinet) Legislative branch: unicameral House of Assembly Judicial branch: Supreme Court, Court of Appeal Leaders: Chief of State: Queen ELIZABETH II (since 6 February 1952), represented by Governor and Commander in Chief Adm. Sir Derek REFFELL (since NA 1989) Head of Government: Chief Minister Joe BOSSANO (since 25 March 1988) Member of: INTERPOL (subbureau) Diplomatic representation in US: none (dependent territory of the UK) US diplomatic representation: none (dependent territory of the UK) Flag: two horizontal bands of white (top, double width) and red with a three-towered red castle in the center of the white band; hanging from the castle gate is a gold key centered in the red band

*Gibraltar, Economy