Chapter 43

Overview: Hungary is in the midst of a difficult transition from a command to a market economy. Agriculture is an important sector, providing sizable export earnings and meeting domestic food needs. Industry accounts for about 40% of GDP and 30% of employment. Hungary claims that less than 25% of foreign trade is now with former CEMA countries, while about 70% is with OECD members. Hungary's economic reform programs during the Communist era gave it a head start in creating a market economy and attracting foreign investment. In 1991, Hungary received 60% of all foreign investment in Eastern Europe, and in 1992 received the largest single share. The growing private sector accounts for about one-third of national output according to unofficial estimates. Privatization of state enterprises is progressing, although excessive red tape, bureaucratic oversight, and uncertainties about pricing have slowed the process. Escalating unemployment and high rates of inflation may impede efforts to speed up privatization and budget reform, while Hungary's heavy foreign debt will make the government reluctant to introduce full convertibility of the forint before 1994 and to rein in inflation. The government is projecting an end to the 5-year recession in 1993, and GDP is forecast to grow 0%-3%. National product: GDP - purchasing power equivalent - $55.4 billion (1992 est.) National product real growth rate: -5% (1992 est.) National product per capita: $5,380 (1992 est.) Inflation rate (consumer prices): 23% (1992 est.) Unemployment rate: 12.3% (1992) Budget: revenues $13.2 billion; expenditures $15.4 billion, including capital expenditures $NA (1993 est.) Exports: $10.9 billion (f.o.b., 1992 est.) commodities: raw materials, semi-finished goods, chemicals 35.5%, machinery 13.5%, light industry 23.3%, food and agricultural 24.8%, fuels and energy 2.8% partners: OECD 70.7%, (EC 50.1%, EFTA 15.0%), LDCs 5.1%, former CEMA members 23.2%, others 1.0% (1991) Imports: $11.7 billion (f.o.b., 1992 est.) commodities: fuels and energy 14.9%, raw materials, semi-finished goods, chemicals 37.6%, machinery 19.7%, light industry 21.5%, food and agricultural 6.3% partners: OECD 71.0%, (EC 45.4%, EFTA 20.0%), LDCs 3.9%, former CEMA members 23.9%, others 1.2% (1991) External debt: $23.5 billion (September 1992) Industrial production: growth rate -10% (1992) Electricity: 7,200,000 kW capacity; 30,000 million kWh produced, 3,000 kWh per capita (1992) Industries: mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), buses, automobiles

*Hungary, Economy

Agriculture: including forestry, accounts for 15% of GDP and 16% of employment; highly diversified crop and livestock farming; principal crops - wheat, corn, sunflowers, potatoes, sugar beets; livestock - hogs, cattle, poultry, dairy products; self-sufficient in food output Illicit drugs: transshipment point for Southeast Asia heroin transiting the Balkan route Economic aid: recipient - $9.1 billion in assistance from OECD countries (from 1st quarter 1990 to end of 2nd quarter 1991) Currency: 1 forint (Ft) = 100 filler Exchange rates: forints per US$1 - 83.97 (December 1992), 78.99 (1992), 74.74 (1991), 63.21 (1990), 59.07 (1989), 50.41 (1988) Fiscal year: calendar year

*Hungary, Communications

Railroads: 7,765 km total; 7,508 km 1.435-meter standard gauge, 222 km narrow gauge (mostly 0.760-meter), 35 km 1.520-meter broad gauge; 1,236 km double track, 2,249 km electrified; all government owned (1990) Highways: 130,218 km total; 29,919 km national highway system (27,212 km asphalt, 126 km concrete, 50 km stone and road brick, 2,131 km macadam, 400 km unpaved); 58,495 km country roads (66% unpaved), and 41,804 km other roads (70% unpaved) (1988) Inland waterways: 1,622 km (1988) Pipelines: crude oil 1,204 km; natural gas 4,387 km (1991) Ports: Budapest and Dunaujvaros are river ports on the Danube; coastal outlets are Rostock (Germany), Gdansk (Poland), Gdynia (Poland), Szczecin (Poland), Galati (Romania), and Braila (Romania) Merchant marine: 12 cargo ships (1,000 GRT or over) and 1 bulk totaling 83,091 GRT/115,950 DWT Airports: total: 92 usable: 92 with permanent-surface runways: 25 with runways over 3,659 m: 1 with runways 2,440-3,659 m: 20 with runways 1,220-2,439 m: 28 Telecommunications: automatic telephone network based on microwave radio relay system; 1,128,800 phones (1991); telephone density is at 19.4 per 100 inhabitants; 49% of all phones are in Budapest; 608,000 telephones on order (1991); 12-15 year wait for a phone; 14,213 telex lines (1991); broadcast stations - 32 AM, 15 FM, 41 TV (8 Soviet TV repeaters); 4.2 million TVs (1990); 1 satellite ground station using INTELSAT and Intersputnik

*Hungary, Defense Forces

Branches: Ground Forces, Air and Air Defense Forces, Border Guard, Territorial Defense Manpower availability: males age 15-49 2,630,552; fit for military service 2,101,637; reach military age (18) annually 91,979 (1993 est.) Defense expenditures: 66.5 billion forints, NA% of GNP (1993 est.); note - conversion of defense expenditures into US dollars using the current exchange rate could produce misleading results

*Iceland, Geography

Location: in the North Atlantic Ocean, between Greenland and Norway Map references: Arctic Region, Europe, North America, Standard Time Zones of the World Area: total area: 103,000 km2 land area: 100,250 km2 comparative area: slightly smaller than Kentucky Land boundaries: 0 km Coastline: 4,988 km Maritime claims: continental shelf: 200 nm or the edge of continental margin exclusive economic zone: 200 nm territorial sea: 12 nm International disputes: Rockall continental shelf dispute involving Denmark, Ireland, and the UK (Ireland and the UK have signed a boundary agreement in the Rockall area) Climate: temperate; moderated by North Atlantic Current; mild, windy winters; damp, cool summers Terrain: mostly plateau interspersed with mountain peaks, icefields; coast deeply indented by bays and fiords Natural resources: fish, hydropower, geothermal power, diatomite Land use: arable land: 1% permanent crops: 0% meadows and pastures: 20% forest and woodland: 1% other: 78% Irrigated land: NA km2 Environment: subject to earthquakes and volcanic activity Note: strategic location between Greenland and Europe; westernmost European country; more land covered by glaciers than in all of continental Europe

*Iceland, People

Population: 261,270 (July 1993 est.) note: population data estimates based on average growth rate may differ slightly from official population data because of volatile migration rates Population growth rate: 0.88% (1993 est.) Birth rate: 16.99 births/1,000 population (1993 est.) Death rate: 6.74 deaths/1,000 population (1993 est.) Net migration rate: -1.47 migrant(s)/1,000 population (1993 est.) Infant mortality rate: 4 deaths/1,000 live births (1993 est.) Life expectancy at birth: total population: 78.69 years male: 76.45 years female: 81.04 years (1993 est.) Total fertility rate: 2.16 children born/woman (1993 est.) Nationality: noun: Icelander(s) adjective: Icelandic Ethnic divisions: homogeneous mixture of descendants of Norwegians and Celts Religions: Evangelical Lutheran 96%, other Protestant and Roman Catholic 3%, none 1% (1988) Languages: Icelandic Literacy: age 15 and over can read and write (1976) total population: 100% male: NA% female: NA% Labor force: 127,900 by occupation: commerce, transportation, and services 60.0%, manufacturing 12.5%, fishing and fish processing 11.8%, construction 10.8%, agriculture 4.0% (1990)

*Iceland, Government

Names: conventional long form: Republic of Iceland conventional short form: Iceland local long form: Lyoveldio Island local short form: Island Digraph: IC Type: republic Capital: Reykjavik Administrative divisions: 23 counties (syslar, singular - sysla) and 14 independent towns*, (kaupstadhir, singular - kaupstadhur); Akranes*, Akureyri*, Arnessysla,, Austur-Bardhastrandarsysla, Austur-Hunavatnssysla, Austur-Skaftafellssysla, Borgarfjardharsysla, Dalasysla, Eyjafjardharsysla, Gullbringusysla, Hafnarfjordhur*, Husavik*, Isafjordhur*, Keflavik*, Kjosarsysla, Kopavogur*,, Myrasysla, Neskaupstadhur*, Nordhur-Isafjardharsysla, Nordhur-Mulasys-la,, Nordhur-Thingeyjarsysla, Olafsfjordhur*, Rangarvallasysla, Reykjavik*,, Saudharkrokur*, Seydhisfjordhur*, Siglufjordhur*,, Skagafjardharsysla, Snaefellsnes-og Hnappadalssysla, Strandasysla, Sudhur-Mulasysla, Sudhur-Thingeyjarsysla, Vesttmannaeyjar*, Vestur-Bardhastrandarsysla,, Vestur-Hunavatnssysla, Vestur-Isafjardharsysla, Vestur-Skaftafellssysla Independence: 17 June 1944 (from Denmark) Constitution: 16 June 1944, effective 17 June 1944 Legal system: civil law system based on Danish law; does not accept compulsory ICJ jurisdiction National holiday: Anniversary of the Establishment of the Republic, 17 June (1944) Political parties and leaders: Independence Party (conservative), David ODDSSON; Progressive Party, Steingrimur HERMANNSSON; Social Democratic Party, Jon Baldvin HANNIBALSSON; People's Alliance (left socialist), Olafur Ragnar GRIMSSON; Women's List Suffrage: 18 years of age; universal Elections: President: last held on 29 June 1988 (next scheduled for June 1996); results - there was no election in 1992 as President Vigdis FINNBOGADOTTIR was unopposed Althing: last held on 20 April 1991 (next to be held by April 1995); results - Independence Party 38.6%, Progressive Party 18.9%, Social Democratic Party 15.5%, People's Alliance 14.4%, Womens List 8.3%, Liberals 1.2%, other 3.1%; seats - (63 total) Independence 26, Progressive 13, Social Democratic 10, People's Alliance 9, Womens List 5 Executive branch: president, prime minister, Cabinet Legislative branch: unicameral Parliament (Althing) Judicial branch: Supreme Court (Haestirettur)

*Iceland, Government

Leaders: Chief of State: President Vigdis FINNBOGADOTTIR (since 1 August 1980) Head of Government: Prime Minister David ODDSSON (since 30 April 1991) Member of: Australian Group, BIS, CCC, CE, CSCE, EBRD, ECE, EFTA, FAO, GATT, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IFC, ILO, IMF, IMO, INMARSAT, INTELSAT, INTERPOL, IOC, ISO (correspondent), ITU, LORCS, MTCR, NACC, NATO, NC, NEA, NIB, OECD, PCA, UN, UNCTAD, UNESCO, UPU, WEU (associate), WHO, WIPO, WMO Diplomatic representation in US: chief of mission: (vacant) chancery: 2022 Connecticut Avenue NW, Washington DC 20008 telephone: (202) 265-6653 through 6655 FAX: (202) 265-6656 consulate general: New York US diplomatic representation: chief of mission: (vacant); Charge d'Affaires Jon GUNDERSEN embassy: Laufasvegur 21, Box 40, Reykjavik mailing address: USEMB, PSC 1003, Box 40, FPO AE 09728-0340 telephone: [354] (1) 29100 FAX: [354] (1) 29139 Flag: blue with a red cross outlined in white that extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the style of the Dannebrog (Danish flag)

*Iceland, Economy

Overview: Iceland's Scandinavian-type economy is basically capitalistic, but with an extensive welfare system, relatively low unemployment, and comparatively even distribution of income. The economy is heavily dependent on the fishing industry, which provides nearly 75% of export earnings and employs 12% of the workforce. In the absence of other natural resources - except energy - Iceland's economy is vulnerable to changing world fish prices. Iceland's economy has been in recession since 1988. The recession deepened in 1992 due to severe cutbacks in fishing quotas and falling world prices for the country's main exports: fish and fish products, aluminum, and ferrosilicon. Real GDP declined 3.3% in 1992 and is forecast to contract another 1.5% in 1993. The center-right government's economic goals include reducing the budget and current account deficits, limiting foreign borrowing, containing inflation, revising agricultural and fishing policies, diversifying the economy, and privatizing state-owned industries. The recession has led to a wave of bankruptcies and mergers throughout the economy, as well as the highest unemployment of the post-World War II period. The national unemployment rate reached 5% in early 1993, with some parts of the country experiencing unemployment in the 9-10% range. Inflation, previously a serious problem, declined from double digit rates in the 1980s to only 3.7% in 1992. National product: GDP - purchasing power equivalent - $4.5 billion (1992) National product real growth rate: -3.3% (1992) National product per capita: $17,400 (1992) Inflation rate (consumer prices): 3.7% (1992 est.) Unemployment rate: 5% (first quarter 1993) Budget: revenues $1.8 billion; expenditures $1.9 billion, including capital expenditures of $191 million (1992) Exports: $1.5 billion (f.o.b., 1992) commodities: fish and fish products, animal products, aluminum, ferrosilicon, diatomite partners: EC 68% (UK 25%, Germany 12%), US 11%, Japan 8% (1992) Imports: $1.5 billion (c.i.f., 1992) commodities: machinery and transportation equipment, petroleum products, foodstuffs, textiles partners: EC 53% (Germany 14%, Denmark 10%, UK 9%), Norway 14%, US 9% (1992) External debt: $3.9 billion (1992 est.) Industrial production: growth rate 1.75% (1991 est.) Electricity: 1,063,000 kW capacity; 5,165 million kWh produced, 19,940 kWh per capita (1992) Industries: fish processing, aluminum smelting, ferro-silicon production, geothermal power

*Iceland, Economy

Agriculture: accounts for about 25% of GDP; fishing is most important economic activity, contributing nearly 75% to export earnings; principal crops - potatoes, turnips; livestock - cattle, sheep; self-sufficient in crops; fish catch of about 1.4 million metric tons in 1989 Economic aid: US commitments, including Ex-Im (FY70-81), $19.1 million Currency: 1 Icelandic krona (IKr) = 100 aurar Exchange rates: Icelandic kronur (IKr) per US$1 - 63.789 (January 1993), 57.546 (1992), 58.996 (1991), 58.284 (1990), 57.042 (1989), 43.014 (1988) Fiscal year: calendar year

*Iceland, Communications

Highways: 11,543 km total; 2,690 km hard surfaced, 8,853 km gravel and earth Ports: Reykjavik, Akureyri, Hafnarfjordhur, Keflavik, Seydhisfjordhur, Siglufjordhur, Vestmannaeyjar Merchant marine: 10 ships (1,000 GRT or over) totaling 35,832 GRT/53,037 DWT; includes 3 cargo, 3 refrigerated cargo, 2 roll-on/roll-off cargo, 1 oil tanker, 1 chemical tanker Airports: total: 90 usable: 84 with permanent-surface runways: 8 with runways over 3,659 m: 0 with runways 2,440-3,659 m: 1 with runways 1,220-2,439 m: 12 Telecommunications: adequate domestic service; coaxial and fiber-optical cables and microwave radio relay for trunk network; 140,000 telephones; broadcast stations - 5 AM, 147 (transmitters and repeaters) FM, 202 (transmitters and repeaters) TV; 2 submarine cables; 1 Atlantic Ocean INTELSAT earth station carries all international traffic; a second INTELSAT earth station is scheduled to be operational in 1993

*Iceland, Defense Forces

Branches: Police, Coast Guard note: no armed forces, Iceland's defense is provided by the US-manned Icelandic Defense Force (IDF) headquartered at Keflavik Manpower availability: males age 15-49 69,499; fit for military service 61,798 (1993 est.); no conscription or compulsory military service Defense expenditures: none

*India, Geography

Location: South Asia, bordering the Arabian Sea and the Bay of Bengal, between Bangladesh and Pakistan Map references: Asia, Standard Time Zones of the World Area: total area: 3,287,590 km2 land area: 2,973,190 km2 comparative area: slightly more than one-third the size of the US Land boundaries: total 14,103 km, Bangladesh 4,053 km, Bhutan 605 km, Burma 1,463 km, China 3,380 km, Nepal 1,690 km, Pakistan 2,912 km Coastline: 7,000 km Maritime claims: contiguous zone: 24 nm continental shelf: 200 nm or the edge of continental margin exclusive economic zone: 200 nm territorial sea: 12 nm International disputes: boundaries with Bangladesh and China; status of Kashmir with Pakistan; water-sharing problems with downstream riparians, Bangladesh over the Ganges and Pakistan over the Indus Climate: varies from tropical monsoon in south to temperate in north Terrain: upland plain (Deccan Plateau) in south, flat to rolling plain along the Ganges, deserts in west, Himalayas in north Natural resources: coal (fourth-largest reserves in the world), iron ore, manganese, mica, bauxite, titanium ore, chromite, natural gas, diamonds, petroleum, limestone Land use: arable land: 55% permanent crops: 1% meadows and pastures: 4% forest and woodland: 23% other: 17% Irrigated land: 430,390 km2 (1989) Environment: droughts, flash floods, severe thunderstorms common; deforestation; soil erosion; overgrazing; air and water pollution; desertification Note: dominates South Asian subcontinent; near important Indian Ocean trade routes

*India, People

Population: 903,158,968 (July 1993 est.) Population growth rate: 1.86% (1993 est.) Birth rate: 29.11 births/1,000 population (1993 est.) Death rate: 10.52 deaths/1,000 population (1993 est.) Net migration rate: 0 migrant(s)/1,000 population (1993 est.) Infant mortality rate: 80.5 deaths/1,000 live births (1993 est.) Life expectancy at birth: total population: 58.12 years male: 57.69 years female: 58.59 years (1993 est.) Total fertility rate: 3.57 children born/woman (1993 est.) Nationality: noun: Indian(s) adjective: Indian Ethnic divisions: Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% Religions: Hindu 82.6%, Muslim 11.4%, Christian 2.4%, Sikh 2%, Buddhist 0.7%, Jains 0.5%, other 0.4% Languages: English enjoys associate status but is the most important language for national, political, and commercial communication, Hindi the national language and primary tongue of 30% of the people, Bengali (official), Telugu (official), Marathi (official), Tamil (official), Urdu (official), Gujarati (official), Malayalam (official), Kannada (official), Oriya (official), Punjabi (official), Assamese (official), Kashmiri (official), Sindhi (official), Sanskrit (official), Hindustani a popular variant of Hindu/Urdu, is spoken widely throughout northern India note: 24 languages each spoken by a million or more persons; numerous other languages and dialects, for the most part mutually unintelligible Literacy: age 15 and over can read and write (1990) total population: 48% male: 62% female: 34% Labor force: 284.4 million by occupation: agriculture 67% (FY85)

*India, Government

Names: conventional long form: Republic of India conventional short form: India Digraph: IN Type: federal republic Capital: New Delhi Administrative divisions: 25 states and 7 union territories*; Andaman and Nicobar Islands*, Andhra, Pradesh, Arunachal Pradesh, Assam, Bihar, Chandigarh*, Dadra and Nagar, Haveli*, Daman and Diu*, Delhi*, Goa,, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Karnataka, Kerala, Lakshadweep*, Madhya Pradesh,, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Pondicherry*,, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal Independence: 15 August 1947 (from UK) Constitution: 26 January 1950 Legal system: based on English common law; limited judicial review of legislative acts; accepts compulsory ICJ jurisdiction, with reservations National holiday: Anniversary of the Proclamation of the Republic, 26 January (1950) Political parties and leaders: Congress (I) Party, P. V. Narasimha RAO, president; Bharatiya Janata Party, M. M. JOSHI; Janata Dal Party; Communist Party of India/Marxist (CPI/M), Harkishan Singh SURJEET; Communist Party of India (CPI), C. Rajeswara RAO; Telugu Desam (a regional party in Andhra Pradesh), N. T. Rama RAO; All-India Anna Dravida Munnetra Kazagham (AIADMK; a regional party in Tamil Nadu), JAYALALITHA Jeyaram; Samajwadi Janata Party, CHANDRA SHEKHAR; Shiv Sena, Bal THACKERAY; Revolutionary Socialist Party (RSP), Tridip CHOWDHURY; Bahujana Samaj Party (BSP), Kanshi RAM; Congress (S) Party, leader NA; Communist Party of India/Marxist-Leninist (CPI/ML), Satyanarayan SINGH; Dravida Munnetra Kazagham (a regional party in Tamil Nadu), M. KARUNANIDHI; Akali Dal factions representing Sikh religious community in the Punjab; National Conference (NC; a regional party in Jammu and Kashmir), Farooq ABDULLAH; Asom Gana Parishad (a regional party in Assam), Prafulla MAHANTA Other political or pressure groups: various separatist groups seeking greater communal and/or regional autonomy; numerous religious or militant/chauvinistic organizations, including Adam Sena, Ananda Marg, Vishwa Hindu Parishad, and Rashtriya Swayamsevak Sangh Suffrage: 18 years of age; universal Elections: People's Assembly: last held 21 May, 12 and 15 June 1991 (next to be held by November 1996); results - percent of vote by party NA; seats - (545 total, 543 elected, 2 appointed) Congress (I) Party 245, Bharatiya Janata Party 119, Janata Dal Party 39, Janata Dal (Ajit Singh) 20, CPI/M 35, CPI 14, Telugu Desam 13, AIADMK 11, Samajwadi Janata Party 5, Shiv Sena 4, RSP 4, BSP 1, Congress (S) Party 1, other 23, vacant 9 Executive branch: president, vice president, prime minister, Council of Ministers

*India, Government

Legislative branch: bicameral Parliament (Sansad) consists of an upper house or Council of States (Rajya Sabha) and a lower house or People's Assembly (Lok Sabha) Judicial branch: Supreme Court Leaders: Chief of State: President Shankar Dayal SHARMA (since 25 July 1992); Vice President K.R. NARAYANAN (since 21 August 1992) Head of Government: Prime Minister P. V. Narasimha RAO (since 21 June 1991) Member of: AG (observer), AsDB, C, CCC, CP, ESCAP, FAO, G-6, G-15, G-19, AfDB, G-24, G-77, GATT, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IFAD, IFC, ILO, IMF, IMO, INMARSAT, INTELSAT, INTERPOL, IOC, IOM (observer), ISO, ITU, LORCS, NAM, ONUSAL, PCA, SAARC, UN, UNAVEM II, UNCTAD, UNESCO, UNIDO, UNIKOM, UNOMOZ, UNTAC, UPU, WFTU, WHO, WIPO, WMO, WTO Diplomatic representation in US: chief of mission: Ambassador Siddhartha Shankar RAY chancery: 2107 Massachusetts Avenue NW, Washington, DC 20008 telephone: (202) 939-7000 consulates general: Chicago, New York, and San Francisco US diplomatic representation: chief of mission: Ambassador Thomas R. Pickering embassy: Shanti Path, Chanakyapuri 110021, New Delhi mailing address: use embassy street address telephone: [91] (11) 600651 FAX: [91] (11) 687-2028, 687-2391 consulates general: Bombay, Calcutta, Madras Flag: three equal horizontal bands of orange (top), white, and green with a blue chakra (24-spoked wheel) centered in the white band; similar to the flag of Niger, which has a small orange disk centered in the white band

*India, Economy