Chapter 40
Economy--overview: With independence from Ethiopia on 24 May 1993, Eritrea faced the bitter economic problem of a small, desperately poor African country. The economy is largely based on subsistence agriculture, with over 70% of the population involved in farming and herding. The small industrial sector consists mainly of light industries with outmoded technologies. Domestic output (GDP) is substantially augmented by worker remittances from abroad. Government revenues come from custom duties and taxes on income and sales. Road construction is a top domestic priority. Eritrea has long-term prospects for revenues from the development of offshore oil, offshore fishing, and tourism. Eritrea's economic future depends on its ability to master fundamental social and economic problems, e.g., overcoming illiteracy, promoting job creation, expanding technical training, attracting foreign investment, and streamlining the bureaucracy. The most immediate threat to the economy, however, is the possible expansion of the armed conflict with Ethiopia.
GDP: purchasing power parity--$2.5 billion (1998 est.)
GDP--real growth rate: 5% (1998 est.)
GDP--per capita: purchasing power parity?$660 (1998 est.)
GDP--composition by sector: agriculture: 18% industry: 20% services: 62% (1995 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): 8% (1998 est.)
Labor force: NA
Unemployment rate: NA%
Budget: revenues: $226 million expenditures: $453 million, including capital expenditures of $88 million (1996 est.)
Industries: food processing, beverages, clothing and textiles
Industrial production growth rate: NA%
Electricity--production: NA kWh
Electricity--production by source: fossil fuel: NA% hydro: NA% nuclear: NA% other: NA%
Electricity--consumption: NA kWh
Electricity--exports: NA kWh
Electricity--imports: NA kWh
Agriculture--products: sorghum, lentils, vegetables, maize, cotton, tobacco, coffee, sisal; livestock, goats; fish
Exports: $95 million (1996 est.)
Exports--commodities: livestock, sorghum, textiles, food, small manufactures
Exports--partners: Ethiopia 67%, Sudan 10%, US 8%, Italy 4%, Saudi Arabia, Yemen (1996)
Imports: $514 million (1996 est.)
Imports--commodities: processed goods, machinery, petroleum products
Imports--partners: Ethiopia, Saudi Arabia, Italy, United Arab Emirates (1996)
Debt--external: $46 million (1996 est.)
Economic aid--recipient: $149.9 million (1995)
Currency: 1 nafka = 100 cents
Exchange rates: nakfa per US$1 = 7.6 (January 1999), 7.2 (March 1998 est.) note: following independence from Ethiopia, Eritrea continued to use Ethiopian currency until November 1997 when Eritrea issued its own currency, the nakfa, at approximately the same rate as the birr, i.e., 7.2 nakfa per US$1
Fiscal year: calendar year
Communications
Telephones: NA
Telephone system: domestic: very inadequate; about 4 telephones per 100 families, most of which are in Asmara; government is seeking international tenders to improve the system international: NA
Radio broadcast stations: AM 2, FM 0, shortwave 1
Radios: NA
Television broadcast stations: 1 (government controlled) (1997)
Televisions: NA
Transportation
Railways: total: 307 km narrow gauge: 307 km 0.950-m gauge (1995 est.) note: nonoperational since 1978 except for about a 5 km stretch that was reopened in Massawa in 1994; rehabilitation of the remainder and of the rolling stock is under way; links Ak'ordat and Asmara (formerly Asmera) with the port of Massawa (formerly Mits'iwa)
Highways: total: 4,010 km paved: 874 km unpaved: 3,136 km (1996 est.)
Ports and harbors: Assab (Aseb), Massawa (Mits'iwa)
Merchant marine: total: 2 ships (1,000 GRT or over) totaling 5,947 GRT/5,747 DWT ships by type: oil tanker 1, roll-on/roll-off cargo 1 (1998 est.)
Airports: 20 (1998 est.)
Airports--with paved runways: total: 2 over 3,047 m: 1 2,438 to 3,047 m: 1 (1998 est.)
Airports--with unpaved runways: total: 18 over 3,047 m: 2 2,438 to 3,047 m: 2 1,524 to 2,437 m: 5 914 to 1,523 m: 6 under 914 m: 3 (1998 est.)
Military
Military branches: Army, Navy, Air Force
Military expenditures--dollar figure: $196 million (1997)
Military expenditures--percent of GDP: 28.6% (1997)
Transnational Issues
Disputes--international: dispute over alignment of boundary with Ethiopia led to armed conflict in 1998, which is still unresolved despite arbitration efforts; Hanish Islands dispute with Yemen resolved by arbitral tribunal in October 1998
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@Estonia -------
Introduction
Background: In and out of Swedish and Russian control over the centuries, this little Baltic state was re-incorporated into the USSR after German occupation in World War II. Independence came with the collapse of the USSR in 1991; the last Russian troops left in 1994. Estonia thus became free to promote economic and political ties with Western Europe. The position of ethnic Russians (29% of the population) remains an issue of concern to Moscow. European Union (EU) membership negotiations, which began in 1998, remain a domestic issue.
Geography
Location: Eastern Europe, bordering the Baltic Sea and Gulf of Finland, between Latvia and Russia
Geographic coordinates: 59 00 N, 26 00 E
Map references: Europe
Area: total: 45,226 sq km land: 43,211 sq km water: 2,015 sq km note: includes 1,520 islands in the Baltic Sea
Area--comparative: slightly smaller than New Hampshire and Vermont combined
Land boundaries: total: 633 km border countries: Latvia 339 km, Russia 294 km
Coastline: 3,794 km
Maritime claims: exclusive economic zone: limits fixed in coordination with neighboring states territorial sea: 12 nm
Climate: maritime, wet, moderate winters, cool summers
Terrain: marshy, lowlands
Elevation extremes: lowest point: Baltic Sea 0 m highest point: Suur Munamagi 318 m
Natural resources: shale oil (kukersite), peat, phosphorite, amber, cambrian blue clay, limestone, dolomite
Land use: arable land: 25% permanent crops: 0% permanent pastures: 11% forests and woodland: 44% other: 20% (1996 est.)
Irrigated land: 110 sq km (1993 est.)
Natural hazards: flooding occurs frequently in the spring
Environment--current issues: air heavily polluted with sulfur dioxide from oil-shale burning power plants in northeast; contamination of soil and groundwater with petroleum products, chemicals at former Soviet military bases; Estonia has more than 1,400 natural and manmade lakes, the smaller of which in agricultural areas are heavily affected by organic waste; coastal sea water is polluted in many locations
Environment--international agreements: party to: Biodiversity, Climate Change, Endangered Species, Hazardous Wastes, Ship Pollution, Ozone Layer Protection, Wetlands signed, but not ratified: Climate Change-Kyoto Protocol
People
Population: 1,408,523 (July 1999 est.)
Age structure: 0-14 years: 18% (male 130,883; female 126,112) 15-64 years: 67% (male 455,112; female 491,819) 65 years and over: 15% (male 66,700; female 137,897) (1999 est.)
Population growth rate: -0.82% (1999 est.)
Birth rate: 9.05 births/1,000 population (1999 est.)
Death rate: 14.21 deaths/1,000 population (1999 est.)
Net migration rate: -3.08 migrant(s)/1,000 population (1999 est.)
Sex ratio: at birth: 1.05 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 0.93 male(s)/female 65 years and over: 0.48 male(s)/female total population: 0.86 male(s)/female (1999 est.)
Infant mortality rate: 13.83 deaths/1,000 live births (1999 est.)
Life expectancy at birth: total population: 68.65 years male: 62.61 years female: 75 years (1999 est.)
Total fertility rate: 1.28 children born/woman (1999 est.)
Nationality: noun: Estonian(s) adjective: Estonian
Ethnic groups: Estonian 65.1%, Russian 28.1%, Ukrainian 2.5%, Byelorussian 1.5%, Finn 1%, other 1.8% (1998)
Religions: Evangelical Lutheran, Russian Orthodox, Estonian Orthodox, others include Baptist, Methodist, Seventh Day Adventist, Roman Catholic, Pentecostal, Word of Life, Seventh Day Baptist, Judaism
Languages: Estonian (official), Russian, Ukrainian, English, Finnish, other
Literacy: definition: age 15 and over can read and write total population: 100% male: 100% female: 100% (1998 est.)
Government
Country name: conventional long form: Republic of Estonia conventional short form: Estonia local long form: Eesti Vabariik local short form: Eesti former: Estonian Soviet Socialist Republic
Data code: EN
Government type: parliamentary democracy
Capital: Tallinn
Administrative divisions: 15 counties (maakonnad, singular--maakond): Harjumaa (Tallinn), Hiiumaa (Kardla), Ida-Virumaa (Johvi), Jarvamaa (Paide), Jogevamaa (Jogeva), Laanemaa (Haapsalu), Laane-Virumaa (Rakvere), Parnumaa (Parnu), Polvamaa (Polva), Raplamaa (Rapla), Saaremaa (Kuessaare), Tartumaa (Tartu), Valgamaa (Valga), Viljandimaa (Viljandi), Vorumaa (Voru) note: administrative divisions have the same names as their administrative centers (exceptions have the administrative center name following in parentheses)
Independence: 6 September 1991 (from Soviet Union)
National holiday: Independence Day, 24 February (1918)
Constitution: adopted 28 June 1992
Legal system: based on civil law system; no judicial review of legislative acts
Suffrage: 18 years of age; universal for all Estonian citizens
Executive branch: chief of state: President Lennart MERI (since 5 October 1992) head of government: Prime Minister Mart SIIMANN (since 12 March 1997) cabinet: Council of Ministers appointed by the prime minister, approved by Parliament elections: president elected by Parliament for a five-year term; if he or she does not secure two-thirds of the votes after three rounds of balloting, then an electoral assembly (made up of Parliament plus members of local governments) elects the president, choosing between the two candidates with the largest percentage of votes; election last held August-September 1996 (next to be held fall 2001); prime minister nominated by the president and approved by Parliament election results: Lennart MERI elected president by an electoral assembly after Parliament was unable to break a deadlock between MERI and RUUTEL; percent of electoral assembly vote--Lennart MERI 61%, Arnold RUUTEL 39%
Legislative branch: unicameral Parliament or Riigikogu (101 seats; members are elected by popular vote to serve four-year terms) elections: last held 5 March 1995 (next to be held 7 March 1999) election results: percent of vote by party--KMU 32.22%, RE 16.18%, K 14.17%, Pro Patria and ERSP 7.85%, M 5.98%, Our Home is Estonia and Right-Wingers 5.0%; seats by party--KMU 41, RE 19, K 16, Pro Patria 8, Our Home is Estonia 6, M 6, Right-Wingers 5
Judicial branch: National Court, chairman appointed by Parliament for life
Political parties and leaders: Coalition Party and Rural Union or SAVISAAR, chairman]; Union of Pro Patria or Fatherland League ANDREJEV] made up of two parties: United People's Party and the Russian Party of Estonia; note--Our Home is Estonia split when two Russian Party of Estonia members withdrew; United People's Party parties: Social Democratic Party or ESDP and Rural Center Party or VEIDEMANN, chairwoman] (created by defectors from Center Party in late spring 1996, Development Party faction split and now holds five
International organization participation: BIS, CBSS, CCC, CE, EAPC, EBRD, ECE, EU (applicant), FAO, IAEA, IBRD, ICAO, ICFTU, ICRM, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, ISO (correspondent), ITU, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNMIBH, UNTSO, UPU, WEU (associate partner), WHO, WIPO, WMO, WTrO (applicant)
Diplomatic representation in the US: chief of mission: Ambassador Grigore-Kaleu STOICESCU chancery: 2131 Massachusetts Avenue NW, Washington, DC 20008 consulate(s) general: New York
Diplomatic representation from the US: chief of mission: Ambassador Melissa WELLS embassy: Kentmanni 20, Tallinn EE 0001 mailing address: use embassy street address
Flag description: pre-1940 flag restored by Supreme Soviet in May 1990--three equal horizontal bands of blue (top), black, and white
Economy
Economy--overview: Estonia's continued adherence to market reforms, disciplined fiscal and monetary policies, and a liberal free trade regime resulted in GDP growth in 1998 of 5.5% and a decrease in inflation to 6.5% from 11.2% in 1997. A high but slightly decreased current account deficit was estimated at 8.6%. The fall in GDP growth is largely due to the impact of Russia's financial crisis and reduced investment in emerging markets in the wake of the Asian financial crisis. Like other small emerging markets, Estonia will face difficulties in 1999 as a result of continuing fallout from Asia. Key events of 1998 were the start of official EU accession talks, banking sector consolidation--nine banks were reduced to five--and the important role that Swedish capital played in the large banks (Swedbank's acquisition of a majority stake in Hansapank has accounted for the large increase in foreign direct investment). The IMF urged Estonia to maintain a stable economy and good reputation in international markets and to avoid populist policies in the run-up to March 1999 parliamentary elections. The government completed restructuring of state-controlled Estonian Telecom, the sale of 49% of which will be the flagship privatization in 1999 and the largest public equity transaction in the Baltics. Estonia expects to join the World Trade Organization in 1999.
GDP: purchasing power parity--$7.8 billion (1998 est.)
GDP--real growth rate: 5.5% (1998 est.)
GDP--per capita: purchasing power parity?$5,500 (1998 est.)
GDP--composition by sector: agriculture: 6.2% industry: 24.3% services: 69.5% (1997 est.)
Population below poverty line: 6.3% (1994 est.)
Household income or consumption by percentage share: lowest 10%: 3.2% highest 10%: 28.5% (1996)
Inflation rate (consumer prices): 6.5% (1998 est.)
Labor force: 717,000 (1997 est.)
Labor force--by occupation: industry 42%, agriculture and forestry 11%, services 47% (1996 est.)
Unemployment rate: 9.6% (1998 est.)
Budget: revenues: $1.37 billion expenditures: $1.37 billion, including capital expenditures of $NA (1997 est.)
Industries: oil shale, shipbuilding, phosphates, electric motors, excavators, cement, furniture, clothing, textiles, paper, shoes, apparel
Industrial production growth rate: 3% (1996 est.)
Electricity--production: 8.065 billion kWh (1996)
Electricity--production by source: fossil fuel: 99.96% hydro: 0.04% nuclear: 0% other: 0% (1996)
Electricity--consumption: 5.581 billion kWh (1997)
Electricity--exports: 1.2 billion kWh (1997)
Electricity--imports: 210 million kWh (1997)
Agriculture--products: potatoes, fruits, vegetables; livestock and dairy products; fish
Exports: $2.6 billion (f.o.b., 1998)
Exports--commodities: machinery and equipment 17%, textiles 16%, food products 8%, transport equipment 8%, mineral products 8%, chemical products 8% (1997)
Exports--partners: Finland, Russia, Sweden, Germany, Latvia (1997)
Imports: $3.9 billion (c.i.f., 1998)
Imports--commodities: machinery and equipment 21%, transport equipment 12%, foodstuffs 10%, minerals 9%, textiles 8%, metals 8%, chemical products 8% (1997)
Imports--partners: Finland, Germany, Russia, Sweden, Japan, US (1997)
Debt--external: $270 million (January 1996)
Economic aid--recipient: $137.3 million (1995)
Currency: 1 Estonian kroon (EEK) = 100 cents
Exchange rates: krooni (EEK) per US$1--13.473 (January 1999), 14.075 (1998), 13.882 (1997), 12.034 (1996), 11.465 (1995), 12.991 (1994); note--krooni are tied to the German deutsche mark at a fixed rate of 8 to 1
Fiscal year: calendar year
Communications
Telephones: 531,000 (1997)
Telephone system: the Ministry of Transportation and Communications (MOTC) administers Estonia's telephone system; Internet services available throughout most of the country; about 150,000 unfilled subscriber requests domestic: local--cellular phones services are growing and expanding to develop rural networks under direction of the MOTC; intercity--Estonia has a highly developed fiber-optic backbone (double loop) system presently serving at least 16 major cities (1998) international: foreign investment in the form of joint business ventures greatly improved Estonia's telephone service; fiber-optic cables to Finland, Sweden, Latvia, and Russia provide worldwide packet switched service
Radio broadcast stations: 27 commercial broadcast stations, 1 government broadcast station (1997); note--by law 51% of shows must be produced within the EU; equal air time must be given to all candidates during elections by public and private stations
Radios: 1.12 million (1997 est.)
Television broadcast stations: 7 (1997); note--Ministry of Culture administers television licensing; mainly Estonian, European, and Russian programming; by law 51% of shows must be produced within the EU; equal air time must be given to all candidates during elections by public and private stations
Televisions: 1.132 million (1997 est.)
Transportation
Railways: total: 1,018 km common carrier lines only; does not include dedicated industrial lines broad gauge: 1,018 km 1.520-m gauge (132 km electrified) (1995)
Highways: total: 16,437 km paved: 8,343 km (including 65 km of expressways) unpaved: 8,094 km (1997 est.)
Waterways: 320 km perennially navigable
Pipelines: natural gas 420 km (1992)
Ports and harbors: Haapsalu, Kunda, Muuga, Paldiski, Parnu, Tallinn
Merchant marine: total: 52 ships (1,000 GRT or over) totaling 337,163 GRT/348,749 DWT ships by type: bulk 4, cargo 22, combination bulk 1, container 5, oil tanker 2, roll-on/roll-off cargo 12, short-sea passenger 6 (1998 est.)
Airports: 5 (1997 est.)
Airports--with paved runways: total: 5 over 3,047 m: 1 2,438 to 3,047 m: 1 914 to 1,523 m: 3 (1997 est.)
Military
Military branches: Ground Forces, Navy/Coast Guard, Air and Air Defense Force (not officially sanctioned), Maritime Border Guard, Volunteer Defense League (Kaitseliit), Security Forces (internal and border troops)
Military manpower--military age: 18 years of age
Military manpower--availability: males age 15-49: 349,263 (1999 est.)
Military manpower--fit for military service: males age 15-49: 274,276 (1999 est.)
Military manpower--reaching military age annually: males: 10,503 (1999 est.)
Military expenditures--dollar figure: $70 million (1999)
Military expenditures--percent of GDP: 1.2% (1999)
Transnational Issues
Disputes--international: Estonian and Russian negotiators reached a technical border agreement in December 1996 which has not been ratified
Illicit drugs: transshipment point for opiates and cannabis from Southwest Asia and the Caucasus via Russia, and cocaine from Latin America to Western Europe and Scandinavia; possible precursor manufacturing and/or trafficking
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@Ethiopia --------
Introduction
Background: On 28 May 1991 the Ethiopian People's Revolutionary Democratic Front (EPRDF) toppled the authoritarian government of MENGISTU Haile-Mariam and took control in Addis Ababa. A new constitution was promulgated in December 1994 and national and regional popular elections were held in May and June 1995.
Geography
Location: Eastern Africa, west of Somalia
Geographic coordinates: 8 00 N, 38 00 E
Map references: Africa
Area: total: 1,127,127 sq km land: 1,119,683 sq km water: 7,444 sq km
Area--comparative: slightly less than twice the size of Texas
Land boundaries: total: 5,311 km border countries: Djibouti 337 km, Eritrea 912 km, Kenya 830 km, Somalia 1,626 km, Sudan 1,606 km
Coastline: 0 km (landlocked)
Maritime claims: none (landlocked)
Climate: tropical monsoon with wide topographic-induced variation
Terrain: high plateau with central mountain range divided by Great Rift Valley
Elevation extremes: lowest point: Denakil -125 m highest point: Ras Dashen Terara 4,620 m
Natural resources: small reserves of gold, platinum, copper, potash, natural gas
Land use: arable land: 12% permanent crops: 1% permanent pastures: 40% forests and woodland: 25% other: 22% (1993 est.)
Irrigated land: 1,900 sq km (1993 est.)
Natural hazards: geologically active Great Rift Valley susceptible to earthquakes, volcanic eruptions; frequent droughts
Environment--current issues: deforestation; overgrazing; soil erosion; desertification
Environment--international agreements: party to: Biodiversity, Climate Change, Desertification, Endangered Species, Ozone Layer Protection signed, but not ratified: Environmental Modification, Law of the Sea, Nuclear Test Ban
Geography--note: landlocked?entire coastline along the Red Sea was lost with the de jure independence of Eritrea on 24 May 1993
People
Population: 59,680,383 (July 1999 est.)
Age structure: 0-14 years: 46% (male 13,787,810; female 13,703,546) 15-64 years: 51% (male 15,398,123; female 15,141,892) 65 years and over: 3% (male 745,737; female 903,275) (1999 est.)
Population growth rate: 2.16% (1999 est.)
Birth rate: 44.34 births/1,000 population (1999 est.)
Death rate: 21.43 deaths/1,000 population (1999 est.)
Net migration rate: -1.3 migrant(s)/1,000 population (1999 est.) note: repatriation of Ethiopians who fled to Sudan, Kenya, and Somalia for refuge from war and famine in earlier years, is expected to continue slowly in 1998; small numbers of Sudanese and Somali refugees, who fled to Ethiopia from the fighting in their own countries, began returning to their homes in 1998
Sex ratio: at birth: 1.03 male(s)/female under 15 years: 1.01 male(s)/female 15-64 years: 1.02 male(s)/female 65 years and over: 0.83 male(s)/female total population: 1.01 male(s)/female (1999 est.)
Infant mortality rate: 124.57 deaths/1,000 live births (1999 est.)
Life expectancy at birth: total population: 40.46 years male: 39.22 years female: 41.73 years (1999 est.)
Total fertility rate: 6.81 children born/woman (1999 est.)
Nationality: noun: Ethiopian(s) adjective: Ethiopian
Ethnic groups: Oromo 40%, Amhara and Tigrean 32%, Sidamo 9%, Shankella 6%, Somali 6%, Afar 4%, Gurage 2%, other 1%
Religions: Muslim 45%-50%, Ethiopian Orthodox 35%-40%, animist 12%, other 3%-8%
Languages: Amharic, Tigrinya, Orominga, Guaraginga, Somali, Arabic, English (major foreign language taught in schools)
Literacy: definition: age 15 and over can read and write total population: 35.5% male: 45.5% female: 25.3% (1995 est.)
Government
Country name: conventional long form: Federal Democratic Republic of Ethiopia conventional short form: Ethiopia local long form: YeItyop'iya Federalawi Demokrasiyawi Ripeblik local short form: YeItyop'iya abbreviation: FDRE
Data code: ET
Government type: federal republic
Capital: Addis Ababa
Administrative divisions: 9 states and 2 chartered cities*: Addis Ababa*; Afar; Amhara; Benshangul/Gumuz (Benishangul-Gumaz); Dire Dawa*; Gambela (Gambella); Harari (Harar); Oromia (Oromiya); Somalia (Somali); Southern Nations, Nationalities, and Peoples (SNNP); Tigray (Tigre)
Independence: oldest independent country in Africa and one of the oldest in the world--at least 2,000 years