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World > Africa > Central African Republic > Economy (Notes)

Central African Republic - Economy (Notes)


ECONOMY
The Central African Republic is classified as one of the world's least developed countries, with a 2002 annual per capita income of $260. Sparsely populated and landlocked, the nation is overwhelmingly agrarian, with the vast bulk of the population engaged in subsistence farming and 55% of the country's gross domestic product (GDP) arising from agriculture. Principal crops include cotton, food crops (cassava, yams, bananas, maize), coffee, and tobacco. In 2002, timber accounted for about 30% of export earnings. The country also has rich but largely unexploited natural resources in the form of diamonds, gold, uranium, and other minerals. There may be oil deposits along the country's northern border with Chad. Diamonds are the only of these mineral resources currently being developed; in 2002, diamond exports made up close to 50% of the C.A.R.'s export earnings. Industry contributes only about 20% of the country's GDP, with artesian diamond mining, breweries, and sawmills making up the bulk of the sector. Services currently account for about 25% of GDP, largely because of the oversized government bureaucracy and high transportation costs arising from the country's landlocked position.

Hydroelectric plants based in Boali provide much of the country?s limited electrical supply. Fuel supplies must be barged in via the Ubangui River or trucked overland through Cameroon, resulting in frequent shortages of gasoline, diesel, and jet fuel. The C.A.R.'s transportation and communication network is limited. The country has only 650 kilometers of paved road, limited international and no domestic air service (except charters), and does not possess a railroad. Commercial traffic on the Ubangui River is impossible from December to May or June, and conflict in the region has sometimes prevented shipments from moving between Kinshasa and Bangui. The telephone system functions, albeit imperfectly. Four radio stations currently operate in the C.A.R., as well as one television station. Numerous newspapers and pamphlets are published on a regular basis, and at least one company has begun providing Internet service.

In the more than 40 years since independence, the C.A.R. has made slow progress toward economic development. Economic mismanagement, poor infrastructure, a limited tax base, scarce private investment, and adverse external conditions have led to deficits in both its budget and external trade. Its debt burden is considerable, and the country has seen a decline in per capita gross national product (GNP) over the last 30 years. Structural adjustment programs with the World Bank and International Monetary Fund (IMF) and interest-free credits to support investments in the agriculture, livestock, and transportation sectors have had limited impact. The World Bank and IMF are now encouraging the government to concentrate exclusively on implementing much-needed economic reforms to jumpstart the economy and defining its fundamental priorities with the aim of alleviating poverty. As a result, many of the state-owned business entities have been privatized and limited efforts have been made to standardize and simplify labor and investment codes and to address problems of corruption. The C.A.R. Government has adopted the Central African Economic and Monetary Community (CEMAC) Charter of Investment, and is in the process of adopting a new labor code.


Facts at a Glance: Geography - People - Government - Economy - Communications - Transportation - Military - Climate - Current Time - Ranking Positions
Notes and Commentary: People - Economy - Government and Political Conditions - Historical Highlights - Foreign Relations - Relations with U.S.



Facts at a Glance
Geography
People
Government
Economy
Communications
Transportation
Military
Climate
Current Time
Ranking Positions


Notes and Commentary
People
Economy
Government and Political Conditions
Historical Highlights
Foreign Relations
Relations with U.S.





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