Economy of Guinea-Bissau


Economy of Guinea-Bissau

Guinea-Bissau is among the world's least developed nations and one of the 10 poorest countries in the world, and depends mainly on agriculture and fishing. Cashew crops have increased remarkably in recent years, and the country now ranks sixth in cashew production. Guinea-Bissau exports fish and seafood along with small amounts of peanuts, palm kernels, and timber. License fees for fishing provide the government with some revenue. Rice is the major crop and staple food.

Macro-economic trend

This is a chart of trend of gross domestic product of Guinea-Bissau at market prices estimated [ [http://www.econstats.com/IMF/IFS_Gui2_99B__.htm#Year Guinea_Bissau - Gross Domestic Product (GDP) ] ] by the International Monetary Fund and EconStats with figures in millions of CFA Francs.

Current GDP per capita of Guinea-Bissau grew just 3.40% in the turbulent 1970s and reached a peak growth of 71% in the 1980s. But this proved unsustainable and it consequently shrank by 34% in the 1990s. Average wages in 2007 hover around $1-2 per day. [ [http://earthtrends.wri.org/text/economics-business/variable-638.html GDP: GDP per capita, current US dollars ] ]

Intermittent fighting between Senegalese-backed government troops and a military junta destroyed much of the country's infrastructure and caused widespread damage to the economy in 1998; the civil war led to a 28% drop in GDP that year, with partial recovery in 1999. Agricultural production is estimated to have fallen by 17% during the conflict, and the civil war led to a 28% overall drop in GDP in 1998. Cashew nut output, the main export crop, declined in 1998 by an estimated 30%. World cashew prices dropped by more than 50% in 2000, compounding the economic devastation caused by the conflict. Real GDP has steadily grown at an average of 2.3% from 2003 onwards.

Before the war, trade reform and price liberalization were the most successful part of the country's structural adjustment program under IMF sponsorship. The tightening of monetary policy and the development of the private sector had also begun to reinvigorate the economy. Under the government’s post-conflict economic and financial program, implemented with IMF and World Bank input, real GDP recovered in 1999 by almost 8%. In December 2000 Guinea-Bissau qualified for almost $800 million in debt-service relief under the first phase of the enhanced HIPC initiative and is scheduled to submit its Poverty Reduction Strategy Paper in March 2002. Guinea-Bissau will receive the bulk of its assistance under the enhanced HIPC initiative when it satisfies a number of conditions, including implementation of its Poverty Reduction Strategy Paper.

Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect. It produces 400,000 barrels/day of petrol.

Income from waste dumping

In the 1980's Guinea-Bissau was part of a trend in the African continent toward the dumping of waste as a source of income. Plans to import toxic waste from Europe were cancelled after an international campaign to halt the trade. [cite news
last = Brooke
first = James
coauthors =
title = African Nations Barring Foreign Toxic Waste
work =
pages =
publisher = The New York Times
date = 1988-09-25
url = http://query.nytimes.com/gst/fullpage.html?res=940DE1D91738F936A1575AC0A96E948260&sec=&spon=&pagewanted=all
accessdate = 2008-03-25
] The government was offered a contract to dispose of 15 million tons of toxic wastes over a 15 year period. The income from it was equivalent to twice the value of its external debt. After strong pressure from other African countries and environmental groups the Guinea-Bissau government renounced the deal. [cite book
last = Friman
first = H. Richard
authorlink =
coauthors = Peter Andreas
title = The Illicit Global Economy and State Power 
publisher = Rowman and LIttlefield
date = 1999
location = Maryland, United States
pages =
url =
doi =
id =
isbn = 0-8476-9303-1
]

References

External links

*dmoz|Regional/Africa/Guinea-Bissau/Business_and_Economy/Economic_Development
* [http://www.guinea.aha.ru/guinea_bissau.htm Mineral resources of Guinea-Bissau]


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Guinea-Bissau — /gin ee bi sow /, n. a republic on the W coast of Africa, between Guinea and Senegal: formerly a Portuguese overseas province; gained independence in 1974. 1,178,584; 13,948 sq. mi. (36,125 sq. km). Cap.: Bissau. Formerly, Portuguese Guinea. * *… …   Universalium

  • Guinea-Bissau peso — Infobox Currency currency name in local = peso da Guiné Bissau pt icon image 1 = image title 1 = iso code = using countries = Guinea Bissau inflation rate = inflation source date = subunit ratio 1 = 1/100 subunit name 1 = centavos symbol = used… …   Wikipedia

  • Guinea-Bissau — <p></p> <p></p> Introduction ::Guinea Bissau <p></p> Background: <p></p> Since independence from Portugal in 1974, Guinea Bissau has experienced considerable political and military upheaval. In 1980 …   The World Factbook

  • Guinea-Bissau — Infobox Country native name = pt. República da Guiné Bissau conventional long name = Republic of Guinea Bissau common name = Guinea Bissau demonym = Guinean symbol type = Emblem national motto = Unidade, Luta, Progresso spaces|2(Portuguese) Unity …   Wikipedia

  • Outline of Guinea-Bissau — …   Wikipedia

  • Telecommunications in Guinea-Bissau — Communications in Guinea Bissau. Telephones main lines in use: 4,600 (208) country comparison to the world: 214 Telephones mobile cellular: 500,200 (2008) country comparison to the world: 155 Telephone system: small system domestic: combination… …   Wikipedia

  • Geography of Guinea-Bissau — Map Of Guinea Bissau Satellite image of Guinea Bissau …   Wikipedia

  • History of Guinea-Bissau — The history of Guinea Bissau was dominated by Portugal from the 1450s to the 1970s; since independence, the country has been primarily controlled by a single party system.Portuguese ruleThe rivers of Guinea and the islands of Cape Verde were… …   Wikipedia

  • Demographics of Guinea-Bissau — This article is about the demographic features of the population of Guinea Bissau, including population density, ethnicity, education level, health of the populace, economic status, religious affiliations and other aspects of the population. The… …   Wikipedia

  • Politics of Guinea-Bissau — takes place in a framework of a semi presidential representative democratic republic in transition, whereby the President is head of state and the Prime Minister is head of government, and of a multi party system. Executive power is exercised by… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.