Economy of the Central African Republic
Encyclopedia
The Central African Republic
(CAR) is classified as one of the world's least developed countries
, with an estimated annual per capita income
of $700 (2009).
Sparsely populated and landlocked, the nation is overwhelmingly agrarian. The vast bulk of the population engages in subsistence farming
and 55% of the country's GDP arises from agriculture
. Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Principal food crop
s include cassava
, peanut
s, sorghum
, millet
, maize
, sesame
, and plantains. Principal cash crop
s for export
include cotton
, coffee
, and tobacco
. Timber
has accounted for about 16% of export earnings and the diamond
industry for nearly 54%.
Much of the country's limited electrical supply
is provided by hydroelectric plants based in Boali
. Fuel supplies must be barged in via the Oubangui 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 429 kilometers of paved road, limited international, and no domestic air service
, and does not possess a railroad. River traffic on the Oubangui River is impossible from April to July, and conflict in the region has sometimes prevented shipments from moving between Kinshasa
and Bangui
. The telephone
system functions, albeit imperfectly. Four radio station
s currently operate in the C.A.R., as well as one television station
. Numerous newspaper
s and pamphlets are published on a regular basis, and one company has begun providing Internet service
.
works in the agriculture industry, so Central African Republic
's economy is dominated by the cultivation and sale of foodcrops such as yams
, cassava
, peanut
s, maize
, sorghum
, millet
, sesame
, and plantain
s. The importance of foodcrops over exported cash crops is illustrated by the fact that the total production of cassava, the staple food of most Central Africans, ranges between c. 200,000 and 300,000 tons a year, while the production of cotton
, the principal exported cash crop, ranges from c. 25,000 to 45,000 tons a year. Foodcrops are not exported in large quantities but they still constitute the principal cash crops of the country because Central Africans derive far more income from the periodic sale of surplus foodcrops than from exported cash crops such as cotton or coffee
. Many rural and urban women also transform some foodcrops into alcoholic drinks such as sorghum beer or hard liquor and derive considerable income from the sale of these drinks. Much of the income derived from the sale of foods and alcohol is not "on the books" and thus is not considered in calculating per capita income
, which is one reason why official figures for per capita income are not accurate in the case of the CAR. The per capita income of the CAR is often listed as being around $300 a year, said to be one of the lowest in the world, but this figure is based mostly on reported sales of export
s and largely ignores the more important but unregistered sale of foods, locally-produced alcohol, diamonds, ivory
, bushmeat
, and traditional medicine
s, for example. The informal economy
of the CAR is more important than the formal economy for most Central Africans.
(DRC) side of the Ubangi River
. In 1950,
the government began a fish-farming program, and by the end of 1968 there were almost 12,000 ponds. The 2003 fish catch was about 15,000 tons.
There are 22.9 million hectares (56.5 million acres) of forest (37 percent of the total land area), but only 3.4 million hectares (8.4 million acres) of dense forest, all in the south in the regions bordering the DRC. The CAR’s exploitable forests cover 27 million hectares (68 million acres), or 43% of the total land area. Transportation bottlenecks on rivers and lack of rail connections are serious hindrances to commercial exploitation. Most timber is shipped down the Ubangi and Zaire rivers and then on the Congo railway to the Atlantic. More than a dozen types of trees are felled, but 95 percent of the total is composed of obeche, sapele
, ebony
, and sipo
.
A dozen sawmills produced 516,000 cu m (18 million cu ft ) of sawn logs and veneer logs in 2003. The government is encouraging production of plywood and veneer. Roundwood removals were estimated at 2.8 million cu m (99.7 million cu ft ) in 2003. Competition from lower-cost Asian and Latin American loggers has hurt the local industry, which is encumbered with high transportation and labor costs. In 2003, the country exported $89.8 million of forest products.
s, gold
, uranium
, and other mineral
s. Diamonds constitute the most important export of the CAR, frequently accounting for 40-55% of export revenue
s, but an estimated 30-50% of the diamonds produced each year leave the country clandestinely. There may be petroleum
deposits along the country's northern border with Chad
. Diamonds are the only of these mineral resources currently being developed; reported sales of largely uncut diamonds make up close to 60% of the CAR's export earnings. Industry contributes less than 20% of the country's GDP, with artesian diamond mining, breweries, and sawmill
s making up the bulk of the sector. Services currently account for 25% of GDP, largely because of the oversized government bureaucracy
and high transportation costs arising from the country's landlocked position.
. (Mehler 2005:150) The very presence of numerous foreign personnel and organizations in the country, including peacekeepers and even refugee camp
s, provides an important source of revenue for many Central Africans.
In the 40 years since independence, the CAR 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 over the last 40 years. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic
policies. The 50% devaluation
of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of GDP of 70% in 1994 and nearly 50% in 1995. Military rebellions and social unrest in 1996 were accompanied by widespread destruction of property and a drop in GDP of 2%. Ongoing violence between the government and rebel military groups over pay issues, living conditions, and political representation has destroyed many businesses in the capital and reduced tax revenues for the government.
The International Monetary Fund
(IMF) approved an Extended Structure Adjustment Facility in 1998. The government has set targets of annual 5% growth and 25% inflation for 2000-2001. Structural adjustment programs with the World Bank
and 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 jump-start 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 Central African Government is currently in the process of adopting new labor and investment codes.
purchasing power parity - $3.007 billion (2007 est.)
GDP - real growth rate:
4% (2007 est.)
GDP - per capita:
purchasing power parity - $700 (2007 est.)
GDP - composition by sector:
agriculture:
55%
industry:
20%
services:
25% (2001 est.)
Household income or consumption by percentage share:
lowest 10%:
0.7%
highest 10%:
47.7% (1993)
Inflation rate (consumer prices):
0.9% (2007 est.)
Labor force:
1.857 million (2006)
Unemployment rate:
8% (23% for Bangui) (2001 est.)
Budget:
revenues:
$250 million
expenditures:
$273 million (2007 est.)
Industries:
diamond
mining, sawmills, breweries, textiles, footwear, assembly of bicycles and motorcycles
Industrial production growth rate:
3% (2002)
Electricity - production:
109 million kWh (2005)
Electricity - production by source:
fossil fuel:
19.05%
hydro:
80.95%
nuclear:
0%
other:
0% (1998)
Electricity - consumption:
101.4 million kWh (2005)
Electricity - exports:
0 kWh (2005)
Electricity - imports:
0 kWh (2005)
Agriculture - products:
cotton
, coffee
, tobacco
, manioc (tapioca
), yams
, millet
, maize
, banana
s; timber
Exports:
$146.7 million (f.o.b., 2007 est.)
Exports - commodities:
diamond
s, timber, cotton
, coffee
, tobacco
Exports - partners:
Canada
38.8%, Belgium
15.5%, Indonesia
6.5%, Italy
5.2%, France
4.8%, Spain
4.7%, Democratic Republic of the Congo
4.6% (2007)
Imports:
$237.3 million f.o.b. (2007 est.)
Imports - commodities:
food, textiles, petroleum products, machinery, electrical equipment, motor vehicles, chemicals, pharmaceuticals, consumer goods, industrial products
Imports - partners:
France
16.2%, Netherlands
12.7%, Cameroon
9.5%, United States
6.2% (2007)
Debt - external:
$1.153 billion (2007 est.)
Economic aid - recipient:
ODA, $95.29 million; note - traditional budget subsidies from France (2005 est.)
Currency:
1 Communaute Financiere Africaine franc (CFAF) = 100 centimes
Exchange rates:
Communaute Financiere Africaine francs (XAF) per US dollar - 481.8 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003
Fiscal year:
calendar year
Central African Republic
The Central African Republic , is a landlocked country in Central Africa. It borders Chad in the north, Sudan in the north east, South Sudan in the east, the Democratic Republic of the Congo and the Republic of the Congo in the south, and Cameroon in the west. The CAR covers a land area of about ,...
(CAR) is classified as one of the world's least developed countries
Least Developed Countries
Least developed country is the name given to a country which, according to the United Nations, exhibits the lowest indicators of socioeconomic development, with the lowest Human Development Index ratings of all countries in the world...
, with an estimated annual per capita income
Per capita income
Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population...
of $700 (2009).
Sparsely populated and landlocked, the nation is overwhelmingly agrarian. The vast bulk of the population engages in subsistence farming
Subsistence agriculture
Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed their families. The typical subsistence farm has a range of crops and animals needed by the family to eat and clothe themselves during the year. Planting decisions are made with an eye...
and 55% of the country's GDP arises from agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. Subsistence agriculture, together with forestry, remains the backbone of the economy of the Central African Republic (CAR), with more than 70% of the population living in outlying areas. The agricultural sector generates half of GDP. Principal food crop
Crop
Crop may refer to:* Crop, a plant grown and harvested for agricultural use* Crop , part of the alimentary tract of some animals* Crop , a modified whip used in horseback riding or disciplining humans...
s include cassava
Cassava
Cassava , also called yuca or manioc, a woody shrub of the Euphorbiaceae native to South America, is extensively cultivated as an annual crop in tropical and subtropical regions for its edible starchy tuberous root, a major source of carbohydrates...
, peanut
Peanut
The peanut, or groundnut , is a species in the legume or "bean" family , so it is not a nut. The peanut was probably first cultivated in the valleys of Peru. It is an annual herbaceous plant growing tall...
s, sorghum
Sorghum
Sorghum is a genus of numerous species of grasses, one of which is raised for grain and many of which are used as fodder plants either cultivated or as part of pasture. The plants are cultivated in warmer climates worldwide. Species are native to tropical and subtropical regions of all continents...
, millet
Millet
The millets are a group of small-seeded species of cereal crops or grains, widely grown around the world for food and fodder. They do not form a taxonomic group, but rather a functional or agronomic one. Their essential similarities are that they are small-seeded grasses grown in difficult...
, maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, sesame
Sesame
Sesame is a flowering plant in the genus Sesamum. Numerous wild relatives occur in Africa and a smaller number in India. It is widely naturalized in tropical regions around the world and is cultivated for its edible seeds, which grow in pods....
, and plantains. Principal cash crop
Cash crop
In agriculture, a cash crop is a crop which is grown for profit.The term is used to differentiate from subsistence crops, which are those fed to the producer's own livestock or grown as food for the producer's family...
s for export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
include cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, and tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
. Timber
Timber
Timber may refer to:* Timber, a term common in the United Kingdom and Australia for wood materials * Timber, Oregon, an unincorporated community in the U.S...
has accounted for about 16% of export earnings and the diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
industry for nearly 54%.
Infrastructure
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
is provided by hydroelectric plants based in Boali
Boali
Boali is a town located in the Central African Republic prefecture of Ombella-M'Poko.Boali is noted for its waterfalls and for the nearby hydroelectric works. The Boali Waterfalls are 250 m wide and 50 m high, and are a popular tourist destination. The hydroelectric works, Boali I and Boali II,...
. Fuel supplies must be barged in via the Oubangui River or trucked overland through Cameroon
Cameroon
Cameroon, officially the Republic of Cameroon , is a country in west Central Africa. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon's coastline lies on the...
, resulting in frequent shortages of gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, diesel, and jet fuel
Jet fuel
Jet fuel is a type of aviation fuel designed for use in aircraft powered by gas-turbine engines. It is clear to straw-colored in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1 which are produced to a standardized international specification...
. The C.A.R.'s transportation and communication
Communication
Communication is the activity of conveying meaningful information. Communication requires a sender, a message, and an intended recipient, although the receiver need not be present or aware of the sender's intent to communicate at the time of communication; thus communication can occur across vast...
network is limited. The country has only 429 kilometers of paved road, limited international, and no domestic air service
Civil aviation
Civil aviation is one of two major categories of flying, representing all non-military aviation, both private and commercial. Most of the countries in the world are members of the International Civil Aviation Organization and work together to establish common standards and recommended practices...
, and does not possess a railroad. River traffic on the Oubangui River is impossible from April to July, and conflict in the region has sometimes prevented shipments from moving between Kinshasa
Kinshasa
Kinshasa is the capital and largest city of the Democratic Republic of the Congo. The city is located on the Congo River....
and Bangui
Bangui
-Law and government:Bangui is an autonomous commune of the Central African Republic. With an area of 67 km², it is by far the smallest high-level administrative division of the CAR in area but the highest in population...
. The telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
system functions, albeit imperfectly. Four radio station
Radio station
Radio broadcasting is a one-way wireless transmission over radio waves intended to reach a wide audience. Stations can be linked in radio networks to broadcast a common radio format, either in broadcast syndication or simulcast or both...
s currently operate in the C.A.R., as well as one television station
Television station
A television station is a business, organisation or other such as an amateur television operator that transmits content over terrestrial television. A television transmission can be by analog television signals or, more recently, by digital television. Broadcast television systems standards are...
. Numerous newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
s and pamphlets are published on a regular basis, and one company has begun providing Internet service
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
.
Agriculture
74 percent of the population in the Central African RepublicCentral African Republic
The Central African Republic , is a landlocked country in Central Africa. It borders Chad in the north, Sudan in the north east, South Sudan in the east, the Democratic Republic of the Congo and the Republic of the Congo in the south, and Cameroon in the west. The CAR covers a land area of about ,...
works in the agriculture industry, so Central African Republic
Central African Republic
The Central African Republic , is a landlocked country in Central Africa. It borders Chad in the north, Sudan in the north east, South Sudan in the east, the Democratic Republic of the Congo and the Republic of the Congo in the south, and Cameroon in the west. The CAR covers a land area of about ,...
's economy is dominated by the cultivation and sale of foodcrops such as yams
Yam (vegetable)
Yam is the common name for some species in the genus Dioscorea . These are perennial herbaceous vines cultivated for the consumption of their starchy tubers in Africa, Asia, Latin America and Oceania...
, cassava
Cassava
Cassava , also called yuca or manioc, a woody shrub of the Euphorbiaceae native to South America, is extensively cultivated as an annual crop in tropical and subtropical regions for its edible starchy tuberous root, a major source of carbohydrates...
, peanut
Peanut
The peanut, or groundnut , is a species in the legume or "bean" family , so it is not a nut. The peanut was probably first cultivated in the valleys of Peru. It is an annual herbaceous plant growing tall...
s, maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, sorghum
Sorghum
Sorghum is a genus of numerous species of grasses, one of which is raised for grain and many of which are used as fodder plants either cultivated or as part of pasture. The plants are cultivated in warmer climates worldwide. Species are native to tropical and subtropical regions of all continents...
, millet
Millet
The millets are a group of small-seeded species of cereal crops or grains, widely grown around the world for food and fodder. They do not form a taxonomic group, but rather a functional or agronomic one. Their essential similarities are that they are small-seeded grasses grown in difficult...
, sesame
Sesame
Sesame is a flowering plant in the genus Sesamum. Numerous wild relatives occur in Africa and a smaller number in India. It is widely naturalized in tropical regions around the world and is cultivated for its edible seeds, which grow in pods....
, and plantain
Plantain
Plantain is the common name for herbaceous plants of the genus Musa. The fruit they produce is generally used for cooking, in contrast to the soft, sweet banana...
s. The importance of foodcrops over exported cash crops is illustrated by the fact that the total production of cassava, the staple food of most Central Africans, ranges between c. 200,000 and 300,000 tons a year, while the production of cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, the principal exported cash crop, ranges from c. 25,000 to 45,000 tons a year. Foodcrops are not exported in large quantities but they still constitute the principal cash crops of the country because Central Africans derive far more income from the periodic sale of surplus foodcrops than from exported cash crops such as cotton or coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
. Many rural and urban women also transform some foodcrops into alcoholic drinks such as sorghum beer or hard liquor and derive considerable income from the sale of these drinks. Much of the income derived from the sale of foods and alcohol is not "on the books" and thus is not considered in calculating per capita income
Per capita income
Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population...
, which is one reason why official figures for per capita income are not accurate in the case of the CAR. The per capita income of the CAR is often listed as being around $300 a year, said to be one of the lowest in the world, but this figure is based mostly on reported sales of export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
s and largely ignores the more important but unregistered sale of foods, locally-produced alcohol, diamonds, ivory
Ivory
Ivory is a term for dentine, which constitutes the bulk of the teeth and tusks of animals, when used as a material for art or manufacturing. Ivory has been important since ancient times for making a range of items, from ivory carvings to false teeth, fans, dominoes, joint tubes, piano keys and...
, bushmeat
Bushmeat
Bushmeat initially referred to the hunting of wild animals in West and Central Africa and is a calque from the French viande de brousse. Today the term is commonly used for meat of terrestrial wild animals, killed for subsistence or commercial purposes throughout the humid tropics of the Americas,...
, and traditional medicine
Traditional medicine
Traditional medicine comprises unscientific knowledge systems that developed over generations within various societies before the era of modern medicine...
s, for example. The informal economy
Informal economy
The informal sector or informal economy as defined by governments, scholars, banks, etc. is the part of an economy that is not taxed, monitored by any form of government, or included in any gross national product , unlike the formal economy....
of the CAR is more important than the formal economy for most Central Africans.
Finance and banking
The financial sector of the CAR, the smallest in the CEMAC, plays a limited role in supporting economic growth. Suffering from weak market infrastructure and legal and judicial frameworks, the financial system remains small, undeveloped, and dominated by commercial banks. Because of economic and security concerns, financial institutions, and particularly microfinance institutions (MFIs), have consolidated their business in the capital, Bangui, over the past few years. With less than 1 percent of the total population holding a bank account, access to financial services is extremely limited in the CAR. Microfinance accounts only for 1 percent of the total credit facilities, serving 0.5 percent of the population. Low levels of mobile penetration – which stand at 30 percent, a significantly lower percentage than in the rest of the continent – dampen the potential expansion of access to financial services through mobile technology.Fishing
Fishing is carried on extensively along the rivers, but most of the catch is sold or bartered on the Democratic Republic of the CongoDemocratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
(DRC) side of the Ubangi River
Ubangi River
The Ubangi River , also spelled Oubangui, is the largest right-bank tributary of the Congo River of Central Africa. It begins at the confluence of the Mbomou and Uele Rivers and flows west, then bends to the southwest and passes through Bangui, after which it flows south to the Congo at Liranga....
. In 1950,
the government began a fish-farming program, and by the end of 1968 there were almost 12,000 ponds. The 2003 fish catch was about 15,000 tons.
Forestry
Sapele
Sapele , also known as Sapelli or Aboudikro, is a large tree, Entandrophragma cylindricum, up to 45 m high and native to tropical Africa. The leaves are deciduous in the dry season, alternately arranged, pinnate, with 5-9 pairs of leaflets, each leaflet about 10 cm long...
, ebony
Ebony
Ebony is a dense black wood, most commonly yielded by several species in the genus Diospyros, but ebony may also refer to other heavy, black woods from unrelated species. Ebony is dense enough to sink in water. Its fine texture, and very smooth finish when polished, make it valuable as an...
, and sipo
SIPO
SIPO or Sipo can refer to* Sipo Bohale, an Equatoguinean footballer* Sicherheitspolizei, the Security Police of Nazi Germany* State Intellectual Property Office, the patent office of the People's Republic of China, 中华人民共和国国家知识产权局...
.
A dozen sawmills produced 516,000 cu m (18 million cu ft ) of sawn logs and veneer logs in 2003. The government is encouraging production of plywood and veneer. Roundwood removals were estimated at 2.8 million cu m (99.7 million cu ft ) in 2003. Competition from lower-cost Asian and Latin American loggers has hurt the local industry, which is encumbered with high transportation and labor costs. In 2003, the country exported $89.8 million of forest products.
Natural resources
The country has rich but largely unexploited natural resources in the form of diamondDiamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
s, gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
, uranium
Uranium
Uranium is a silvery-white metallic chemical element in the actinide series of the periodic table, with atomic number 92. It is assigned the chemical symbol U. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons...
, and other mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
s. Diamonds constitute the most important export of the CAR, frequently accounting for 40-55% of export revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
s, but an estimated 30-50% of the diamonds produced each year leave the country clandestinely. There may be petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
deposits along the country's northern border with Chad
Chad
Chad , officially known as the Republic of Chad, is a landlocked country in Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon and Nigeria to the southwest, and Niger to the west...
. Diamonds are the only of these mineral resources currently being developed; reported sales of largely uncut diamonds make up close to 60% of the CAR's export earnings. Industry contributes less than 20% of the country's GDP, with artesian diamond mining, breweries, and sawmill
Sawmill
A sawmill is a facility where logs are cut into boards.-Sawmill process:A sawmill's basic operation is much like those of hundreds of years ago; a log enters on one end and dimensional lumber exits on the other end....
s making up the bulk of the sector. Services currently account for 25% of GDP, largely because of the oversized government bureaucracy
Bureaucracy
A bureaucracy is an organization of non-elected officials of a governmental or organization who implement the rules, laws, and functions of their institution, and are occasionally characterized by officialism and red tape.-Weberian bureaucracy:...
and high transportation costs arising from the country's landlocked position.
Economic aid and development
The CAR is heavily dependent upon multilateral foreign aid and the presence of numerous NGO's which provide numerous services which the government fails to provide. As one UNDP official put it, the CAR is a country "sous serum," or a country hooked up to an IVIntravenous therapy
Intravenous therapy or IV therapy is the infusion of liquid substances directly into a vein. The word intravenous simply means "within a vein". Therapies administered intravenously are often called specialty pharmaceuticals...
. (Mehler 2005:150) The very presence of numerous foreign personnel and organizations in the country, including peacekeepers and even refugee camp
Refugee camp
A refugee camp is a temporary settlement built to receive refugees. Hundreds of thousands of people may live in any one single camp. Usually they are built and run by a government, the United Nations, or international organizations, or NGOs.Refugee camps are generally set up in an impromptu...
s, provides an important source of revenue for many Central Africans.
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
, a limited tax base, scarce private investment, and adverse external conditions have led to deficits in both its budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
and external trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
. Its debt burden is considerable, and the country has seen a decline in per capita gross national product over the last 40 years. Important constraints to economic development include the CAR's landlocked position, a poor transportation system, a largely unskilled work force, and a legacy of misdirected macroeconomic
Macroeconomics
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. This includes a national, regional, or global economy...
policies. The 50% devaluation
Devaluation
Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged....
of the currencies of 14 Francophone African nations on 12 January 1994 had mixed effects on the CAR's economy. Diamond, timber, coffee, and cotton exports increased, leading an estimated rise of GDP of 70% in 1994 and nearly 50% in 1995. Military rebellions and social unrest in 1996 were accompanied by widespread destruction of property and a drop in GDP of 2%. Ongoing violence between the government and rebel military groups over pay issues, living conditions, and political representation has destroyed many businesses in the capital and reduced tax revenues for the government.
The International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) approved an Extended Structure Adjustment Facility in 1998. The government has set targets of annual 5% growth and 25% inflation for 2000-2001. Structural adjustment programs with the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
and IMF and interest-free credits to support investments in the agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
, livestock
Livestock
Livestock refers to one or more domesticated animals raised in an agricultural setting to produce commodities such as food, fiber and labor. The term "livestock" as used in this article does not include poultry or farmed fish; however the inclusion of these, especially poultry, within the meaning...
, 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 jump-start 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 Central African Government is currently in the process of adopting new labor and investment codes.
Statistics
GDP:purchasing power parity - $3.007 billion (2007 est.)
GDP - real growth rate:
4% (2007 est.)
GDP - per capita:
purchasing power parity - $700 (2007 est.)
GDP - composition by sector:
agriculture:
55%
industry:
20%
services:
25% (2001 est.)
Household income or consumption by percentage share:
lowest 10%:
0.7%
highest 10%:
47.7% (1993)
Inflation rate (consumer prices):
0.9% (2007 est.)
Labor force:
1.857 million (2006)
Unemployment rate:
8% (23% for Bangui) (2001 est.)
Budget:
revenues:
$250 million
expenditures:
$273 million (2007 est.)
Industries:
diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
mining, sawmills, breweries, textiles, footwear, assembly of bicycles and motorcycles
Industrial production growth rate:
3% (2002)
Electricity - production:
109 million kWh (2005)
Electricity - production by source:
fossil fuel:
19.05%
hydro:
80.95%
nuclear:
0%
other:
0% (1998)
Electricity - consumption:
101.4 million kWh (2005)
Electricity - exports:
0 kWh (2005)
Electricity - imports:
0 kWh (2005)
Agriculture - products:
cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, manioc (tapioca
Tapioca
Tapioca is a starch extracted Manihot esculenta. This species, native to the Amazon, Brazil, Colombia, Venezuela, Cuba, Puerto Rico, Haiti, the Dominican Republic, Honduras, and most of the West Indies, is now cultivated worldwide and has many names, including cassava, manioc, aipim,...
), yams
Yam (vegetable)
Yam is the common name for some species in the genus Dioscorea . These are perennial herbaceous vines cultivated for the consumption of their starchy tubers in Africa, Asia, Latin America and Oceania...
, millet
Millet
The millets are a group of small-seeded species of cereal crops or grains, widely grown around the world for food and fodder. They do not form a taxonomic group, but rather a functional or agronomic one. Their essential similarities are that they are small-seeded grasses grown in difficult...
, maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, banana
Banana
Banana is the common name for herbaceous plants of the genus Musa and for the fruit they produce. Bananas come in a variety of sizes and colors when ripe, including yellow, purple, and red....
s; timber
Exports:
$146.7 million (f.o.b., 2007 est.)
Exports - commodities:
diamond
Diamond
In mineralogy, diamond is an allotrope of carbon, where the carbon atoms are arranged in a variation of the face-centered cubic crystal structure called a diamond lattice. Diamond is less stable than graphite, but the conversion rate from diamond to graphite is negligible at ambient conditions...
s, timber, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
Exports - partners:
Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
38.8%, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
15.5%, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
6.5%, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
5.2%, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
4.8%, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
4.7%, Democratic Republic of the Congo
Democratic Republic of the Congo
The Democratic Republic of the Congo is a state located in Central Africa. It is the second largest country in Africa by area and the eleventh largest in the world...
4.6% (2007)
Imports:
$237.3 million f.o.b. (2007 est.)
Imports - commodities:
food, textiles, petroleum products, machinery, electrical equipment, motor vehicles, chemicals, pharmaceuticals, consumer goods, industrial products
Imports - partners:
France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
16.2%, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
12.7%, Cameroon
Cameroon
Cameroon, officially the Republic of Cameroon , is a country in west Central Africa. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon's coastline lies on the...
9.5%, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
6.2% (2007)
Debt - external:
$1.153 billion (2007 est.)
Economic aid - recipient:
ODA, $95.29 million; note - traditional budget subsidies from France (2005 est.)
Currency:
1 Communaute Financiere Africaine franc (CFAF) = 100 centimes
Exchange rates:
Communaute Financiere Africaine francs (XAF) per US dollar - 481.8 (2007), 522.59 (2006), 527.47 (2005), 528.29 (2004), 581.2 (2003
Fiscal year:
calendar year