DJIBOUTI A. Overall economic performance since 1980

Since 1980, the growth of GDP has slowed, with an average annual rate of 1. 5 per cent over the period 1980-1984 as against 3 per cent a year from 1978 to 1980. This positive growth in GDP during the past five-year period stems from the maintenance of investment and consumption levels. This would not have been possible for an economy so poor in natural and human resources had it not been for external financial and technical assistance.

Djibouti's economy rem~ins fragile and imbalanced: the primary secondary sectors account for only 20 per cent of GDP, production of for export is practically non-existent, and the economy is primarily on the tertiary sector (services).

and goods based

Grants received from abroad over the period 1980-1984 amounted to an estimated $479 million. Highly concessionary loans amounted to $74.5 million.

The outstanding external public debt stood at $179 million at the end of 1984, and the debt-servicing burden is still low, amounting to only 2.3 per cent of total export earnings. aDA fell from $71.6 million to $40.1 million between 1980 and 1984.

B. Main areas of focus of the national recovery programme (1986-1990)

In view of the particular situation of the economy of Djibouti which is primarily based on the tertiary sector, the Government has given top priority to the primary sector in order to diversify the economy.

The main thrust of the priority programme is on the following areas of the primary sector: harnessing and developing water resources; increasing of agriculture production; increasing the land under irrigation; diversifying crops according to the various ecological zones of the country; improving animal production and promoting small-scale stock breeding schemes; developing oasis agriculture; associating agriculture with stock breeding and continuing efforts to modernize fishing equipment.

The other areas of focus of the priority programme are transport to open up rural areas, developing local sources of energy (geothermal, solar and wind), drought control (particularly through water and soil conservation, range land restoration and improvement of grazing land, reafforestation), development of human resources and the strengthening of institutions and services that provide support for the primary sector.

c.

To implement the priority programme, priority will be accorded to the mobilization of rural folk.

The main reforms planned or under implementation are:

(a) Greater access of farmers to credit;

(b) Greater access to information and markets;

(c) Drafting of legislation on the environment in order to preserve the natural environment;

(d) Investment stimulation measures (investment code);

(e) Development and exploitation of all sources of energy.

D. Estimates of resource requirements for the national recovery programme (1986-1990 )

Millions of US dollars

(i) Resources already mobilized

Dome s t i ca 11 y 3.0

Externally 7.0

Subtotal 10.0

(ii) Resources planned to be mobilized

Domestically 6.1

Externally 14.1

Subtotal 20.2

(iii) Estimates of likely available resources 30.2

(iv) Total estimated cost of programme 182.7

(v) Resource gap 152.5

E. Estimates of debt-servicing requirements (1986-1990) (in millions of US dollars)

Type of debt

Official creditors Private creditors Total

Interest 13.1 O.G 13.9

Principal 32.1 3.3 35.4

Total 45.2 4.1 49.3

15. EGYPT

A. Overall economic performance since 1980

Egypt continues to maintain its strong growth momentum which started in the mid-1970s. In addition to the revitalized industrial and infrastructural base, the economy was boosted by increased foreign exchange earnings from the Suez Canal, oil exports, tourism and remittances by the 3 million or so nationals working in the neighbouring oil-rich Arab countries. Propelled by these favourable factors, the economy grew at an average annual rate of about 7.5 per cent over the past five years.

Although the economy seems to be progressing along the path charted by the Five-Year Plan (1981/1982 -- 1986/1987) there has been some concern about the inability of the agricultural sector to attain the planned rate of growth of 3.8 per cent. In part, this has been attributed to the increased production costs and, as a consequence, the decline in the relative profitability of this sector. Burdens arising from subsidies still loom large and account for about 24 per cent of income tax. Another growing burden on the Government budget is the debt-service obligations of its external debt of about $25.0 billion in 1985 which will take about 31.3 per cent of export earnings including invisible exports. In view of this and despite a rising level of external resource flows which amounted to about $2.8 billion in 1984, the balance-of-payments position continues to be a major development problem. The situation will surely be complicated by the expected return of a large number of the nationals working abroad as well as by the expected significant decline in earnings from oil, remittances, tourism and the Suez Canal.

B. Main areas of focus of the national recovery programme (1986-1990)

The Egyptian priority programme aims at removing present obstacles faced by the agricultural sector and providing it with the necessary services~

including improved seeds, credit, extension services, etc. This is to enable the sector to provide an increasing share of the growing food requirements as well as boost agricultural exports. The programme also aims at reclamation and cultivation of desert lands and the protection of the present arable areas from the encroachment of the desert. The enhancement of the efficiency of the meteorological network to meet both local and regional needs for weather reports is a main priority. Strengthening training capabilities, particularly for middle- and higher-level manpower, is given a high priority in the programme.

Other priority sectors are: agro-industries; transport and communications;

and rural development.

C. Highlights of policy reforms in support of the national recovery programme (1986-1990 )

Egypt pursues an 'open-door' policy within the framework of planned development, the objective being the encouragement of private initiative, the broadening of the economic base, modernization of production processes and renewal of obsolete equipment. To realize these objectives the Government undertook a number of policy reforms including taking measures to correct price distortions, removal of direct and hidden consumption subsidies, providing of incentives for agriculture including regular price increases, marketing

facilities and supply of vital inputs.

measures to reform its public sector by of administrative obstacles.

It ~as also carried out important emphasizing efficiency and removal

D. Estimates of resource requirements for the national recovery programme (1986-1990 )

Millions of US dollars (i) Resources already mobilized

Domestically 2 871.0

Externally 700.0

Subtotal 3 571.0

(Lt ) Resources planned to be mobilized

Domestically 14 335.0

Externally

Subtotal 14 335.0

(iii) Estimates of likely available resources 17 906.0

(iv) Total estimated cost of programme 21 467.0

(v) Resource gap 3 561.0

E. Estimates of debt-servicing requirements (1986-1990) (in millions of

us

dollars)

Type of debt

Interest Principal

Total

Official creditors 2 500

3 700 6 200

Private creditors 700

1 400 2 100

Total 3 200 5 100 8 300

16. EQUATORIAL GUINEA