World Bank Document
Total Page:16
File Type:pdf, Size:1020Kb
DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized Not For PublicUse Report No. CA-21a Public Disclosure Authorized BASIC REPORT ON THE ECONOMY OF SURINAM Public Disclosure Authorized Public Disclosure Authorized November 2, 1972 America and Caribbean Region This report was prepared for official use only by the Bank Group. It may not be publithed, quoted or cited without BankGroup authorization. The Bank Group does not accept responsibilityfor the accuracy or completenessof the report. CURRENCYEQUIVALENTS Until December 31, 1971 1 Surinam Guilder (Sur. f.) = US$o.53 1 U.S.$ = 1.89 SarinamGuilder (Sur. f.) From January 1, 1972 1 Surinam Guilder (Sur. f.) = US$o.56 1 U.S.$ = 1.79 Surinam Guilder (Sur.f.) TABLF OF CONTENTS Page No. BASIC DATA i - iv MAP SLMIARY AND CONCLUSIONS ............................. i - iii I. SOME BACKGRDUNDFEATURES. 1 II. DEVELOPMENT TRENDS AND TARGETS. 4 Introduction. 4 The Sources of Economic Growth. 4 Money, Prices, and Wages. 8 Planning and Economic Management .... ................10 III. SECTORAL ISSUES AND POLICIES ........................ 15 M!ining ............................................ 15 Agriculture .......................................... 18 Forestry ............................................ 26 Manufacturing and Construction ...... ................27 Tourism ............................................ 29 Transport ........................................... 30 Social Services . ..................................... 33 IV. PUBLIC FINANCES . ..................................... 36 Central Government Fiscal Operations ................. 37 Public Investment ............. ..................... 39 External Financing . ..................................41 V. EXTERNAL TRADE AND PAYMENTS ....... ..................45 External Debt Management ........ ....................48 This report is based on the findings of an economic mission which visited Surinam during the period October/November 1971. The mission was composed of: Sidney E. Chernick, Chief of Mission; J. U. Richter, W. Struben, I. Sakura (Economists); H. van Helden (Consultant, Transport Engineer); Miss Maryke de Weers, Secretary. Mr. Pedro-Pablo Kuczynski visited Surinam in September 1972 in order to discuss the draft report with the authorities and incorporate more recent developments into the report. BASIC DATA I. SIZE Area (squarekilometers) 163,800 Population (1971 mid-year) 380,650 Annual growth rate (%) 1921-50: 1.73 1951-63: 4.34 1964-71: 2.30 Density 2.3 persons/Km2 Estimated II. ECONOMIC INDICATORS 1960_ 1965 1970 1971 GNP at Factor Cost Total (current$ million) 81.8 128.1 240.2 260.4 Per capita(current $) 282 371 6441 684 (1960prices $) 282 351 43ii/ 435 Real GNP Growth Rate (market prices) 1954-60: 3.7 percent p.a. 1961-64: 6.o 1965-67: 15.7 1968-70: 1 .4 Industrial Origin of GDP (percentagecomposition at current factor cost) Agriculture,fisheries 11.3 10,7 9.5 10.2 Forestry,processing 3.8 4.3 3.2 1.6 Mining,processing 32.4 28.0 30.6 30.3 Manufacturing,construction 8.5 10.0 13.3 15.6 Conmwrce, transport 16.5 18.3 17.1) Housing 4.7 4.1 3.3) 42.3 Government,other services 22.8 24.6 22.9 Total 100.0 100.0 100.0 100.0 Percent of GDP at Market Prices Consumption:Private ) 53.9 54.2 ) Government 76.2) 25.9 22.4 )76.3 Gross domesticinvestment 31.6 42.4 18.4 19.0 Net exports -7.8 -22.2 5.o 4.7 Net investmentincome payments 13.3 9.3 12.5 12.4 Nationalsavings 1o.5 10.9 10.8 11.2 1/ The forthcoming World Bank Atlas 1972 shows a real GNP per capita in 1970 of $530 for Surinam, with the preceding six years as a moving base, and adjusting upward for the implicit GNP deflator for the United States. - ii - Annual Estimated Change 1965 1970 1971 1 965-71 Central. Government Finances (Sur. f. million) Government current revenue 83.6 1314.9 1'49.2 Government current expenditure 77.5 125.8 139.6 12K? Capital expenditure 27.9 43.3 46.5 financed by: Current surplus 6.1 9.1 76. Capital- revenue and internal borrowing 2.6 -2.4 -0.9 External grants and borrowing 22.8 38.7 40.8 10.2 Treasury balances, etc. -3.7 -5.4 -3.0 Monev and Cr,edit Annual (end of year, Sur. f. million) Chan-e 1960 1965 1970, 196o-70 Money 39.0 56.2 90.8 '? Quasi -money 9.6 24.3 60.5 20.2 Total means of payment 48.6 80.5 151.3 12.1 Net foreign assets 34.2 54.0 76.9 8.4 Credit to private sector 30.5 43.7 88.8 11.3 Credit to public sector 4.6 5.4 8.3 6.1 Net capital and reserves -20.7 -22.6 -22.7 ".9 Liquidy ratio of comrnmercial banks (percent) 26.3 26.14 33.14 2.14 Balance of Payments Estimated ($ million) 1960 1965 1970 1971 Merchandise exports (f.o.b.) 144.4 59.3 136.5 163.1 Merchandise imports (c.i.f.) 54.1 94.0 114.5 119.5 Net non-factor services 1.0 -1.4 -6.6 -7.5 Balance of goods and non-factor services -8.6 -36.1 15.4 36.1 Net investment income -14.7 -15.1 -34.5 -45.2 Balance on current account -23.4 -51.3 -23.2 -9.1 Private capital (net) 9.7 35.0 -5.1 -6.2 Official capital and transfers (net) 7.0 13.7 23.8 16.9 Other and errors and omissions 4.4 5.5 10.8 0.f Total capital and erros and omissions 21.1 54.2 2tK.5 10.1 Changes in reserves (- increase) 2.1 -3.0 -6.3 -1.0 -iii- Composition of Ecports C mil: ion) 1960 i%? 195 (,) 1970 (%) Bauxite 35.1 (80.3) 42.7 (72.8) 40.4 (29.9) Alumina - 3.3 ( 5.6) 56.4 (41.7) Aluminium - 0.5 ( 0.8) 25.8 (19.1) Total mining products 35.1 (80.3) 46.5 (79.2) 122.6 (90.8) Agricultural.products 4.0 ( 9.2) 5.1 ( 8.7) 5.7 ( 4.2) Forestry products 3.4 ( 7.8) 4.4 ( 7-5) 4.3 ( 3.2) Total exports 43.7 (100.0) 58.7 (100.0) 134.9 (100.0) External Public Debt ($million) 1966 1970 Government debt outstanding (as of year-ernd) 52.9 80.4 Debt service 1.1 0.8 Net debt service ratio (percent) 1.2 0.7 Consumer Price Index (Paramaribo, 3rd quarter 1953 = 100) 1961 1965 1969 Domestic products 132 154 198 of which, foods 144 184 259 Foreign products 106 117 130 of which, foods 109 121 135 Total 119 137 170 Iplicit GNP Deflator 122 129 146 International Relations Associate member of EEC - iv - Estimates III. SOCIAL INDICATORS 1960 1965 19tate Employment Unemployment rate (in % of labor force) 9. Health Population per hospital bed 314 n.a. 283 Physicians per 10,000 population 5.1 4.o 4- Nurses per 10,000 population 24.3 21.0 Transportation Population per automobilp L7 i/ 1964 data. 8 Including taxis. GIANA\N COIOMSIA& t''tgk.GWFA 4 ~~~~~~~~tI a n t i c O c e a n FRGLGMVA~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N mt \PERUti !\'A< / -6- A VOLiVA)t.Ie Gee I&I > ~ A~~~~~~~~~~~~~~~~~~~~~~~~~~B_ORs Weng C OR --Ije- /~~~~~~~~~~ ARGENTINA A C C A Zarlderij C /M 08' ~ ~ ' Mmose A BA R E Dt.V ...,+1--X,.-'',\1 <ikL~~~~~~~~~~~W t (D~~~~~~~ I C "" " < SQt> wq.^, X 4* t > w. t+' ' >-<si-~" ' s--x_4 0 SURINAM 2 _____Main road (]E.Istieg doo. ________ Secondary oad -( ,.j Projected dam andlake _______ Projecied road BGuxite mine Ex sfing roitread B auxite findings --- Projectedrailroad 0 Oil palm ----- Districtboundary Inter-ational airport Internationalboundary .. Airfield or airstrip 0 Zc 40 60 60 20 0 2Z0 40 610 Tre br,-rdL,, rh.4.,, ,ep dnh, r reply erdo,nr ,rrnror acP,,,,ree h 'he, WoddWr5rd rB,r dlr,k fh-d ate, 56' 54- JANUARY1972 IBRD-3718 SUNMARY AND CONCLUSIONS 1. The rate of growth of output and income in Surinam in recent years has been among the highest of all the developing countries. This .hasbeen combinedwith a relativelyhigh degree of evenness in personal income distributionamong the urban population,which accounts for 70 percent of the total population. Large-scaleexpansion in power and bauxite processing were the main sources of growth during the 1960's, when output increased at 8 to 9 percent per year. After 1967, however, the investment boom tapered off, and growth fell sharply to a real rate which hardly kept up with the increase in population. The reasons for the sharpness of this decline in growth per- formance are not fully explicable,but there are signs that growth is resum- ing a more normal trend. 2. The small size of Surinam's population (384,900 at the end of 1971), the importance of the mining sector, and the close cultural, institutional and financial ties to the Netherlands,including a high degree of labor mobility from Surinam to the Netherlands, all contribute to differentiateSurinam's developmentproblems and prospects from those of the majority of developing countries, although there are a number of common features with other economies of the Caribbeanarea. There is the possibility that Surinam will opt for full independencewithin the foreseeable future. Although this eventuality affects various considerations in this report, its impact in the next few years would be small. 3. Surinam has a Ten-Year Development Plan, the second part of which covers the period 1972-76. It foresees an annual increase in national income of the order of 8.3 percent, a reduction by half in the number of unemployed, and an improvementin personal and regional income distribution. The Plan seers to be based on the optimistic view of the economy which prevaileduntil 1968. Even if developmentpolicies prove to be reasonably successful, it seems unrealisticto expect an aggregate growth rate during the period much above 5 percent per year.