World Bank Document

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

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 Bank Group 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

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_____Main road (]E.Istieg doo. ______Secondary oad -( ,.j Projected dam andlake ______Projecied road BGuxite mine Exsfing roitread B auxite findings --- Projectedrailroad 0 Oil palm

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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 performance 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. It will therefore be difficult to achieve some reduction in unemployment. Perhaps the most useful part of the Plan is the list of projects which will play an important part in determining the amount of external assistance Surinam can expect to receive in the next five years. The list of projects will only acquire an operational significance, however, if the Surinam authoritieswork out the phasing of the different projects over the five-year period. A strengthening of planning will require an expansion of the Planning Bureau's professional staff and improved coordination between the Bureau and the agencies in charge of fiscal, monetary, and regulatory policies.

4. Mining will continue to dominate the economy during the next five years. Although the projected growth rate of output is comparativelymodest because of a slack in the aluminum market, a major expansion in capacity is likely to bring about a 50 percent increase within the next ten years. The expansion is concentratedin West Surinam and will require complementary investmentsin power, rail, and port facilities. In the longer run, the West Surinam development can also be expected to include forestry and agricultural exploitation. - ii -

5. Although agriculture contributes far less than mining to national output, the sector is an important source of employment. Prospects in agriculture are favorable, but it is unlikely that the verv rapid growth of export-oriented commercial agriculture in the last decade can be maintained at the same pace in the foreseeable future, due to market constraints in rice and in bananas. There is considerable scope for import-substitution in meat products, provided areas other than the coastal plain are opened up for livestock activities. Surinam's fisheries potential is good, particularly in shrimp, but Brazil's extension of territorial limits to 200 miles off- shore may hold back the development of Surinam's fishing industry. Although long-term forestry prospects are good, output is not expected to increase much during the Second Five-Year Plan period. Manufacturing industry, because of the reduced size of the domestic market, cannot be expected to continue to develop as rapidly as in the past because the scope for further substitution of consumer imports is limited. Rapid economic growth has gone hand in hand with a relative neglect of the social sectors. In spite of recent efforts in education and public health, there is a clear need during the Second Five-Year Plan period to allocate a larger share of development expenditures than in the past to health and education. Ever. though there is of course the danger that better education may lead to an expansion of the emigration of skilled people to the Netherlands, the benefits to the economy of a substantial improvement in education outweigh these possible costs, especially if higher-level training is directed towards skills which are scarce in Surinam.

6. Because of the rapid growth in income and government revenues and because of ready access to external finance from the Netherlands on concessionary terms, the fiscal situation of the Government has been reasonable comfortable. However, this has only been so because of the concessional assietance from outside. Public savings have remained low. The Government is aware of a need for a major effort to generate additional revenues and public savings in the years ahead, in view of rising capital and current expenditures foreseen for the Second Five-Year Plan period, and is planning to introduce measures expected to meet these requirements. In the longer run, the proposed investment in mining is e:-nected to generate new revenues in the late 1970's, which will further help maintain a sound financial situation. Surinam's balance of payments prospects are also favorable, eve-nthough the current account deficit is expected to widen substantiallv in the next few years as mining investments take piace. The volume of external official assistance already committed is well in excess of the import content of the public sector investment program for the next six years. At the end of 1970 Surinam's outstanding external public debt amounted to $80 million or half of 1970 exports of goods and services. Because of the highly concessionary average terms, the debt service ratio is less than one percent and is not expected to increase much beyond the 1-2 percent range during the 1970's.

7. The Netherlands has financed the major share of public sector development expenditure and provided budgetary support and grants for social and cultural activities. It also supports a sizeable technical assistance program. Commitments for the Plan period 1972-76 suggest that aid policies - iii - have not altered much although the amounts involved have increased. A review of the proposed deployment of aid funds, in relation to the economy's requirements, supports the view that too much emphasis is given to physical capital and not enough to human resource development. Similarly the present pattern of professionalskills provided under one or other of the technical assistance programs should be shifted from resource surveying and engineering to the strengtheningof the capacity in the public administrationto formulate and implement rational economic policies. Urgently required are skills in socio-economicdata comnilation,sectoral and manpower planning, project analysis, fiscal policy and budgeting, and social policy formulation and administration.

3. The past thrust of development expenditurein favor of physical capital and natural resource engineering raises two related issues. First, how far should the Governmentgo in establishingthe extent of the country's natural resources, and how much effort in this direction should be left to the private sector? A review of Surinam'spolicy in this regard leaves the impression that the Government may have gone further than need be, thereby possibly subsidizingprivate exploration.

9. The second, and perhaps the more important issue directly affecting public investmentprogramming, is the assumed cost of capital. The Surinam authoritiesare inclined to assign an economic value to capital, equivalent to the average terms on which concessionaryexternal financial resources are made available to them. In rough terms this means a rate in the neigh- borhood of 3 or 4 percent. The use of such a rate of return as a basis for evaluatingprojects would create distortionsand encourage the excessive use of capital-intensivetechniques. In fact, the mission believes that a few road and irrigationprojects shown in the Plan could be omitted for the time being and substitutedby additional investment in public health and edlucation,where higher standards should be aimed at during the 1970's.

10. Looking beyond the planning period that has been consideredhere, the course of economic developmentwill largely hinge upon the issue of independence. Political independencewould present a challenge if it were accompaniedby a higher degree of economic self-reliance. Economic viability and self-reliancewould require fundamentalchanges in attitudes towards development and economic management. Furthermore,independence would probably imply a loosening of the ties binding the Surinam economy to the Netherlands, reducing the opening for Surinamesemigrants. Independenceis likely to be associatedwith closer economic relations with its neighbors,Guyana and Brazil, and the Caribbean countries and their regional institutions.

11. The economy of Surinam does not face unmanageablefinancial constraints in the foreseeablefuture. The available external assistanceshould be used not onlv for the continuationof basic physical infrastructureinvest- ment, but also for a concerted effort in training and in the developmentof human resources. Only in this way will the economy in the long-run be able to exhibit a greater degree of selfreliance,a necessity whether the country be- comes politicallyindependent or not in the foreseeablefuture.

I. SOME BACKGROUNDFPATURES

1. Surinam, formerly known as Dutch Guiana, is on the northeast coast of South America. It borders Guyana on the west, Brazil on the south, and French Guiana on the east. Surinam's economic history has many features in common with its neighbors as well as some of the Caribbean islands. Although the early Spanish explorers had visited the area, the British first colonized the territory in 1650, followed by the Dutch some 15 years later. The rivalry for Surinam was engenderedby its capacity to produce a range of tropical agriculturalproducts much in demand in Europe. At the end of the Napoleonic Wars, Dutch sovereigntywas establishedby treaty. Good soil and climatic conditions, combined with African slave labor, led to the establishmentof the plantation system on the coast and along the banks of the major rivers. In their heyday, there were about 1,000 plantationsproducing such products as coffee, cocoa, sugar, and cotton. The highly profitable operationsresulted in a sizeable transfer of resources to Holland. The plantation system was underminedin the second half of the nineteenth century, when slavery was abolished and the opening of the Suez Canal enabled products from Asia to compete effectivelywith those from the New World. With the decline of plantationagriculture, the Surinam economy stagnated, and the transfer of resourceswas reversed; large budgetary and trade deficits had to be covered by funds from the Netherlands. When bauxite deposits came under exploitation in the 1920's, the Surinam economy entered into a new period of growth but financial assistance from Holland has continued to this day.

2. Surinam has retained extremely close ties with the Netherlands. It is one of the three self-governingstates (the others being the Netherlands and the Netherlands Antilles) comprisingthe Kingdom of the Netherlands. Since 1954 Surinam has been responsiblefor all internal affairs and, through a representativeon the MinisterialCouncil in The Hague, participatesin decisions affecting the Kingdom's defense and foreign relations. Of the three states in the Kingdom, Surinam is the poorest, 1/ in spite of a considerable flow of highly concessionaryfinancial and technical assistance from the Netherlands. Moreover, Dutch influence is strongly evident in culture, educntion and training,consumption habits and standards of public services, engineering and construction. As citizens of the Kingdom, Surinamese are free to take up residence in the Netherlandswhere they share the rights and obligations of Dutch citizens.

3. Surinam covers an area of 163,820 sq. km. 2/ or almost five times the size of the Netherlands. Vast areas of the country are still to be

1/ The World Bank Atlas 1971, shows that, as of 1969, GNP per capita was $1,760 in the Netherlands, $1,260 in the Netherlands Antilles, and $560 in Surinam. 2/ Including an area of some 18,000 sq. km. (7,000 sq. miles) disputed with Guyana. In the past year or so, both Governmentshave taken steps to defuse the issue and relations between the two countrieshave improved markedly. -2- prospected,but from what is already known, Surinam'snatural resource endowment is reasonably good. It has sizeable and fairly accessibledeposits of high-grade bauxite; some of the seven major rivers flowing from the interior of the country to the Atlantic coast provide natural transport facilities and sources of hydroelectricpower. Fertile clay soils are found within a narrow low-lying coastal plain which supports the production of a wide range of tropical agriculturalproducts. Further south, the coastal plain gives way to a narrow strip of savannahswith sandy soils running the width of the country. Forest stands consisting largely of mixed tropical hardwoods are found in both the coastal and savannah regions. Beyond the savannahs, the terrain slopes gradually upwards towards the Brazilian border. Most of this area is covered by a dense and inaccessibletropical forest. One of the world's best shrimp grounds is found off the northeast South America coast. Other sea and inland fish resources have also been identified.

4. The small absolute size of the populationnumbering 414,000 as of 1971 has widespread economic ramifications. The labor force is roughly estimated at 100,000. Population density (2.5 persons per sq. km.) is extremely low. About 66 percent of the population is concentratedin and around Paramaribo, the capital city, and another 20 percent in a narrow ribbon of farms or small rural settlementsalong the coast. The remaining 10 percent, comprising Amerindians and Bushnegroes, live in tribal communities in the interior; the former mostly inhabit the savannah region, while the latter are located in riverside villages in eastern and southeasternSurinam. The low density and pattern of settlement have led to a wide disparity in the provision of public services and infrastructureas between the Paramaribo area and the rural areas.

5. The political and social organizationin Surinam mirrors the multi- racial features of the economy. The old colonial plantation system brought slaves from Africa and, later, indentured laborers from China, India, and Indonesia. Despite some mixing of racial groups and the apparent harmony among them, political parties are largely organized along ethnic lines, and views on political issues are largely influencedby ethnic origin. The Ministerial Council represents a coalition among representativesof the racial groupings. Since certain districts (provinces)and branches of economic activity are dominated by one or the other of the ethnic groups, the formulationof economic policies tends to assign a heavy weight to their impact on the various racial groupings.

6. The question of independenceis a controversialissue in Surinam. The official government view is that no change in Surinam'spresent status is contemplated. Nevertheless, the small countriesmaking up the Kingdom of The Netherlandshave recently establisheda tripartite commission in order to work out possible alternativesto the basic "Statement"of the Kingdom, including some form of independence. Independencefor Surinam is therefore a matter of time. Until this constitutionalissue is settled, it will be difficult to arrive at a consensus on social and economic goals for Surinam. The balance of pressureswould seem to favor the assumption that, within the foreseeablefuture, Surinam will opt for full independence. Although this - 3 - eventualityaffects the assessmentof Surinam's developmentprospects contained in this report, it is not likely to take place in time to materially affect the planning period 1972-77 being consideredhere. - 4 -

II. DEVELOPMENTTRENDS AND TARGETS

Introduction

7. The pattern of development cf Surinarm shares a number of features with other medium- and small-sized economies in the Caribbean. The table on the next page includes a number of these countries for illustrative purposes; Puerto Rico has been included in the table because it shows that some of the basic features are retained even at much hither income levels. Among these features are a very high dependence on foreign trade, in most cases a large resource gap covered by substantial volumes of external assistance and a distinct reduction in natural population growth rates. Although emigration reduced the net increase in pcpulation significantly in all countries, it has probably also contributed to the high level of open unemployment, as higher levels of skills are important among emigrants. Partly because of this factor, unemployment has not appreciably declined in most countries of the area, despite declining rates of population growth and the relatively rapid growth of national production. The latter has in turn, in most countries shown in the table, depended for its dynamism upon foreign-owned, capital- intensive enterprises in the export sector, especially in mining and petrol- eum. This pattern of development has in general been associated with high wage levels in a limited sector of the economy, creating expectations and actual increases of wages in sectors wghich have found it increasingly difficult to operate at prevailing prices, especially the rate of exchange. The result has been the stagnation of agriculture in much of the area; a by-product has been that the development of manufacturing for export (since domestic markets are too small for large-scale economic import substitution) has been held back. In the long run, despite its many special features, a more diversified and rapid growth probably depends on the development of processing and manufacturing for export. While Surinam does not share all the features noted above, the particular problems of its economy have many points in common with those of the rest of the Caribbean area.

The Sources of Economic Growth

8. The rate of growth of output and income in Surinam in recent years has been among the highest of all the developing countries. Between 1953 and 1970, real output as measured by GDP at factor cost increased at an annual average rate of 6.7 percent although two-thirds of the growth of output was concentrated in the period 1960-68. The population also grew rapidly over this period so that real per capita output advanced at a rate of 3.3 percent. By 1971 the level of per capita income was around $530. 1/ Evidence suggests that there is a relatively high degree of equality in personal urban income distribution, but income disparities between urban and rural dwellers are quite marked.

1/ Following the methods employed in the World Bank Atlas, 1972. SELECTEDCARIBBEAN COUNTRIES: ECONOMICINDICATORS

British Honduras Netherlands Puerto Trinidad Barbados (Belize) Guyana Antilles Rico Surinan & Tobago

Per capita GDP, 1969 ($) 500 530 340 1,260 1,410 56o 890 Averageannual percentreal change,1960-69 3.2 2.3 0.7 -1.5 6.o 5.4 3.8

Savingsratio (percentof GDP) 1960 n.a. n.a. 20.2 .3j 3.9 23.8 n.a. 1970 n.a. 10.1 19.4 144 4.6 23.3 19.1 Resource Gap (percent of GDP) 1960 n.a. n.a. 5.0 41 19.7 7.8 2.8 (1965) 1970 31.8 20.0 1.7 26.8 -5.0 1.2 Merchandise imports (as percentof GDP) 2/ 1960 69 n.a. 50 440 - 54 49 35 (1965) 1970 80 45 50 60 (1969# 55 37 33 / Net officialcapital inflowper cap., 1970 ($ -1 58 15 75 97 57 nil Agricultureas percent of GDP, 1970 17 15. 21 2 5 10 7 Manufacturing as percent of GDP, 1970 10 16 12 32 (1965) 25 13 18 Commodity concentra- tion of exports,1970 (two main products as percent of total 58 68 81 97 21 94 72 Annual rate of natural population growth, 1960 2.4 3.6 2.0 2.8 2.6 3.6y, 3.1 1970 1.3(1969)3.4 2.1 1.6 1 .8 3:0w' 2.0 Net annual average emigrationas percent of population 1960-70 0.8 0.8 0.2 1.1 0.9 n.a. 0o.4 Unemployment,percent, 1960 16 (1955) n.a. 11 n;a. 13 n.a. 14 1970 13 (1966) 15 (est.)n.a. 17 (1966) 11 12 12 j Average1962-66 VVaries widely; about 2 percent in 1969, / Non-oilimports only recordedpeak year. / Includingoil refining Actual net population increase Source: IBRD, World Bank Atlas, 1971; Puerto Rico, Informe Economico del Gobernador, 1971; published material from statistical offices of countries shoin. 9. Towards the end of the 1950's, and following a period of slow or stagnant output growth, a large-scale expansion in power and bauxite processingcontributed to a doubling of the level of output over a period of eight years between 1960 and 1968. During that period real output advanced at a rate of 9 percent a year, the effects of the boom in the mining and power sectors having spread to industry and construction,transport, commerce, and governmentservices. The growth of output in mining and processingalone accounted for about one-third of the absolute increase in GDP during the 1960's. After 1967, a period of sluggish growth set in, with per capita income stagnating or declining slightly. This development may have led to the high rates of emigration in recent years. However, there are some signs that the economy may again be embarking on a somewhat faster growth path.

SECTORAL ORIGIN OF OUTPUT

(Percent)

Average of Average of 1953-55 1958-60 1967 1968

Agricultureand Fishing 12.9 12.4 9.1 9.5

Forestry 4.8 3.9 3.4 3.2

Mining and Processing 33.5 31.1 34.0 30.6

Manufacturingand Construction 8.8 8.S 11.3 13.3

Commerce, Banking, and Transport 14.2 15.9 18.8 17.1

Housing 3.6 4.6 3.3 3.3

Governmentand other Services 22.2 23.6 20.1 22.9

TOTAL 100.0 100.0 100.0 100.0

Source: Tables 2.1 and 2.2.

10. The most striking feature in the use of resources is the growth of capital formation,both private and public, over the 17-year period 1953-70. The investmentboom began with a steady rise in government capital expendituresand augmented,beginning in 1960, by large outlays in the private sector. In 1964, investmentabsorbed as much as 50 percent of the GDP. Since then, the ratio has declined so that by 1970 at the level of 18 percent it was roughly the same as in 1953. Public investmentnow accounts for about one-quarterof total capital formation as compared with 5 percent in 1953 (see Table 2.3). - 7 -

11. The share of GDP going to consumptionhas remained fairly stable. Despite the sometimes sharp annual variations in domestic output and investment the consumption ratio fluctuatedaround 75 percent. Investmenthas largely been financed from abroad. The investmentboom, combinedwith a steady growth in the volume of consumption,was reflected in a sharp increase in the resource gap. External trade in goods and non-factor services, which was more or less balanced during the 1950's, started to show increasing deficits after 1960. The external gap amounted to 24.5 percent of GDP in 1964 and 22 percent in 1965. After the completionof a large bauxite processing and electric power complex, private investmentsdeclined sharply, a decline which was only partly offset by an increase in governmentinvestment. As a result, the foreign resource balance has again shown surpluses since 1967.

12. Factor income payments, including the reinvested profits of these companies, increased from less than 3 percent of GDP in 1953 to about 15 percent of GDP largely on account of foreign-ownedmining and forestry operations. Looking ahead to 1977, it is likely that this high proportion of net factor income outflows will decline to about 10 percent of GDP as the new exports from the planned bauxite and alumina expansion begin to come on stream.

13. There are two population estimates, one by the Planning Bureau and the other by the Ministry of Health. Both are based on the population census results of 1953 and 1964, but the series prepared by the Ministry of Health has been estimated on the basis of vital statisticswhich are subject to high and irregular changes. The Planning Bureau's series is based on a study of the growth rate taking into account the age and sex composition of the population, thus producing a smoother growth path. The two series are not readily reconcilable. The Planning Bureau's data are used here.

14. According to the Bureau, there has been a noticeable decline in the rate of growth of Surinar.'spopulation since 1953. From an average annual growth rate of 4.3 percent in the period 1951-1963,it fell to 2.3 percent over the period 1963-71. An important contributingfactor has been the net emigration of a relatively large number of Surinamese,particularly those of working age. There are no accurate counts of emigration; one estimate suggests that the average volume of net emigration between 1963 and 1971 was about 8,000 persons per year. Net emigration reached the level of 9,000 persons in 1969, of which about 25 percent were under 15 years of age and 6 percent over 55. Available data show that at the end of 1968 about 35,000 Surinamesewere living in the Netherlands. Paramaribo,the largest city, has grown at a rate of at least 7 percent per year; about 66 percent of Surinam's population is clustered in and around Paramaribo. The incidence of the use of birth control is not known, but there are no strong religious or social restraints. The rate of population increase over the next five or six years is expected to remain in the neighborhoodof 2 percent a year, if some emigration continues.

15. About 100,000 persons or one-quarter of the 1970 population were counted in the labor force. This low participationrate is due in part to - 8 -

the age compositionof the population. Tn 1968 about half the population was under 15, and a high proportion of the population attended school. Another important influence is the preponderance of working age groups among the emigrants. Agriculture employed about 25 percent of the labor force in 1968 or less than one-half the 1953 share. Government and other services combined (but excluding commerce) accounted for 45 percent of the labor force. Although the exact number is not known, the government sector alone probably employed about 25,000 persons including about 2,000 on temporary works. Only 7.6 percent were employed directly in mining and processing, the dominant sector in terms of output, investment, and exports. The rate of entrants into the labor force is expected to increase over the next 10-15 years until the impact of the declining population growth rate is felt, hence accentuatingthe need for employment creation during the next decade.

16. There are no reliable data on unemployment. An open unemployment rate of 15 percent is commonly quoted, but the real rate may well be lower, since the population data which emerged from the 1971 census were lower than earlier estimates. Basic work on employment and income distribution data is of high priority. However, visible forms of high unemployment characteristic of many countries are not apparent in Surinam. The Government's Erployment Exchange and Relief Works Service, which registers the unemployed in the Paramaribo district, channels unemployed workers into public relief works and also dispenses some practical training. About 2,000 workers were engaged in relief works as of mid-1970. Despite the existence of a pool of unemployed workers, a major complaint of the larger agriculturalenterprises is the shortage of labor. Furthermore,the higher pay scales and attractive opportunities in the mining and processingindustry on the one hand and those thought to be available in the Netherlands on the other make it difficult for most industries to retain qualifiedpersonnel. To help meet the demand for skilled labor in the private sector, the Government has provided funds for an expanded program of technical education. It is doubtful, however, whether this program will reduce the brain drain.

Money, Prices, and Wages

17. Surinam has a fairly developed banking svstem comprising the Central Bank, four commercial banks, three public credit institutions, and numerous financial intermediariessuch as insurance companies and pension funds. The Central Bank is responsible for controllingthe volume of credit and promoting the solvency of the banking svstem. Since 1968 the annual increase in commercialbank credit has been linked to the growth of time and savings deposits and an assumed trend rate of GDP growth. The Central Bank also encourages the commercial banks to direct credit to the productive sectors of the economy rather than to the fitnancing of consumer purchases and speculative investments. Although the Central Bank has the power to impose qualitative credit controls, these have not been introduced so far. The main objective of monetary policy has been the maintenance of a favorable balance of payments position and an adequate volume of foreign reserves. Monetary management in recent years has succeeded in attaining this objective. - 9 -

18. The commercialbanks in Surinam tend to maintain highlv liquid positions. As of the end of 1970, their cash holdings, deposits with the Central Bank, and short-term foreign assets amounted to some 30 percent of their domestic liabilities. Sizeable financial resources are also mobilized by insurance companies and pension funds. A related phenomenon is the low average interest rates for borrowers; the Central Bank discount rate is 5 percent, prime bank rates range between 5 and 9 percent, and the mortgage rate is about 8 percent. The relatively low interest rates have encouraged some of the large foreign companies in Surinam to borrow from the domestic banking system. The focus of bank lendinghas been the short-term financing of trade and industrv; together these sectors account for almost two-thirds of bank credit extended in 1970. Agriculturereceived only 5 percent of the total (see Table 6.3). Financial intermediaries are attracted to investments in real estate and mortgages. Whether because of institutionalconstraints or the absence of sound investment opportunities,or both, only few of the available financialresources have been employed in the developmentof basic productive activities.

19. The public investmentcredit institutions,designed to provide medium- and longer-termdevelopment funds, have had a limited impact on the economy. The National DevelopmentBank was establishedin 1963 and funded under the developmentplan appropriations. Over the years it has gradually taken over the activities of the Surinam ReconstructionBank (see Tables 6.4 and 6.5). By the end of 1970, the National DevelopmentBank had about Sur. f. 3.5 million in loans outstanding,of which Sur. f. 1 million had been acquired from the ReconstructionBank. On the average, the Development Bank lends at 7.5 percent and for a period of five to ten years. An Agri- cultural and Fisheries Credit Fund, establishedin 195F, within the Peoples' Credit Bank 1/ has extended credit to farmers for land clearing,house construction, purchase of inputs, and other expenses incurred in launching a farm operation. At the end of 1970, loans extended by the Fund amounted to Sur. f. 1.8 million, of which Sur. f. 1.2 million were in arrears. De- velopment financing in Surinam suffers from inadequate staff to evaluate projects and supervise credits. The National DevelopmentBank is now undergoing a management review with the object of strengtheningits capacity. Its capital will also be augmented from funds under the Second Five- Year Plan. A semi-publicAgricultural Development Bank was recently established in cooperationwith a Dutch bank. The agriculturalsector, more than any other, could benefit from the provision of supervised medium- to long- term credit facilities.

20. Prices in Surinam are measured by a cost of living index. During the 1960's, the rate of advance in prices was close to 4 percent a year, the sharp rise in locally produced foodstuffsand beverages being the most important contributingfactor. In the last year or two, as income growth levelled off and local supply conditions improved, domestic pressures on prices were lessened;however, import prices have risen noticeably. Varia- tions in the cost of living index do not seem to be reflected in the implicit

1/ A small government-ownedsavings and consumer credit bank. - 10 -

CDP deflator, which rose at the rate of only 2.3 percent a year between 1953 and 1970 and at 2 percent during the 1960's. Regardlessof the relative merits of these indices, the Surinam economy has obviouslynot been subject to serious price inflation.

21. A system of price controls,introduced during the Second World War, is still in effect, although the list of products subject to control has been significantlyaltered since then. The price control regime is admin- istered by the Ministry of Economic Affairs and covers such key consumer items as sugar and milk. In addition, the rice price is influencedby a guaranteedpurchase price system operated by the Government. The administration and surveillanceof price controls are not very effective. A thorough- going critical review of the price control regime and its usefulness should be undertaken.

22. There are no official data on the structure and movement of wages. However, from a survey of collectivebargaining agreements- which were introduced as a system of wage-setting in the mining industry in 1966 - it emerges that wage rates in the larger enterprisesin Surinam have risen at an average rate approaching 8 percent a year over the past five years. The rate of increase has been generallyhigher for the lower wage groups, resulting in a narrowing of the wage differentials. Since wage rates in every year since 1966 have risen much more than the cost of living index, real wages in Surinam have increased substantiallyover the past six years.

23. The spread of trade unionism to most of the major enterprisesin the economy has undoubtedly influenced wage levels. Strong leadership and inter-unionismrivalry have led to aggressivedemands for higher wages and better working conditions. The relativelyhigh standards set in the mining industry where the unskilledworker is paid about Sur. f. 11 for an eight- hour day have undoubtedly influencedthe structure and level of wages. Another factor is the wage level in the Netherlands. Pressures on wages seem to have lessened in the past year, but the maintenance of wage stability in the future depends in part upon improving the domestic supply of key items in the consumer's budget. On the other hand, the far-reachingdevelopment plan for West Surinam and the large demand for labor that it entails could generate another round of rapid increasesin wage costs throughoutthe economy.

Planning and Economic Management

24. Established in 1951, the Planning Bureau first prepared a Ten-Year DevelopmentPlan for the period 1955-64. The last IBRD economic mission to Surinam in 1954 contributedto the formulationof that Plan. A Second Ten-Year DevelopmentPlan was prepared for the period 1967-75, in two 5-year tranches. The beginning of 1972 marks the start of the Second Five-Year Plan, which will in fact run to the end of 1976.

25. The First Ten-Year Plan was aimed at the attainmentof a greater degree of economic independence,the promotion of effectivedomestic resource exploration,and a higher standard of living. The latest Plan foresees an annual increase in real national income of 8.3 percent, a reduction - 1 1 -

of 50 percent in the number of unemployed,and an improvementin personal and regional income distribution. The economic frameworkof the latest Plan appears to be based on an excessivelyoptimistic view of what can be achieved in the relativelyshort span of five years.

26. The mission has attempted to project the likely strncture of output groJth over the period 1970-77. The base year 1970 is used since it is the latest year for which sectoral output estimates are available. The terminal vear 1977 allows for a one-year slippage in the Plan; all previous plans in Surinam have had to be extended for at least one year. The mission's projectionsare set out in the following table and comparedwith those of the Second Five-YearPlan. The major differenceconcerns the date by which the additional investmentin bauxite mining will yield exportableoutput. While the phasing of the West Surinam project is not entirely certain, it is unlikelv to contribute significantly to exports in the Plan period. This estimate, together with more modest expectations for the other sectors, would lead to a significantly lower growth rate than foreseen in the Plan. In fair- ness to the Plan, it must be said that it was conceived at a time when the economy was growing at a faster rate than at present.

COMPARISONOF PROJECTEDSECTORAL OUTPUT GROWTH

Average Annual Percent of GCD Contri- Growth Rate bution by Sector /1 /22/ Plan- Mission- Plar- Mission/

Agriculture and Fishing 7.1 4.5 8.5 8.0

Forestry & Processing 5.6 2.0 1.0 0.4

Mining, Processingand Hydropower 10.4 4.0 39.3 22.4

Manufacturingand Construction 11.9 9.0 20.7 25.5

Other 5.6 5.3 27.2 43.3

Total 8.3 5.3 100.0 100.0

/1 Second Five-Year Plan 1972-76 /2 Mission projections,1970-77

Source: Planning Bureau, Table 2.2, and mission estimates.

27. Another importantpoint concerns the capital-outputratio assumed in the Plan. The projected absolute increase in GDP at market prices for - 12 -

1972-76 is Sur. f. 390 million; for public and private investment,the increase is put at Sur. f. 72.5 million, or a ratio of 18.6. This is expected to yield a rate of growth of output of 8.3 percent and an incremental capital output ratio of 2.2. The past record shows that, excluding the years when investmentand output growth were exceptionallyhigh, the investment ratio averaged about 25 percent and yielded a rate of growth in the neighborhoodof 5 percent, the capital-outputratio being around five. Thus the Plan counts on an increase in national economic efficiencywhich is beyond any realisticexpectation. Even if the public investmentprojects are fully executed and the private sector undertakesan active investmentprogram, it is highly unlikely that the Plan's projectedreal growth rate of 8.3 percent at factor cost can be achievedwith the proposed level of investment.

28. As in the early 1950's,Surinam is now poised on the brink of anotherbig investmentpush. How soon the economywill move into this phase is difficultto judge. The mission'sprojections are based on the assumptionthat the big push will take place but that the major impact will fall beyond the end of the period under consideration. It is foreseen that during the next six years the investmentratio will rise to 27 percent of CDP from 18 percent in 1970; the current resource surpluswill be converted into a sizeable resource gap; and the annual inflow of capital,both private and official,will finance almost one-half the volume of capitalformation in 1977. At the same time, consumptionis projectedto'increase in line with GDP.

29. It is fair to say that the most importantfunction of the various Plans has been the preparationof a public investmentprogram includinga list of projects. The capital expenditureprojects originatein the various responsible Ministries and the Planning Bureau compiles the final list. The criteria employed in reviewing the project proposals are not always clenr, hut presumably, the availability of financial resources, the sectoral nndlg]obal.: targets and project feasibility, where these nre available, are taken inito account. The project list is importanlt since it is the basis upon whicth external assistance from the Netherlands and the EEC are negotiated.

30. Between 1955 and 1968 about Sur. f. 176 million of public capital expenditurewas executed,of which about two-thirdswas financedby the Netherlands. The Second Ten-Year Plan 1967-76got off to a very slow start, the first disbursementshaving been made in mid-1968. By the end of 1971, the mid-point of the planningperiod, only Sur. f. 95 million or 75 percent of the projectedexpenditure for the first five years had been spent. For this period, Sur. f. 125 millionhad been committedby the Netherlands,50 percent in the form of grants, 40 percent in soft loans, and 10 percent in loans at market prices. Surinamhas also been eligible for developmentgrants from the European DevelopmentFund (EDF) since 1964, and up to the end of 1970 had obtained about Sur. f. 30 million from this source. Taken together, public investmentprojects includedin the various Plans have countedheavily on external financingprovided on concessionaryterms. The external financing already committedfor the Second Five-YearPlan 1972-76.is proportionately somewhat larger than in the past, while the terms are softer. Of the planned - 13 -

developmentexpenditure of Sur. f. 333 million for 1972-76, the Netherlands has com-ittedSur. f. 220 million plus Sur. f. 30 million carryover from the previous plan period, while the EDF is likely to provide another Sur. f. 29 million in grants. Aid from the Netherlandswill be made available in the form of 60 percent in grants, 30 percent in soft loans at 2.5 percent interest, 30 years life and a grace period of eight years, and 10 percent in loans from the Netherlands InvestmentBank at a subsidized rate of interest of 2.5 percent.

31. The capital expenditureprograms set out in the successive plans have aimed at increasing,investment especially in the directly productive sectors of activitv. However, it has proved easier to prepare and execute infrastructuralprojects. The sectoral distributionof expenditureproposed in the Second Five--YearPlan 1972-76 points to a slight shift from the past pattern, as the accompanvingtable shows. Moreover, there is no obvious link between the sectoral distributionof the expenditureprogram and the sectoral otutput and employment targets that emerge from the economic frame- work of the Plan. By 1976, planned public investmentis likely to account for almost 30 percent of gross domestic investment,or a share that can exert a significantinfluence on the pattern of output and employment growth.

PLANNED PUBLIC CAPITAL DEVELOPMENTEXPENDITURE

Actual Expndtur&e,2i8-71 Second Five-Year Plan, 1972-76

Amount Percent Amount Percent (Sur. f. million) (Sur. f. million)

Agricultureand Fisheries 75.9 21.4 51.7 15.4 Forestry 13.9 3.9 13.9 4.0 Mining and Power 28.2 8.0 62.5 18.6 Industry and Tourism 6.8 1.9 6.0 1.8

Directlv productive sectors 124.8 35.2 134.1 40.0 Transport and Public Wqorks 106.1 30.0 91.2 27.2 Education 15.5 4.4 31.8 9.5 Housing ) ) 15.6 4.6 Health ) 107.6 ) 30.4 24.9 7.4 Other Social Services ) ) 2.8 1.0 General Administration) ) 34.6 10.3 Infrastructureand Administration 229.2 64.8 200.9 60.0

Total 354.0 100.0 335.0 100.0

Source: Planning Bureau. - 14 -

32. The public investment program contained in the Second Five-Year Plan merely lists the projects along with their estimated cost. Since there is no planned schedule of the annual volume of expenditure, it could fluctu- ate sharply from year to year, with disruptive effects on the economy. The mission has attempted to phase planned expenditures for the years 1972 to 1977, taking into account ongoing projects from the previous period. This effort results in a projected peak level'of fixed investment in 1975 (see Table 5.3). It would be worthwhile for the Planning Bureau to atten.pt to phase the expenditure program on the basis of the superior information they now have at hand or could secure from the various Ministries which sUbTlmitted the projects originally. Moreover, it would be worth estimating the effects of the program on various sectors and on economic aggregates such as private consumption, private investment and the resource gap. Given the size of the Surinam economy, individual capital expenditure items can exert a noticeable influence on the economy.

33. The Planning Bureau is assigned a number of tasks of great responsibility. Its staff, however, needs to increase its expertise to perform these tasks. The most urgent need is to augment the Bureau's professional staff so that it can evaluate the key sectors and formulate appropriate developmert policies. The Planning Bureau should know more about these sectors so tha it could program development expenditures and monitor the progress of projects. Apart from the question of staffing, planning could be much strengthened by extending the range of statistics now collected and reducing the time for compilation. In particular, the national accounts are readv for a thorough overhaul; population, manpower and social statistics should be made more readily available and on a consistent basis; and statistical information for transportation, construction and industry should be compiled to serve the purposes of the Bureau. In these respects, the Agricultural Census of 1969 and the Population Census of 1972 provide important basic data.

34. Development planning in Surinam is somewhat distorted by the fact that development funds are not scarce, because of the special ties with the Netherlands. Dutch assistance is extended largely on the grounds that Surinam is a backward region of the Kingdom and, therefore, merits help by that fact alone. The availability of external finance for all categories of development expenditure - capital and current, foreign exchange and local costs - renders less urgent the basic economic development issues of mobil- izing resources, deploying them in a way which yields maximum returns, and promoting private sector activity.

35. Apart from the attitude toward economic development which the close ties with the Netherlands has engendlered, the political system of checks and balances within Surinam has led to disjointed economic decision-making in the public sphere. The ministries responsible for development planning and expenditure, fiscal policy, and the regulation and promotion of production and trade, each pursue their own objectives: although they are formally coordi- nated through a Cabinet-level Economic Council, this mechanism has in practice not always been sufficient. An aggravating factor is the low average level of technical competence in the civil service. It has been difficult for the civil service to retain promising professionals in the face of superior work opportunities in the Netherlands or in private industry in Surinam. - 15 -

III. SECTORAL ISSUES AND POLICIES

36. In contrast to the limited operationalvalue of global or macro- economic planning in Surinam, some of the sectors of economic activity have benefitted from carefully prepared plans and explicit policies. These efforts have focused mainly on natural resource exploitation such as mining, forestry, agriculture and related activities in water management, and transportation. With the objective of attracting private initiative, the Governmenthas made a major effort to evaluate the country'snatural resources and provide the infrastructurerequired for their exploitation. Supportedby financialand technical assistance from the Netherlandsand the UNDP, and intensive program of natural resource stock-taking has been underway since the end of the Sec- ond World War. By now, large areas of the country have been geologically surveyed and mapped, parts of the forest belt have been inventoried and water levels and flows measured. Surinam's resource data bank must be one of the most advanced of all the developing countries. Over and above the resource studies, the country'sinfrastructure in power, transport and communications, and water control has been extended or improved.

37. In 1960 an incentive scheme for private investment was introduced and, more recently, the Government has announced that it is ready to enter into joint ventures with private enterprises. Partly in response to these efforts, a number of large-scale enterprises have already been started.

_ning

38. Bauxite mining and processing is the dominant activity in Surinam. It comprisesbauxite extraction and the processing of alumina and aluminum ingot. In 1970 mining accounted for 31 percent of GDP, 20 percent of gross private investment, 30 percent of government current revenue, and 91 percent of the value of commodity exports. Although the industry employs directly only about 7,000 persons or 6 to 7 percent of the labor force, it exerts a powerful influence on the movement and structure of wages in the economy. With the plans for exploiting the bauxite resources in West Surinam, mining will continue to be the economy'smajor growth element well into the 1980's and maybe beyond. Geological surveys and periodic explorationsby private companieshave shown the presence of other minerals such as nickel, iron and copper. It is not yet known whether the quantities are sufficient to encourage commercial exploitation.

39. Bauxite mining in Surinam dates back to 1916 when the Surinam Bauxite Company, (later reorganized to become the Surinam Aluminum Co. or SUTRALCO),a subsidiary of the Aluminum Company of America, obtained a concession in the Moengo area, in the northeastern region of the country. In the first year of operationabout 2,200 metric tons of raw bauxite ore were mined and exported in schooners (see table). By 1970, the annual volume of output had risen to 6 million tons; at this level Surinam ranks as the world's third largest producer. In the interveningperiod, the industry underwent some far- reaching changes: the volume of output rose threefold during the Second World - 16 -

War when Surinam became one of the few accessiblesources of bauxite; new mining areas at Paranam-Onverdachtwere opened; the N.V. Billiton Maatschappij Suriname (BILLITON),a subsidiaryof the Shell Oil Co., joined SURALCO in mining operationsbeginning in 1941; and the constructionof an alumina plant and an aluminum smelter in the early 1960's sharply raised the value of production and exports.

PRODUCTIONAND EXPORTSOF BAUXITEAND RELATEDPRODUCTS, 1922-71

('000's of metric tons)

Exports Productionof Bauxite Bauxite Alumina Aluminum

1922 2 /1 2 1940 615 /1 615 1950 2,098 /1 2,098 1960 3,455 3,635 1965 4,360 4,369 59 2.2 1970 6,022 3,419 893 52.A 1971 6,800 3,450 1,080 44.C 1977 8,200 3,400 1,100 '65.0 Value of 1970 exports ($ million) 40.4 56.3 25.8 Average unit price 1970 ($ per metric ton) 12 63 515

/1 Production assumed equal to exports in that year.

Source: General Bureau of Statistics,Central Bank of Surinam, And mission estimates.

40. The quality of bauxite now being mined in Surinamis comparatively high and a full range of grades is produced. As of the mid-1960's;proven bauxitereserves in Surinamwere put at 200 million tons; the estimate for probable reserveswas 350 million tons. At current extractionrates, probable reserves are sufficientto sustainoperations for another 50 years. Ore bodies are found at an undergrounddepth ranging from 10-100 ft. Extraction operationstake place below sea-leveland the costs involvedin stripping the overburdenare augmentedby the specialmeasures required for water control. As of 1970, roughly one-half of the output of raw bauxitewas exported, largely in the form of metallurgicalgrade bauxite. Smaller quantitiesof calcined, chemical and refractorybauxite are also shipped abroad directly. The other one-halfof the raw bauxite output is processedinto alumina. About 88 percent of the alumina is exported as such and the remainderis convertedinto aluminum ingot, a process which requiresa heavy input of electricalenergy.

41. Beginning in 1965, the structureof mining productionwas significantly altered when second and third stage ore processingplants came into operation. These facilitieswere erected under the Brokopondojoint-venture - 17 - agreement signed in 1958 between SURALCO and the Government,under which SURALCO financed and built a dam and hydropower plant with a capacity of at least 150 MW on the Surinam River to supply a 60,000 ton/year aluminum smelter. SURALCO also agreed to construct a 1 million ton/year capacity alumina plant, in which BILLITON subsequentlypurchased a 43 percent share.

42. The mining industry currently exports products valued at $123 million or 91 percent of the total value of commodity exports (Table 3.2). For 1970 it is estimated that retained foreign exchange earnings were between 45 and 50 percent of the total generatedby the industry. There is limited scope for expandingwage and salary payments to Surinam residents since the expatriatestaff employed by the industry are few in number. On the other hand, there are opportunitiesto expand local procurement through the development of local capacity in transport,construction, maintenance and repair services as well as the productionof cassava flour to substitute for imported wheat flour, a flocculentused in processing alumina.

43. The transportrequirements of the mining companies have been well adapted to the prevailing conditions. Three port facilitiesare owned and operated by the companies: Moengo on the Cottica River and Paranam and Smalkalden on the Surinam River. Although an outer bar at the entrance to the Surinam River restricts the available depth to 22 feet at high tides, ships with a draft of up to 25 feet can pass through the soft mud. Bauxite produced by BILLITON is shipped to destinationsin the U.S. or South America in three flat-bottomvessels of 18,000 DWT. Alumina is shipped to the U.S. and Europe either in general cargo vessels or in vessels chartered by BILLI- TON's clients. SURALCO products are shipped via Trinidad in special flat- bottom shuttle ships of about 9,000 to 11,000 DWT, or in charter vessels with a capacity of up to 32,000 DWT. The latter take part loads from Paranam to Trinidad, where they are topped off before sailing on. Given the natural conditions of the waterways, the transportationpattern now employed is at or close to maximum efficiency. The consensus in the mining industry is that the costs of increasing the capacity of the Surinam River to carry larger vessels would exceed the benefits derived from lower unit transportcosts.

44. The world market for aluminum weakened in the last 12-18 months as a result of the recession in the United States, the major consuming country, coupled with a rapid rise in world productive capacity. For Surinam, this was reflected in a drop in 1971 exports of aluminum; however, the shipments of bauxite and alumina held up fairly well. The longer term projections for world demand, however, are distinctly favorableas is the prospect for the industry in Surinam. The mission has projected a bauxite output expansion of about 5 percent annually until the new investmentslead to a sharp increase of about 50 percent within the next ten years or so.

45. The large scale investmentprogram is based on concession agreements signed in 1971 between Surinam and a partnership of Reynolds Surinam Mines Ltd. and N.V. GrasshopperAluminum Co. (GRASSALCO). GRASSALCO is a government-owned company. The agreements assign exclusive prospecting rights to Reynolds over an area of about 1.7 million ha. in West Surinam. It is expected that Reynolds - 18 - will concentrate its efforts on selecting a concession area of 20,000 ha. for exploitation in the Bakhuis Mountains although the company has options to exploit new areas near the coast. The agreements provide for staged investments by Reynolds in opening mines and erecting an alumina plant with an initial capacity of at least 200,000 tons/year. GRASSALCO would participate to the extent of 50 percent in all operations up to the point where the alumina plant reaches 800,000 tons/year. The Government is obliged to build a railway from the mine site to a port at Apoera, provide the port facilities and adjacent urban infrastructure, and make the Corantijn River navigable for lighters between Apoera and the sea. As a further stage, Reynolds would build an aluminum smelter if studies show that a hydropower plant of at least 125 MW capacity can deliver energy at Apoera on the Corantijn River at an average cost of US 4 mills per KWh. The Government would be responsible for the power supply. In this respect, the IBRD has agreed to act as executing agency for a UNDP-financed study of the proposed power development project.

46. The West Surinam mining development plan is still in the early stages of exploration. However, there are good chances that the project will be implemented more or less along the lines envisaged. For the period to 1977, a sizeable volume of public and private investment in bauxite mining and related infrastructure is likely. Included would be the opening of a mine in the Bakhuis Mbuntains, construction of a railway line about 80 km in length, port facilities and town services at Apoera, dredging the Corantijn River beyond Apoera and the start of construction of an alumina processing plant. Altogether, fixed capital expenditure in the amount of roughly Sur. f. 125 million is projected for the period 1972-77. Towards the end of the period it should be possible to produce and ship a relatively small volume of bauxite; large-scale increases in output can be expected to emerge towards the end of the decade and into the 1980's.

47. The Government is an active participant in the West Surinam Pro- ject. It is directly involved in the productive process through ownership of GRASSALCOand the proposed railway. The Government will also provide certain other facilities and begin the hydropower study. The financial resources required for the participation of the public sector are being provided under the Dutch aid program for the Second Five-Year Plan; the sum of Sur. f. 90 million from the Netherlands has been designated for this purpose. From a longer-term perspective the exploitation of mineral resources in West Surinam is viewed as the beginning of a broader-based development program for that region. An especially attractive element of the visionary regional development plan for West Surinam is the creation of an urban center at Apoera, counterbalancing Paramaribo.

Agriculture

48. Agriculture, including livestock and fisheries, contributed about Sur. f. 50 million or 9.5 percent of GDP in 1970. In that year, agricultural products made up about 5 percent of the total value of commodity exports. Some 22,000 persons or about one-fifth of the labor force is engaged in the sector. Productivity is therefore on average much lower than in the 19 _

rest of the economv. Of the total land area of 16 million hectares, only 94,00lQ hectares or 0.6 percent is classified as cropland. Sixty percent of this area is c!even over to crops and pasture and the remainder is not utilized (TaMle 7.1). The major crop, by far, is rice; it is cultivated on about 4n,00O hectares.

49. According to the 1969 Agricultural Census, there were 16,078 farms or muc! the same number recorded by the previous census in 1959. M'ore than 80 percent of the farms are 5 hectares or less as showqn in the accompanying taBle, and the average size of farm has declined since 1959.

NUMPEP OF FARMS BY SIZE, 1959 and 1969

Size of farm (in ha.) 1959 1969

( 0.5 1,144 (7%) 1,461 (9%)

0.5 - 5.00 12,041 (74%) 11,901 (74%)

5.00-20.00 2,654 (16%) 2,365 (15%)

>20.00 400 (2%) 351 (2%)

Total 16,239 (100%) 16,078 (100%)

Source: AgrictulturalCensus, 1969.

The Census also reveals that since 1959, the average age of farmers has increased as has the numher of farmers whose output is not marketed. The agricultural labor force has declined by 16.7 percent over the period 1953-68. The trend in the rural sector is therefore one of increasing migration to urban areas and of growing importance for large-scale mechanized farms. The income differentials between self-ermployedsmall farmers and agricultural laborers, and between agricultural incomes and national average incomes help to explain these tendencies: Rough calculations suggest that a rice farmer harvesting 2.5 ha. with 1.5 crops a year can expect net receipts of Sur. f. 1,071 a year; a coconut planter on 2.5 ha. can expect about Sur. f. 1,200 in gross receipts for a year; while an agricultural laborer at the largest rice farn obtains Sur. f. 1,690 a year in wage income; and a laborer at the major banana plantation earns Sur. f. 1,864 annually in wages. Per capita GNP in 1970 was estimated at Sur. f. 1,272 or a family income of probably four times that level.

50. The record of agricultural production as a whole since the mid- 1950's has been outstanding. Because of the expansion of large-scale commercial agriculture in rice and bananas, real output advanced at an annual average rate of about 6.5 percent in the '50's and '60's. During the last - 20 -

six or seven years output growth accelerated to an annual rate of over 10 percent. The most important dynamic components were rice, bananas, and also shrimp and poultry. On the other hand, the output of traditional snallholder tree-crops such as copra, cocoa and coffee, declined.

51. Much of the impetus for the growtlhof agricultural output came fror. a few large-scale and export-oriented enterprises: the SticlitingNIachinale Landbouw (SML) in rice, the Surinam Agricultural Enterprises, Inc. (Surland) in bananas, and the Surinam American Industries, Ltd. (SAIL) in shrimping.

AGRICULTURAL, FISHERIES, AND LIVESTOCK PRODUCTION AND EXPORTS

Percentage share Percentage share Volume of output of gross value of agricultural 1963/64 = 100 of production exports 1953/54 1969/70 1968/1 1970

Rice 70 159 29.4 44.1 Bananas 64 1,055 6.7 26.3 Sugarcane 51 71 11.1 7.6 Vegetables 33 209 4.8 - Citrus 93 129 2.2 8.5

Coconuts 114 107 1.3 Cocoa 51 40 1.0 1.8 Coffee 119 55

Shrimp 23 183 11.6 8.5 Livestock and poultry 65 204 22.6 - o/w poultry (55) (209) (13.5) (-)

Total 53 /2 150 /2 90.7 96.6

/1 Valued at producer's prices. /2 Mission estimate.

Source: Ministry of Agriculture, Animal Husbandry and Fisheries, Central Bank, Planning Bureau, and mission estimates.

These enterprises have applied modern capital-intensive techniques and have been oriented towards exports. Government investment in roads, irrigation and other facilities has assisted these enterprises. The banana enterprise is government-owned. An increasing share of crop production has corme fror- the larger farm units and plantations: by 1968, the latter were contributing 53 percent of the total value of crops as compared with 37 percenit in 1T .

52. The Second Five-Year Plan 1972-76, discusses the objectives for the agricultural sector and a related list of public investment projccts to be undertaken during the five-year period. Among the quantifiable objectives are: a real output growth in agricultural production of 7 percent a year; an - 21 - anrrual volune of pulhlic anid private investment about twice as high as that acMieved during the past decade and one-half; a significant expansion in acreage under crops or in pasture; and the creation of employment opportunities for an additional 5,fO0(C persons. In short, the expectation is that the agricultural sector can surpass its past record of performance in expanding output and productive capacitv and even reverse the historical trend of an absolute decline in agricultural employment.

53. While it is true that agriculture can contribute to a more diversified and balanced pattern of growth, the plan assumes a pace of development in the sector which is optimistic. A review of the productive capacity of sore of the major agriculttural products and their market prospects both at home and abroa'4 suggests that a more realistic projection of output growth over the next five or six years would be an annual rate of 4-5 percent in real terms (see Table 7.14). Market constraints are a major factor in this projection.

54. There is not much doubt that, spearheaded by the highly mechanized operations of the Dutch-financed SNL at 1Wageningen, Surinam can easily expand the production of rice. This major enterprise accounts for about 30 percent of total paddy production and has developed special strains of long- grain quality rice with yields averaging 3.5 metric tons per hectare per crop or 5.5 tons per hectare per year. The scientific rice-growing methods developed at Wqageningen are being introduced successfully on medium-sized farms of around 25 hectares and more slowly on smaller farms of 5 hectares or less. Partlv because of deficiencies in extension and credit, the smaller farmers have found it difficult to adopt the new technology and their output has, in general, been inferior and difficult to market. The Government has therefore introduced a rice stabilization program under which it purchases some grades of paddy at fixed prices. However, although rice is a major item in the local diet (per capita consumption is about 115 kg. per year), the income elasticity of demand is less than 0.4 and an increasing preference for other grains especially wheat has become evident. Despite increasing domestic demand for rice for industrial purposes such as cattle feed and brewing, the main outlet will continue to be exports. The bulk of rice exports is destined for European Common Market countries, with a fixed EEC quota of some 25,000 metric tons increasing at a rate of 5 percent a year. Surinam rice, largely in the form of cargo or brown rice, enters the EEC at a reduced tariff. The Netherlands Antilles is the second most important market, but exports there are not expected to grow rapidly. Traditional markets in Martinique and Guadeloupe have been lost in recent years to Colombia, Nicaragua and Vene- zuela which have managed to undercut Surinam prices by as much as 25 percent. Despite the excess supply of rice on the world market, Surinam's high quality production and preferential access to European markets argue for continued expansion of exports at a rate of 4 to 5 percent a year. This projection assures, however, that average product quality is maintained, that transport costs do not rise excessively, and that parboiled rice will become a significant export item to European markets. - 22 -

55. The spectacular growth of banana production and exports since the mid-1960's was based on modern technology adapted to local conditions. Owing to a massive planting program by government-ovned plantations, the harvested acreage was extended from 300 in 1965 to about 1,500 ha. at present and yields of high quality bananas rose from 13 to about 30 metric tons per ha. over a period of about six years. Small-scale planters produce a poorer quality product and obtain smaller yields. Surland sells the bulk of its output to the United Fruit Company which ships the bananas to Europe. Contracts with the United Fruit Company are negotiated annually. Surland plans to expand the planted area by about 1,000 ha. over the next three or four years to yield a rate of advance in output of almost 6 percent a year and an equivalent rate of growth in exports. The key assumption here, however, is that the United Fruit Company is prepared to absorb the increased output in the presently weak world banana merket.

56. Citrus is cultivated on 23 plantations, five of which exceed 100 ha . and contribute over half of the output of oranges and most of the grapefruit. The rest is produced by numerous small-holder farms. Output growth has been modest despite preferential access to the Netherlands market. About one- third of the output volume is exported by the Citrus Growers' Cooperative, after being packed by the Surinam Citrus Central, an agency which is subsidized by the Government. The industry has had to contend with a range of obstacles including inadequate water control, wide variations in product quality, labor shortages, the lack of refrigerated storage, and relatively high transport costs for export (35-40 percent above f.o.b. Paramaribo prices). If some of the production and marketing problems can be resolved, the prospects for increased citrus production and exports, especially grapefruit, are favorable. The projected increase of 10 percent per year in output and 12 percent in the volume of exports assumes that current prices and average quality will be maintained and that Surinam suppliers will increasingly take advantage of the seasonal shortages in European markets.

57. Of special interest is an experimental commercial citrus project in the interior. Currently, all the citrus plantations are in the coastal area, especially the Commewijne District, where soil conditions, problems of water management, and the limited possibility for mechanization, inhibit growth. These problems do not exist in the interior, but poorer soils will require artificial fertilizers. If the experiment in the interior succeeds, a large expansion of citrus production would become possible.

58. Sugar, one of Surinam's traditional export products, has met with serious problems in recent years. Since 1966, when a peak cane harvest of 250,000 metric tons was reached (or a sugar output of about 25,000 metric tons), both output and yields have declined steadily. In 1970, one of the last two remaining estates ceased operations and the harvest fell to 120,000 tons of cane (or 13,000 tons of sugar). Sug-arproduction has been subject to rising labor costs. At the same time, local prices have been officiallv fixed since the early 1950's. Although1 Surinam receives an EEC quota at favorable prices, domestic producers must meet local needs first. Wqith the decline in production the export quota has gone unfilled, anc4 a small volume of imports is now required to satisfy domestic consumption. Toreover, it has become necessary - 23 -

to impcrt molasses to sustain rum production at the Dutch owned Marienburg plantation, which exports to the Netherlands and West Germany. The outlook for sunar in Surinam is rather bleak. Even with an increase in the domestic price, which has been kept stationary since 1957 the Marienburg sugar mill which closed in 1972 but will, it is hoped, be reopened would have to undergo a thorough rehabilitation and the modernization before it can hope to pay its wax. The projection to 1977 assumes, perhaps optimistically, that the 1970 output will be sustained, with declining exports. There is strong public pressure to keep the sugar enterprise in operation since it employs about 1,33 persons. Most recently, the Marienburg labor union has been consider- ing nlans to buy the plantation.

59. Among the remaining products, vegetables are the most important in terms of value of production. Since 1964, outpulthas grown rapidly in line with higher income levels and an increasing degree of urbanization. However, averag,e prices fcr these items have risen sharply, contributing significantly to increases in the cost of living. Moreover, a disorderly marketing system and the absence of storage and processing has led to wide seasonal fluctuations in supplies and prices. A major project, the first stage of which was financed by the European Development Fund (EDF), is underway. Covering a 900 ha. area on a sand ridge in the Saramaca District, some 100 farmers will be supervised in the production of onions, tomatoes, cucumbers, beans, sor- ghum and corn. The project should expand the vegetable supply significantly and possibly allow for some small exports.

60. Coconut growing and processing into edible oils was once a major industry in Surinam. In recent years both the harvested acreage and yields have been declining with the neglect of most of the plantations. Plans call for a major program of rehabilitation and replanting with the Malayan Dwarf Palm, on an acreage of some 1,600 ha. At the same time, a major project in a joint venture between the Government and a Dutch firm has been launched to grow oil alm in the Brokopondo area, in the interior of the countrv. The mission's projections point to the production of about 6,000 tons of palm oil bv 1977, with one-half of the output being exported.

61. Livestock, which accounts for almost one-quarter of the value of agricultural production, has grown very rapidly since the mid-1950's. About 80 nercent of the increase in the value of livestock outpu-t over the 1960's was due to the advance in the production of poultry and related products. However, beef and dairy have not done well. The beef cattle herd has actually declined since 1966. A dairy herd larae enough to support a government-owned milk and butter processing plant had been established by 1966, but production inefficiencies and a government-fixed price spread between producers (Sur. f. 0.22 per liter) and consumers (Sur. f. 0.33 per liter) have brought the enterprise to the verge of closing. Surinam now imports Sur. f. 6 million in livestock products or about half the gross value of output of livestock products. There is thus considerable scope for import-replacement. On the other hand, the industry cannot readily increase its contribution to the economy so long as it is confined to the coastal plain where the natural conditions for livestock, other than poultry, are not ideal. As in the case of other agricultural activities, experiments in the interior could in time improve the prospects for livestock development. - 24 -

62. Fishing accounts for about one-sixth of the gross value of agricultural production; shrimping, in turn, accounts for three-quarters of the value of fish production. The waters off the northeastern coast of South America yield an estimated volume of 25 million lbs. of shrimp a year. In 1970 some 75 trawlers based at Paramaribo landed 7.7 million lbs. of shrimp or one--thirdof the total catch in the area. The shrimp are processed and prepared for export to the U.S.A. and Japan at a plant owned by U.S. interests. Given Surinam's favorable location in relation to the shrimping grounds which are now being fished at about 70 percent of capacity, some excess capacity at the existing plant, the removal of restrictions on the establishment of new plants, and buoyant demand in world markets, the prospects for the continued rapid growth of shrimping in Surinam are highly favorable. However, the announcement by Brazil in March 1970 that it was defining its territorial limits to extend 200 miles from its coast, thus "nationalizing" about 60 percent of the lucrative shrimping grounds, could hamper the growth of shrirmping in Surinam unless some accomnodation is arrived at with Brazil. In the wake of the Brazilian announcement, about 30 trawlers have been withdrawn from Paramaribo. The possibility of establishing a shrimp farm is under consideration, but the chances of starting a commercial operation in the mcdi term are slim. Inland and sea fishing, other than for shrimp, is expecre( : advance only at a modest rate. This is because swamp fishinc is on the decline as more and more of these areas are reclaimed, equipment employed in the fishing industry is antiquated, and prospects in the industry are damp- ened by the lack of a fishing tradition. In these circurstances the mission's projections for fisheries output is an annual growth rate of about 2 to 3 percent to 1977.

63. The above review of prospects for the various agricultural commo- dities is based in part oni the composition of the planned public investment program. The Second Five-Year Development Plan, 1972-76, allocates about Sur. f. 52 million to agriculture or roughly 15 percent of the combined Dutch and EEC development aid likely to be available. The major thrust of the proposed investment program favors increasing the availabilitv of land for small-scale farming. The detailed considerations underlving the selection of projects and their likely economic impact have not been published. Much of the largest share of capital expenditure is to be used in the expansion of the cultivable area in the coastal plain, especially that for srlall- scale rice production.

64. The goals of reducing unemployment and improving income distribution figure prominently in the Second Five-Year Plan. To help attain these objectives, the Government seeks to provide attractive economic opportunities in rural areas. For the agricultural sector, the specific target of increasing the employed labor force from 22,000 in 1970 to 27,600 in 1976 has been set. Over the period 1953-68, as noted earlier, employment fell by 16.7 percent. Past government efforts to directly generate farm employment have not been entirely successful. Of some 10,000 ha. prepared for cultivaticn and distributed among farmers since 1955, onlv 63 percent was being utilized towvards the end of the 1960's. - 25 -

65. Surinam will in all likelihoodhave to rely on the few large commercial enterprisesin aariculture to sustain growth it the sector. Gradual- ly, increasinggovernment investmentin the areas away from the coast will be required to make the latter objective nossible. The interior offers pos- sibilities for drv crop and livestock farming that merit active exploration: if combined with adequate pricing policies, this effort could help stem the rapidly growing volume of imports of foodstuffs,which accounted for 11 percent of total imports in 1970. At the same time, more can be done through extension, education and credit to raise incomes of small farmers on the coast, although the goal of larger employmentin agricultureis likely to be difficult to attain.

6i6. Tanv of the importantpolicy issues identified by the mission are alreadv under study by the Covernment;in respect of some, their implementation is under way. The specific areas in which the mission believes efforts should he concentrated are the following:

a. establish a tax on the imputed rent from land so as to induce owners and lessees to bring unimproved and idle land into production:

b. improve the maintenance and management of the water control system including levying and collecting water rates at a level which more adequately reflects the real cost of the resource;

c. strengthen the extension and rural education services, if possible also making commercial farmers to pay for such services, and link them with a program of supervised agricultural credit;

d. consider the establishment of a marketing board, with adequate storage facilities in order to eliminate the sharp fluctuation in the local market for agricultural products;

e. encourage, through fiscal and financial incentives,the processing of local vegetables, fruit, dairy and meat products;

f. intensify efforts to explore the potential of agriculture in the interior of the country, especiallv for dry farming and for livestock,

g. seek a closer collaboration between the Planning Bureau and the Ministry of Agriculture in a putblicinvestment program for the sector; and

h. upgrade the level of education and health services in the countrysiderelative to those provided in the Paramaribo area. - 26 -

Forestry

67. The relative importance of forestry, including wood processin-, in the Surinam economy has declined significantly since 1953. the earliest year for which comparable data are available, when the sector's share of GDP was 4.8 percent. By 1970 it had fallen to 2.9 percent as a result of a decline which began in 1966 in the volume of output and exports. Forestry has had to contend with a range of problems including increasing costs of extraction, diminishing supplies of some key species, and noor technolo5y. In recognition of the difficulties facing thlis sector of activity, thleGov- ernment has launched a forestry management program in order to rehabilitate the industry. It will probably take most of this decade to reverse the past course of development.

68. In the post-war period, the production of timber for industrial purposes reached a peal of 282,700 cubic meters in 1966 and then declined fairly steadily to a volume of 199,100 cubic meters in 1970. Similarly, the volume of production and exports of lumber and processed wood declined, but higher prices for plywood and lumber helped maintain the value nf exports. Increased production costs, the greater availability and acceptance of substitute construction materials, and stiffer barriers to entry in Caribbe.in markets have adversely affected exports. Of all the wood products now e- ported, lumber would seem to have the best prospects for the near future.

69. About 90 percent of the countr,y is forested, but of this area only 7 percent or about 1 million ha. contain presently accessible timber resources of commercial value. As it is, forest operations have already exploited 80 percent of the Virola stancls (the species employed in making plywood), about half the marsh forest and about one-tlhird of the forest belt, a 10-40 km. wide zone of high tropical forest which traverses the country fror east to west. Furthermore, the reaeneration of species following extraction is extremely slow. It is estimated that the volume increment of commercial species cut from the high forests is no more than 0.2 cubic meters per ha./ year. The maintenance of present extraction rates, therefore, means that logging operations will have to extend further into less accessible areas with a consequent increase in production and transportation costs. The fact that it has become necessary to import Virola to sustiin plywood nroductirn is an indication of increasing difffculties on the side of sunplv.

70. Over 90 percent of the total tiriber output is cut on state-owned forests by private loggers operating under a svstern of concessions. There are numerous sr.all-scale operators with linited financial resources and technical training and who employ a primitive technology. As lo-ging operations have moved further away from tihe river banks in search of marketable timber, a higher degree of mechanization has come to be required andi hence a larger average size of firm. At present ahout 15 medium-sized lo-ging enterprises are operating. The largest and one of the oldest enterprises is the Dutch-owned Bruvnzeel Company. An inteigrated timber complex. it holds extensive timber concessions under a 25-year contract, accounts for about 40 percent of total timber production, emplovs one-quarter of the industry's - 27 -

lahor force and is the major exporter of wood and wood products. Further- more, it ocerates the largest sawmill (50,000 n3/yearroundwood capacity), a plVTrIoodmill (19,000 m3/vear capacity) and a particle board plant (30,000 m3/vear capacity) and sets roundwood grading standards for thi-industry. Squeezed bv rising logging and milling costs, poorer quality timber, and increased sales competition both at home and abroad, Bruvnzeel has sought to diversify its production to include prefabricated wooden houses. It is experimenting with different models and price ranges with an eye on the Puerto Rican market and others in the Caribbean region. The economic future of the company depends, in part, on the successful marketing of this new product line. Equally important will he the terms under which Bruynzeel's logging concession, due to expire at the end of 1972, is renewed.

71. Since its establishment in 1947, the Forest Service, with a rela- tivelv small complement of trained personnel, has been intensively engaged in efforts to inprove forest exploitation. Of major importance is a com- orehensive reforestation orogram inaugurated in 1968 and financed under the development aid program. Its aim is to convert part of the already exploited forest into a permanently productive forest estate producing fast-growing species of softwoods for industrial uses and hardwood timber for export in the form of lumber. The Forest Service has under way a road-building program designed essentiallv for logging but expected to serve other traffic needs as well. One of these roads will form a second east-west link across the width of the countrv and provide access to a utimberof areas in West Surinam: this road is probably over-designed in relation to the likely traffic on it.

72. The Second Five-Year Plan has allocated Sur. f. 13.9 million to support the continuation of these projects. At present, conversion losses at sawtmills are as high as 60-65 percent (3ruynzeel with a 40 percent loss is an exception). Forestry development in Surinam will be bolstered by a UNDP/FAO technical assistance project including a large-scale forest inven- torv, timber testing, fcrest industry feasibility and marketing studies, forest management practices and staff training at all levels.

73. As previously noted, these efforts are not likely to yield results in the verv near future. The expectation is that over the next five or six yeears, the outptut and export of forest products will increase only modestly. However, if a plant to produce chips from mixed hardwiood species is established in Surinam under the auspices of the Weyerhaeuser Corporation, a faster rate of growth could be expected in the second half of the decade.

anufacturing and Construction

74. Manufacturing and construction have been the fastest growing sector in the economy. Value added in industrv and construction rose from 8.2 percent of CMP in 1953 to 13.4 percent in 1970, while employment in the sector rose from 14.3 percent to 17 percent of the labor force in the same period. In 1971 the value added in the sector exceeded that of agriculture and for- estrv combined, and 19,000 people were employed in industry and construction. - 28 -

The rapid advance in manufacturing, without including the processing of bauxite and wood products, reflects the establishment of manv small-scale plants, producing essentially for the small local market. The principal agro-industries include rice milling, sugar, molasses, rum and cattle feed. Other important industries produce textile, footwear, furniture, cement, paints, soap powder, telephone switching equipment, beer and soft drinks. Small quantities of textiles, footwear and furniture are sold abroad: altogether, the value of exported manufactures in 1970 was onlv aboultSur. f. 1 million. A telephone switch gear assembly plant, under the auspices of the ITT, began production in 1971. Some 60 emplovees are engaged in assembling telephone system components, all the parts being imported. Construction, the other branch of the industrial sector, is fairly well developed. The capacity in that industrv was greatly expanded during the 1960's when a number of major public and Drivate construction projects were executed.

75. The rapid growth of manufacturing, in the past decade is due in part to a range of inducements provided by the Government. The Investment Ordi- nance of 1960 provided for five to ten-vear tax holidays or accelerated de- preciation allowances, and exemptions from import duties on cap-tal goods and raw materials to those firms which invest more than Sur. f. 25,000 annually and generate an annual wage bill of at least Sur. f. 10,000 for non- supervisory employees. Protective duties and, in a few instances, auantita- tive import restrictions have been imposed with the object of fostering local production. In comparative terms, however, the average level of protection in Surinam is low. This condition is due, in part, to Surinam's association with the EEC and in part to the preference of the authorities for an open trade policy. Apart from indirect inducements, the Government has also con- structed two industrial parks at Doorsteek and Bethesda, which presently accommodate a number of small manufacturing plants; the National Development Bank makes funds available for industrial development on terms that are somewhat more favorable than those offered bv the private banking communitv. A special fund supported by the Dutch Government makes feasibility studies for industry and provides loan and equity funds. The availabilitv of suitable finance for industry does not appear to be a problem in Surinam. Recently the Government has enunciated a policy of participating in joint ventures with private enterprises. The agreement with Reynolds mentioned in para. 45 above is a case in point; another, recently concluded, involves the Overseas Gas and Electricity Company, a Dutch-owned firm which services Parameribc ancd its environs. In both instances, the Government acquired 50 percent of the equity but assigned management responsibilities to its partners.

76. Starting from a small base, the rate of industrial growth in Suri- nam has been very rapid. It is most unlikely that the past rate of advance can be maintained because of the small size of the domestic market. It limits the possibility of obtaining economies of scale in production. In addition, Surinam is at a disadvantage in terms of location and the average level of wage costs, alreadv relatively high, is lilkelyto increase further as the degree of unionizatioC increases. However. laco r.3tesfor s!;illed labor are not hiallenough to dissunade them from seekinc, stuperior worlk opportunities abroad, especially in the Netherlands, or with t!he mining enterprises at - 29 - hore. It is esneciallvdifficult to attract and retain professionalperson- nel with technicaltraining or those with managerial and marketing skills. These difficultieshave already contributed to the closing of some manufacturing plants, notably a brick factory, a confectionaryplant, and a meat processing enterprise.

77. The factors pointing to a moderationin the rate of growth of man- -i4acturingoutput are not applicable to construction,which is likely to lace a strong demand for its services arising from the ambitious public investment program and the major private investmentplans foreseen between now and 1977. The Second Five-YearPlan assigns Sur. f. 6 million for direct industrv support. For the industrialsector as a whole, the mission projects an annual growth rate of 9 percent in real output or a considerably higther rate than for CDP as a whole. By 1977, the sector should account for 17 percent of CDP. Exports of manufacturedproducts, however, are expected to increase more iModestlv.The best prospects are for shoes, furnitureand mattresses: textile exports, in contrast.,are likely to fall.

78. The above projectionsassume that the existing favorable corporate tax rates and incentive measures will not be altered. Moreover, it is anticipated that the Governmentwill establish a single agency in which industrial promotion activitiesof the public sector will be centralized. The central promotion agency should be able, more than was the case in the past, to channel governmentsupport to activitieswith reasonablygood prospects for efficient performance.

Tourism

79. The tourism industry in Surinam is small. In 1970, an estimated 5,500 touristswere attracted to Surinam. They stayed an average of four days and contributedabout Sur. f. 2.5 million in foreign exchange receipts. Off the beaten tourist track and lacking the prime resources of sand and sea, Surinam's major tourist asset is wilderness recreation,including visits to the primitive cultures of the Bushnegroes and the Amerindians. Given the resource constraints,tourism cannot be expected to greatly increase its contribution to the GDP in the next five or six years. Nevertheless,little or no effort has been made so far to exploit the existing potential. The budget provides negligiblefunds for the tourism developmentagency and guidelines for private developmentof tourist facilitieshave still to be enunciated. Althouph existing and planned hotel space should be suifficient to accommodate the flow of tourists over the medium-term, facilities in the interior are mea-gre. Moreover, hotels find it difficult to retain trained service staff in the face of competitionfrom similar establishmentsin the Netherlands. The Covernmenthas recently set aside areas or reserves for recreationand the protectionof wildlife. As in the case of industrialdevelopment, there would seem to be a need for a studied tourism developmentstrategy and the machinery,adequately funded, to implement it. - 30 -

Transport

80. The transportationsystem in Surinam is relatively well developed. Surinam is virtually an island, in terms of internationalcommunciations. Only negligible volumes of goods and people cross the river borders with Guyana in the west and French Guiana in the east, and no traffic crosses the Brazilian border in the south. Good access to the sea is, therefore, of prime economic importance. Access, however, is hampered by extensive shallow mud banks blocking the entrances to the main rivers. With a depth of 21-22 feet at high water, the Surinam River is the only water artery with a reasonably deep channel. Since the mud at the outer bar is soft, vessels with a draft of up to 25 feet can pass at high tide.

81. As for internal transportation,the pattern of settlement results in low inland traffic densities. East-west road traffic across the width of the country is interruptedby six rivers now traversedby ferries. River transportation by self-propelled barges, speedhoats and motorized canoes, provides the only means of access to large parts of the interior. A network of eight small airfields built in 1960 for the "Grasshopper" e-ploration - and some 30 smaller airstrips for medical and missionarv purposes provioe _n air link among the more important centers of the interior.

82. Despite the difficult transport conditions,there is no evidence of serious bottlenecksimpeding economic development. Indeed, in respect of some modes, there is excess capacity. Moreover, it is a fair estimate (transportservices are not shown separately in the national accounts) that a sizeable share of national transportservices are captive to mining, agricultural and forestry enterprises and are included in those sectors of the economy. In view of these considerations,therefore, the share of foreign developmentaid that is earmarked for transnortationprojects appears to be inordinatelylarge. The proposed allocation of Dutch loans totalling Sur. f. 160 million for 1972-76, at present subject to ratificationby the Nether- lands Parliament,will probably lead to substantial financing for transport investments. In addition, the EEC is expected to provide Sur. f. 5 million for three transportationprojects, while roughly one-half of the Sur. f. 90 million set aside for West Surinam, is destined for rail and river transport infrastructure. Moreover, the Forestry Department is building a 250 km. forest road between Zanderij and Avanavero at the western border, and numerous agricultural roads are includled in the expenditures of the Department of Agriculture. Related to the issue of volume of expenditure is the concern that the expansion of transport infrastructureis being undertakenwithout the benefit of a transportplan and without the machinerv to coordinate the execution of transport projects among the various responsible Ministries.

83. In principle, the responsibility for planning, design, execution and maintenanceof public transportationprojects other than in aviation is vested in the Ministry of Public Works and Transport. The Mlinistrvis also responsible for public works requirements of Paramairibo and its i7'mediate surroundings. Indeed, the planning department within the MIinistrxy is almost exclusively concernedwith city nlanning: transportplannin¶ in a national context is limited. The Ninistrv suffers fron a severe shortage of staff at - 31 - the supervisory and admrnistrative level. Again, thlis difficultv can be traced to the competing opportunities in the Netherlands and in industry. Since economic feasibility studies for transportation projects are, as a rule, not prepared in the Ministry of Public Works and Transport, the responsibility for project selection has passed by default to the Ministry of Develonrent. The latter Ministry is not well equipped to provide a basis for decisions on transport sector requiremients.

't~4. Takino as its starting point tCe comprehensive sector survey completed bv NEDECO in 19C< (financed by UflDP and executed by the IBRD) the mission reviewed recent changes in the capacity and functioning of the various transport modes and examined, where background information was available, major projects slated for execution under the Second Five-Year Plan. The conclusion and recommendations that emerge from the review are summarized below:

a. There is an urgent need to strengthen transport planning and. coordination in both the Ministry of Public Works and Trans- port and the Ministry of Development. A full-scale economic feasibilitystudy ought to be completed for each of the major transport projects in the Second Five-Year Plan before they are undertaken. A complementary requirement is the regular collection and systematic compilation of statistics covering on the transportation sector;

b. With the newTly built cargo facilities at the Paramaribo port, capacity should he adequate at least until 1980. Existing port changes, however, are too low in relation to the services provided. Since there are no obvious grounds for a subsidy here, rates should be increased at the port. Deteriorating conditions at the mouth of the MNew Nickerie River are adversely affecting the operations of the port there, the countrv's second largest. Changing shipping patterns, however, may make it unneccessary to undertake costly improvements at New Nickeriei its role is likely to change to that of a feeder port for Paramaribo. The proposal to construct a jetty at nearby Slangeneiland with a 30 km. connecting read is likely to be difficult to justify on economic grounds.

c. Since indirect measures reveal that traffic densities outside Paramaribo are low, the relatively high standards of highway constructions would seem to be inappropriate. On the other hand, low traffic densities are partly due to the cumbersome operations of the ferries; the infrequent crossings and the long loading time discourage traffic. Considerable benefits could be had for road transport if ferrv onerations were to be improved. The economic justi- fication of possibly substituting some of the ferries with bridges would have to be the subject of a special study. - 32 - d. The high standards of road construction mean that current maintenance costs are low; such maintenance as is required is done reasonably well. In view of the concern to reduce the volume of unemployment,however, the attitude tovards road standards might be reviewed. The mission also recommends downgradingthe road project east from Meerzorg, which calls for an expenditure of Sur. f. 2.5 million or Sur. f. 120,000 per km. The road could stand modest improvement in certain places, but it is doubtful that it will result in an increase in production in that area sufficient to justify the cost. Similarly, the 250 km. east-west connection from Zonderij to Avanavero is being built at a standard well above that required for proposed uses and expected traffic flows. e. The country's last remaining railway line, some 85 km. in length connecting Onverwacht and Brownsweg incurs annual losses amounting to ( percent of its capital cost. The line is deterioratingand, for safety reasons alone, should be replaced by a road; the area would be better served by this mode. A side benefit could be had by converting the antiquated railway shop at Beekhuizen into a renair and maintenance centre for road equipment. The Second Five-Year Plan project list should include a road project to replace the railway. f. Surinam is well served by international air transport, but domestic air service is at an early stage of development. The Plan allocates Sur. f. 10.2 million for aviation, including the preparation of the international airport at Zandery to accommodate jumbo-jets, improving air communications and safety and maintaining airstrips in the interior. While the mission finds that the amount allocated for widening, strengthening and the provision of turning loops at the Zanderv airport is below the costs of normally expected for improvements of this kind, it questions tle need for substantial investment in improving air coTmmunications andl safety in tihe light of a projected modest grcwth in air traffic, and the possibility that the frequency of landings will be reduced. The association of Surinam with KL4 in re'ional air transport schemes is to be encouraged. g. The 1968 NEDE00 study led to regular hydrological observa- tions and study of the coastal areas and river systems on a continuing basis. The Hydrology Department in the Minis- try of Public Works and Transport, which shares some of the responsibility for this work, faces a severe shortage of staff and a lack of equipment. Moreover, the costly Deccn location system is in a state of disrenair. The svs tern should be rehabilitated, and technicians traired for its - 33 -

proper use and maintenance. Continuityof observationsis an extremely valuable source of informationfor the future development of natural resources.

h. The funds at present allocated for infrastructurein the West Surinam project will probably have to be substantially expanded, once the study at present underway by NEDECO has brought out the justificationand design for the proposed investment. The study includes the alignment of the railway, the need to dredge the Corantijn river, loading and transfer facilities, and design of the special 5,000 ton barges to be used for shipping bauxite and related products.

In conclusion,a number of improvementsare possible in the planning of transport investment. These should begin with a substantialstrengthening of public sector planning abilities in the sector. Of the decisions to be taken in the immediate years ahead, an important one will be to allocate suifficientfunds to the West Surinam development,so that the proposed transport investment in the area will be meshed with the timing of the bauxite investments. Another area where additionalinvestment is probably needed is for the river ferry crossings. On the other hand, substantialeconomies can probably be realized in the highway, port, and airport constructionand improvementprograms, excluding, of course, the parts of those programs related to the West Surinam development.

Social Services

M5. On the whole the expansion of social services, covering education, health, housing and utilities, has kept pace with the advance in income and population. Of the various services, adequate standards of health care have been the most difficult to maintain. A fundamentalproblem here, as in the case of other social services, is the shortage of trained manpower. The proposed expansion in capacity in the social services is in terms of physical facilities;there should be no difficulty in executing these elements of the program. But unless provision is made for staffing the schools and clinics, they will be inoperative. In this respect, the plan to expand the University of Surinam is encouraging,but it will of course take time to build up the University to a level competitivewith that of Universitiesin the Netherlands. In the longer run, it should contribute towards alleviating the shortage of key personnel.

86. The educational system has expanded considerablyin recent years. Between 1960 and 1971, the number of students in primary schools almost doubled, enrollment in first cvcle secondary grades and that in secondary schools more than quadrupled. At the same time the educationalsystem was significantlvaltered. It was originally styled after the Dutch system consisting of six years of primary followed by three to six years of secondary schooling. The curriculum of the traditionalhigh schools is still heavily biased towards arts and pure science subjects. However, technical high schools were established to provide basic instruction in industrial and commercial subjects. There also exist a limited number of trade training centers - 34 - outside the formal education system. These provide the unemployedwith shcrt- term courses in those skills most in demand. Teachers for primary and junir.: secondary levels are trained in special schools wlhichrun three to four-year courses; an evening college offering upgrading courses for practicing teacheis has recently been opened. Higher education is being provided at the faculties of law and medicine of the incipient University of Surinam. ExDansion plans for the University include the establishmentof engineering and econorucs faculties.

87. Substantialamounts of external aid have been channeledtinto the education sector. The Netherlands and the EEC provided soft loans and grants for successive school building programs. An EEC grant has been obtained for the expansion of the University, and Dutch funds have been committed for the expansion of the UniversityHospital. Moreover the University of Surinam receives financial and technical aid from universitiesin the Netherlands.

88. Despite its rapid expansion, the educationalsystem still does not provide a sufficient range of opportunities. Although primary school attend- ance is obligatory full primary school enrollmenthas only been achieveor the coastal areas and does not exceed 50-60 percent of the school-a-Fe tion in the Interior. There is a severe shortage of places at the secc-_

89. There is a lack of suitably trained Surinamese teachers and instruc- tors at all levels. Teacher training for primary and first cycle secondary schools is generally inadequate. At the secondary level close to one-half of the teachers are expatriates. Although teacher-pupil ratios are relatively high, schools are poorly equipped in respect of teaching aids, laboratories and workshops. Since close to 85 percent of the educational budget is taken uD by personnel costs, there is little left for maintenance and improvements. Educational planning is a function that is noticeably absent as is the coordination of vocational training programs carried out by various government bodies. An inter-ministerial committee on manpower was established in 1969 but has not yet presented its recommendations.

90. In order to tackle the twin problem of skill shortages and high unemployment among the unskilled, a stronger cormitment to educational planning and coordinatededucation and training policies seems essential. For the longer-runfuture, of course, an early effort to strengthen and coordinate family planning services is of high priority. As far as education and employmentare concerned,the formulationof policies should be based on a comarehlensive review of the educational svstem and a manpower survev. There - 35 - is an urgent need for additional places at the secondary level, particularly in technicalschools, if the labor market is to be provided with an adaptable and quicklv trainablework force. The secondary school curriculum should be diversified or broadened so that students with different aptitudes could more readily benefit from formal education and respond better to the requirements of the economv. The teaching force, including technical teachers,will have to be strengthenedand considerablyupgraded through an expanded teacher training program. If the UTniversitycan be made an integral part of Surinam's educationsystem, and provide training oriented to the needs of the local community, the chances of augmenting the professionalcorps in Surinam are good. As it is, professionalstrained abroad are disin'clinedto return to Surinam to seek jobs: and aTnong'those who do return, the incidence of emigration is high. - 36 -

IV. PUBLIC FINANCES

91. The Central Government, whiclh administers most public enterprises, accounts Lor about 90 percent of Surinam's public sector. In addition, there are a few semi-autonomous agencies in transport, water supply, and agricultural processing. The following table sums up the major trends in public finances since 1967.

PUBLIC SECTOR FINANCES (1967-71)

(Sur. f. million)

Est. 1967 1968 1969 1970 1971

1. Current Revenues 122.6 126.5 137.7 n.a. n.a. O/w Central Government (112.7) (114.9) (124.9) (134.9) (149.2)

2. Current Expenditure 109.4 120.2 132.3 n.a. n.a. ofw Central Government (100.6) (110.7) (120.6) (125.8) (13Oc)

3. Current Savings 13.2 6.3 5.4 n.a. n.a. o/w Central Government (12.1) (4.2) (4.3) (9.1) (9.6)

4. Capital Revenue of Central Government 2.0 1.2 1.4 0.9 1.5

5. Capital Expenditure 36.1 28.2 43.2 n.a. n.a. o/w Central Government (35.2) (25.5) (41.8) (43.3) (46.5)

Net Financing required /1 /1 (5-4-3) 20.9 20.7 36.4 33.3 - 35.4- Domestic Borrowing by Central Government 4.4 2.0 0.4 -3.3 -2.4 External Grants to Central Governnent 13.0 12.5 20.3 23.9 23.5 External Borrowing by Central Government 6.8 5.2 14.1 14.8 12.3 Other Financing 3.3 1.0 1.6 -5.4 -3.0

/1 Central Government only.

Source: Appendix Table 5.4 and balance sheets of principal state enterprises. - 37 -

Central Covernmert Fiscal Operations

92. Perhaos the main feature c fiscal policy has been the aim of balancing the current budget, and to achieve this objective, current expenditure has in recent years been kept in line roughly with current revenues. Because of large-scale capital inflows at highly concessionary terms from the Netherlands and the EEC, the financial authorities have not felt any partic- ularlv pressing need to increase public sector savings, in spite of the increase in public investment after 1968.

93. Current revenue and expenditure have increased at about 10 percent per year in current terms between 1965 and 1971. Their share in GDP at market prices fell from 27 and 25 nercent respectively in 1965 to 24 and 23 percent in 1971. The rise in revenue was sharpest between 1965 and 1967, while ex- Denditure outpaced revenues thereafter. As a result, Central Government current account savings declined between 1967 and 1968 and have remained at a lo-' level since then, despite some recovery in 1970 and 1971. The trend of revenues has been largely influenced by mining developments, with the najor expansion program in mining leading to a sharp growth of revenues in 1966 and 1967. The tax burden in Surinam is not low, at about 19 percent of GDP in 1971, even if one takes into account the importance of the bauxite enclaves in generating tax revenues. However, enforcement of existing taxes, especially the income tax, needs to be substantially improved.

°4. Because the tax base is very narrow, revenue sources are vulnerable since the two largest corporate taxpayers alone contribute almost two-fifths of total tax receipts, including royalties. Corporate income tax revenues account for nearlv half of current revenue. The personal income tax is collected with some delavs. There are about 37,000 income tax payers. While the marcinal income tax rate (38 percent) is lower than in other Caribbean countries such as Trinidad and Tobago (50 percent) and Guyana (75 percent), which have relatively high tax rates, the main problem from a fiscal point of view is that of collecting the taxes due at the existing rates.

95. Indirect taxes have played an important role in domestic resource mobilization and have provided about half of total tax revenue in the last five vears. There is no general sales tax, and the bulk of indirect tax revenue is obtained from import duties. The ratio of import duty revenue collected to total imports has risen from 14 percent in 1965 to 19 percent in 1970. tNon-tax current receipts have not increased significantly in recent years: aside from mining company royalties, they are generated chiefly by the revenues from the Post Office and from the government-owned bus lines.

9h. Revenue growth prospects for the next few years are not buoyant, since, in the absence of significant changes in taxation, a substantial increase in revenues will have to await the entry into production towards the end of the decade of the major bauxite development in West Surinam. The authorities in 1970 began a concerted effort to improve income tax administration. In that year about 6,000 taxpayers were added to the rolls. For the future, further measures are being considered. These include the - 38 -

establishment of more progressive rates for higher incomes togethier withl larger basic exemptions for lower incomes, the establishment of a 25 percent tax on dividends, and a capital gains ta. applicable to the sale of con- trolling interests in corporations. If these measures are enforced, together with a major effort in tax administration - which will require substantial additional outlays and expert staff for the tax office - a growth of direct tax revenues of 10 percent annually in current prices would be possible in the next six years. On these assumptions, which could be somewhat optimistic, the growth of total Central Government current income. is projected by the mission at about 9 percent for the next six vears, slightlv less than the rate of increase in the last six years.

97. The expansion of Central Government expenditures has followed the availability of increased revenues from the mininc sector and of external assistance. In 1966, as a result of the sharp growth in current revenues, current expenditures rose rapi'-lv,with the increase directed lar-ely towards higher wages and salaries. At the same timie,public investment outlays increased by one-third. The major growth in Central Government current expenditures in recent years has been for social services, partic,arlv educ- tion, and for government activities in ac'riculture and indlustrv. For 'we future, these tendencies can be expected to continue. However, beginnin_,-l 1973, a substantial increase in current outlays will occur as a result of the introduction of a health insurance system. Subsequently, at a date that has not yet been established, an old-age insurance scheme will be introduced. Both schemes are likely to require nermanent Central Government subsidies, because the authorities feel that contributions cannot reasonablv be expected to cover costs in view of the limited income of most of the contributors. The projection of current expenditures shown in Table 5.6 takes into account these likely trends, together with an increased effort on the part of the Government to contain the expansion of other items. Among these are the number of government personnel, whichl is at present subject to a hirin.- freeze instituted in 1970; the cost of government purchases, which is to be reduced through centralized purchasing; and an expected improvement in the financial management of major autonomous enterprises, which ought to reduce the requirement for Central Government transfers. If these improvements and controls are enforced, it ought to be possible to limit the growth of Central Government current expenditures to about 9 percent annually in current prices in the next five years, or at a rate similar to that of the last five years.

98. While the assumptions outlined above about achieving the growth of current revenues and limiting current expenditures imply a major effort by the authorities, such an effort is not unmanageable. Otherwise, revenues would increase at a slower pace than current GNP and current expenditures at a faster pace, generating an increasing gap for which no fundamental reason exists. Nevertheless, since public investment is expected to increase faster because of the infrastructure needs of the ',%estSurinam developrientscheme, Central Government savings cannot be expected to cover more than about one- fifth of public investment, or slianhtlv less than the proportion in the last five years (Appendix Table 5.-). - 39 -

Public Investrent

99. Public investment outlays have fluctuated according to the availabilitv of external financing for a few large projects. As with the rest of public sector fiscal accounts, ptublic investment outlays are virtually synony- mous with investment expenditures of the Central Government. After declining in 1968, they recovered in the following year and have remained at approxi- matelv that level, equivalent to 8 percent of GDP, since then (see following text table). There have been considerable delavs in the realization of investment programs. Expenditure connected with the Ten-Year Plan, which was to be spent by 1964, was not wound up tntil 1967. As of the end of 1971, irplermentation of Dutch and EEC-financed investment had fallen short of the tar-et.

100. There exists no comprehensive accounting of the total of government investment. Central Government investment consists of expenditure under the Plan, controlled bv the Ministrv of Development and dependent upon Dutch assistance for its financing, and expenditure in the budget but formally outside the Plan. The latter is primarily financed by internal resources and consists mainly of expenditures for roads and housing. The absence of a comprehensive investment budget impedes the planning and effective control of capital exnenditure.

CONSOLIDATED CENTRAL GOVERNZIENTINVES T1ENT (1965-71)

(Sur. f. million)

Prelim. 1967 1968 1969 1970 1971

Total 35.2 25.6 41.8 43.4 46.5

Education 2.0 1.9 4.1 3.6 3.9 Health 0.3 0.2 1.0 0.6 0.8 Transport 8.4 6.8 8.4 15.5 13.1 Energ 4.7 0.7 2.4 - - Commiunications 2.6 1.1 7.7 1.0 1.0 Housing 1.3 0.9 1.9 3.3 2.3 Water and sewerage 1.0 1.2 1.3 0.5 0.4 Irrigation 1.6 3.3 0.8 0.3 1.0 Agriculture 4.3 5.5 9.2 14.7 18.2

Mining 1.9 - 0.1 - - Other 7.1 4.0 4.9 3.9 5.8

Source: Table 5.3. - 40 -

The fact that there is no expenditure control machincry may well have contributed to the distribution of investment, which emphasizes transport and selected areas of agriculture ani tends to neglect the social sectors. In agriculture, expenditure was concentr -ted on1 polder constructioii, roug,h parcelling and studies, to the neglect of iuclo nee,1ed credit facilities rind the build-up of extension services. Tra:nsnort showed a relatively iigih participation in the investnent total, whereas the share allocated to education was about 7 percent and investment in health miounted to less than 2 percent, a level which was probably inadequate to neet the ;medlical needs of the population. One-fifth of total Central Governient investment was -for capital transfers and surveys, especially of natural resources.

101. The mission has attempted to phase the plannecl capital expenditure program to 1977. To this must be added the expected level of capital expenditure outside the plan; a ;ioderate an[lual increase is projected, reaching a level of Sur. f. 27 million by 1977. The cumulative volume of capital expenditure - within and outside the Plan - for the 1972-77 period would total Sur. f. 447 million or an average annual expenditure of Sur. f. 75 million. This annual rate is about double that achieved dlurinig the previous seven years, and would raise public investment from an average of 7.7 percent of GDP in the past period to 9.4 percent of GDP in the next six vears. This ambitious program will challenge the Government's ad-ministrative and managerial capacity. Since the capital expenditures proposed outside the Plan comprise miscellaneous small road construction and housing projects and capital transfers, there is scope for readily varying the annual volume of investment where required. The advantage of flexibility apart, however, the existence of two separate public investmnentproarams and the divided responsibility for their preparation and implementation is an anomaly of economic management in Surinam.

102. The largest single project Foreseen is the opening up of the West Surinaambauxite deposits. For the Government, it involves financial requirements of about Sur. f. 63 million. 1/ Excluding mining, fixed investment during the 1972-77 period would be about 55 percent higher than during the previous seven years. Expenditure on surveys and research is expected to be lower, both relatively and absolutelv, with much of it concentrated in agriculture, forestry and to a lesser extent in transport. Financial investment will increase from 2 to 6 percent of the total, principally because of government participation in the bauxite scheme.

1/ This does not include funds for an alumina plant whose construction, amounting to about $50 million for an initial capacity of 200,000 tons, could conceivably start before 1977. - 41 -

PLAVNND &Nr Bl-DGETED CAPITAL EXPENDITURE, 1965-71 and 1972-77

(Sur. f. millions in current prices)

Cumulative, 1965-71 Cumulative Projection 1972-77 Amount Percent Amount Percent

Total Central Government 257.6 100.0 447 100

Plan 160.5 62.3 319 71

Outside Plan 97.1 37.7 128 29

Source: Tables 5.4 and 5.8.

103. Overall, there is likely to be a slight shift in investment allocations from infrastructure to more directly productive purposes. However, allocations for agriculture and for trade, industry and tourism will decrease in relative terms. Significantly higher spending is planned for housing, water supply and irrigation, where large coimunitments for external financing have been obtained. A major sewerage scheme for Paramaribo is an urgent priority. The share of social services in total capital expenditure would increase from 9 to alTmost 18 percent. The completion of a largely EEC- financed school and universitv building program will push education investment fror Sur. f. 20 million over the past period to Sur. f. 54 million over 1972-77, while expenditures on health services are projected to rise from Sur. f. 4 million in the last five years to Sur. f. 21 million in forthcoming period. A sizeable part of this amount will go tcwards starting the public health insurance scheme due to be introduced by 1973. The allocations for hospital construction and for expansion of medical services in the districts appear to be inadequate in relation to the goal of providing minimum standards of health services.

External _Fiancing

104. Surinam has had readv access to a sizeable volume of external funds, which financed three-quarters of government investrment totalling Sur. f. 258 million over the 1965-71 period (Appendix Table 5.4). External funds were also made available for certain current expenditures or development services amounting to Sur. f. 29 million for the per4od. If budget support is included, some Sur. f. 236 million in external capital were disbursed in the seven years 1965-71. - 42 -

105. The Netherlands provided about three-quartersof the total. Dutch aid was utilized for a wide range of capital projects as well as current expenditures. In addition to the carrv-over of funds previously committed, some Sur. f. 35 million originally allocated. for the First Ten-Year Plan and Supplementary Development Plan were spent during 1965-67; half was in the forr of grants and the other half in soft loans. The First Five-Year Plan 1967--71 provided a further Sur. f. 125 million, all but Sur. f. 3.5 million of whiclh were grants. These funds were mainly used for education, transport,housing and agriculture. USAID and Eximbank extended loans of about Sur. f. 10 million, mainly for industry and telecommunications;these were fully utilizedi by 1971. Finally, suppliers' credits for a telecommunicationexpansion project provided Sur. f. 2 million.

106. Some informationis available on the size and allocation of future aid flows. A complicatingfactor, however, is the carry-over of some projects into the Second Five-Year Plan period. Since neither the ultimate cost of these projects nor their financing have been clearlv established, it is not possible to define precisely the volume of ongoing invest-lent and the corresponding financing requirements. The Netherlandshas cornitteq about Sur. f. 250 million to help finance the Second Five-Year Plan (see Para. 30 above). Of the total, Sur. f. 90 million is earmarked for the CGov- ernment's participationin the West Surinam bauxite venture and the provision of the necessary transport facilities. The EEC is furnishing about Sur. f. 41 million in new grants over and above some Sur. f. 35 million which were tm- disbursedby end-1971. Due to substantial cost overruns in respect of a number of EEC-financedprojects, funds from that source will not be sufficient to cover all project request originally envisaged in the Second Five-Year Plan. While these projects have been retained in the investment prcgram, the required financialresources have still to be found. Suppliers' credits probably can be obtained for a smallscale telecommunicationproject, whereas no further lending is envisaged bv USAID. The IBRD has had no lending operations in Surinam. It has agreed, however, to act as executive agency for a UNDP- sponsored feasibilitystudy of the Kabalebo hydropower developmentproject.

107. Capital aid disbursements potentially available for the period 1972- 76/77 will be around Sur. f. 340 million or two-thirds higher than the amount available during 1965-71 (Tables 5.5 and 5.9). This would be equivalent to an increase in per capita aid from $40 to about $70 annually,. one of the highest levels in the world. 1/ MToreover, the share of grants in this total will rise from 57 to 66 nercent. M4ost loans continue to be provided on soft terms. On the basis outlined above, the share of the Netherlands in total aid flows to Surinam is likely to rise from 7q percent of the total in the last seven years tc 92 percent in thieforthcoming Plan period (see Table 5.11).

1/ The figure rises to about $80 per capita if Dutch aid to private and semi-official organizations for social and cultural purposes is included. - 43 -

108. External grants and loans combined are expected to finance almost 70 percent of public capital expenditurescumulated over the years 1972-77. As the accompanyingtable shows, the portion of grants will be higher than in the past while the public savings share will be lower.

FINANCING OF PUBLIC CAPITAILEXPENDITURES (1965-71and 1972-77)

Actual 1965-71 Projected 1972-77 Sur. f. Sur. f. million Percent million Percent

Total 257.6 100.0 446.7 100.0

Internal resources 76.4 29.7 102.2 22.9 Central Government savings (57.1) (22.2) (82.7) (18.5) Other (19.3) ( 7.5) (19.5) ( 4.4)

External financing 101.2 74.2 306.6 68.6 Grants (118.7) (46.1) (226.3) (50.7) Loans (net) ( 72.5) (28.1) ( 80.3) (17.9)

Other or Gap -10.0 -5.2 37.9 8.5

Memorandum item: Total capital expenditureas a percentage of 7.7% 9.4% GDP at market prices

Source: Table 5.8; mission projection.

There remains a financing gap of 8.5 percent of investment outlays as projected by the mission. It is quite likely that the gap will be smaller because of slippages in execution, and in any case the projected gap is not substantial. However, the possible existance of a portion of projected investment for which no financing is yet foreseen underscores the need for the authoritiesto screen projects carefullywith a view to cutting down or eliminatingsome expendituresof lesser priority. Since the high level of public investment (between 9 and 10 percent of the foreseeableGDP in current prices) 1/ is sustainableonly because of external assistance,it would also be prudent to see whether basically the same objectives can be achieved at a somewhat lower cost.

1/ Assuming an average annual growth of real GDP of 5 percent and of prices of 2.5 percent. - 44 -

109. In this connection,the possibilitythat Surinam will attain full political independencecould be a cause for concern for the fiscal outlook. In such an eventuality judicious action on the part of the government authoritieswill be required to substantiallystrengthen public finances. A two-prongedapproach is proposed: (a) an improvementin the policy-making agencies and the coordinationbetwveen them in matters of financial planning, and (b) the preparation of a financing plan in line with a gradually reduce.l dependence on highly concessionary transfers fron the Netherlands, and (c) the introduction of substantial improvements in tax administration, including substantially improving the capability of the tax office. Furthermore, until the planned mineral developmentsbear fruit in the late 1970's, independence would require some adjustment in developmentpolicy consistentwith the fiscal changes noted above. Smaller transfers from abroad would make it necessarv for the Government to reduce the share of personal consumptionin GDP, res- trict import growth, seek a more efficient use of capital and perhaps a lower rate of investment,raise the volume of national savings and encourage the more rapid development of agriculture to supply domestic and foreign markets. If the measures are well-conceivedand their implementationis pronarlv phn.scc overtime - a challenge but not one beyond reasonable expectations- every chance that Surinam can continue to enjoy an enviable growtthperiorrm- ance as well as attain a greater degree of self-relaince. - 45 -

V. EXTERNAL TRADE AND PAYMENTS

110. The trade structure of Surinam is typical of a small developing economv. As of 1970, commoditv exports were 43 percent and imports 37 percent of CDP. tMoreover,of the total value of coTmmodityexports, bauxite and related products accounted for 91 percent; exports of rice, bananas, lumber and wqoodproducts accounted for most of the remainder. Imports cover a wide range of commoditieswith foodstuffs comprising about 12 percent and investment goods 20 percent of the total. Thus Surinam's economy is highly dependent on foreign trade and its export structure is extremely narrow in respect of both the range of products and the number of enterprises engaged in exporting. Five firms account for about 96 percent of the value of commodity exports.

111. Chanc7es in the balance of payments in the last decade largely mirroree develcoDments in the mining industry. In the first half of the 1960's the con1oditv trade deficit rose sharply, reflecting the heavy im,ports of capital goods and materials required for power development and bauxite processing plants. The increase in investment and the resulting trade deficit, together with net investment earnings of foreign-owned companies, were mostly financed bv the inflow of foreigtn capital and transfers. During 1950's, trade was roughly balanced and capital and transfer inflows just sufficient to cover net investment income payments,which gradually increased,but remained under 10 percent of GDP. Since 1959, investment income payments increased to a level of 12-13 percent of GDP and, combined with an increase in trade deficit, net capital inflow increased rapidly during the second phase of active investments. As investment activities ceased to grow rapidly since 1966 and trade started to show some surplus (up to Sur. f. 38 million, 7 percent of GDP in 1969 and Sur. f. 29 million, 5 percent in 1970), net capital inflow sharply declined to Sur. f. 34-44 million, and its ratio to GDP rested at a level of 8-9 percent. Foreign reserves of the banking system have been increased each year since 1962, and as of 1970, net internationalreserves covered almost five months' imports. The balance of payments on current account improved substantiallyin 1971 as a result of the expansion of bauxite and alumina production for export, although the improvementwas only marginal- ly reflected in net internationalreserves, as a result of an apparent reduction in the use of foreign official loans.

112. The geographicaldistribution of exports and imports reflect Surinam's growing trade relations with the EEC. In 1965, 82 percent of its exports went to the U.S.A. and Canada, this was halved by 1970. The share of exports going to the Netherlands and other European countries increased from 11 to 55 percent over the same period. Although less striking, the share of imports obtained from the Netherlands and other European countries also increased. Surinam's products are giver,preferential treatment in the European Common Market. In return, Surinam introduced a two-column schedule of import duties in 1969. The duty rates in the general tariff range from 5 to about 70 percent, with the majority of items falling between 12 and 45 percent. The most common preferentialrate for imports from the EEC is - 46 -

5 percent below the general rate. About 13 percent of Surinam's commodity imports originate in the Caribbean region, while only 4 percent of its exports are shipped to that area.

113. Lookina ahead to 1977, Surinam's balance of payments can be expected to undergo changes similar to those experienced in the first half of the 1960's. The increased demand for imported capital goods and raw materials in response to the anticipated private and public investment boom should convert the current trade surplus into a deficit by 1975/76. As noted in the earlier discussion of individual comnodity export prospects, there are very few items displaying a dvnamic growth potential. At the same time the expansion of the EEC will provide greater competition for Surinam's exports, since British Commonwealth countries will now have some form of access to the EEC preferential market. At the end of 1971, the Surinam guilder was devalued by 5.3 percent in relation to the SDR, giving Surinamese products a small trade advantage in European markets. However, the move represented a small revaluation in relation to the U.S. dollar: in 1970 the United States and countries whose currencies followed the U.S. dollar absorbed about 45 percent of Surinamese exports. The expectation is tTlht commodity exports reckoned in current prices will grcw at only about D Der- cent a year to 1977: this compares with a growth rate of 12 percent for the decade of the 1960's. In contrast, the projected annual growth rate of imports is projected at about 8.5 percent.

The following table illustrates the pro-jected structure of the current account for 1977 as compared with earlier years. Growing payments for transport and insurance and travel abroad are expected to contribute to a larger deficit in respect of non-factor services while net investment income is projected to rise at an annual rate of about 5 percent a year or roughly in line with anticipated generation of profits by the foreign-owned enternrises. Bv 1977, the resource gap should amount to only 3 percent of GDP. - 47 -

BALANCE OF PAYMENTS: CURRENT ACCOUNT

(5 millions in current prices)

1960 1965 1970/2 1971/2 1977

Trade Balance -9.7 -34.7 22.0 43.6 -10.3 Exports (f.o.b.) (44.4) ( 59.3)( 136.5) (163.1) ( 203.6) Imports (c.i.f.) (-54.1) (-94.0)(-114.5) (-119.5) (-213.9)

Non--factorServices (net) 1.1 -1.5 -6.6 -7.5 -7.5

Goods and Non-factor Services -8.6 -36.2 15.3 36.1 -17.8

Investment Income (net) -14.7 -15.1 -38.5 -45.2 -55.3

Current Account Balance -23.3 -51.3 -23.2 -9.1 -73.1

/1 For the years 1960, 1965, 1970 and 1971, conversion at the rate of $1 = Sur. f. 1.89, for 1977 the rate of $1 = Sur. f. 1.79 was used. /2 Preliminary.

Source: Table 3.7, and Central Bank of Surinam.

114. The similarity in the current account structure of 1965 and 1977 is worth notintv. Both years are marked by high investment ratios. The size of factor pavments abroad is a major difference. It is conceivable that the structure of 1970, characterize(dby a favorable trade balance, could be reproduced by 1980 or soon thereafter,if the West Surinam development program is realized on time.

115. There should be no difficulty in financing the current account deficit foreseen over the next six years. The volume of official capital already committed is well in excess of the import content of the public investmentprogram. Similarly, private canital inflows will be tied to the nlanned expansion of mining activities in West Surinam. As the table below shows, the balance of navments is expected to remain in surplus until 1977. Since that year falls otitside the Second Five-Year Plan and the period for which related financing commitments have been made, the lower official capital inflows projected for 1977 represent undisbtursed carryover funds from the plan period. There is every reason to believe that new aid commitments will be made before 1977, to reduce if not eliminate the balance of payments deficit projected for that year. - 48 -

BALANICEOF PAYIENTS: CAPITAl ACCOUNT

($ millions in current prices)

1960 1965 1970/2 1971/2 1976 1977

Current Account Balance -23.3 -51.3 -23.2 -9.1 -64.2 -73.1

Private Long-term Capital (net) 9.7 35.1 - 5.0 -6.2 15.8 15.5

Official Capital (net) 7.0 13.8 23.8 16.9 36.7 21.5

(grants) (3.4) (5.6)(12.7) (12.8) (23.3) (12.2)

Private short-term Capital and errors and omissions 4.4 5.5 10.8 0.6 17.9 19.3

Total 21.1 54.4 29.6 10.1 70.4 54

Change in Reserves (- = increase) 2.2 -3.1 -6.4 -1.0 -6.2 16.8

/1 For the years 1960, 1965 and 1970, converted at the rate of Sur. f. 1.F0 $1; for 1976 and 1977 the rate used is Sur. f. 1.79 = $1. /2 Preliminary.

Source: Table 3.7, and Central Bank of Surinam.

The investment boom that is on the verpe of being launched in Surinam is not likely to produce adverse affects on the balance of payments. Over the medium-term, therefore, balance of payments management should not have to confront serious challenges. For the longer-run, however, such issues as export commodity diversification, import-substitution and access to traditional and new markets will have to be tackled.

External Debt Manag,ement

116. As of the end of 1970, Surinam's outstanding external public debt stood at $80 million; the figure is reduced to $70 million if loans from SURALCO repayable in local currency are excluded. The Dutch Government is the largest creditor holding more than three-quarters of the total external public debt. The external debt represented about one-quarter of GDP in 1970; in comparison with other developinr countries this ratio is high and reflects the economy's heavy reliance on foreign savinrgs. However, the highly concessionary terms on which external loans have been made available result in a debt service ratio of less than one percent, for 1970, even after export earnings are reduced by profit remittances abroad. In fact, in some years, including 1970 and 1971, the Dutch Government waived part of the debt service payments that had come due, so that the actual debt service ratio was 0.5 percent in those years. - 49 -

117. As noted previously, the terms on which the Netherlandsis prepared to furnish loans for the Second Five-Year Plan are even more concessionary than in the past. Loans will carry a 2.5 percent interest charge with 8 years grace and 30 years life. Past debt held by the Netherlands has also been consolidated and converted with a 30-year repayment period at 2.5 percent interest. The servicina of the existing external public debt plus the new debt that is likely to be incurred by 1977 should give rise to a service burden of $5.2 million in that year or a debt service ratio of 2.1 percent on a gross basis and 2.7 percent on a net basis, after deducting from gross exnort earnings the value of profit remittances abroad (see Table 4.1). At this level, and consideredin isolation, the debt service burden is not a cause of concern.

STATISTICALAPPENDIX

Table No.

I. AREA, POPJLATIONAND EMPLOYMENT

1.1 Area 1.2 Population as of December 31,1953, 1958, 1963 and 1968 1.3 Population by Race, Sex and Age Group, 1964 1.4 Population by Race, Sex and District of Residence, 1964 1.5 Labor Force by Age-Group and Sex, 1964 1.6 Labor Force Per Sector 1.7 Number of Civil Servants, 1961-69

II. NATIONALACCOUNTS 2.1 Sectoral Origin of Gross Domestic Product at Ourrent Factor Cost, 1953_70 2.2 Sectoral Composition of Gross Domestic Product, 1953-77 2.3 Resources and 1xpenditures, 1953-70 2.4 Gross Domestic and National Prodact, 1953-70 2.5 Gross Domestic Captial Formation by Sector at Current Prices, 1953-70 2.6 Financing of Investment, 1955-70 2.7 Projected Expenditure and Savings Flows, 1970-77

III. BALANCEOF PAYMENTS 3.1 Balance of Payments, 1960-70 3.2 Composition of Exports, 1960-70 3.3 Composition of Merchandise Imports, 1960-70 3.4 Geographical Distribution of Imports and Exports, 1960-70 3.5 Commodity Distribution of Imports and Exports, 1960-70 3.6 Imports and Exports of Foodstuffs, 1965-70 3.7 Balance of Payments, 1960-77 3.8 Projected Merchandise Exports, 1970-77 3.9 Projected Merchandise Imports, 1970-77

IV. PUBLICDEBT

4.1 External Public Debt Service Ratio, 1966-77 4.2 Outstanding Central Government External Debt, 1961-70 V. UJBLICFINANCE 5.1 Central Government Current Expenditure, 1965-71 5.2 Central Government Revenue, 1965-71 -ii-

5.3 Capital Expenditure of the Central Government, 1965-77 5.4 Financingof CentralGovernment Investment, 1965-71 5.5 Disbursements of External Loans and Grants, by Source and Sectors, 1965-71 5.6 Projected Current Expenditureof the Central Government,1972-77 5.7 Projected Financing of Central GovernmentInvestment, 1y472-77 5.8 Projected Disbursementsof External 1oans and Grants by Sector, 1971-77 5.9 Projected Disbursementsof External Loans and Grants by Source, 1972-77 5.10 Disbursements of Eaternal Grants and Loans, by Sector and Source, 1965-71 and 1972-77

VI. MONETARYSTATISTICS

6.1 Monetary Survey, 1960-70 6.2 Ratios of Money and International Reserves to Imports 6.3 Sectoral Distribution of Bank Credit, 1965-70 6.4 Lending Operations of the Surinam Reconstruction Bank, 1961-69 6.5 Lending Operations of the National Development Bank, 1964-70 6.6 Combined Balance Sheets of the Four Commercial Banks, 1960-70 6.7 Finaicial Data of Insitutional Investors, 1960-70 6.8 Balance Sheet of the Central Bank, 1960-70 6.9 Summar Accounts of the Banking System, 1 965-70

VII. AGRICULTURALAND FORESTRY STATISTICS

7.1 Land Use, 1970 7.2 Planted and HarvestedArea of Crops, 1960-70 7.3 Planted Area and Production of Paddy, 1960-70 7.4 Crop Production, 1960-70 7.5 Cattle and Poultry Stock, 1960-70 7.6 Animal Slaughter - Paramaribo, 1960-70 7.7 Fisheries Productionand Trade, 1960-70 7.8 Number of Fishermen and Boats, 1960-70 7.9 Agriculture - Productionand Export Volumes, 1960-77 7.10 Timber Production (Volumes in m roundwood equivalent),1960-70 7.11 Production of Sawn Wood, Sleepers, Plywood and Particle Board, 1963-70 (Volumes in m3 ) 7.12 Export of Wood and Wood Products, 1963-70 7.13 Fertilizer Used, 1969-70 7.14 Agriculture - Productionand Export Values, 1960-77 -iil-

VIII. STATISTICS ONOTHER SECTORS

8.1 Basic Data on Bauxite Mining and Processing 8.2 Total Traffic Sarinam River (To and from Paramaribo, Moengo, Smalkalden and Paranam) 8.3 FerryCrossings of Motor Vehicles,1966-70 8.4 Road Vehiclesand User Charges 8.5 Air Trafficat ZanderijAirport 8.6 List of TransportProjects, included in the SecondFive Year Plan 8.7 EducationalStatistics, 1955-71 IX. PRICES

9.1 Consumer Price Indices of Domestic and Imported Goods in Paramaribo(3rd quarter 1953 =100), 1960-70 9.2 ConsumerPrice Indices for Paramaribo (3rd quarter 1953 = 100) 9.3 ConsumerPrice Indices for Families in Paramaribo and Environs, 1960-70 (April 1968 - March 1969 . 100)

I. AREA, POPULATIONAND EMPLOYMENT

Table 1.1: AREA

(hectares)

Land Area: 16,017,000

Water Area: Artificial Lake 190,000 Other Inland Water Bodies (lakes and rivers) 175,000 365)000 16-,382,000 Land in: Permanent Crops 6,200 Annual Crops and Temporary Meadows 36,ooo Permanent Meadows and Pastures 9,000 51,200

Mining 40,000 Forest 14,966,000 Woodland 3,300 Savannah and other Land 950,000 Built-on Area 6 500 6,017,000

Potentially suitable land: For Agriculture: high land 500,000 low land 220,000 720,000

For Forestry: 1,300,000 2,020,000 Potentially cultivable:

For Agriculture 120,000

For Forestry 900,000 1,020,000

Source: Department of Soil Surveys. Table 1 .2: POPULATIONAS OF DECEMBER31

1953 1958 19633 1968 Age Pop. % of Pop. % of Pop. % of Pop. x '000 total x '000 total x '000 total x '00(1 i .t

0 - 14 95.3 42 119.2 44 14 8.8 46 185.7 49 15 - 64 122.6 54 138.2 51 155.3 48 170.6 45 M> t6L 9.1 4 23.5 5 19.4 6 22.7 6

Total 227.0 100 270.9 100 323.5 100 379.0 100

Source: Planning Bureau estimates.

Note: The Census results for 1971 imply that the data for 1968 probably include some element of overestimation. 'Table 1.3* POPULATIONdi itGS, 5&X ANJ AOt unuuP, 2ii64

Race

Age (In years) Crpole flindtustani Indonesian Chinese Europran Bushnegroes Amerindian Oth,r Unknown Total M/M V/F M/M V/F M/M V/F M/M V/F MIM V/F MIX V/F M/M V/F M/M V/F M/M V/F MIM V/F Total

0- 4 9332 8910 10712 10313 3716 3555 336 271 262 245 1831 1771 587 596 231 220 205 194 27212 26075 53287 5- ' 9575 9475 10270 10285 3425 3379 332 331 272 309 2141 2083 583 573 230 199 28 23 26856 26657 53513 l f)- 14 7844 7333 7991 7783 2615 2447 315 329 204 221 1357 1370 469 463 176 195 11 4 20982 20245 41127 15-19 5647 5531 5916 5793 1739 1774 248 229 1.01 129 997 1218 341 359 113 112 3 6 15105 15151 30256 20-24 3700 3977 4251 4519 1436 1546 226 185 68 81 906 1246 255 315 87 93 3 1 10932 11963 22895 25-29 2955 3448 3668 3325 1650 1632 282 172 122 157 1071 1265 275 265 78 95 2 3 10103 10853 20956 39-34 2871 3338 3037 2985 1675 1702 240 166 204 248 838 909 219 217 102 l06 6 1 9192 9k72 1£854 75-39 2579 2931 2559 2535 1226 1201 184 149 217 151 1018 911 224 214 109 111 1 1 8117 8204 16321 <0-44 2492 2640 2140 2057 841 859 150 123 182 167 75- 740 153 150 75 81 1 1 6787 6818 13605 45-49 1942 2142 1598 1626 375 374 118 90 143 119 555 556 118 92 54 48 1 - 4904 5047 9951 50-54 1818 1961 1180 1072 1051 706 106 91 127 79 420 398 106 94 66 57 1 - 4875 4458 9333 55-59 1463 1871 893 783 708 823 107 70 96 80 317 293 68 65 36 32 - 2 3688 4019 7'07 60-64 1178 1490 674 568 741 776 107 55 69 39 316 370 64 64 39 36 - 2 3188 3400 65f8 65-69 862 1059 39? 288 1017 951 65 31 41 33 190 189 33 32 27 36 2 - 2636 2619 5255 70-74 626 971 321 211 629 428 44 19 19 41 113 150 27 17 23 20 3 1 1805 1858 36½3 75-79 442 771 281 154 243 146 31 21 16 23 65 67 11 15 7 13 1 - 1097 1210 2307 80-84 236 448 82 47 141 114 8 15 7 19 24 32 9 13 7 8 1 1 515 697 1212 85-89 79 201 17 10 25 26 2 4 4 7 6 10 2 7 5 4 - - 140 269 409 90-94 23 66 11 9 7 5 - 2 - 4 2 5 - 3 1 5 - - 44 99 143 95 and over 19 27 8 6 15 11 2 2 - 1 3 4 2 - - - - 49 51 100

unknown 395 293 886 870 1458 1284 59 22 6 9 680 508 98 89 37 12 9 4 3628 3091 6719

Total 56078 58883 56894 55739 24733 23730 2962 2377 2160 2162 13603 14095 3644 3643 1503 1483 278 244 161855 162356 324211

Source: 1964 Census. Table 1.4: POPULATION BY RACE, SEX AND DISTRICT OF RESIDENCE, t964

------Race -ota------l

District Creole Hindustani Indonesian Amer-Indian Chinese European Bus negro Other Unknown Total i__ / M I F j M F' M F MN $F 1 M N ,PF F F NM F M F Total

Paramaribo 31892 12701 12736 3915 4048 670 778 2126 1743 |1074 1123 385 238 783 1 848 59 51 53605 57262 110867

Suriname 15685 115956 27855 27353 9454 }8838 898 876 428 348 796 791 599 414 509 482 219 193 56443j 55251 111694

Nickeric 3063 2837 9165 8808 2466 2421 473 431 169 134! 160 134 99 31 35 46 - - 15630W 14842 30472

Coronie 1699 1645 21 26 168 168 - 3 29 13, 1 3 - - 3 3 - _ 19211 186i 3782

,C.nc'ui jrI 905 708 2403j 3314 5773 15460 157 120 58 39| 49 41 336 255 44 38 - | - 107251 9573 20700 i jararnacca 462 354 3362 3227 1685 '609 367 329 38 301 12 10 285 201 12 5 - 68- 71 5765 11952 60 - 114121 1181) 23213 ::sr;) 11576 1752 2 98 |269 i118911147 1062 1095 103 701 52 50 6874 7534 82

",rc,k.opcindo 656 155 89 6 83 39 17 11 11 - 16 10 5025 5377 35 1 - - 5932k 5599 11531

Total 551078158883 56894i55739 124733 23730 3644 3643 2962 2377 2160 2162 13603 14095 1503 1483 278 244 161855' 162356 324211

S-l (C..eitlA1 C(ity Source 19~(,4 C:, ,, i,,^ Table 1.5: LABOR FORCE l/ BY AGE-GROUP AiND SEX, 1964

Emploved - Unemploved Total labor force Unemployment in Age-group M F Tot. M F Tot. M F Tot. % of labor force

- 15 128 154 282 31 5 36 159 159 318 11.3 15 -- 19 4057 2366 5759 1845 669 2514 5902 2371 8273 30.4 20 - 24 7761 1702 10627 1407 571 1978 9168 3437 12605 15.7 25 - 29 8168 2279 10447 712 241 953 8880 2520 11400 8.4 30 - 49 24187 6460 30647 1253 466 1719 25440 6926 32366 5.3 50 - 54 3949 1044 4993 206 71 277 4155 1115 5270 5.3 55 - 59 2237 934 3771 146 41 187 2983 975 3958 4.7 60 - 64 2038 575 2613 111 21 132 2149 596 2745 4.8 65 + 2696 588 3284 115 14 129 2811 602 3413 3.8 Unknown 1600 324 1924 107 15 122 1707 339 2046 6.0

Total 57421 16926 74347 5933 2114 8047 63354 19040 82394 9.8

1/ incl. Amerindians and Bushnegroes living in tribes. Source: General Bureau of Statistics. Table 1.6: LABORFORCE PER SECTOR

1953 1968 Sector Number Number x______'000 % x 1000 _

Agriculture, Animal Husbandry, Fisheries 26.4 49.4 22.0 21.7 Forestry 1.2 2.2 1.8 1.8 Mining, Waterpower, and industries 2.6 4.9 6.6 6.5 Industry, Construction 7.9 14.8 17.2 17.0 Others 10.8 20.2 38.9 38.3

Total employed 48.9 91.5 86.5 85.3 Unemployed: Paramaribo, districts 4.5 8.5 8.5 8.4 Interior 6.4 6.3 Total labor force 53.4 100 101.4 100

Source: Planning Bureau. Table 1.7: NUMBEROF CIVIL SERVANTS, 1961-69

1961 1962 1963 1964 1965 1966 1967 1968 1969

Number 11,963 12,976 13,972 14,778 15,530 16 ,234 18,056 18,001 20,231

Annual per cent increase 5.9 8.5 7.7 5.8 5.1 4.5 11.2 -0.3 12.4

Salaries paid (Sur. f. million) 30.3 32.8 35.4 39.0 39.5 44.0 50.0 52.7 59.2 Average annual salary (Sur. f.) 2,532.80 2,527.74 2,533.63 2,639.05 2,543.46 2,710.36 2,769.16 2,927.61 2,926.20

Source: Ministry of Finance.

II. NATIONALACCOUNTS

Table 2.1: SECTORALORIGIN OF GROSS DO1lESTICPRODUCT AT CURRENTFACTOR COST, 1953-70

(Sur. f. million; growth rates in brackets: percent)

1953 1954 19 55 1956 1957 1958 1959 19(6 1961 1962 1963 196h 1965 1906 1967 19.'8 196 1737

Agriculture and Fisheries 13.5 14.0 15.0 15.5 16.0 20.5 21.0 20.5 20.5 21.0 22.0 24.5 29.0 31.0 36.0 43.5 45.0 50.0 3.7) ( 7.1) ( 3.3) ( -3.2) (28.1) ( 2.L) (-2.4) ( o.0) ( 2.4) 44.8) (1i.4) (18.4) ( 6.9) ( lb.1) ( 20.8) ( 3.4) ( 11.2)

Forestr: and Processing 5.0 5.5 5.5 6.o 6.o 6.o 6,5 7.0 8.5 8.5 10.0 11.0 11.5 12.5 13.5 145 170 17(. 10.0) ( 0.0) ( 9.1) ( 0.0) ( 0.0) ( 8.3) ( 7.7) ( 21.4) ( 0.0) ( 17.6) ( 10.0) ( 4.5) C 8.7) ( 8.0) ( 7.4 (17.2) ( -. C)

Kining and ProzessinC 37.0 38.5 35.o 39.5 47.0 44.0 54.o 59.0 58.o 56.5 59.0 64.o 75.5 115.5 134.5 139.5 155.0 161.0 46.1) ( -9.1) (12.9) (19.0) ( -6.4) ( 22.7) ( 9.3) ( -1.7) ( -2.6) ( io.0) ( 8.5) C 18.0) ( 53.0) (16.5) ( 3.7) (11.1) ( 3.9) manufacturire and Construction 8.5 9.5 11.0 11.0 12.5 214.0 14.5 15.5 16.0 18.5 20.0 23.0 27.0 33.5 44.5 60.0 65.0 70.0 ( 11.8) ( 15.8) ( 0.0) ( 13.6) ( 12.0) ( 3.6) ( 6.9) ( 3.2) C 15.6) ( 8.1) ( 15.0) ( 17.4) ( 24.1) ( 32.8) ( 34.8) ( 8.3) ( 7.7) Sot.mrrce, iBankr-rC,-Imuranee, and Tran7port 11.5 15.5 17.0 18.0 20.0 23.5 26.5 30.0 31.0 33.5 36.0 40.5 4c.5 62.0 74.5 83.0 87.0 90.0 ( 6.9) ( 9.7) ( 5.9) ( 11.1) C 17.5) ( 12.8) ( 13.2) ( 3.3) ( 8.1) ( 7.S) ( 12.5) ( 22.2) ( 12._) ( 20.2) ( 11.6) ( 4.8) ( 3242

Mouo-ng 3.5 4.0 4.5 5.5 6.o 7.0 7.5 8.5 9.0 9.5 10.0 10.5 l1.0 12.0 13.0 14.5 ll.0 17.5 ( 11.4) 12.5) ( 22.2) ( 20.0) ( 16.7) ( 7.1) ( 13.3) ( 5.9) ( 5.6) ( 5.3) ( 5.0) ( 4.8) ( 9.1) ( 8.3) ( 11.5) ( 10.3) ( 9.4)

Covernr..ent and O;her z_ervices 22.0 23.5 28.0 30.0 35.0 38.0 39.0 61.5 49.0 55.0 58.0 62.0 66.5 71.0 79.5 90.0 105.0 120.5 C 6.8) ( 19.1) C 7.1) ( 16.7) C 8.6) C 2.6) C 6.4) ( 18.1) ( 12.2) ( 5.5) C 6.9) C 7.3) ( 6.8) (12.0) ( 13.2) ( 16.7) ( 14.8)

.ctal 0C at Y :tor ''G4 104.0 1L2.5 116.0 1?5.5 142.5 153.0 169.0 182.0 192.0 202.5 -215.0 25.5 270.0 337.5 395.5__5.__ocx 5.2 Annual percent change 6.3 5.0 8.2 13.5 7.4 10.5 7.7 55 T5 AT 270.0s337.5.0 17.2 6145.0 6=.0 7

Sonj2r^e: Planning Bureau . Table 2.2: SECTORAL COMPOSITIONOF GROSS DOMESTIC PRODUCT, 1953-77

(Percent of total GDP at current factor cost)

--Projected-- 1953- 1917- T - 1/ 1955 Av. 1960 Av. 1963 1964 1965 1966 1967 1968 1969 1970 1974 1977

Agricultureand Fisheries 12.9 12.4 10.2 10.4 10.7 9.2 9.1 9.8 9.2 9.5 9.3 9.1

Forestry and Processing 4.8 3.9 4.7 4.7 4.3 3.7 3.4 3.3 3.5 3.2 2.6 2.3

Mining and Processing 33.5 31.1 27.4 27.2 28.0 34.2 34.0 31.3 31.6 30.6 29.3 28.2 Manufacturing and Construction 8.8 8.8 9.3 9.8 10.0 9.9 11.3 13.5 13.3 13.3 15.4 17.0

Commerce, Banking, Insurance and Transport 14.2 15.9 16.7 17.2 18.3 18.4 18.8 18.7 17.8 17.1)

Housing 3.6 4.6 4.7 4-5 4.1 3.6 3.3 3.3 3.3 3.3) 43.4 43.4 Government and ) Other Services 22.2 23.6 27.0 26.3 24.6 21.0 20.1 20.2 21.4 22.9)

1/ Mission projectionsat constant 1970 prices.

Source: Planning Bureau. _able 2.3: RESOURCES ANh FXPE8.DITtlES, 1953-70

(Sur. f. millions)

1953 1954 1955 1936 1957 1958 t959 1960 1961 1962- 1963 1964 1965 1966 1967 1968 1969 13¢

GDP at Factor Cost 104.0 110.5 116.0 125.5 142.5 153.0 169.0 182.0 192.0 202.5 215.0 235.5 270.0 337.5 395.5 445.0 4950.0 526.0

Indir.ct Taxes 1c.s S.bsidi.. 15.7 15.5 15.2 16.9 20.2 20.5 22.4 26.8 26.9 27.8 29.7 33.6 37.6 41.3 46.5 48.9 54.1 58.9

CDP at Market Prices 119.7 126.0 1i1,2 142.4 162.7 173.5 191.4 208.8 218.9 230.3 244.7 269.1 3'7.6 378.8 442.9 493.9 544.1 584.9

Irports: CooOx (44.6) (46.5) (.0) (59.4) (72.7) (69.5) (83.3) (102.1) (99.8) (101.7) (108.7) (150.1) (177.4. (167.1) (191.9) (187.0) (206.1i (2f_i)l Servies (7.1) (5.8) (5.7) (9.4) (10.8) (11.5) (13.9) (16.9) (20.0) (22.5) (25.4) (29.0) (7a.5) (37.8) (37.0) (40.5) (45.4) (52.h) Total 51.7 52.3 53.3 6S.8 83.5 81.0 97.2 119.0 119.8 124.2 134.1 179.1 2.9 5.9 270.9 2 27.5 251.5 2,9.0

-. TAL RE'O:RCES 171.4 178.3 1..5 211.2 246.2 254.5 288.6 327.8 338.7 354.5 378.8 448.2 _13.J S73.7 f70.9 7214 795.6 F'. i

C-sumptiorn 91.1 97.6 163.5 99.7 118.7 128.7 139.5 159.1 172.9 184.4 192.8 200.2 245.4 286.2 330.4 368.1 407.4 448.4

Gross Capital For.m,tiox

Private (22.5) (23.6) (25.2) (28.2) (38.6) (39.7) (41.1) (45.6) (49.1) (55.7) (63.4) (120.6) (11:.3) (77.0) (86.4) (85.7) (77.4) .9.2 Govern-ent (1.2) (3.0) .2.8) (6.6) (8.8) (9.7) (13.6) (10.3) (17.8) (15.0) (13.9) (14.0) (16.1) (18.4) (17.8) (13.1) (i9.3) (26.2; Tot..l 23.7 26.6 .3.0 34.8 47.4 49.4 54.7 65.9 66.9 70.7 77.3 134.6 130.4 95.4 1IO.2 98.8 98.7 107.4 Ratin to CDP at .jrket prices (%) 19.8 21.1 21.3 24.4 29.1 28.5 28.6 31.6 30.6 30.7 31.6 50.0 42.4 25.2 24.0 20.0 18.1 I.4

Exports: G.oods (45.2) (45.0) (43.7) (63.7) (64.7) (62.6) (78.8) (83.8) (78.9) (81.0) (88.5) (91.1) (111.9) (174.4) (202.8) (220.5) (252.5) (257.S) tervices (11.4) (9.1) j1.5) (13.0) (15.7) (13.8) (15.6) (19.0) (20.0) (18.4) (20.2) (22.3) (25.9) (27.7) (31.4) (34.0) (37.0, (Lr,.-, Total 56.6 34.1 53.0 76.7 877.1 76.4 94.4 102.8 98.9 99.4 108.7 113.4 137.7 2n2.l 234.2 754.5 289.5 297.J

TVOAL EXPENDITURES 171.*4 1,._A,3 l. .5 211 2 '.2 2S!. .S 9.6 317.S 338.7 354.5 378.8 448.2 513.S 5P3.7 670,9 721.4 795.6 073.7

Soorce: ri:n-ing l1re-:,, with misson adlost., .s for 1.,0-67 1ooed on balance of p-s.ns d.,.. from tb.. CentMrl Bank of Suriaam. Table- 2.4:GROSS DO?MST;CAND NATIONAL PRODUCT, 1953-70

(Sur. f. millions)

1953 y514 19'5 1956 1957 1958 1959 1960 19bI l9b2 -- 1 4 1YO 1y6 1 j- Y, 19197 (

GDP at 3actor Oost 104.0 110.5 116.0 125.5 142.5 153.0 169.0 182.0 192.0 202.5 215.0 235.5 270.0 337.5 395.5 445.0 490.0 526.0

Indirect Taxes le4-- Subsidies 15.7 15.5 15.2 16.9 20.2 20.5 22.4 26.8 26.9 27.8 29.7 33.6 37.6 41.3 46.5 48.9 54.1 58.9

G3P at Yarket Prices 119.7 126.0 131.2 14.4 162.7 173-5 191.4 208.8 218.9 230.3 244.7 269.1 307.6 378.8 442.o 493.9 5114.1 584.9

(Gro-rth Rate) (5) - 5.3 4.1 8.5 14.3 6.6 10.3 9.1 4.8 5.2 6.3 10.0 14.3 23.1 16.7 11.7 10.2 7.5

Net Investr.ent Inccme -3.5 -7.9 -4.4 -11.0 -11.0 -9.4 23.7 -27.8 -26.14 -26.5 -28.5 -29.1 ,-28.5 -31.1 -39.1 -69.1 -79.9 -73.3 (Re- ive s .ent) (8.6) (3.4) (21.2) (21.2) (18.8) (17.7) (17.5) (25.6)

GN, at Y.arket Prices 115.1 118.1 126.8 131.4 151.7 163.1 167.7 181.0 192.5 203.8 216.2 240.0 279.1 347.7 402.9 424.8 464.2 511.6

(Growth Rate) ($) - 2.6 7.4 3.6 15.4 7.5 2.8 7.9 6.4 5.9 6.1 11.0 16.3 24.S 15.9 5.4 9.3 10.Z

CGP at Constarnt Prices 115.1 116.9 124.3 127.6 135.4 143.1 142.1 148.4 157.8 165.7 174.4 187.5 216.4 259.5 289.9 297.1 301.5 306.1

(Growth Rate) (W) - 1.6 6.3 2.7 6.1 5.7 -0.7 4.4 6.3 5.0 5.3 7.5 15.4 19.9 11.7 2.5 1-5 1.5

Implici i Deflator (3rd suarter .953 - 100) 1O.9 101.0 102.0 103.0 112.0 114.0 118.0 122.0 122.0 123.0 124.0 128.0 129.0 134.0 139.0 143.C i5Ji.0 167.1

Source: Planning Bureau. Table 2.5: CrOS3i CiIITAI FQiX:A47I0'ILY 5 V (AT PRICES, 1953-70

A.,r.culture rore3try and ._irr and ,:z'rin, Co,.:crce, Banri'ng (Gl. r Yeir --.. 2i _ __,__r_-_ r'- i vr-icUcr JnJo-rrie-, n-

Pr: :-e C ; . TohIa; PF- Cc.Got"t Ti-1 Pr i'e Ccv. :- Pr, r te Co,'. To2 Pr: v-i' c,c. Tot .1 . .r.tc Col. T I Private r a. Total Privarte Cv . ".t i

1353 4.5 0.5 5.0 0.S - O.5 5.0 - L.a 2.0 - 2.0 2.0 O.5r 2 .' 0.S.2 5.7 4 .0 -4 .0 22.5 1.2 23.7 195L 4.5 1.2 5.7 0.6 0.1 0.7 4.2 0.1 4.3 1.5 0.2 1.7 2.6 S.5 3.1 S.o 0.2 o.0 4.4 0.7 5.1 23.6 3.0 2-U 1955 4.3 0.9 5.2 0.1 0.4 0.5 3.0 0.1 3.1 4.2 - 4.2 1.1 - 1.1 6.1 0.4 6.S 6.4 1.0 7.4 25.2 2.8 2e.0 1956 3.2 1.6 4.8 0.5 1.0 1.5 7.0 G.2 9.2 2.7 0.1 2.8 3.5 J.5 4.0 6.5 0.4 6.9 2.8 2.8 5.6 28.2 6.6 35.E, 1957 3.7 2.3 6.o 0.4 0.5 0.9 14.9 0.3 15.2 4.5 0.1 4.6 3.4 o.6 11.0 7.0 0.3 7.3 4.7 5.7 9.4 38.6 8.8 47.1l 1958 3.5 2.9 6.4 1.0 o.6 1.6 13.5 0.5 IL.o 4.o 0.2 4.2 3.0 - 3.0 7.2 0.1 7.3 7.5 5.4 12.9 39.7 9.7 49.a, 1959 1.U 3.9 5.5 0.9 0.8 1.7 22.6 1.4 2L., 2.8 1.3 5.1 3.2 - 3.2 7.5 - 7.5 2.5 6.2 8.7 41.1 13.6 52;.7 1960 2.2 6.1 8.3 1.2 1.0 2.2 20.6 3.3 23.9 3.6 1.3 L.9 3.2 - 3.2 7.5 0.1 7.6 7.3 8.5 15.8 55.6 V.I. 65.9 1961 2.1 7.2 9.3 1.2 0.8 2,0 ?,., 2.6 26.1 5.8 2.0 7.8 4.4 - 5.5 8.4 0.2 8.6 3.7 5.0 8.7 49.1 17.8 66.9 1962 1.6 6.1 7.7 1.4 0.8 2.2 31.0 ;.3 32.3 4.3 1.3 5.3 5.5 - 5.5 8.6 1.0 7.6. 3.6 4.5 8.1 55.7 1' .0 70.7 1963 1.7 5.1 6.8 0.6 1.0 1.6 40.7 1.4 L2.1 5.6 0.4 6.0 3.3 1.0 4.3 8.9 0.7 7.6 2.6 4.3 6.9 63 .L 13-. 77.3 1964 2.4 5.3 7.7 1.7 0.7 2.4 85.6 1.5 87.1 6.3 0.5 6.5 7.0 0.; 7.5 9.3 0.5 y .E 8.3 5.0 13.3 1._ 15.0 1. .r 1965 1.8 5.9 7.7 1.7 1.0 2.7 67.1 1.6 68.7 9.9 0.4 10.3 10.9 o.6 11.5 9.1; 0.7 1l).1 13.5 ,.9 19.4 11L.3 16.1 13).5 1366 2.5 5.8 8.3 3.4 1.1 4.5 3h.2 2.5 36.7 11.8 0.6 12.4 9.1 1.6 10.7 11.6 0.7 12.3 4.4 6.1 10.5 77.0 18.4 - 5 5.L

1967 2.L 4.7 7.1 2.2 1.3 3.5 4 0.2 2.7 42.9 13.2 0.9 13-.5 11.S 0.4 12.2 11.6 0.9 12.5 7.0 7.5 1L.5 8c.4 17.i ; 1908 3-0 3.4 6.4 2.7 2.3 5.0 39.1 2.7 11.8 11.2 0.5 11.7 11.2 0.2 11.5 12.5 0.3 12.8 6.o 3.7 9.7 85.7 13.1 9E.8 19e7 4.8 3.3 8.1 0.8 2.0 2.8 3' .5 1.8 32.2 12.0 0.7 12.7 11.7 2.9 14.6 15.0 1.7 15.7 5.7 6.9 12.6 79.4 19.3 ?3.7 1970 9.3 4.5 13.8 1.5 4.3 d.8 20.7 2.1 21.6 il.d 1.7 13.5 12.9 3.4 16.3 16.5 3.5 20.0 6.5 8.7 -15.2 7?.2 26.2 1:7.5

Source: Planning Bureau. Table 2.6: FINANCING OF INVESTMENT, 1955-70

(Sur. f. millions)

1955 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

GDP at Market Prices 131.2 208.8 218.9 230.3 244.7 269.1 307.6 378.8 442.0 493.9 544.1 584.9

Consumption 1 103.5 159.1 172.9 184.4 192.8 200.2 245.4 286.2 330.5 368.1 407.4 448.4 Government- 79.6 93.3 103.7 117.2 123.9 131.2 Private 165.8 192.9 226.8 250.9 273.5 317.2

Domestic Savings 27.7 49.7 46.0 45.9 51.9 68.9 62.2 92.6 111.5 125.8 136.7 136.5

Net Investment Income Payments 4.4 27.8 26.4 26.5 28.5 29.1 28.5 31.1 39.1 69.1 79.9 73.3

National Savings 23.3 21.9 19.6 19.4 23.4 39.8 33.7 61.5 72.4 56.7 56.8 63.2 Government Current Account 4.0 4.5 9.0 -2.3 1.0 3.7 Surplus (Deficit: - ) Private 29.7 57.0 63.4 59.0 55.8 59.5

Resource Gap (Surplus: - ) 0.3 16.2 20.9 24.8 25.4 65.7 68.2 2.8 -5.3 -27.0 -38.0 -29.1

Net External Capital and Transfers Receipts 4.7 44.0 47.3 51.3 53.9 94.8 96.7 33.9 33.8 42.1 41.9 44.2 Government 22.8 17.0 19.8 17.7 34.4 38.7 Grants 8.0 12.5 13.0 12.5 20.3 23.9 Loans 14.8 4.5 6.8 5.2 14.1 14.8 Private 73.9 16.9 14.0 24.4 7.5 5.5

Financing of Gross Domestic Capital Formation 28.0 65.9 66.9 70.7 77.3 134.6 130.4 95.4 106.2 98.8 98.7 107.4

National Savings/Investment Ratio (7) 83.2 33.2 29.3 27.4 30.3 29.6 25.8 64.5 68.2 57.4 57.5 58.8

1/ Including the consumption expenditure items of development plan projects.

Source: Mission estimates based on the national accounts statistics and develol,,ent plan documents (Planning Bureau), the Budgets (Ministry of Finance) t the balance of payments data (Central Bank of Surinam). Table 2.7: PROJECTED EXPEDITURE AND SAVINGS FLOWS, 1970-77 1/ (Sur. f. millions, current prices)

Average Annual Growth Rates 1970 1971 1972 1973 1974 1975 1976 1977 1970-1977 (Actual) (percent)

GDP (marketprices) 584.9 628.6 681.3 738.3 800.4 868.5 943.4 1,025.4 8.4

Consumption 448.4 479.9 512.1 556.5 607.6 669.7 734.8 782.9 8.3

Investment 107.4 U9.3 142.7 163.2 190.7 207.4 228.4 274.2 14.3 (percentof GDP) (18.4) (19.0) (20.9) (22.1) (23.8) (23.9) (24.2) (26.7)

Exports of Goods and Services 297.9 315.1 334.6 350.9 369.2 387.4 408.o 428.7 5.4

Imports of Goods and Services 268.8 285.7 308.1 332.3 367.1 396.0 427.8 460.4 8.o

Resource Gap (- surplus) -29.1 -29.4 -26.5 -18.6 -2.1 8.6 19.8 31.7

Net investment income payments abroad 73.3 78.0 81.1 84.4 87.7 91.2 94.9 98.7 4.4

National Savings 63.2 70.7 88.1 97.4 105.1 107.6 113.7 143.8 12.4 (percent of investment) (58.8) (59.3) (61.7) (59.7) (55.1) (51.9) (49.8) (52.4) (percent of GDP) (10.8) (11.2) (12.9) (13.2) (13.1) (12.4) (12.0) (14.0)

Capital inflows 44.2 48.6 54.6 65.8 85.6 99.8 114.7 130.4 16.7

/ Assuming a price increase of 4 percent p.a. from 1971 onward,

Source: 1970, Planning Bureau; 1971-77, mission estimates.

III. BALLACEOF PAYMENTS

Thlbl 3.1: BALANCE OF PAYMENTS, 1960-70

(In LIllIo-.s of 5)

Ito', 1960 1961 1962 1963 1964 1965 1966 1967 1968 Prollx. Prc91,. C-rront AccouJnt

Receipts .ndnuding Investrnt incen 54.7 572.6 52.8 57.8 60.6 73.7 108.0 175.2 135. 2 154.4 100. X,echa-dis. e,i'rt. (fob) 1/ 44.4 41.8 42.9 47.0 48.3 59.3 92.4 107.5 116.9 133.8 116.5 Transport and ionr-an-e 2.3 2.1 1.S 1.7 2.4 2.5 3.0 3.3 3.0 3.9 3.9 Travel 1.5 1.5 1.6 1.7 2.0 2.5 2.5 3.1 3.5 3.0 3.4 Iv-,tlnt lncne 0.3 0.2 0.2 0.2 0.5 0.8 1.0 1.1 0.3 1.0 2.8 Covernoent n.t... 2.2 2.8 3.0 3.7 4.0 4.7 4.1 4.5 4.8 5.2 6.5 Other servIc.. 4.0 4.2 3.6 3.5 3.4 3.9 5.0 5.7 6.7 7.5 7.5 ParnenOtO, including Invaetenen f reo 78.1 77.6 80.0 86.4 110.9 125.0 126.0 143.3 157.5 175.9 103.8 Orreh-ndie I.ports (.if) 1/ 54.1 52.9 53.9 57.6 79.6 94.0 8d.6 101.7 99.1 109.2 114.5 rra. port *nd insurance 1.2 1.1 1.0 1.6 1.7 1.9 2.1 2.4 2.9 3.3 4.0 Travel 2/ 1.5 1.7 2.2 2.2 2.6 3.0 3.5 3.9 4.6 5.8 8.1 Invest.nt incoue 3/ 15.0 14.1 14.2 15.3 15.9 15.9 17.4 22.1 37.0 42.6 41.3 Go-ern,sent n.l.e. 0.8 0.9 1.0 1.1 0.8 0.7 0.9 1.3 1.7 2.2 1.9 Other S.rvicne 5.5 6.9 7.7 8.6 10.3 9.5 13.5 11,9 12.2 12.8 14.0 O -lanreon Current Acm-nt -23.4 .25.0 -27.2 -28.6 -50.3 -51.3 -18.0 -18.1 -22.3 -21.5 -23.2 8.1ance of good. *nd nonf.ctor services (.8.6) (-11.1) (-13.1) (413.5) (-34.8) (-36.1) (-1.5) (2.8) (14.3) (20.0) (15.4) C-vltnl Account

Priu.Ate Capiral (netl 9.7 11.7 16.9 18.2 40.7 35.0 8.3 1.9 10.1 o.v. private transfer, 0.2 0.2 - -0.2 1.4 -5 1 . 0.1 0.5 -0.3 - - -0.3 direct in-estnent 3/ 4/ 8.8 11.4 14.6 17.4 40.1 34.0 7.7 1.3 8.4 1.7 -5.0 other lor -cnro 0.7 0.3 2.3 4 1.0 0.6 0.9 0.1 0.9 1.7 -0.3 0.2 Official capital and transfers (net) 7.0 12.4 10.8 12.5 I1.3 13.7 . 9.2 12.3 10.0 18.4 23.8 o.v. Ibe- re-conod 3.8 8.2 7.3 7.3 8.4 12.2 3.2 6.5 6.4 7.7 12.1 a..rtltztl.n - -0.2 *0.8 -0.9 *1.7 -3.8 -1.0 -1.3 -3.0 -0.3 -0.6 grant, r.e.ived 3.4 4.6 4.0 6.9 3.6 5.5 6.6 -6.9 6.6 10.8 12.7 other official capital 5/ -0.2 .0.2 0.3 -0.8 - -0.2 0.4 0.2 - 0.2 -0.4

C nroercal credits and errors and oxisaiuns 4.4 -0.5 0.5 1.2 3.3 5.5 3.4 4.6 5.6 5.9 10.8 Gal_n e n. Copital .Icou-t 21.1 23.6 28.2 31.9 S4.3 54.2 20.9 18.8 25.7 25.7 29.5 Chanjes in Re.er-es (- - innreaae) 2.1 1.7 -1.0 -3.3 -5.1 -3.0 -3.1 -0.7 -3.4 -4.1 -6.3

1/ Figures differ slightly fr0a trade statistics derived romE cunsto. returns, since a unItary rate of exchange h.s been sed for conversies here.

2/ Inc1ladns soo -uidentified capital transfers.

3/ Including reinvested profit, of Surinan -bsidf.ries of ffoiEn corporationS,

4/ Include. chDngos Io currant account b.lances of major corporations engaged in foreign trade.

5/ Includes Dutch dovelop.ent *id to.private and *ti.offical organlrations, largely for social and cultural purposs.

Source: Central B.nk of Suria,. Table 3.2: COMPOSITION OF EXPORTS, 1960-70

(In millions of )

Description 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Bauxite 35.1 34.1 33.2 35.1 38.5 42.7 48.7 41.0 41.0 41.5 40.4 Alumnina - - - - - 3.3 19.5 38.1 40.6 49.9 56.4 Aluminum - - - - - 0.5 10.2 12.6 18.1 25.5 25.8 other mining products - - - - - 0.1 0.2 - 0.1 - Total mining products 35.1 34.1 33,2 35.1 38.5 46.5 78.5 91.9 99.7 117.0 122.6

Rice 2.6 1.8 2.6 2.7 1.7 2.6 2.7 3.8 5.3 4.1 2.8 Citrus 0.5 0.2 0.5 0.3 0.3 0.4 0.5 0.4 0.3 0.5 0.5 Coffee 0.2 0.2 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.1 0.1 Cocoa 0.2 0.1 0.2 0.2 0.1 0.1 0.1 - - - 0.0 Sugar (raw) 0.3 0.1 0.3 0.9 0.2 1.1 1.2 1.1 1.0 0.5 0.3 RuLm 0.0 0.0 - - 0.1 .0.1 0.1 0.2 - 0.2 0.2 Plantains and bananas 0.0 - 0.1 0.1 0.1 0.6 0.7 1.4 2.5 2.2 1.6 Cther agricultural products 0.2 0.1 0.1 0.6 0.3 - 0.2 0.2 0.2 0.3 0.2 lotal agricultural Products 4.0 2.5 4.0 5.0 2.9 5.1 5.7 7.3 9.5 7.9 5.7 _icheryproducets 0.3 0.2 0.6 0.8 0.9 1.3 1.4 1.0 0.5 0.5 Plywood 1.8 1.9 1.9 2.2 2.2 2.0 1.7 1.9 2.2 2.5 2.1 Particle board 0.5 0.8 0.8 1.1 1.2 1.0 1.0 0.8 0.6 1.0 0.7 Other forestry products 1.1 1.1 1.0 1.0 0.8 1.4 1.7 1.7 1.3 1.4 1.5 Total forestry products 3.4 3.8 3.7 4.3 4.2 4.4 4.4 4.4 4.1 4.9 4.3 Men's & clothing boy's 0.2 0.2 0.2 0.2 0.3 0.4 0.4 0.4 0.5 0.5 0.2 Other products ------0.4 0.1 0.2 0.2 0.2 Total /,u383.0 41.7 45.4 46.8 57.7 90.8 105.1 114.6 131.0 133.5 Re-exports of foreign products 0.7 0.4 0.5 0.7 0.7 1.0 0.9 1.5 1.2 1.5 1.4 Total 43.7 41.2 42.2 46.1 47.5 58.7 91.7 106.6 115.8 132.5 134.9 'Zining products as / of total exports 8(0.3 82.8 78.7 76.1 81.1 79.2 85,6 86.2 86.1 88.3 90.8 Agricultuiral products~ as / of total (c.porrs 9.2 6.1 9.5 10.8 6.1 8.7 6.2 6.8 8.2 6.0 4.2 iore5 try products as / of total exports 7.8 9.2 8.8 9.3 8.8 7.5 4.8 4.1 3.5 3.7 3.2

Sourc k. : (,tGntor;il Iire of Statistics; Central Pank of Surinam. Table 3.3: COMPOSITION OF MERCHANDISE IMPORTS, 1960-70

(c.i.f. in millions of $)

Average Annual 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Growth 1960-1970 (p.ercent) Fuels and Lubricants 4.6 4.2 S.0 4.9 5.4 6.1 7.4 8,2 8.4 11.3 13.6 11.5 Raw and Auxiliary Materials for:.

Agriculture and fisheries 0.7 0.8 1.0 1.0 1.2 1.3 1.6 1.7 1.9 2,3 Foodstuffs, beverage., 1.9 10.5 tobacco industries 1.9 1,9 2.8 2.8 3.1 3.0 3.2 3.5 3.6 3.4 4.9 9.9 Construction 4.2 4.6 4.8 5.5 12.0 13.5 7.4 9.0 6.6 6.7 6.9 5.1 Other activities 9.2 9.8 11.1 12.3 15.1 22.2 21.5 23.8 23.9 29.0 27.4 11.5 Total 16.0 17.1 19.7 21.5 31.4 40.0 33.7 38.0 36.0 41.4 41.1 9.9 Yarn and Fabrics 2.9 2.7 2.5 3.0 3 3.9 3.4 4.2 3.7 4.5 4.5 4.5 Consumption Goods

Foodstuffs 5.5 5.2 5.1 5.4 5.5 6.2 6.9 6.9 8.2 8.6 8.9 4.9 Beverages 1.3 1.3 1.2 1.1 1.0 1.1 1.1 1.2 1.2 1.4 1.8 3.3 Tobacco 0.6 C.6 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 1.5 Furniture, etc. 2.7 2.7 2.9 2.9 2.8 3.2 3.5 4.0 4.1 4.7 4.7 5.7 Clothing 0.8 0.8 0.8 1.0 1.1 1.2 1.1 1.6 1.5 2.0 1.9 9.0 Footwear 0.5 0.7 0.7 0.7 0.7 0.9 0.8 0.8 0.8 1.0 1.1 8.2 Cleaning products 0.7 0.7 0.7 0.8 0.9 1.0 1.0 1.2 1.0 1.1 1.2 5.5 Medical and hygiene products 1.3 1.4 1.5 1.7 1.8 2.2 2.3 2.7 2.7 3.1 3.4 10.1 Educational and Recreational products 1.0 1.0 1.1 1.1 1.3 3.0 2.4 3.1 2.5 2.3 2.5 9.6 Bicycles, mopeds, tires 0.7 0.6 0.6 0,6 0.6 0.7 0.8 1.0 1.0 1.0 1.0 3.6 Other products 1.2 1.1 1.0 1.4 1.3 1.6 1.6 1.9 2.2 2.5 2.8 8.8 Total 16.3 16.1 16.2 17.3 17.6 21.7 22.1 25.1 25.9 28.4 30.0 6.3

Cars and Motorcycles 2.0 1.9 1.6 1.3 1.5 1.9 2.3 3.5 2.8 3.6 3.7 6.4 Investment Goods for:

Transportation sector 4.9 4.0 2.2 2.6 3.1 3.8 7.2 6.5 9.6 7.4 7.5 4.4 Bauxite sector 0.6 0.6 1.1 1.5 3.6 2.0 3.0 4.8 1.5 1.6 1.6 10.3 Other sectors 7-4 6.8 6.1 6,3 15.1 16.2 10.3 12.5 11.2 12.0 13.4 6.1 Total 12.9 11.4 9.4 10.4 21.8 22.0 20.5 23.8 22.3 21.0 22.5 5.7 TOTAL IMPORTS 54.7 53.4 54.4 58.4 80.8 95.6 89.4 102.8 99.1 110.2 115.4 7.8

Source: General Bureau of Statistics; Central Bank of Surinam. Table 3.4: GEOGRAPHICALDISTRIBUTION OF IMPORTS AND EXPORS, 1960-70

(in percent of total)

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Imports from:

Netherlands 30.5 29.0 28.3 28.5 21.5 20.2 22.4 20.5 23.5 21.2 22.2 Other Europe 18.1 19.4 18.9 17.1 18.4 15.9 18.0 17.5 17.7 17.4 18.6 United States (includingCanada) 35.2 35.1 33.1 36.0 44.3 47.7 41.5 41.4 39.2 39.3 36.5 Caribbean (includingGuyana, French Guiana and Venezuela) 10.7 11.1 14.7 11.9 9.5 9.8 11.0 11.3 11.9 12.5 12.7 Others 5.5 5.4 5.0 6.5 6.3 6.4 7.1 9.3 7.7 9.6 lo.o

Exports to:

Netherlands 8.2 9.6 6.7 8.0 4.8 7.9 8.6 11.1 lo.o 10.o 13.8 Other Europe 3.0 3.8 5.7 4.3 3.8 3.5 9.4 20.7 21.5 36.0 40.9 United States (includingCanada) 79.7 79.7 81.2 80.2 85.0 81.7 77.2 60.1 57.7 46.4 40.9 Caribbean 7.6 5.7 5.8 6.9 5.9 5.7 4.4 4.o 4.1 4.2 3.7 Others 1.5 1.2 0.6 0.7 0.5 1.2 0.4 4.1 6.7 3.4 0.7

Source: Central Bank of Surinam. Table 3.5: COMMODITY DISTRIBUTION OF IMPORTS AND EXPORTS, 1960-70

(In mdllions of $ and percentages of totals)

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 Imports

Raw and basic materials 23.5 24.0 27.2 29.4 39.9 50.0 44.5 50.4 48.1 57.2 59.3 (in percent) (43.0) (44.9) (49.9) (50.3) (49.5) (52.3) (49.7) (49.1) (48.5) (52.0) (51.4) Investment goods 12.9 11.4 9.4 10.3 21.8 22.0 20.5 23.8 22.3 21.0 22.4 (in percent) (23.6) (21.3) (17.3) (17.8) (23.5) (23.0) (22.9) (23.2) (22.5) (19.0) (19.4) Consumption goods 18.3 18.0 17.9 18.7 19.1 23.6 24.4 28.6 28.7 32.0 33.7 (in percent) (33.5) (33.7) (32.8) (31.9) (27.0) (24.7) (27.4) (27.7) (29.0) (28.9) (29.2) o/w Passenger cars, n.a. 3.6 2.8 2.3 motorcycles 1.8 1.9 4.4 6.6 5.3 6.7 7.0 Total Imports 54.7 53.4 54.4 58.4 80.8 95.6 89.4 102.8 99.1 110.2 115.4 Exports

Bauxite 35.1 34.1 33.2 35.1 38.5 42.7 48.7 (in percent) 41.0 41.0 41.6 40.4 (80.4) (82.8) (78.7) (76.1) (81,0) (72.8) (53.1) Alumina (38.5) (35.4) (31.7) (29.9) - - 3.3 (in percent) 19.5 38.1 40.5 49.9 56.3 - - - - (5.6) (21.3) (35.8) Aluminum (35.0) (38.0) (41.7) - - - - - 0.5 10.2 12.6 18.1 25.5 25.8 (in percent) - - - - - (0.8) (11.1) (11.8) (15.6) (19.4) (19.1) Agriculture 4.2 2.7 4.6 5.8 3.8 6.3 7.0 8.3 10.2 8.4 6.3 (in percent) (9.7) (6.5) (10.9) (12.6) ( 8.0) (10.7) (7.7) (7.8) (8.8) (6.4) (4.6) Forestry 3.4 3.8 3.7 4.3 4.2 4.4 4.5 4.5 4.1 4.9 4.3 (in percent) (7.3) (9.2) (8.7) (9.3) (8.8) (7.5) (4.9) (4.2) (3.5) (3.7) (3.2) Miscellaneous 1.0 0.6 0.7 0.9 1.0 1.5 1.7 2.1 1.9 2.2 1.9 (in percent) (2.1) (1-5) (1.7) (2.0) (2.1) (2.6) (1.9) (1.9) (1.7) (1.7) (1.4) Total Exports 4 41.2 42.2 46.1 47,5 57 91.7 1.6 115. 132.5 134.9

Source: Central Bank of Surinam. Table 3,6: IMPORTS ANDEXPORTS OF FOODSTUFFS, 1965-70

(In Thousands of

Description Imports Exports 1965 1966 1967 1968 1969 1970 1965 1966 1967 1968 1969 1970 Live animals for food 213.0 259.8 335.5 338.7 275.0 403.3 2.1 14.3 0 1.6 0 0.5 Meat and meat prodgcts 1,229.0 1,400.3 1,219.5 1,388.1 1,424.6 1,556.1 - - 0.5 0.5 2.1 0.5 Dairy products, eggs, honey 792.4 705.4 816.7 1,133.7 1,178.7 1,193.6 0.5 1.1 0.5 1.6 - 3.7 Fish, fish products 719.2 816.7 772.7 828.4 957.2 783.9 1,266.2 1,357.3 984.7 559.2 523.1 552.3 Grain, grain products 2,058.0 2,441.7 2,466.1 2,444.4 2,811.7 3,905.6 Z,575.3 2,754.9 3,818.1 5,262.4 4,099.6 2,769.8 Fruit and vegetables 1,412.5 1,524.3 1,679.6 1,660.0 1,819.5 1,919.1 694.8 1,228.5 1,931.3 2,928.3 2,757.1 2,284.8 Sugar and sugar products 260.2 174.9 231.1 253.3 287.3 579.3 -1,045.7 1,171.3 1,062.7 999.6 474.4 294.2 Coffee, tea, spices cocoa, 567.6 603.1 649.8 607.9 637.6 701.2 267.1 294.7 199.3 214.1 172.2 117.1 Cattlefeed 727.2 660.9 975.2 821.0 1,103.5 1,036.7 42.4 27.6 59.4 85.3 40.8 53.5 Various processed foodstuffs 645.0 654.6 788.6 781.2 1,083.9 1,169.7 0.5 1.1 1.1 1.1 5.3 1.1

TOTAL 8,624.1 9,241.7 9.934.8 10.256.7 11.579.0 13,248.5 5,SS4.6 6,850.8 8,057.6 10,053.7 8.074.6 6,077.5

Import surplus (-) -2,729.5 -2,390.9 -1,877.2 - 203.0 -3,504.4 -7,351.0

Source: General Bureau of Statistics; Central Bank of Surinam . Table 3.7 : BALANCEOF PAYMENTS, 1960-77 (In millions of 4,)

ACTUALPRE.IM,INART P;UECIMMlAKY PROJECTED Average Annual Description 1960' 1965 1970 1971 1972 1973 1974 1975 1976 1977 Growth 1970-77 (in percent)

CURRENT ACCOUNT:

Exports of Goods and Non-factor Services 54.5 72.9 157.8 187.4 196.5 206.8 216.9 228.5 240.1 6.2 Merchandise exports (f.o.b.) 1/ 44.4 59.3 136.5 163.1 161.5 168.8 177.1 185.1 194.4 203.6 Transport and insurance 2.3 2.5 3.9 4.6 4.8 5.1 5.4 5.7 5.9 6.1 Travel 1.5 2.5 3.4 4.3 4.7 5.1 5.5 6.0 6.6 9.9 Government n.i.e. 2.2 4.7 6.5 8.0 8.6 9.3 10.0 10.9 11.7 8.8 Other services 4.0 3.9 7.5 9.0 9.6 10.2 10.9 11.5 12.3 7.3

Imports of Goods and Non-factor Services 63.1 109.1 142.5 172.7 187.2 210.0 221.7 239.5 257.9 8.8 Merchandise imports (c.i.f.) 1/ 54.1 94.0 114.5 11 139.4 152.1 173.2 182.7 198.5 213.9 Transport and insurance 1.2 1.9 4.0 5.1 5.6 6.2 6.8 7.4 8.2 10.8 Travel Z/ 1.5 3.0 8.1 10.5 11.6 12.9 14.3 15.9 17.7 12.1 Coverrment n.i.e. 0.8 0.7 2.0 2.5 2.7 3.0 3.2 3.5 3.9 10.0 Other services 5.5 9.5 14.0 15.2 15.2 14.7 14.7 14.2 14.2 0.2

Balance of Goods and Non-factor Services -8.6 -36.1 15.4 6.1 14.7 9.3 -3.2 -4.8 -11.0 -17.8

Investment Income (net) -14.7 -15.1 -38.5 -45-2 -45.3 -47.0 -49.0 -50.9 -53.2 -55.3 Receipts 0.3 0.8 2.8 1.1 1.2 1.2 1.3 1.3 1.4 Payments 2 15.0 15.9 41.3 46.4 48.2 50.2 52.2 54.5 56.7

Balance of Current Account -23.4 -51.3 -23.2 -9.1 -30.6 -37.7 -52.2 -55.7 -64.2 -73.1

CAPITAL ACCOUTNT:

Private Capital (net) 9.7 35.0 -5.1 -6.2 1.8 2.4 6.0 6.7 15.8 15.5 Of which: __ direct investments2/ 1 8.8 34.0 -5.0 1.7 2.4 6.1 6.4 16,0 15.7 other long-term 0.7 0.9 0.2 0.6 0.6 0.6 0.6 0.6 0.6 Other 0.2 0.1 -0.3 - Official Capital and Transfers (net) 7.0 13.7 23.8 16.9 27.2 29.4 38.2 43.5 36.7 21.5 Of which: loans received .3.8 12.2 12.1 9.0 10.3 13.3 14.6 12.5 5.6 amortization - -3.8 -0.6 0.6 -3.4- -3.4 -3.4 -3.4 -3.4 -3.4 grants received 3.4 5.5 12.7 12.8 17.2 19.9 25.1 28.0 23.3 12.2 other official capital S -0.2 -0.2 -0.4 0.7 4.4 2.6 3.2 4.3 4.3 7.1

Cormercial Credits and Errors and Omissions 4.4 5.5 10.8 0.6 13.3 14.3 15.4 16.6 17.9 19.3

Lalance on Capital Acount and Errors and 21.1 54.2 29.5 10.1 42.3 46.1 59.6 66.3 70.4 56.3 QzR.ssions Changes in Reserves (- increase) 2.1 -3.0 -. -1.0 -11.7 -8.4 -7.4 -10.6 -6.2 16.

1/ Figures differ slightly from trade statistics- derived from custom returns - because of payments adjustments. 2 Includes reinvested profits of Surinam subsidiaries of fordei corporatlons. 3] Includes changes in current account balances of specific ferzedp corporationa. L/ IncludesDutch development aid to private and seal-official organizationo, largely for sociUl and cultural purposes.

Source: Table 3.1 and mission estimates. Table 3.8: PROJECTEDMERCHANDISE EXPOTS, 1970-77

(f.o.b. in millions of $, at current prices)

Average Aiiual Troected Growth 1970-77 1970 1971 1972 1972 197 1975 1976 1°T977 (percent) Bauxite 40.4 47.3 49.1 51.0 53.1 55.8 5 .6 5.5 Aliijslnia 56.4 64.6 67.4 70.2 73.1 76.2 79.4 5.0 Alumimmuu 25.8 30.6 32.4 34.,4 36.4 38.6 40.9 6.8 Other products ------TotalMining 122.6 142.5 1!.9 162.6 170.6 l78.9 5.6 Rice 2.8 4.8 5.0 5.2 5.4 5.6 5.9 11.2 Citrus 0.5 1.1 1.3 1.6 1.8 2.0 2.0 22.0 Coffee 0.1 0.1 - . - - - - Cocoa - - - - Sugar 0.3 0.2 0.1 0.1 _ Ruim 0.P 0.2 0.2 0.2 0.5 0.3 0.3 - Plantains, bananas 1.6 3.1 3.4 3.9 3.9 4.1 4.1 14.4 Other products 1/ 0.2 0.3 0.3 0.5 0.8 1.0 1.1 28.0

Total Agriculture 5.7 9.8 10.3 11.5 12.2 13.0 13.4 13.0 / FisheryProducts 0.5 0.6 o.6 0.7 0.7 0.8 0.8 6.9

Plywood 2.1 2.5 2.5 P.6 2.7 P.r 3.1 5.7 Particle board 0.7 0.7 0.7 0.7 0.7 -0.7 0.7 - Sawn wood 0.7 0.8 0.8 0.9 0.9 0.9 0.9 _ Other products 0.8 0.8 0.8 0.8 0.7 0.7 0.7 -

Total Forestry b.3 4.8 4.8 5.0 5.0 5.2 . 5.4 3.3

Textile 0.2 0.2 0.2 0.1 0.1 0.1 0. Other products 1.8 1.7 2.1 2.2 2.3 2.5 Zi Re-exports 1.4 1.7 1.8 2.0 2.0 2.2 2.2 TOTALEXPORTS 136.5 161.5 168.8 177.1 185.1 194.L 203.6 _ . _, - - - 5.9

/ Includes palm oil and kernel. / Note that 1970 exports were inordinately low. Source: -1970, Table 3.2; 1971-77, mission estimates. Table39 PROJECTED HERCIEANDISEIMPORTS, 1970-77

(c.i.f. in millions of $, at current prices)

Average Annual CrzBwtib Act4al Proiected 197o-7 1970 1971 1972 1973 1974 1975 1976 1977 (percent)

Fuels and Lubricants 13.6 17.9 20.5 22.8 24.2 27.7 30.9 12.h

Raw and auxiliary materials for: agricultureand fisheries 1.9 2.5 2.7 3.0 3.4 3.7 4.1 11.6 foodstuffs,beverage, tobacco industries 4.9 6.3 6.9 7.6 8.4 9.2 10.1 10.9 construction 6.9 8.1 10.2 15.7 14.5 12.8 11.0 6.9 other activities 27.4 32.6 34.7 36.8 39.1 41.6 44.1 7.0

Total 41.1 49.5 54.5 63.1 65.4 67.3 69.3 7.8

Yarn and Fabrics 4.5 5.2 5.5 5.7 5.9 6.3 6.6 5.6

ConsumptionGoods: foodstuffs 8.9 10.6 11.3 12.6 12.8 13.7 14.6 7.3 beverages 1.8 2.2 2.3 2.5 2.6 2.8 3.0 7.6 tobacco 0.7 0.7 0.7 0.7 0.8 0. 0.8 1.9 furniture,etc. 4.7 5.8 6.2 6.7 7.3 7.8 6.5 8.8 clothing 1.9 2.6 3.0 3.5 4.0 4.5 5.2 15.5 footwear 1.1 1.4 1.5 1.6 1.8 2.0 2.1 9.7 cleaning products 1.2 1.3 1.4 1.4 1.5 1.5 1.6 4.2 medical and hygiene products 3.4 4.4 4.9 5.3 5.9 6.4 7.1 11.1 educational and recreational products 2.5 3.2 3.5 3.9 4.3 4.6 5.2 11.0 bicycles, mopeds, tires 1.0 1.2 1.2 1.3 1.3 1.4 1.5 6.0 other products 2.8 3.6 3.9 4.5 4.7 5.1 5.7 10.7

Total 30.0 37.0 39.9 44.0 47.0 50.6 55.3 9.1

Cars eand Motorcycles 3.7 4.6 5.3 6.2 6.7 7.8 8.8 13.2

Investment goods for: transportation sector 7.5 8.6 9.0 9.9 10.9 11.4 12.4 7.4 bauxite sector 1.6 2.0 2.5 3.9 3.9 5.9 8.4 27.0 other sectors 12.5 14.6 W 17.6 t9.7 21 .5 22.2 9.0

Total 22.5 26.4 27.7 33.2 35.4 40o7 45.3 10.5

TOAL IHPCRTS 11.5 13.4 52.1 173. 2 182.7 19 213.9

Source: 1970, table 3.3; 1971-77, .sasiamemtlxmtLs.

IV. PUBLIC DEBT

Thble 14.1: EXTERNALPTJBTTC DE P SERVI(E RATIO, 1966-77

(in rrilion- of $a at current pri-c)

Actual Projectedi/

1966 1967 1968 1969 1970 1971 1972 1973 19714 1975 1976 1977

CommodityExports 92.)t 107.5 116.9 133.8 136.5 144 .1 161.5 168.8 177.1 185.1 191Q)J!203.('

Service ExpoT'ts 15.6 17.7 18.3 20.6 2-.1 21i.0 27.0 28.9 30.9 33.1 35.14 37.9

G,rossexports of goods and servlces 108.0 125.2 135.2 15h4 160.6 168.1 188.5 197.7 ?08.0 218.2 229.8 241.5

Less: Profit,remittt,nces abroad 1 7 L 22.1 37.0 42. 6 4.I )tn.~ J6.4 148.2 50.2 <2.2 5l .5 56.7

Exports of goods and services, net of profit.remittances 90.6 103.1 98.2 111.8 119.3 127.7 142.1 149.5 157.8 166.0 175.3 184.8

Debt Service2/ 1.1 1.4 3.2 0.8 0.8 0.8 5., 5-4 5.3 5.? 5.? 5.2

Amortization 1.1 1.1 3.0 0.3 0.6 0.5 3.4 3.-i 3.4 3.1 3%.) 3.4 1.8 Interest - - 0.2 0.5 o.2 0.3 2.0 2.0 1.9 1.8 1.8

Gross Debt Service Ratio (g) 1.0 1.1 2.14 o.6 O.5 0.5 2.9 2.7 2.5 2. 2.2 2.1

Net Debt Service Ratio (%) 1.2 1.3 3.2 0.8 0.7 o.6 3.8 3.5 3.3 3.1 2.9 2.7

1/ Assuming a price increase of 4 percent p.a. from 1971 onward. 2/ For 1966-71 figures represent actual payments summing to US$ 8.1 million. Accrued Pmvrpnt.s.ho-Tevieri amounted to UJS$15.? million. The former yi,e1d.s nr average net debt service ratio for the period 1966-71 of 1.2 percent while the equivalent ratio for the latter is 2.3 percent.

Source: T'bles 3.1. 3.7 and mission estimates. Table 4.2: OUTSTANDINGCENTRAL GOVERNMENT EXTERNAL DEBT, 1961-70

(In millions of $)

1961 1962 1963 19Z4 1965 1966 1967 1968 1969 1970

Loan from Bussing - - - - - 719.2 539.0 350.3 147.9 -

Loan from NHM 3,142.9 2,480.4 1,817.4 1,159.6 496.1 - - - - _

Loan from HBU _ 986.3 762.7 540.1 316.9 94.3 - _ _ _

Loan from Reconstruction Bank - 1,925.0 1,925.0 1,104.5 276.1 - - - - -

Ten-Year Plan loan 15,797.7 19,696.9 25,946.7 29,118.7 30,836.5 34,029.7 36,346.3 35,248.2 35,405.6 35,405.6

Five-Year Plan extra- ordinary loans ------1,108.2 4,117.6 10,7h1.5

Eive-Year Plan ordinary loan 1- - - - l.7 196.1 907.4

Transition loan from Netherlands - - - 5,002.1 12,767.7 12,767.7 12,767.7 16,386.5 16,386.5 16,386.5

Loan from AID _ - - - 1,007.0 1,007.0 1,007.0 1,007.0 1,007.0 974.7

Loan from NKF (ITT) - - - - 1,087.6 998.0 903.7 804.0

Loan from Exim-Bank(ITT) - - - _ _ - _ - 4,o69.3 3,716.9

Loan from European Invest- mentBank ------296.8 1,298.0

Loan from SURALCO J 2,544.0 2,968.0 3,392.0 3,816.0 4,240.0 4,240.0 6,360.0 6,360.0 6,360.0 10,170.7

Total 21,484.6 28,056.6 33,843.8 40,741.1 ?'-W40.3 52,857.9 58,107.6 61,469.9 68,890.5 80d05.3

1/ Repayable in local currency

Source: Central Bank of Surinam and Ministry of 9 V. PUBLIC FINANCE

Table 5.1: CENTRAL GOVERNMENr CURRENT EXPENDITURE, 1965-71

(Sur. f. millions)

Annual increase (percent) 1965 1966 1967 1968 1969 1970 1971 1965-70 1965-71

TOTAL CURRENT EXPENDITURE 77.5 90,1 100.6 110.7 120.6. 125.8 139.6 9.8 9.5

Functional Classification General administration 28.9 32.2 38.1 39.2 41.4 42.7 43.4 8.1 7.0 Central administration 18.3 21.7 26.5 25.9 26.6 27.4 28.0 8.4 7.3

Of which transfers ( 3.0) (3.2) (3.4) (3.6) (4.5) (5.3) ( 5.1)

Finance 4.9 4.2 4.8 6.0 6.1 5.5 5.7 2.3 2.6 Juistice and police 5.5 6.1 6.5 7.0 8.2 9.3 9.2 11.1 9.0 Otlher 0.2 0.2 0.3 0.3 0.5 0.5 0.5

Social Services 32.3 37.5 40.2 43.1 50.0 51.9 59.9 10.0 10.8 Education and training 13.8 16.4 18.9 20.9 25.2 27.0 33.8 14.4 16.1

Of which transfers (0.2) (0.3) (0.4) (0.6) (0.7) (0.9) (1.2)

Health 9.7 12.0 12.0 12.4 13.1 13.9 15.2 7.5 7.8

Of which transfers (0.5) (0.5) (0.6) (0.8) (0.9) ( - ) (1.3)

Other 8.8 9.1 9.3 9.8 11.7 11.0 10.9 4.6 3.6

Of which transfers (7.1) (6.3) (6.0) (6.4) (7.2) (6.2) (6.4)

Community services 8.9 12.2 13.2 14.4 15.2 17.9 17.3 16.1 11.7 Transport 5.0 6.2 6.5 6.8 6.8 7.4 8.1 8.2 8.4

Of which transfers ( - ) ( - ) ( - ) ( - ) (0.2) (0.1) (0.2)

Energy 1.2 1.5 1.8 1.8 2.0 1.7 0.9 7.1 Communications 1.7 2.4 2.6 2.9 3.4 3.5 3.8 15.5 14.3 Other 1.0 2.1 2.3 2.9 3.0 5.3 4.5 40.0 28.5

Of which transfers (-' ( - ) (0.2) (0.4) (0.3) (0.1) ( )

Economic services 4.9 5.2 5.9 5.9 6.9 7.1 8.8 7.7 10.3 Agrictultureand forestry 3.9 4.5 5.0 5.1 5.9 6.4 6.8 10.4 9.7 Trade and industry 0.8 0.5 0.6 0.7 0.9 0.5 1.5 neg. 11.0

Of which transfers (0.1) (0.1 (0.2) (0.2) (0.1) ( - Other 0.2 0.1 0.3 0.1 0.1 0.2 0.5 - 16.5 tlIultllo¢te5.t&extra.budge ttrv 2.5 2j7 3.2 8.1 7.1 6.2 7.6

Economic Classification Wases and salaries 41.4 51.6 57.3 60.2 70.5 77.4 8jJ1 13.3 Purchase of materials and services 19.8 22.8 27.8 27.6 26.0 27.3 29.2 6.6 6.7 Transfers 10.8 10.4 10.7 12.0 14.0 1-T9 14.2 3.3 4.7 Rest of public sector ( - ) (0.1) (0.1) (0.2) (0.4) (0.-) (0.2) Private sector (10.8) (10.3) (10.6) (11.8) (13.6) (12.5) (14.0) (3.0) (4.4) Interest 0.6 0.5 0.6 2.5 1.9 1.0 3.7 Domestic debt (-) (C.4) (0.5) (2.5) (0.9) (0.6) (0.7) External debt (0.6) (0.1) (0.1) ( _ ) (1.0) (0.4) (0.5) Other 3.0 2.3 1.6 2.8 3.0 2.0 2.9

SouLrce: Ministry of Finance. Table 5.2: CENTRAL GOVERNMENTREVENUE, 1965-71

(Sur. f. millions)

Annual increase (Estimated) (percent) 1965 1966 1967 1968 1969 1970 1971 1965-70 1965-71

TOTAL CURRENT REVENUE 83.6 101.8 112.7 114.9 124.9 134.9 149.2 10.0 10.1

Tax revenue 58.2 76.2 84.9 85.3 97.1 105.3 117.0 12.6 12.4

Direct taxes 25.2 40.1 44.7 41.8 48.6 52.1 59.0 15.6 15.2 Income taxes 24.4 39.5 44.0 41. 47.8 51.2 58.2 16.0 15.6 Corporations (18.7) (32.7) (36.7) (33.0) (39.8) (44.6) (49.2) (19.0) (17.5) Persons (5.7) (6.8) (7.3) (8.1) (8.0) (6.6) (9.0) (3.0) (7.9) Rental value tax 0.5 0.3 0.4 0.4 0Y.4 0.4 0.4 Wealth tax and succession 0.3 0.3 0.3 0.3 0.4 0.5 0.4

Indirect taxes 33.0 36.1 40.2 43.5 48.5 53.2 58.0 10.0 9.8 Customn duties 25.4 28.0 3i.4 32.9 36.9 40.5 44.3 9.8 9.7 Statistical duties 2.5 2.7 3.1 3.6 3.9 4.2 4.5 10.9 10.3 Excise taxes 3.2 3.5 3.8 4.7 5.3 5.7 6.5 12.2 12.5 Car duty (1.2) (1.2) (1.4) (1.5) (1.6) (1.9) (2.1) ( 9.6) (9.8) Liquor duty (1.2) (1.3) (1.1) (1.1) (1.3) (1.2) (1.5) ( - ) (3.8) Beer duty (0.8) (1.0) (1.3) (1.7) (2.0) (2.1) (2.3) (21.3) (19.2) Cigarette tax ( - ( - ) ( - ) (0.4) (0.4) (0.5) (0.6) Stamp duties 1.0 1.0 1.1 1.3 1.4 1.7 1.8 11.2 10.3 Other 0.9 0.9 0.8 1.0 1.0 1.1 0.9 4.1 -

Non-tax revenue 25.4 25.6 27.8 29.6 27.8 29.6 32.2 3.1 4.0

Sale of goods and services 15.1 15.1 16.1 15.5 14.6 14.7 15.4 - 0.3

Royalties 3.9 4.4 4.6 4.1 4.4 4.2 4.3 1.5 1.6 Bauxite (3.4) (3.9) (4.1) (3.7) (3.8) (3.8) (3.8) (2.2) (1.9) Other royalties (0.5) (0.5) (0.5) (0.4) (0.6) (0.4) (0.5) - ( -

Other 1 6.4 6.1 7.1 10.0 8 3 10.7 12.5 10.8 11.8

TOTAL CAPITAI REVENulE2/ 1.5 7.1 2.0 1.2 1.4 0.9 1.5 - Repayment of loans 0.2 0.4 0.6 0.3 0.4 0.3 0.7 Other 1.3 6.7 1.4 0.9 1.0 0.6 0.8

- Primarily CGtnLr&l Bank profits and insurance premiutms of Governnient e7

(Sur. f. millions; projection at current prices)

Total ---- projected------Total 1965 1966 1967 19f68 1 96 1i7n 1c71 1965-71 1972 1973 1974 1975 1976 1977 197 -77

TOTAL CAPITAL EXPENDITURE 27.9 37.6 35.2 25.6 41.8 43.4 46.5 258.0 56.1 65.8 85.2 94.3 81.8 52.2 435,4

Functional classification

Administrative services 0.8 0.9 0.5 0.8 1.0 1.0 1.7 6.7 1.9 2.5 3.0 2.7 2.2 2.1 14.4

Social services 3.5 2.1 2.3 2.1 5.1 4.2 4.7 24.0 7.1 11.9 17.9 16.0 13.4 10.9 77.2 Education 2.5 1.7 2.0 1.9 4.1 3.6 3.9 19.7 6.7 7.9 10.0 12.1 9.2 8.1 54.0 Health 1.0 0.4 0.3 0.2 1.0 0.6 0.8 4.3 0.4 4.0 7.7 3.5 3.5 2.3 21.4 Other - - 0.2 0.4 0.7 0.5 1.8

Community services 17.0 27.5 25.5 16.6 25.3 22.6 21.3 155.8 29.0 30.2 34.0 37.7 35.8 28.3 195.0 Transport 4.8 8.7 8.4 6.8 8.4 15.5 13.1 65.7 17.5 17.2 14.6 14.6 14.3 9.7 87.9 Energy 4.6 5.9 4.7 0.7 2.4 - - 18.3 - 0.8 1.4 1.8 1.7 1.3 7.0 Communications 0.5 0.6 2.6 1.1 7.7 1.0 1.0 14.5 1.1 0.9 1.1 0.6 0.7 0.7 5.1 Housing and urban development 0.8 1.2 1.3 0.9 1.9 3.3 2.3 11.7 2.7 3.7 4.2 5.5 4.8 2.7 23.6 Water supply and sewerage 0.4 0.8 1.0 1.2 1.3 0.5 0.4 5.6 0.4 1.9 3.2 4.5 5.5 5.4 20.9 Irrigation and drainage 1.0 4.2 1.6 3.3 0.8 0.3 1.0 12.2 1.9 2.8 3.5 4.2 4.7 5.0 22.1 Sea defenses 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.7 0.1 0.1 0.1 0.1 0.1 0.1 0.6 Other 4.8 6.0 5.8 2.5 2.7 1.9 3.4 27.1 5.3 2.8 5.9 6.4 4.0 3.4 27.8

Economic services 6.6 7.1 6.9 6.1 10.4 15.6 18.8 71.5 18.1 21.2 30.3 37.9 30.4 10.9 148.8 Agriculture and forestry 4.5 4.3 4.3 5.5 9.2 14.7 18.2 60.7 17.6 16.8 15.1 13.0 11.8 3.4 77.7 Mining 1.3 1.8 1.9 - 0.1 - - 5.1 - 3.5 14.0 23.0 16.5 6.0 63.0 Trade, industry and tourism 0.8 1.0 0.7 0.6 1.1 0.9 0.6 5.7 0.5 0.9 1.2 1.9 2.1 1.5 8.1

Economic classification

Pixed investment 23.5 31.7 28.9 14.4 32.9 31.6 36.3 199.3 46.2 54.6 66.3 75.8 65.2 39.6 347.7

Surveys and research 2.1 3.2 3.1 6.5 3.3 5.4 6.8 30.4 6.6 4.9 5.4 5.0 5.4 1.4 28.7

Financial investment - - - 0.5 2.6 2.2 0.7 6.0 0.5 0.8 4.7 8.5 6.0 6.0 26.5

Capital transfers 2.3 2.7 3.2 4.2 3.0 4.2 2.7 22.3 2.8 5.5 8.8 5.0 5.2 5.2 32.5 Rest of public sector (1.3) (1.4) (1.6) (2.3) (0.9) (1.9) (0.3) (9.7) (0.3) (0.5) (0.7) (0.7) (0.8) (1.0) (4.0) Private sector (1.0) (1.3) (1.6) (1.9) (2.1) (2.3) (2.4) (12.6) (2.5) (5.0) (8.1) (4.3) (4.4) (4.2) (28.5)

1/ Assuming a price increase of 4 percent p.a. from 1971 onward.

Source: Ministry-of Finance; Planning Bureau; and mission estimates. Table 5.4: FINANCING OF CENTRAL GOVERNMENT INVESTMENT, 1965-71

(Sur. f. millions)

Total 1965-71 1965 1966 1967 1968 1969 1970 1971 Sur. f. million

Capital expenditure 27.8 37.5 35.2 25.5 41.8 43.3 46.5 257.6 Budget expenditure 13.7 19.7 16.2 14.8 12.6 9.0 11.1 97.1 Extra-budgetexpenditure 14.1 17.8 19.0 10.7 29.2 34.3 35.4 160.5

Financed by:

Internal resources 8.7 20.3 18.5 7.4 6.1 6.7 8.7 76.4

Current account surplus 6.1 11.7 12.1 4.2 4.3 9.1 9.6 57.1 Current revenue (83.6) (101.8) (112.7) (114.9) (124.9) (134.9) (149.2) Current expenditures (77.5) (90.1) (100.6) (110.7) (120.6) (125.8) (139.6)

Capital revenue 1.5 7.1 2.0 1.2 1.4 0.9 1.5 15.6

Internal borrowing 1.1 1.5 4.4 2.0 0.4 -3.3 -2.4 3.7 Drawings (2.1) (1.7) (4.6) (3.1) (1.3) (-1.9) ( -) Repayments (-1.0) (-0.2) (-0.2) (-1.1) (-0.9) (-1.4) (-2.4)

External resources 22.8 17.0 19.8 17.7 34.4 38.7 40.8 191.2

Grants 8.0 12.5 13.0 12.5 20.3 23.9 28.5 118.7

External borrowing 14.8 4.5 6.8 5.2 14.1 14.8 12.3 72.5 Drawings (18.0) (6.4) (9.3) (10.8) (14.7) (16.0) (13.3) (88.5) Repayments (-3.2) (-1.9) (-2.5) (-5.6) (-0.6) (-1.2) (-1.0) (-16.0)

Other!/ -3.7 0.2 -3.1 0.4 1.3 -5.4 -3.0 -13.3

1/ Treasury balances and errors and omissions.

Source: Ministry of Finance and Planning Bureau. l/ Table 5.5: DISB'RSEMENTS OF EXTERNALLOANS AND GRANTS, llY SOURCE AND SECTORS, 1965-71 (Sur. f. millions) Total 1965 1966 1967 1968 1969 1970 1971 1965-1971

Sourcel/

Total, by source 26.0 20.0 23.1 23.3 35.0 39.9 41.8 209.1

Loans 18.0 6.4 9.3 10.8 14.7 16.0 13.3 88.5 Ten Year Plan 3.3 6.0 6.3 1.8 0.3 - 17.7 Transition loan from Netherlands 14.7 - - 6.8 - 21.5 Five Year Plan - - - 2.1 6.0 13.8 12.3 34.2 EDF - - - 0.6 1.9 0.9 3.4 AID -- 0.4 0.9 0.1 0.1 0.3 0.1 1.9 EximBank - - - 7.7 7.7 Suppliers' credits - - 2.1 2.1 Grants 8.0 13.6 13.8 12.5 20.3 23.9 28.5 120.6 Ten Year Plan 3.3 6.0 6.3 1.8 0.3 - - 17.7 Five Year Plan - - - 9.0 15.7 22.1 23.8 70.6 EDF 4.7 6.3 6.4 1.6 4.3 1.8 4.5 29.6 U.N. Special Fund - 0.2 0.3 0.1 - - 0.2 .8 Unidentified - 1.1 0.8 - - - 1.9 Sectorsl/

Total, by sectors 26.0 20.0 23.1 23.3 35.0 39.9 41.8 209.1 Administrative services 0.6 0.6 0.4 0.6 1.1 0.9 0.9 5.1 o/w current expenditure (0.4) (0.4) (0.4) (0.6) (0.7) (0.7) (0.9)

Social services 2.6 1,2 0.9 0.1 3.1 2.0 2.1 12.0 Education 1.7 0.8 0.7 - 2.1 1.4 8.1 Health 0.9 0.4 0.2 0.1 1.0 .' 0.7 3.9 Other Community services 5.8 8.9 12.2 5.7 17.0 16.3 84.1 Transport 3.7 5.2 7.5 5.1 7.2 13.1 10.7 52.5 o/w current expenditure (0.6) (0.7) (0.9) (1.0) (1.3) (1.2) (1.3) (7.0) Energy 0.2 0.1 - - - - - 0.3 Communications - - 2.1 - 7.7 0.3 0.3 10.4 Housing and urban development 0.6 0.8 1.0 0.5 1.7 3.1 1.9 9.6 Water supply and sewerage - - - - 0.1 0.5 0.3 0.9 Irrigation and drainage 0.8 2.1 0.8 0.1 0.1 0.2 0.1 4.2 Other 0.5 0.7 0.8 . 0.2 1.0 3.0 6.2

Economic scrvices 8.1 9.3 9.6 9.9 13.2 1R4 22.6 91.1 Agriculture 5.6 5.9 6.4 7.4 10.1 15.4 19.2 70.0 o/w current expenditure (1.6) (1.9) (2.2) (2.1) (1.3) (1.2) (1.5) (11.8) Mining 1.6 2.3 2.4 1.8 2.0 2.1 2.8 15.0 o/w current expenditure (0.3) (0.5) (0.5) (1.8) (1.9) (2.1) (2.8) (9.9) Trade, industry and tourism 0.9 1.1 0.8 0.7 1.1 0.9 0.6 6.1 o/w current expenditure (0.1) (0.1) (0.1) (0.1) - - - (0.4)

Unclassified 8.9 - - 7.0 0.6 0.4 2.8

I/ Disbursements by sectors are on basis of expenditures (including externally-financed current expenditures) but do not include general budget support. Source: Central Bank of Surinam; and Planning Bureau. Table 5. 6: PROJECTEDCURREMT EXPENDITTJRE OF THE CELTRALGOVERWIENT, 1972-77

(Sf millions, at current prices 1')

Increase p.a. 1972 2 1972 - 77 1971 Budgeted Projected- 1973 1974 1975 1976 1977 (percent)

TOTAL CURRE;NTEXPENDITURE 130.6 158.3 146.7 159.6 171.5 185.5 200.8 217.0 8.8

General Admninistration 43.3 50.8 146.7 149.6 52.9 56.5 60.1 63.9 6.7 Central admiinistration 2.0 29.7 131. T 37.8 40.1 6. 2 o/w transfers (5.1) (5.9) Finanee 5.7 6.6 6.3 6.6 6.9 7.3 7.7 8.0 5.8 Justice and Police 9.2 12.0 10.1 10.9 11.8 12.8 13.8 14.9 8.4 Other o.5 o.6 o.6 .6 .7 .8 .8 .9 10.3

Social services 59.9 71.8 66.9 73.4 79.7 87.6 96.7 106.1 10.0 Education and train-ng l 39.1 _175 7-T 4 7 WT - o/w transfers (1.2) (1.4) Health 15.2 18.3 16.7 18.9 20.14 21.9 214.0 25.6 9.1 o/w transfers (1-3 (1-5) Other 10.9 14.4 11.8 12.14 13.1 13.9 14.6 15.IJ 5.9 o/w transfers (6.4 (8-5)

Corninit'- servirces 17.3 20.9 19.0 21.14 22.9 214.1 25.8 27.4 8.0 Treir ;7r9-1 .6 9 .6 10.6 1.3 T2.0 6.8 o/w tran,fers (0.2 (0.2) Energy 0.9 1.2 1.2 1.3 1.4 1.14 1.5 1.6 10.1 Conmmunications 3.8 4.1 4.1 4.4 4. 8 5.2 5.6 6.o 7.9 Other 4.5 6.5 5.1 6.1 6.6 6.9 7.4 7.8 9.6

Er,.onoyrdr. serviees 8.8 10.2 9.9 10.5 11.3 12.2 12.9 114.1 8.2 Azriciilt,ure anC forestry 7;7 -9 7.7 B3 9.797 T0.7 73 Trade andt industry 1.5 1.9 1.9 2.0 2.2 2.4 2.5 2.8 11.0 o/w transfers otrher 0.5 o.6 o.6 o.6 0.6 0.7 0.7 0.9 10.3

Un;alT

1/ *ts: ri.n~ a pric erer se of 14percent p.a. fron 1971 onwlr-s.

T/ T,rerc-' t nr. nz;Ylifl1t- et. Table 5. 7: PRO.E_:lZD FINANCING OF CENTRAL GOVEFRL.4ENTINVESTMENT, 1972-;7

(Sur. f. millionsat current prices)

Total Total 1965-71 1972 1972-77 Sur. f. Mission Sur. f. million BA Budget Estimate 1973 1974 1975 1976 1977 million 7. Capital Expenditure 257.6 100.0 56.1 54.8 66.0 85.7 96.3 85.5 58.4 446.7 100.0 Budget expenditure 2/ 97.1 37.7 15.3 14.0 16.6 21.5 24.0 24.6 27.1 127.8 28.6 Extra-budget expenditure- 160.5 62.3 40.8 40.8 49.4 64.2 72.3 60.9 31.3 318.9 71.4 Financed by

A. Internal resources 76.4 29.7 -24.3 10.4 12.4 16.6 19.8 22.1 20.7 102.2 22.9

Current account surplus 57.1 (22.2) -23.3 9.9 10.7 13.2 14.7 16.3 17.9 82.7 (18.5j

Revenue (141.0) (162.6) (174.6) (189,0) (204.0) (220.7) (237.6) Budget expenditure (-158.3) (-146.7) (-159.6) (-171.5) (-185.5) (-200.8) (-217.0) Extra-budget expenditure (-6.0) (-6.0) (-4.3) (-4.3) (-3.8) (-3.6) (-2.7) Capital revenue 15.6 (6.1) 1.2 1.2 1.4 1.7 1.9 2.3 2.4 11.0 (2.5) Internal borrowing 3.7 (1.4) -2.2 -0.6 0.3 1.7 2.2 3.5 0.4 8.5 (I.S) Drawings (0.2) (1.8) (2.8) (4.0) (5.5) (5.5) (2.5) Repayments (-2.4) (-2.4) '%-2.5) (-2.3) (-2.3) (-2.0) (-2.1) B. External financing 191.2 74.2 40.8 40.8 47.9 62.4 70.1 58.5 26.9 306.6 68.6 Grants 118.7 46.1 30.8 30.8 35.6 44.8 50.0 42.1 23.0 226.3 (50.7) External borrowing 72.5 (28.1) 10.0 10.0 12.3 17.6 20.1 16.4 3.9 80.3 (17.9)

Drawings (16.0) (16.0) (18.4) (23.7) (26.1) (22.4) (10.0) Repayments (-6.0) (-6.0) (-6.1) (-6.1) (-6.0) (-6.0) (-6.1) 3/ C. Other -13.3 -5.2 39.6 3.5 5.7 6.7 6.4 4.9 10.8 37.9 8.5

1/ Assuming a price increased of ) percent p.a. fro, 1971 onward.

2/ Current expenditure included in Ten-Year Plan and live-Year Plan. 3/ Treasury balances and errors and omissions.

Source: Ministry of Finance; Planning Bureau; and mission estimates. Table 5.8; PROJECTED DISBURSEMENTS OF EXTERNAL LOANS AND GRANTS BY SECTOR, 1971-77

(Sur. f. millions)

Undisbursed Undisbursed Total balance as of balance as of Total 1965-71 Dec. 31. 1971 1972 1973 1974 1975 1976 Dec. 31. 1976 1977 1972-77 Ffnnncial Cap

Total 19Z.3 -/ 437 -46.8 54.0 68.5 76.1 64.5 64.0 33.0 342.9 16.7

Administrative services 5.1 1.1 1.8 2.4 2.8 2.5 1.8 2.3 1.6 12.9 o/w current expenditure (4.2) (0.8) (1.1) (1.0) (0.9) (0.8) (0.7) (0.7) (0.7) (5.2)

Socialservices 12.0 11.9 4.2 8.9 13.8 11.8 8.7 7.3 6.2 53.6

Education 8.1 9.8 3.9 5.0 6.5 8.4 5.2 4.0 4.0 33.0 Health 3.9 2.1 0.3 3.9 7.2 3.2 3.2 3.0 1.9 19.7 Other - - - - 0.1 0.2 9.3 0.3 0.3 0.9

Community services 84.1 16,4 19.8 19.1 19.3 22.2 21.9 15.9 13.7 116.0

Transport 52.5 6.8 13.0 12.3 9.5 9.4 8.8 4.0 4.0 57.0 o/N current expenditure (7.0) ( _ ) (1.4) (0.3) (0.3) (0.4) (0.3) (0.2) (0.2) (2.9) Energy 0.3 - 0.2 0.3 0.3 0.2 0.1 0.1 1.1 Communications 10.4 - 0.4 0.6 1.0 Housing & urban development 9.6 5,6 1.8 2.6 3.6 4.8 4.2 2.4 2.4 19.4 Water & sewerage 0.9 0.1 0.3 0.6 1.5 2.4 2.9 4.6 2.4 10.1 Irrigation & drainage 4.2 0.3 1.0 1.9 2.5 3.0 3.5 3.7 3.7 15.6 Otlher 6.2 3,6 3,7 1.1 1.3 2.3 2.3 .1.I 1.1 11.8

Economic services 91.1 14.3 21.0 23.6 32.6 39.6 32.1 38.5 11.5 160.4

Agriculture 70.( 14.1 18.1 16.7 14.9 12.7 11.5 2.8 2.8 76.7 olw current expenditure (11.8) (0.1) (1.1) (0.5) (0.6) (0.6) (0.6, (0.6) (0.6) (4.0) Mining 15.0 0.1 2.4 6.0 16.5 25.0 18.5 34.2 7.2 75.6 o1w current expenditure (9.9) (0.1) (2.4) (2.5) (2.5) (2.0) (2.0) (1.2) (1.2) (12.6) Trade, industry & tourism 6.1 0.1 0.5 0.9 1.2 1.9 2.1 1.5 1.5 8.1 olw current expenditure (0.4)

l/ Excludes general budget support of Sur. f. 21.5 million.

Source: 1lanning lBureau; and mission estimates. Table 5.9,: PROJZCT.D DISBbRSEKENTS OF EXTERNALLOANS AND GRANTS BY SOURCE, 1972-77

(Sur. f. millions)

Financing Financing Undisbursed Undisbursed utilized committed balance as of balanlceas of Total Financial gap 1965-71 1972-76 Dec. 31, 1971 1972 1973 1974 1975 1976 Dec. 31. 1976 1977 1972-77

Total 207.2 - 291.3 43.7 46.8 54.0 68.5 76.1 64.5 24.8 33.0 342.9 16.7

Loans 88.5 105.8 10.4 16.0 18.4 23.7 26.1 22.4 9.1 10.0 116.6 2.5 Ten Year Plan 17.7 Transition loan from Netherlands 21.5 4/ Five-Year Plan (1967-71) 34.2 10.1 ) 16.0 17.7 23.0 25.6 21.6 6.2 8.7 112.6 2.5 - Five-Year Plan (1972-76) 100.0 EDF 3.4 0.3 0.3 AID 1.9 EximBank 7.7 Suppliers 2.1 1.0 2/ 0.4 0.6 1.0 Unidentified 4.3 - 0.1 0.5 0.8 2.9 1.3 2.7 2.7

Grants 118.7 186.0 33.3 30.8 35.6 44.8 50.0 .42.1 15.7 23.0 226.3 11.5 Ten-Year Plan 17.7 Five-Year Plan (1967-71) 70.6 Five-Year Plan (1972-76) 150.0 10.1 24.0 26.7 34.6 38.3 32.4 4.1 13.1 369.1 9.0 4' EDF (1964-71) 29.6 23.1 6.3 8.0 9.2 10.7 8.5 8.4 8.4 51.1 ELF (1972-76) 28.3 U.N. 0.8 3.5 0.1 0.5 0.9 0.9 0.6 0.4 0.3 0.3 3.6 Unidentified 4.2 /. 0.1 0.4 0.8 2.9 1.2 2.5 2.3

1/ Includes general budget support of Sur. f. 21.5 million. 2/ As yet not committed. 3/ On basis of available financing. 4/ Distributed on the basis 40 percent loans and 60 percent grants.

Source: Planning Bureau; aid mission estimates. Table 5.10: DISBURSEMENTS OF EXTERNAL GRANTS AND LOANS, BY SECTOR AND SOURCE, 1965-71 AND 1972-77

(Sur. f. millions)

------1965-71…------…1972-77------_---- Nether- AID and Distri- Nether- Sup- Unidenti- lands EEC Eximbank Suppliers UNDP _Total_l bution M lands EEC pliers UNDP fied Total (percent)

E.ducation 4.2 3.9 - - - 8.1 (3.9) 14.1 18.9 - - - 33.0 (9.6) .ransport 39.3 21.4 0.5 - 0.4 52.6 (25.4) 50.6 4.9 - - 1.5 57.0 (16.6) Cc.u-n'cations 0.6 7.7 2.1 - 10:4 (5.0) j - - 1.0 - - 1.0 (0.3) ..zusing and urban development 7.7 0.9 1.0 - 9.6 (4.6) 1I.3 9.1 19.4 (5.7) rrigation and drainage 0.3 3.9 - - 4.2 (2.0) C.3 15.3 15.6 (4.5) Acr4culture and Forestry 69.0 1.0 70.0 (33.6) 73.4 2.3 1.0 76.7 (22.3) Xining 15.0 15.0 (7.3) 75.6 75.6 (22.0) .rade, industry and tourism 3.3 1.9 0.4 _ - 5.6 (27j) 8.0 0.1 8.1 (2.4) Oth.er 31.7 a/ - - - 31.7 (15.3) 49.4 1.1 2.6 3.7 56.8 (16.6) TOTAL 161.7 33.0 9.6 2.1 0.8 207.2 11281.7bl 51.7 1.0 3.6 5.2 343.2 ?ercentage distribution (%) (78.0) (15.9) (4.6) (1.1) (0.4) (100.0) f1(92.1) (15.1) (0.3) (1.0) (1.5) (100.0)

a! Of which Sur. f. 21.5 million for genoral budget support.

,' includes Sur. f. 11.5 million as yet not comimittedfor projects included in Second Five-Year ?lan.

Scirce: Central Bank of Surinam, Planning Rureau, and mission estimates. VI. MONETARYSTATISTICS

Table 6.1i MKOETARf SURVEY, 1960-70

(In Sur. f. millions; end of period)

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 197D Money 39.0 40.6 39.8 49.3 50.7 56.2 60.3 65.2 70.6 82.9 90.w Of which: Currency (22.3) (22.8) (23.7) (26.3) (27.1) (31.9) (35.8) (37.9) (39.9) (45.b) (4.8.) Deoosits (16.7) (17.8) (16.1) (23.0) (23.6) (24.3) (24.5) (27.3) (30.7) (37.5) (42.2) Time and savingsdeposits 9.6 10.3 12.6 14.9 18.1 24.3 29.0 32.9 42.8 51.5 6O.-

Yeans of payment 48.6 50.9 52.4 64.3 68.8 80. 89.3 2g.l 113.1 1313hA 151e3

Foreignassets (net) 34.2 31.1 32.6 39.0 48.5 54.0 59.6 60.8 67.3 75.1 76.9 Creditto privatesector 30.5 33.5 29.4 34.1 34.3 43.7 49.4 51.3 61.0 74.8 88.8 Credit to public sector 4.6 4.3 7.1 8.2 4.8 5.4 6.9 9.2 10.6 11.8 8.3 Capital and reserves and other items (net) -20.7 -18.0 -16.7 -17,1 -18.8 -22.6 -26.6 -23.2 -25.5 -27.3 -22.7 Liquidity ratio of conwercial banks (%) 1/ 26.3 20.5 31.3 35.9 42.1 26.4 30.2 35.8 37.0 33.8 33.4

1/ Cash and deposits at the Central Bank plus short term foreign assets (net) as a ratio of total deposit liabilities. Source: Central Bank of Surinam Table 6. 2: RATIOSOF MONEYAND INTERNATIONALRESERVES TO IMPORTS1/

Gold 9tock Imports in Money and and net Money and preceding quasi-money Money Imports foreign exchange quasi-money Money 12 months ------__---- in Sur. f. millions--- - - (Goldand net foreignexchange as % of )

1960 48.6 38.9 102.0 33.6 69 86 33

1961 50.9 40.6 101.1 30.5 60 75 30 1962 52.4 39.8 103.0 32.4 62 81 31

1963 64.3 49.3 110.2 38.6 60 78 35

1964 68.8 50.8 152.2 48.2 70 95 32 1965 80.5 56.2 179.5 53.9 67 96 30

1966 89.3 60.3 168.8 58.3 65 97 35 1967 98.1 65.2 193.8 60.0 61 92 31

1968 113.h 70.6 188.9 67.5 60 96 36

1969 134.h 82.9 207.7 75.1 56 91 36

1970 151.3 90.5 217.7 86.0 57 95 40_ June 1971 105.5 90.3 230.0 2/ 88.5 84 98 38

1/ Prior to 1971, the total volume of moneYi and quasi-moneywas defined to include currency, current account deposits and time and savings deposits with commercial banks. As of 1971 the conceptwad redefinedto include currency, current account deposits, time deposits maturing witnin a year and 10% of savings deposits. The total at the end of 1970 according to the new definitionamounted to Sur. f. 106.9 million as compared with Sur. f. 151.3 computed on thie old detinition.

2/ At estimated annual rate.

Source: 2 entral Ham: of Surinan and-General bureau of ;tn;+istics Table 6.3: 3? 7ORAL DISTRIBUTIONOF BANKCREDIT, 1965-70

16 - 6 19 96 1967 1968 1969 1970 ( ------in Sur. f. '000's ---- -) (------in%…------_--- )

Agriculture 3,650 3,040 3,177 3,374 4,112 4,804 8 6 6 5 5 5

Mining 2,253 1,713 207 3,395 3,360 3,307 5 3 0 5 4 4

Industry 8,424 10,434 10,264 11,339 13,335 18,653 18 20 19 18 17 21 Trade and Transport Trade 17,711 19,732 22,024 24,987 32,636 37,279 38 38 41 39 43 42 Transport 923 848 1,027 1,098 957 986 2 2 2 2 1 1 Hire purchase,passenger cars 1,821 2,478 3,437 3,892 4,228 4,385 4 5 6 6 6 5 Hire purchase, others 1,020 2,158 1,984 2,542 2,768 3,096 2 4 4 4 4 3

Subtotal 21,475 25,216 28,472 32,519 40,589 45,746 46 48 53 51 53 52

Services 599 732 506 240 918 1,171 1 1 1 0 1 1

Government 2,050 3,241 2,917 3,468 2,841 1,522 4 6 5 5 4 2 Semi-Government 180 301 152 149 25 - 0 1 0 0 0 -

Housing 3,070 3,819 4,273 5,448 7,308 8,684 7 7 8 9 10 10

Other 5,265 4,170 4,245 4,054 4,229 4,618 11 8 8 6 6 5

TOTAL 46,9 52,666 54,213 63,986 76,717 88,505 100 100 100 100 100 100

Source: Central Bank of Surmnam. Table 6 .4: LENDING OPERATIONS OF THE SURINAM RECONSTRUCTION3ANK, 1961-69 1/

(Sur. f. 000's)

1961 1962 1963 1964 1965 1966 1967 1968 1969

Loans outstanding (end-.year) 1,922.7 4,188.9 4,500.6 3,906.5 3,603.0 3,074.5 2,963.4 2,495.2 2,017.1

Loan commitments 2,523.5 1,684.7 1,484.9 189.4 786.3 245.5 324.5 325.3 1,033.5

Sectoral distributionof disbursements:

Agriculture 44.7 52.6 11.4 4.5 - - 6.0 - 8.1

Jommerceand transport 175.7 635.0 299.6 119.2 160.5 13.7 4.5 18.8 5.0

Forestr21 21.1 78.3 250.9 59.8 103.6 28.6 23.4 - 1.0

Other industries and trade 200.3 353.8 537.5 187.6 243.'0 443.4 375.0 65.4 118.3

People's Credit Bank and Housing Foundation - 1,762.2 127.5 124.2 - - - - 1,019.4 lunber of 9orrowers 63 71 71 64 62 57 51 44 4

1/ This bank (NV Herstel Bank in Dutch) ceased operations in 196Q and trans'erred Sur. f. 1.1 million in rnlAtt;mSing loans to the National Development Bank.

,o ir 'Yia-tral 1Rank of Surinam Table 6.5: LENIjI:iG OPERATIOTSOF THE NATIOU'ALDEVELOPMENT BAWK, 19 6 h-70

(in Sur. f. '000's)

196k 1965 1966 1967 1968 1969 1970

Loansoutstanding (end-year) L06.6 788.7 1,164.6 1,535.3 1,6L'.1 3,215.0 3,522.0

Conmnitments 299.9 609.0 643.8 243.0 555.0 1,059.5 1,715.0

Loan Portfolio acquired from the Reconstruction Bank - - - - - 1,064.4 .

Disbursements 293.7 416.4 513.4 475.3 " 406.6 935.0 1,353.0

Sectoral distribution:

Forestry 81.0 50.0 21.5 53.0 185.9 98.2 63.0

Other industries and trade 182.7 316 .4 345.5 283.9 176.7 186.9 624.1

Agriculture 30.0 50.0 146.4 59.6 10.0 368.9 666.6

Food and other processing industries - - - 78.8 34.0 281.0 -

Number of borrowers 9 17 23 25 30 63 66

Source: National Development Bank, Table 6.6: COMBINED BALAICE SHEETS OF THE FOUR COMM5RCIALBANKS, 1960-70 1/

(in Sur. f. '000's)

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Assets

Cash and balances at the Central Bank of Surinam 4,168 4,200 4,752 6,788 7,285 4,703 5,727 10,045 8,971 11,934 11,386 Foreign assets 3,308 3,644 4,464 7,2147 13,036 9,916 11,513 12,852 18,A56 18,335 23,4193 Claims on the Government 2,500 2,225 2,875 2,1175 1,175 2,050 3,21t1 2,917 3,1468 2,81tl 1,522 Claimson others 30,516 33,491 29,352 341,121 34,312 143,678 149,426 51,299 60,991 741,763 83,806 Other assets 3,769 4,021 3,935 3,570 3,511 11,301 3,876 4,2341 It,660 5,087 5,239

Total ldj,261 147,581 t5,378 5L,201 59,319 611,6148 73,783 81,31L7 96,5L6 112,960 13'2 1n6

Liabilities

Capital ind reserves 11,635 11,837 9,523 9,603 10,202 10,634 11,599 12,170 13,686 11l,566 16,0114 Long term liabilities to rresident.s 5,195 5,399 5,819 6,361 6,310 6,115 6,8 32 6,7611 6,662 7,096 .3,738 Time deiposits 2,21j11 1,587 1,517 2,957 3,519 5,328 5,612 6,057 10,71i6 15,095 21,292 0ivies c. j n Ccbs - - 1,301 38 - - - - -

Total 4111,261 117,581 415,378 5,20o1 59,319 64, 73,783 81,3117 96,5116 112,960 130,2196

1/ Be Suriirj;mmchoeDank NV,Algemene Bank Mederland NV, Vervuurts Bank 'W an.d the Suirnaamse Volks Credie .k

So--ce:, nrtc PO,nk of 0iurinam. Table 6.7: FINANCIAL DATA OF INSTITUTIONAL INVESTORS, 1960-70 1/

(In Sur. f. '000's)

Item 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Assets

Cash and bank deposits 3,238.0 3,142.7 2,364.9 3,069.7 4,691.4 4,337.8 4,444.3 3,067.8 4,110.0 4,666.7 6,264.7 Real property 2,412.2 2,250.7 2,574.3 3,108.3 3,220.5 3,529.5 3,913.6 4,025.7 4,138.0 4,420.5 5,108.8 Investment abroad 369.0 406.5 389.3 438.9 487.6 502.2 809.9 909.1 922.6 981.6 966.7 bonds (7.1) (7.2) (3.7) (1.8) (1.9) (1.7) (353.2) (377.4) (324.4) (958.6) (938.3) other (361.9) (399.3) (394.6) (437.1) (485.7) (500.5) (456.7) (531.7) (598.2) (23.0) (27.8) Loans and securities in Surinam 15,699.7 18,564.9 20 722.1 22,151.7 23,249.0 26.876.8 29,981.8 36,576.8 41,703.4 47,412.6 51,135.9 Government sector (2,835.5) (3,893.3) (4,146.2) (4,034.6) (3,806.0) (3,574.0) (3,429.6) (3,477.1) (4,216.4) (4,369.2) (4,692.0) Private sector (12,864.2) (14,671.6) (16,625.9) (18,117.1) (19,443.0) (23,302.8) (26,552.0) (33,099.7) (37,487.0) (43,043.4) (46,443.5) Other assets 266.2 734.6 1,054.5 1,146.5 1,618.1 1,599.9 533.1 1,676.3 2,002.3 2,734.6 2,711.4

TOTAL ASSETS (end-year) 21,985.1 25,119.4 27,164.1 29,915.1 33.266.6 36,846.2 39,682.5 46,255.7 52,877.3 60,216.0 66.187.5

Transactions

Receipts of insurance premiums 1,834.3 2,423.3 2,677.2 3,174.1 3,475.0 3,509.4 4,087.1 4,447.9 5,068.7 5,997.3 6,322.1 Increase of deposits with the Surinam Postal Savings Bank 701.0 107.9 355.5 60.0 319.0 524.0 993.0 655.0 521.0 1,211.0 1,049.0 Deposits in retirement and provident funds 846.1 1,061.3 1,112.6 1,237.7 1,559.4 1,446.0 1,661.3 1,825.6 1,919.7 1,998.9 2,535.8 Receipts from investments 875.3 1,080.7 1,185.5 1,505.5 1,479.5 1,763.7 1,920.4 2,252.4 2,633.4 3,021.0 3,728.2 interest and dividends ((853.2) (1,002.5) (1,100.6) (1,406.8) (1,345.2) (1,576.3) (1,767.5) (2,147.8) (2,475.6) (2,745.3) (3,389.0) rents (22.1) (78.2) (84.9) (98.7) (134.3) (187.4) (152.9) (104.6) (157.8) (275.7) (339.2) Other revenue 22.5 29.2 105.1 68.4 52.8 147.2 27.2 101.7 259.0 91.0 121.1

1/ Life insurance companies, company pension and provident funds, and Surinam Postal Savings Bank.

Source: Central Bank of Surinam, Table 6.8: BALANCESHEET OF THE CENTRALBANX, 1960-70

(In Sur. f. '000's; end of period)

1960 1961 1962 - 1963 1964 1965 1966 1967 1968 1969 1970

Assets

Gold 23,007 23,026 18,318 18,377 13,680 13,692 18,349 34,990 34,899 16,168 16,168 Otherforeign assets 9,430 7,404 11,237 15,140 23,736 32,510 32,234 15,627 17,012 44,423 52,028 Advances to Government and Treasurynotes - 41 2,000 3,423 1,236 - - 2,365 2,798 3,547 1,678 Advances to commercial banks 1/ 208 186 277 154 - - - 49 - - - Claims on private non- banks 2/ 1,743 2,198 1,887 1,802 1,721 1,639 1,558 1,475 1,391 1,309 1,224 Real propertyand in- ventory 296 372 535 507 475 446 424 406 424 427 381 Miscellaneous accounts 353 279 309 264 292 328 385 440 917 2,478 2,465

Total Assets 3.0327 2 1 148632 39,667 LI.14 14Z1 2950 5 5L31 68. 35373.9143 Li abilities

C3pital 3,000 3,000 3,00 3,000 3,000 3,000 3,000 3,000 3,000 3,00 3,000 Reserve fund 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 Special reserves 50 50 50 50 120 320 620 1,000 1,000 1,500 2,000 Banknotesin circulation 21,910 22,400 23,237 26,409 27,099 30,776 34,879 37,658 39,612 44,555 47,744 Depositsof: Covernrr.ent 731 - 916 - - 3,681 3,006 - - - - Lomne,ticbanks 2,609 2,734 3,037 4,388 4,924 2,589 3,194 6,554 5,251 8,425 7,605 Domesticnon-banks 291 780 188 1,026 845 2,824 1,856 943 2,935 4,305 4,662 Non-residents 314 97 108 152 124 225 188 147 39 21 243 Mlscrellaneous accounts 1,941 592 320 241 632 621 1,189 658 324 515 629 Profit 1,191 853 707 1,001 1,394 1,579 2,018 2,392 2,229 3,033 5,o60 Tot.al liabilities 35,037 33,506 314,5(3 3667 141,3140 8616 52,950 55.352 57,391 68.353 73,903

1/ Oerived from the consolidated balance sheet of the four commercial banks. 7/ Includes capital investment,reserve fund,and specialreserves. Sourc'e: Central Bank of Surinam, Table 6.9: SUMMARYACCOUNTS OF THE BANKINGSYSTEM, 1965-70

(year-to-year changes;Sur. f. '000's)

1965 1966 1967 1968 1969 1970

Foreign Assets (net) + 5,561 + 5,h474 + 1,170 + 6,543 + 8,041 +11,888

Domestic Credit + 6,036 + 5,030 + 7,626 + 8,770 +12,972 + 5,037

Government - 3,021 + 1,699 + 7,047 - 920 - 99 - 3,304 Privatesector + 9,366 + 5,748 + 1,873 + 9,692 +13,772 +14,043 Unclassifiedassets - 309 - 2,417 - 1,294 - 2 - 701 - 5,702 Liabilities +11,597 +10,504 + 8,796 +15,313 +21,013 +16,925

Currency + 4,825 + 3,899 + 2,086 + 2,028 + 5,485 + 3,202 Demand deposits + 655 + 1,905 + 2,781 + 3,361 + 6,863 + 4,658 Time deposits + 1,809 + 284 + 445 + 4,689 + 4,350 + 6,196 Savings deposits + 4,308 + 4,316 + 3,484 + 5,235 + 4,315 + 2,869

Source: CentralBank of Surinam.

VII. ARICULTURAL AND FO1ESTRYSTATISTICS

Table 7.1: LAND USE, 1970

(in hectares)

Total Area 16,382,000

InlandWater 354,000 Land Area 16,028,000 Forest(natural and cultivated) 14,670,000 Cropland 94,000

Cultivatedand naturalpastures 8,830 Tree crops (on farms) 41,706 Coconuts 1,392 Coffee 747 Cocoa 511 Oranges 1,678 Grapefruit 307 Other citrus 71

Non-treecrops (on farms) 44,695 Rice 39,070 Sugarcane 2,291 Bananas 1,634 Plantains 206 Other crops 1,494

Cropland (not on farms) 35,769 Other land 1,264,000

Source: ThirdAgricultural Census, 1969, and Ministry of Agriculture, Animal Husbandry and Fisheries. Trble 7.2: PL";rED AND 8ARVM.=ED ARfA OF CROPS, 1960-70

9444 ISOl ~~~~~~~~~~~~~962__1963 1694 1965 1966 1967 1960 Pelanted 9arvenccd Planted tlanv.ented Planted Hsrvc 1969 19210 ted Planted Ilarvented Plnoted 11-rve-ted Pleleld l:oraenSred Pl. ted Harvested Planted F.aristed Planted rvested Plan.ted lrvested Plant t P&ddy 30,308 30,308 25,629 25,629 27,071 27,071 27,513 27,513 30,277 30,277 29,311 M8i.e 443 29,311 29,350 29,350 33,654 33,654 35,273 35,Z73 35,246 443 711 711 659 659 435 435 636 35,246 39.070 39,070 Sepet 636 263 283 274 274 332 284 303 potatoes 42 42 42 42 53 53 261 226 n.j. 118 n.e. 40 40 36 36 40 40 29 29 26 Caisa.- 237 217 276 2?8 282 25 31 26 32 n.-. 31 n.-, 282 249 249 306 306 239 239 102 482 Other t_ jere 24 24 26 246 206 317 233 306 n.j. 200 26 24 24 14 14 19 19 27 n.e. Pear,:-c 27 49 49 38 30 71 63 40 n.e. 461 461 449 449 513 513 627 627 606 32 n.e. SJ' be-na 606 648 646 712 712 601 586 429 419 102 192 107 107 79 79 64 239 n.e. 284 n. 64 99 99 58 56 62 62 43 Other plne- 306 306 364 364 376 43 121 114 33 n.j. 256 n.e. 376 247 247 294 294 288 283 224 Cabbago 33 33 224 249 224 213 194 162 n.j. 256 27 27 52 52 56 56 75 75 n.j. Tow.at-ns 69 69 79 79 127 113 111 95 75 75 104 104 9L 91 96 96 67 n.j. 34 n.e. 86 86 91 91 106 106 157 138 Otter on.ntsOlee 276 276 377 377 ;72 118 91 101 n.j. 67 n.j. 372 297 397 602 602 415 415 529 329 677 593 405 309 581 n.e. 465 n.j. TnteS A~onnl 'G . 32 3007 2e 3 2 4 28,114 2 9.572 2%57 29,572 29,738 33, 03 6 3_ G 31,.596 31.596 361 50 35,896 37,392 37_07 37.033 n, -, _. Pileeaplnl 5 4 5 5 6 5 3 3 S Ssgorc.; 3 3 1 1 -- 2 1 3 ;4~95 1.447 1,490 1,067 1,695 1,870 1,979 2,194 2.413 3 14 n.e. tarsnas 1,835 2,654 2,351 2,905 2,568 2,822 2,459 2,567 870 514 645 419 507 386 2,912 2,905 n... 2,291 n.e. 716 385 754 221 1,731 999 1,605 56i Plat fn. 797 486 807 1,748 1,388 1,763 1.449 1.,81 1,594 1,63. 1,445 516 755 451 662 450 509 304 571 257 612 4a2 448 225 382 270 581 a.j. 206 n. 0totl 0i,l,1 62 .531677 2_451 2_7 _ 7.712 3,360 3,032 681 2 363 4.959 35_99 123 3,S f 0220 4_073 67 4.634 5.311_n, . Orae;nge 1,189 1,040 1,226 1,045 1,306 1,065 1,332 t,612 ,785 Grap frlIt 1,014 1,943 1,093 2,160 1,240 2,5404 ,l50 1,804 373 282 402 287 399 294 420 1,010 1,990 n.e. 1,678 n.e. 294 493 300 495 329 462 334 450 Otl,er elOrsc 111 100 121 97 297 392 315 444 n.j. 3 i7 n. 107 84 116 94 171 88 142 85 Conn--t, 1,671 1,243 175 133 99 73 122 80 146 n.e. 1,644 1,210 1,675 1,276 1,656 1,293 1,62b 1,277 71 n. Coc-s 1,564 1,243 1,589 1,256 1,583 1,378 1,618 1,309 1,553 868 1,509 063 1,509 b48 1,368 1,122 1,399 1,246 1,392 1,153 1,207 941 1,025 6Z7 876 77t 744 631 Coffee 1,930 1,531 1,777 1,349 1,791 601 526 595 n.e. 511 n.e. 1,340 1,288 1,224 1,226 1,164 1,120 1,016 1,4Q89 1,517 Pal,onll 57 37 57 996 980 891 670 947 845 747 738 37 57 -- 57 -- -- . 4 4 4 4 27 n.. _r l l_aI__ 4Crnw7 _ 684784 6 62, 4_9 ______791 5 921 4 5,13 5137 1146_154 5550 2~z______L n.e._ Sn, T tuIal .ruP70 P ltn, A 44 ,5937,77cl._q a e.4 1d n539, 37,e11 379 9 43,729 40,181 _42,71? 35661 3_075 4_709 47,544 45,825 _9

S?uc*:hintcr olAg,iut"It., Aoi-1i fl-lb-ady .. d Fislifere. PLANTED AREA AND PRODUCTIONOF PADDY, 1960-70

Planted area Production Exports (ha.) (tons) (tons) dear Total SML a/ Total SML a/ iSM_I7a7

-1960 30,308 7,854 80,710 19,611 12,654

1961 25,629 6,348 72,072 24,902 13,000

1L962 27,071 7,661 79,161 25,684 17,412

1963 27,513 8,453 74,844 26,304 17,622 1964 30,277 7,768 87,963 30,858 13,665 1965 29,311 8,434 89,825 32,757 19,932

1966 29,350 9,033 98,259 29,796 16,526 1967 33,654 10,774 119,529 36,349 19,832

19.,68 35,273 11,453 115,626 41,740 26,700

1'369 35,246 11,100b/ 113,328 36,858 18,697

1('7( 39,070b/ 1',l00 l/ 116,300 142,1944 27,?06

a/ Stichting Machinale Landbouw (Foundation for the Development of Mechanized Agriculture in Surinam). b/ Preliminary-.

Scurce: Ministryof Agriculture,Animal Husbandry, and Fisheries, Table 7.4: CROP PRODUCTION,1960-70

Prelim. Prel.m. Unit 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970w

Paddy ton 80,710 72,072 79,161 74,844 87,963 89,825 98,259 119,529 115,626 113,328 145,300 Maize " 718 1,225 1,173 764 1,382 720 415 476 625 405 169 Sweet potatoes " 297 376 474 307 264 87 261 199 275 149 137 Cassava " 1,916 2,310 2,423 2,115 2,350 2,062 1,151 1,100 1,378 1,962 1,083 Other tubers " 117 121 107 64 74 69 116 152 432 185 1h0 Peanuts " 422 443 551 669 605 628 827 6140 492 247 281 Soy beans 71 1714 61 43 1140 66 90 61 173 203 209 Other pulses " 183 217 232 111 258 210 300 294 261 203 209 Cabbage 230 184 340 366 718 686 634 931 938 556 267 Tomatoes " 467 582 490 571 650 675 908 1,090 990 724 391 Other vegetables " 1,068 1,355 1,515 1,875 2,688 1,544 2,996 3,640 2,778 2,878 2,383

Pineapple " 26 32 33 18 65 20 - 1 4 n.a. n..S Sugarcane 156,713138,782 153,982 186,697 153,488 241,197 250,677 240,704 203,413 234,863 n.a. Bananas " 2,520 3,122 4,047 4,916 3,034 16,154 24,627 35,441 44,998 44,i65 39,749 Plantains " 3,861 3,416 3,833 14,146 5,239 4,236 4,1483 3,160 6,280 5,343 1,415

Oranges '000pieces 145,69- 17,9314 44,684 51,265 34,J435 16,221 50,144 55,668 45,386 54,020 n.a. Grapefruit " 12,645 4,385 13,794 13,327 8,1434 10,244 11,657 12,695 11,913 14,038 n.a. Other citrus 2' "I 3,565 1,928 2,438 2,690 2,411 1,361 3,838 14,00 4,157 2,657 n.a. Coconuts " 6,923 7,195 6,580 7,308 6,353 6,479 7,120 7,946 8,170 7,284 n.a.

Cocoa Ton 288 162 352 301 228 243 185 154 78 127 86 Coffee " 563 342 329 378 380 397 377 431 359 233 187 Palm oil - - " - - - 62 91 109 n.a.

Sourcet Ministryof kriculture,Anin.al Husbandry, and Fisharips. Table 7.5: CATTLE AND POULTRY STOCK, 1960-70

('000's)

Item 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Cattle 36.2 36.1 36.9 37.5 40.8 42.6 46.4 47.2 45.6 39.8 40.0 of which: dairy cattle 15.3 15.3 15.9 16.1 17.9 18.2 21.2 20.6 19.9 17.9 n.a.

Pigs 7.7 9.5 9.1 7.9 8.0 10.9 10.6 9.2 9.9 9.4 9.o

Horses, donkeys and mules 1.0 1.0 0.9 0.8 0.6 o.6 o.6 0.5 0.4 0.5 0.4

Goats and sheep 15.9 19.3 17.3 15.3 13.6 12.0 12.2 10.9 8.1 6.8 7.0

Poultry 351.6 381.6 363.4 358.8 368.6 494.6 437.2 463.2 466.9 728.1 n.a.

Source: Ministry of Agriculture, Animal Husbandry and Fisheries. Table 7.6s ANIMALSLAUGHTER - PARAMARIBO,1960-70

Item 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1976

------Aumber------

Cattle 5,800 5,598 5,630 5,376 5,699 5,642 6,841 7,241 8,123 8,432 8,784

Pigs 2,893 3,752 4,773 5,132 5,230 4,608 4,852 4,999 5,793 6,772 7,402

Sheep and goats 354 424 508 467 552 489 416 469 573 366 259

Total 9,2L7 9,774 10,911 10.975 11,481 10,739 12,109 12,709 l4,489 15,570 16,445 …------…-----…------…Weightin kgs.------

Oattle 706,739 709,790 711,766 648,647 732,242 769,835 908,356 914,256 1,031,155 1,062,980 1,094,887

Pigs 181,421 241,109 276,728 262,225 251,770 289,208 338,917 333,500 397,619 459,o58 487,688

Sheep and goats 3,027 4,21? 4,860 4,261 5,028 4,357 3,785 4,189 5,240 3,230 2,258

Total 891,187 955,116 993 , 3 915,133 989,040 1,063,400 1,251,058 1,251,945 1,434,014 1,525,268 1,58b,833

Source: Ministry o Agriculture,Animal Husbandry and fisheries. Table 7.7: FISHERIES PRODUCTIONAND TRADE, 1960-70

1960 1961 1962 1963 1964 1965 1966 1967 1968 1969a/ 1970a/

------~-~------tons-;----_--______--

Catch, fresh weight

Fish 2,973 4,029 2,904 3,096 3,123 3,570 3,860 3,546 3,228 3,154 3,396 Shrimps 657 656 1,478 1,832 2,104 2,463 3,074 2,776 3,658 3,388 3,543

Total 43,6304,685 14,382 4z928 5,227 6,33 6,934 6,322 6 6.939

Imports,gross weight 1,758 1,574 1,652 1,640 1,071 1,729 1,900 1,695 1,769 2,785 n.a.

Total supnly 5.388 6,2o9 6034 6,568 6,258 7,7628 8,017 8X655 9,327 n.a.

Exports,net weight 198 238 488 629 776 1,012 1,335 1,150 1,560 1,432 n.a.

Availablefor domesticconsumption 4,992 5,783 5,058 5,310 4,746 5,738 6,164 5,717 5,535 6,463 n.a.

Fish meal production 74 52 77 111 124 186 127 110 74 37 57

-______-__------Sf1,000- --

Value of fish and shrimp catch 2,823 4,437 4,291 4,236 4,690 5,366 5,639 5,020 8,603 n.a. n.a. Imports.c.i.f. 1,171 1,154 1,450 1,241 1,317 1,357 1,841 1,458 1,563 1,806 1,479

Exports f.o.b. 513 441 1,179 1,605 1,673 2,389 2,561 1,858 1,055 b/ 987b/ 1,042 b/ of which: shrimps 512 435 1,176 1,604 1,670 2,385 2,559 1,858 1,053 b/ 977b/ n.a.

a/ Preliminary- b/ As of 1968, the method of valuationwas altered.

Source: Ministryof Agriculture,Animal Husbandryand Fisheries. Table 7.8: NUM3EROF FISHERMENAZD BOATS, 1960-70

Boats a/ Outboard Inboard Trawlers Year F'ishermen Total motor motor Number Tons

1960 740 530 375 14 12 806

1901 670 320 200 7 27 1,620

1962 700 360 245 8 23 1,302

1963 718 386 353 6 27 1,670

1964 784 393 271 6 26 1,605

1965 915 464 322 8 25 1,605

1966 1,122 505 387 4 34 2,210

1967 1,160 541 355 b/ 4 54 3,710

1968 1,203 522 386 b/ 6 50 4,000

1969 1,228 539 391 b/ 3 60 4,8oo

Q7O0 1,194 540 409 b/ - 52 4,600

a/ As of 1961 only registered if longer than 18 feet.

b/ Excluding fish-lessees.

Source: General Bureau of Statistics, Table 7.7: AGRICULTURE - PRODUCTION AND EXPORT VOLUMES, 1960-77

Production Proj. Export Proj. 1960 1965 1966/68 1969 1970 1977 1960 1965 1966/68 1969 1970 1977

Main Crops - -in______--- tons------

Rice 1/ 80,700 89,800 111,100 113,300 145,000 166,000 25,200 21,100 26,000 23,600 27,200 40,000 Bananas 2,500 16,200 35,00G 44,600 40,000 74,000 400 10,200 24,200 32,000 25,000 60,000 Orange & Grapefruit - 12,700 13,700 13,400 15,200 30,000 4,800 5,400 5,100 5,700 15,000 Sugar 11,100 18,700 17,7G0 14,600 13,100 13,000 3,500 7,800 7,600 3,900 2,800 2,000 Palm Oil - - - 100 100 5,900 - - - - - 3,000

Livestock Products

Beef 900 1,000 1,200 1,300 1,300 1,600 ------Pork 200 300 500 500 600 900 ------Milk 7,400 8,900 10,000 n.a. n.a. 9,000 - -

Fisheries Products (------intons fresh weight------) ------in tons net weight------)

Shrimp 700 2,500 3,200 3,400 3,500 4,000 200 1,00OO 1,300 1,400 1,500 1,700

1/ Production of paddy and export of rice,

Source: Ministry of Agriculture, Animal Husbandry and Fisheries; General Bureau of Statistics; mission estimates based on plans of major produc6rs and trends in export markets. Table 7.10: TIMBER PRODUCTION (Volumes in m3 roundwood equivalent), 1960-70

Item 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Sawlogs, venearlogs, logs for sleepers 210,600 216,900 189,100 201,100 228,100 235,600 242,700 215,300 243,400 211,000 186,300 Other industrialuses 10,400 22,000 21,700 24,900 21,600 25,100 21,300 13,800 3,300 9,000 8,100

TOTAL INDUSTRIALUSES 221,000 238.900 210,800 226,000249,700 260,700 264,000 229,100 246,700 220,ODO 194,400

Fuelwood, wood for charcoal 36,ooo 38,700 32,400 25,400 25,400 21,300 18,700 14,600 9,300 7,200 4,700

TOTAL PRODUCTION 257,000 277,600 243,200 251,400 275,100 282,000 282,700 243.700 256,000 2 199,100

Source: Forestry Department. Table 7.11: PRODUJCHIONOF SAWN WOOD, SLEEPEPS,PLYWOOD AND PARTICLEBOARD, 1960-70

(Volumes in m 3)

Product 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970

Sawn wood n.a. n.a. n.a. 41,000 45,000 49,000 53,800 52,500 56,200 63,300 51,500

Sleepers n.a. n.a. n.a. 1,400 1,700 1,000 1,800 1,000 1,300 500 1,40o

lywood 13,400 16,200 15,;00 18,100 18,200 16,200 14,800 15,700 17,500 19,900 19,700

Particleboard 11,400 14,800 18,000 21,100 23,200 20,400 17,800 19,700 17,300 18,800 13,200

Total n.a. n.a. rn.a. 81,600 88,100 86.600 88,20 83,900 92,300 102,500 85,o00

Source: ForestryDepartment. Table 7.12: 3EXPORTOF WOODAND WOOD PRODUCTS, 1963-70

(Volumes in m )

1963 1264 1965 1966 1967 1968 1969 1970 Sawlogs 9,762 10,748 15,102 15,709 11,195 10,702 11,893 12,812

Hewn piling 10,606 6,281 9,261 12,838 9,938 9,282 10,018 11,947

Sawn wood (incl. prefab. houses) 3,327 4,657 5,339 6,656 7,258 4,865 6,085 5,817 Plywood 16,296 15,068 13,334 11,624 12,358 13,725 14,384 11,904 Particle board 19,996 22,392 18,262 19,480 15,751 10,427 16,951 11,448 Total 59,987 59.146 61,298 66,307 56,500 49,001 59,281 53,928

Source: Forestry Department, Table 7.13: FERTILIZBEUSED, 1969-70

(in metric tons)

1969 1970

Natural fertilizer 48.8 93.8

AumnoniumNitrate 846.8 684.6

Ammonium Sulphate 57.0 132.7

Urea 4,429.9 3,302.1

Potassic 67.0 120.6

Superphosphate 141.0 166.7

Other phosphatic fertilizer 128.4 198.9

Other mineral fertilizer (mixed) 377.A 348.8 Total 6.096.3 5,048.2

Source: Ministry of Agriculture,Animal Husbandry and Fisheries. Table 7.14: AGRICULTURE - PRODUCTION AND EXPORT VALUES, 1960-77 (Sur. f. mns. ; 1977 production value in 1970 prices, 1977 export value in current prices) Gross Production Value Export Value 1960 1970 1977 1960 1970 1977

Major Crops 4.9 5.2 10.5 Rice 7.3 21.9 25.0 0.0 3.1 7.4 Bananas and plantains 0.8 4.2 7.9 1.0 3.6 Citrus 0.8 1.4 2.8 1.0 0.7 0.9 0.5 Sugar 4.4 4.6 4.6 - 1.0 Palm Oil and kernel - - 1.7 - 0.6 0.2 0.1 Coffee and cocoa 1.1 0.4 0.3 0.3 0.4 1.0 Other products 2.0 5.3 9.0 7.5 10.8 24.1 Total 16.4 37.8 51.3

Livestock Products - - - Beef 1.2 2.1 2.6 Pork 0.5 0.9 1.4 Milk 1.8 2.1 2.1 Other products 1.8 8.0 11.3 - - Total 5.4 13.1 17.4 -

Fisheries Products 0.5 1.0 1.4 Shrimp 0.4 6.7 7.6 - - Other products 2.4 2.5 3.1 - 0.5 1.0 i.4 Total 2.8 9.2 10.7 8.0 11.8 25.5 Total Agriculture 24.6 60.1 79.4

and Source: Ministry of Agriculture, Animal. Husbandry, and Fisheries; -<-al Bureau of Statistics; markets. Mission Estimates based on plans of main producers and treol' in exporc VIII. STATISTICS ON OTHERSECTORS

Table 8.1: BASIC DATAON BAUXITEMINING AND PROCESSING

Period Bauxite Alumina Aluminumn. Production Export Export Production Export Export Production Export Export Volume Volume Value Volume Volume Value Volume Volume Value Employees (---- '000 m tons ---- ) Sf. mill. (----'000 m tons----) Sf. mill. (--'--OOO x tons----) Sf. mill. (Number) 1960 3,455 3,635 66.3 4,475 1961 3,453 3,405 64.3 4,584 1962 3,298 3,254 62.5 4,950 1963 3,508 3,483 66.1 5,345 1964 3,993 3,985 72.7 5,473 1965 4,360 4,369 80.6 115 59 6.2 2.2 1.3 0.9 5,777 1966 5,563 4,585 91.9 407 347 36.8 27.2 25.5 19.2 5,082 1967 5,466 3,806 77.4 742 684 71.9 32.2 30.4 23.8 5,804 1968 5,660 3,786 77.3 813 702 76.5 43.2 43.2 34.2 5,365 1969 6,236 3,678 78.4 949 856 94.1 53.3 53.1 48.1 5,957 1970 6,022 3,420 76.2 1,014 893 106.3 54.5 52.8 48.6 6,023 1971 6,800 3,450 76.9 1,180 1,080 120.1 55.0 44.0 45.5 6,300

Source: General Bureau of Statistics, Central Bank and mission estimates. Table 8.2: TOTALTRAFFIC SURINAM RIM (TO ANDFROM PARAMARIBo, moENGO, SMALKALDEN)

(in '000 tons)

1966 1967 1968 1969 1970

IMPORT IN TONS

Oil in bulk 378 462 501 592 623 CausticSoda in bulk 133 128 177 298 202 Baboenwood 7 16 11 6 15 Prop. gass, in bulk 2 3 4 4 4 Cement in bulk 34 43 42 - 10 Stone Chips in bulk 25 28 16 1 2 56 Clinkerin bulk _ - 52 37 Bitum.en _ _ - 2 - Lub - Oil - - - 1 2 Wheat in bulk _ _ - 3 _ General Cargo 224 298 297 269 276

T TAL IMPORT: 8O4 979 1,048 1,272 1,225 EXPORTIN TONS

Bauxdte in bulk 4,621 3,793 3,792 3,621i 3,178 Alunina in bulk 3h3 635 688 833 885 'auzainurmingots 212 tlwn.lnun; ingots ~21 23 L0I4S05L 50 Bazanas 15 26 39 35 27 Sand (Mortar)in bulk 11 45 - - 13 GeneralCargo 99 123 88 112 98

TOTALEXPORT: 5,110 X,605 4,647 4,658 4,251 Parararihoonly

IMPORTS

GeneralCargo n.a. n.a. 195 214 n.a. Oth.er 202 200

EXPORTS

GooeralCargo n.a. n.a. 101 80 n.a. Other 26 16

Source: Ministryof PUblic 'dorks and Transport, Table 8.3: FERRY CROSSINGSOF MOTORVEHICLES

knumberper year)

1966 (%) 1967 1968 1969 1970

ParamariboEastward

Surinam River

Passengercars 62,000 33 62,500 64,000 63,000 68,000 Trucks& busses 16,500 9 17,000 17,500 17,000 18,400 Motorcycles 68 ooo 37 70.000 72 000 70 000 76 0oo

Total 95001_ 000 16200

Comme'wijne River

Passenger cars 26,300 62 28,200 31,000 37,000 41,000 Trucks & busses 9,000 21 9,800 10,500 12,400 13,800 Motorcycles 6,800 16 7,500 8,000 9,500 10,500 Total .100 450 400 65,300

ParamariboWestward

Saramacca River

Passenger cars 29,800 49 38,000 36,000 43,400 47,000 Trucks & busses 12,000 20 15,600 14,800 17,800 19,000 Motorcycles 17,500 29 22 600 21,500 25 800 27,700

Total 59,300 200 72,300 _____ 93,700

Coppename River

Passenger cars 6,920 48 6,200 7,700 7,320 6,780 Trucks & busses 4,120 28 3,600 4,600 4,300 3,950 Motorcycles 3 280 22 2 850 3 510 3,280 3 100 Total 120 14.900 0

1/ Figures showing the division.Ietween various categoriesof road vehicles are available only for 1966. For . ye-.rs the 1966 ratios are applied. Data exclude bicycles unless they are m,rizei Source: Surinam Shipping Company< Table 8.4: ROADVSHICLES AND USER CHARGES

ROADVEHICLES

1965 1966 1967 1968

Fa > er.r Cars 7,387 8,187 8,907 10,483

1 ,561 1,763 1,904 2,120

Buse- 299 348 461 496

Sp?cial Vehicles 106 98 127 121

Motor Bicycles 1 ,568 1 ,845 2,045 2,621 (excluding iotorLzed regular bicycles)

ROADUSER CHARGES 1965-71 (Sf '0oo's5

1965 1966 1967 1968 1969 1970

Customs duties on vehicles 40% 1,961 2,760 3,124 2,664 3,141 3,700 parts 20% 136 149 168 168 191 204 batteries 20% 89 104 98 128 120 1)9P tires 20% 155 146 175 168 149 193 tubes 20% 15 12 14 13 12 12 fuels 17c (Nov. 1970 18c) liter 3,749 4,404 4,470 4,443 4,773 5,709 lubricants 20% 305 232 271 303 325 412

Subtiotal 6,410 7,807 8,320 7,887 8,711 10,379 Registration and license fees 69 81 87 79 59 91

Vehicle (road fund) taxes 1,131 1X247 1,416 1,485 1,568 1,905

Total 7,610 9,135 9,823 9,451 10,338 12,375

Source: General Bureau of Statistics. Table 8.5: AIR TRAFFIC AT ZANDEHIJAIRPORT

INTL?NATITNAL W=TIC TOTAL YEAR NUMBERr;DEX NUMBERINDEX NUNIBERINDEX

1 ,2 3 4 5 6 7

1960 2222 100.0 1018 100.0 3240 100.0

1966 3066 138.0 1158 113.7 4224 130.0 1967 3250 146.3 1680 166.3 4930 152.1 1968 3620 163.0 25ho 251.4 6160 190.1

1968 3130 140.0 1520 150.4 4650 143.5 1970 2536 114.2 1038 10207 3574 110.3

Passengers and Freight Movements

FREIGHT MAIL IN DAILY AVERAGE DAILY AVERAGE YEAII PASSENGERS IN TONS TONS AIRCRAFTMOVEMNTS PASSENGERMOVEMTS.

1 2 3 4 5 6

1960 54.181 304 55 8,9 148 1966 53.878 1045 84 11,6 148 1967 63.223 1425 103 13,5 173 1968 57.?06 648 1044 16,8 158 1969 63.179 884 103 12,7 217

1970 71.847 1143 123 9.07 196,9

Source: Ministry of Economic Affairs, Table 8.6: LIST OR TRANSPORT PROJECTS INCLUiDYDIN T}Z SEZ0 D FIVE- YEAR PLANV,1971-75

A. Proozcs!4 for Fia-,-ncing

RVo~ t,Pn Brid e r (ei 2ar_tal In Sf million

Completion East-West Connection: Moengo-Albina (East-,;est Connection) 42 km 2.Ox Purnside-nareningen (_ast-ekst Connection) 31 km 0.5x ,ulvertc in Burnside-Wageningen 0.3 Bridge near Henar 1.5x Pontoon Bridge Conrbewijne River 0.3 flnicondre-.Urnside 32 km 0.8 Wigen'ngen Henar 30 km 2.8x Ferry landingbridge Patramaribo 1.0 M crzorg-"ieuw Am-terdan-Alkmaar 21 km 2.5x Paranam-Afobaka 70 km 3.0 Western Exitroad Paramaribo 20 km 4.0 Anton Dragtenweg-Leonsberg 4 km 1.0 Road to Tamarin 34 km 1.0 Road to Potribo 6 km 0.1 Road to Slangeneiland 30 km 4.0 Improvements District roads 2.0

Ports and Dredging FlixedCarDdtal

Experimental dredging Surinam River 1.5x Pier Slangeneiland Corantijne River 2.0

Other

Study eXpansion Paramaribo Port o..6

Airports

Fixed Capital

Strengthening, widening and providing turning loops runway, Zanderij Airport 2.3x Station building and Terminal Area 2.Ox Fire-fighting equipment, Zanderij Airport 0.7

Other

Air Traffic Safety I rovisions 3. 2x Maintenance Airports in Jnterior 2.0

Total 1l.1

B. Yroposedfor Financing by the

Road Soramacca - Coppename 50 km 1.4 Road 'crnpename - Ingicondre 36 km 2.2 Saramacca Bricge 1.5

Totnl 5_.

Grand Total 46.2

x Projects which were also included in the First Five-Year i'lan and either under way or have still to be executed.

Source: Planning Bureau. Table 87: EDUCATION STATISTICS, 1955-71

School Year Ending 1955 1960 1965 1966 1967 1968 1969 1970 1971

Students enrolled

Infant education 7,658 11,100 16,637 17,135 17,543 19,920 20,150 22,109 24,000

Primary education I 40,536 53,084 74,444 75,760 80,016 85,301 87,996 91,430 94,880

First cycle secondary education 2/ 4,552 7,019 10,578 12,030 13,279 14,884 16,072 18,384 20,348 o/w vocational instruction (387) (703) (624) (637) (693) (710) (690) (784) (948)

Second cycle secondary edcation -/ 508 1,014 1,766 1,865 2,208 2,669 3,147 3,623 4,665 o/w teacher training - (293) (679) (1,294) (1,332) (1,346) (1,309) (1,297) (1,530) (2,020)

Higher education 332 533 417 342 364 371 n.a. n.a. 307 Law (258) (503) (383) (307) (330) (339) (327) (300) (289) Medicine (74) (30) (34) (35) (34) (32) (n.a.) (n.a.) (18)

Teachers on post

Infant education 195 299 512 478 518 551 n.a. n.a. n.a.

Primary education 1/ 1,073 1,492 2,363 2,629 2,730 2,988 n.a. n.a. n,a.

First cycle secondary education2-/ 197 292 424 504 530 606 666 781 852 o/w vocational training (28) (41) (39) (38) (42) (38) (39) (46) (46)

Second cycle secondary ed cation 81 114 154 162 198 246 272 295 327 o/w teacher training 4 (51) (60) (99) (106) (102) (106) (104) (118) (149)

Higher education n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Law (20) (27) (48) (40) (41) (40) (25) (24) (32) Medicine n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

I/ Including schools in Interior and special schools. 2 Extended elementary schools (grade 7-11); lower technical and vocational schools (grade 7-10). 3/ Higher technical and conmerical schools (grade 11-14), teacher training institutions (grade 9-13/14); traditional high schools (grade 7-12/13). _/ For infans schools throug- first cycle secondary schools.

Source: Ministry of Education

IX. PRICES

Table 9.1: CONSUMERPRICE INDICES OF DOMESTICAN1D IMPORTED GOODS IN PARAMARIBO(3rd quarter 1953 - 100), 1960-70 1/

Goods and Services according to origin Surinam Foreign Mixed of which of which of which foodstuffs foodstuffs foodstuffs Period Total Total and beverages Total and beverages Total and beverages

1960 117

1961 119 132 144 106 109 111 117

1962 122 134 148 108 111 112 118

1963 124 135 156 ill 115 116 124

1964 125 136 156 112 117 114 121

1965 137 154 184 117 121 125 139

1966 138 154 184 121 127 125 140

1967 153 176 222 125 132 136 159

1968 153 176 221 126 130 137 159

1969 170 198 259 130 135 148 180

1970 2/ 174 n.a. n.a. n.a. n.a. n.a. n.a.

1/ For families earning Sur. f. 20 - Sur. f. 60 weekly.

2/ As of July 1970

Source: General Bureau of Statistics. Table 9.2: ZONSUMER.PEI- E r:DI10Z FOR PAPJMARI90, 1960-70 1/

(3rd quarter 1953 - 100)

1960 1961 1962 1963 1964 1965 1966 .1967 1968 1969 1970 3/

Foodstuffs and beverages 125 128 131 138 146 149 159 18h 183 209 217

Rice 102 104 117 114 125 134 136 168 165 174 202 Bread 100 100 100 100 101 100 102 103 103 103 103 Potatoes, vegetables and fruit 187 219 224 261 285 291 346 478 463 603 614 Sugar 96 96 94 93 92 93 93 93 93 93 94 Heat 122 119 121 124 121 123 127 129 130 134 138 Fish, shrimps 222 202 210 204 238 239 235 235 246 254 287 Milk 100 102 107 110 110 110 110 110 111 111 111 Butter, edible oil and fat 95 88 87 88 94 99 104 104 106 104 108 Other foodstuffs 117 115 113 121 121 120 125 127 128 137 146 Beverages 101 103 104 106 113 113 113 117 122 123 120

Smok-ing 109 110 115 120 121 122 L2 124 128 129 132

Housing 123 128 128 118 122 125 127 127 128 128

Rent, water 99 99 99 99 99 99 99 99 99 99 Furniture 98 102 107 117 121 125 129 136 145 152 158 Fuels 2/ 155 167 167 142 150 156 161 162 162 162 n.a. Charcoal 238 267 267 201 217 235 253 253 253 253 253 Electricity 91 91 91 91 91 86 80 80 80 80 80 Other items 107 ill 109 115 122 122 123 124 125 126 127

Clothing and Footwear 104 104 104 103 103 104 105 106 111 112 111

Clothing 100 101 100 99 98 100 100 102 106 106 104 Footwear 108 109 109 109 109 111 112 114 120 122 121

Others n.a. n.a. n.a. E 93 95 96 98 100 103

Cleaning 106 106 106 106 108 110 115 118 120 125 127 Personal and medical care 101 101 101 103 106 107 108 110 113 117 117 Education and recreation 58 58 58 59 60 63 64 66 68 69 70 Transportation 101 102 103 103 103 103 104 105 106 106 107 Insurance, tax 72 72 72 72 72 72 72 72 72 72 72

Total 11 119 122 12h 132 170

1/ Families in Paramaribo earning Sur. f. 20 - Sur. f. 60 weekly.

2/ Including charcoal.

3/ As of July 1970

Source: General Bureau of Statistics. Table 9.3: CONSUKMRPRICE INDICES FOR FAMILIES IN PARAMARIBOAND ENVIROtS (April 1968 - March 1969 - 100)

~~~~~~~~~ ~~~1969 ------1970 ------1971 ------Coimmodities IV I II III IV I II

Fo,dstuffs and Beverages 104.6 107.1 104.8 105.5 105.6 105.2 103.0

Braad, grains 101.7 102.0 102.3 103.4 102.9 104.8 104.5 PoLatoes, vegetables 129.7 140.9 111.6 123.4 118.9 116.1 91.4 hFruit 106.0 109.4 127.7 106.3 96.0 106.8 113.8 Sugar 100.0 100.0 100.0 100.0 100.0 100.2 100.0

S%nets, spices 103.1 103.3 101.4 103.6 103.7 100.1 98.7 Butter, edible oil, fat 101.2 103.5 107.7 109.1 no.4 109.7 108.3 NeaLt 102.8 106.3 102.7 102.5 105.3 105.7 104.3 Filh,shrimps 95.1 99.7 115.9 101.7 103.3 3LO.9 108.3 Milk and milk products (excluding butter), eggs 100.6 100.8 101.3 101.1 100.6 100.9 98.5 Non-alcoholic drinks 108.7 108.7 108.7 108.7 108.7 108.7 108.7 Alcoholic drinks 100.0 100.0 100.0 100.0 101.1 103.1 103.5

Wtaer foodstuffs and beverages 100.4 100.5 101,5 103.7 108.5 107.4 105.7 Hoasing and Furnishing 101.2 101.7 102.1 102.4 103.4 104.6 103.5

Rent,water, electricity 100.0 100.1 100.1 100.1 100.5 100.6 100.6 Fuels 100.0 100.0 100.0 100.0 100.1 100.7 100.8 Cleaning, household services 102.5 105.3 106.0 106.4 107.3 107.6 105.3 Furnishing, furniture 103.0 103.1 104.0 105.0 107.3 110.9 107.8 Other expenses 100.0 101.1 101.1 101.1 102.2 101.6 102.1

Clothing and Footwear 101.1 99.8 99.4 98.6 97.2 .4

Clo-thing 101.4 99.6 99.1 98.1 97.2 96.2 94.? Footwear 100.1 100.4 100.4 100.5 100.4 100.4 100.)9

Othor Expenses 102.5 106.1 126. 106.7 106.4 107.4 106.4

Med:Lcal care 100.0 100.0 100.0 100.0 99.9 99.6 99.5 Edui:ation, culture, recreation 101.0 1L1.3 111.3 11o.6 107.4 108.2 107.5 Transportation 104.8 104.9 105.2 105.8 107.1 107.8 106.e Hyg~ene, toilet articles 101.5 103.3 104.9 106.7 107.4 108.8 109.6 Tobacco, and products 104.8 104.8 106.6 106.7 3111.2 118.6 118.6

Total 102.9 104.8 104.0 104.3 104.5 105.2 103,3

Source: General Bureau of Statistics,