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OCCASION This Publication Has Been Made Available to the Public on The OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] D istr. LIME TED UNID0/IS.184 28 October 1980 UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ENGLISH COUNTOY INDUSTRIAL DEVELOPMENT PROFILE OF THE REPUBLIC OF SURINAME* Prepared by the Division for Industrial Studies This document has been reproduced without formal ed itin g . The d esign a­ tions employed and the presentation of material do not imply the expression of any Opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country or its authorities, or concerning the delimitation of its frontiers. 80-45125 - 2 • - «* > * i PREFACE The Division for Industrial Studies, Regional and Country Studies Branch, undertakes unier its work programme the prepara­ tion of Country Industrial Development Profiles. These profiles are desk studies, providing statistical end economic analyses of the industry sector, its growth, present status and future prospects. It is hoped that the profiles will provide analyses of use in acti­ vities relating to technical assistance, industrial redeployment and investment co-op era tion . This p r o file on Suriname i s based on documents, reports and studies available at UNIDO Headquarters. No field survey has been uniertaken and some of the data on industry art not up-to-date. The views or comments contained in th is document do not r e fle c t those of the C-ovemment o f Suriname nor do they o f f i c i a l l y commit the United Nations Industrial Developmen\ Organization to any parti­ cular course of action. ■\ - 1 _ COfTETTS Chapter Pape SUltimary and conclusions 7 I. The general background 9 IT. The economic background 12 Global and main sectoral trends 12 The external sector 27 The mining sector 35 III. The manufacturing sector 40 17. Features of Suriname's development 50 Development planning and p o lic ie s 50 Constraints to development 54 V. UNIDO technical assistance The f i r s t country programme 56 Tha second country programme 57 List of references 5& LIST OP TABLES Chapter Page I. The general background 9 II. The economic background 12 1. Annual growth rates o f GDP, 1970-1977 13 2. GDP per capita and annual growth rate of GDP 15 per capita, 1970-1977 3. Total supply and demand 16 4. S ectoral d istrib u tio n o f GDP in 1970 and 18 1970-1977 5- Surinamese areas under main agricultural 20 crops, 1969-1979 6. Surinamese production of main agricultural 21 crops, 1969-1979 7. Population by age based on the census of 1921, 23 1950, 1964 and 1971, as o f 31 December 8. Gross and net population, 1970-1977 24 9. Estimates o f employment and unemployment 24 10. Population and labour fo rce employed 25 l i . Sectoral distribution of working population, 26 1964-1974 12. Balance o f payments main accounts 28 13. Exports of goods 29 14. Structure of imports of good< 30 15- Geographical distribution of exports and imports, 32 1973-1977 16. Exports by value, volume and price, 1973-1978 32 17- Export and import price indices, 1970-1975 34 18. Government debt in end-year figu res 34 19. Bauxite-alumina-aluminium: Major indicators 37 in Suriname, 1970-1978 20. Bauxite/alumina/aluminium production and exports, 38 1955- 1978 21. Proportion of processed bauxite in total bauxite and of processed bauxite in total bauxite products 39 export value in i 960 and 1960-1978 c J LIST OF TABLES Chapter Page III. Tne manufacturing sector 40 22. Distribution of lending by commercial banks, 42 1970-1978, e/id of period 23. Number of establishments, number of employees and employees per establishment in manufacturing 44 branches in 1974 Value added in manufacturing branches ant their 24. 45 share in total for i 960, 1970 and 1974 Manufacturing value added per establishment and 25- 47 per employee in 1974t at constant 1970 prices 26. Production of some domestically produced items, 49 1970-1976 IV. Features of Suriname’ s development 50 CM Proposed pbulic investment under the Ten-Year Development Plan, 1976-1985» b1'’ economic sector 52 and by concentration area V. UNIDO technical assistance 56 EXPLANATORY MOTE The monetary unit in Suriname is the Surinam» guilier. Prior to 27 December 1971, the exchange rate was US SI = I .885 Suriname grinders. As of 27 December 1971, the exchange rate has been US SI = I .785 Suriname g u ild ers. SUMMARY AND CONCLUSIONS Suriname ib a open economy, heavily dependent upon the production and export of one primary commodity, bauxite, which makes the economy very sen­ sitive to the world price of, and the demand for, bauxite products. Thus, as a result of the 1974/1975 world economic recession, the Surinamese economy declined before the country's independence, which took place m November 1975* In addition, the large outflow of population to Holland before independence also contributed to a further slump in the economy. After independence the economy went through a recovery period due to improved international demand for bauxite products, growth of the agriculture sector and the inflow of extensive concessional aid granted to Suriname by Holland at the time of independence. Suriname's first years of independence were marked by a good performance: the output in real terms rose by almost 7 per cent in 1976/1977 and CDP per capita by about 6 per cent. The bauxite sector recovered a fte r the 1974-1975 slump and alumina and aluminium production attained their peak levels of 1972-1973- An expansion of almost 50 Per cent in the public sector expenditure - in 1975/1976 public investment and in 1976/1977 pu blic consumption - ha3 helped to stim ulate the economy through the rapid growth of construction, manufacturing and trade. The wide unemployment which plagued Suriname m the early 1970’ s appears to have been reouced in 1975/1976. Shortages of unskilled and skilled man­ power are believed to have developed due to the heavy population outflow to Holland before independence coupled with economic expansion. To fill this gap the Government decided in 1978 to permit the inflow o f 10,000 Guyanese. The outflow of Surinamese started in I967 when the contraction o f the economy began to show reduced employment opportunities ant income; it accelerated, however, in the pre-independence years. A high proportion of qualified and skilled manpower is believed to be among those who left the country. The balance of trade has shown a declining surplus and the current account an increasing deficit during the years 1970-1975» reflecting the higher outlay for petroleum imports and the rising volume and prices of other imports. The chronic deficits both in the non-factor services account (travel payments) and in the factor services account (profit remittances) make up for the increasing current account deficit. However, the high levels of capital inflows during 1975-1978 resulted in a surplus in the balance of payments and have permitted the accumulation of reserves. _ a. All foreign debts to the Tripartite Kingdom were calcelled in 1975 with independence, representing about 95 per cent of Suriname's outstanding debt. The new outstanding debt in 1975 was less than 3 per cent of GDP (about US 37 million). However, in 1978 the external public debt out­ standing increased to about US $31 million due to the loans contracted abroad to finance the rise in the budget deficit. The prospects for development in Suriname appear to be encouraging provided that the tvJ following aspects be considered in any development strategy: - expansion and diversification of the economic basis, parti­ cularly the manufacturing and agriculture sectors, in order to reduce reliance on the existing mining sector and to provide a stable basis for self-sustained growth; - development of the ability to use adequately ¡.he high levels of development aid presently available and, at the same time, to create the capacity to generate savings so that domestic sources of funds may, at least partially, replace Dutch aid and foreig n investment in financing, and pu blic and domestic private investment, respectively. Obviously the main constraint to development in Suriname is the limited size cf the domestic market both in terms of population, income per capita and income distribution.
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