Final Economic Project

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REPUBLIC OF ALGERIA

PRESIDENT - Abdelaziz Bouteflika

POPULATION (July 2009): 34,178,188

GDP (2008): $159.7 billion.

GDP growth rate (2009 est.): 3.5%.

Per capita GDP (2008 est.): $6,900.

By far, Algeria's most significant exports today (in terms of financial value) are petroleum and natural

gas. The reserves are mostly in the Eastern Sahara; the Algerian government curbed the exports in the

1980s to slow depletion; exports increased again somewhat in the 1990s. Other significant exports

are sheep, oxen, and horses; animal products, such as wool and skins; wine, cereals

(rye, barley, oats), vegetables, fruits (chiefly figs and grapes for the table) and seeds, esparto grass,

oils and vegetable extracts (chiefly olive oil), iron ore, zinc, natural phosphates, timber, cork, crin

vegetal and tobacco. The import of wool exceeds the export. Sugar, coffee, machinery, metal work of

all kinds, clothing and pottery are largely imported. Of these by far the greater part comes from

France. The British imports consist chiefly of coal, cotton fabrics and machinery.

Algeria trades most extensively with France and Italy, in terms of both imports and exports, but also

trades with the United States and Spain. Algeria currently has only one stock exchange, the Algiers

Stock Exchange.

The hydrocarbons sector is the backbone of the Algerian economy, accounting for roughly 60% of

budget revenues, nearly 30% of GDP, and over 97% of export earnings. Algeria has the ninth-largest

reserves of natural gas in the world (2.7% of proven world total) and is the fourth-largest gas

exporter; it ranks 14th for oil reserves (2006). Its key oil and gas customers are Italy, Germany,

France, the Netherlands, Spain, the United Kingdom, and the United States. U.S. companies have

played a major role in developing Algeria's oil and gas sector; of the $5.3 billion (on a historical-cost

basis, according to statistics gathered by the U.S. Department of Commerce, Bureau of Economic

Analysis) of U.S. investment in Algeria the vast bulk is in the hydrocarbon sector.

The government seeks to diversify the economy by attracting foreign and domestic investment

outside the energy sector but announced several economic policies in 2008 and 2009 that would

strengthen Algerian Government control over foreign investment projects. Algeria adopted a

³complementary finance law´ on July 22, 2009, which imposed new restrictions on foreign

investment, import companies, and domestic consumer credit. The law requires a minimum of 51%



Algerian partnership in new foreign investments, a 30% Algerian partnership in all foreign import

companies, and payment of all imports by letters of credit opened by banks. The Algerian

Government has had little success at reducing high unemployment--officially estimated at 10% in

January 2009, though international estimates put the figure much higher--or at improving living

standards.

Policies needed to modernize the economy and increase growth are banking and judicial reform,

improving the investment environment, partial or complete privatization of state enterprises, and

reducing government bureaucracy. The government has privatized or closed some state-owned

enterprises in certain sectors of the economy and allowed joint venture investment in others. In 2001,

Algeria concluded an Association Agreement with the European Union, which was ratified in 2005

by both Algeria and the EU and took effect in September of that same year. The government

continues to expresses interest in working toward accession to the World Trade Organization.

The dinar (Arabic: ) (sign: . or DA; code: DZD) is the currency of Algeria and it is

subdivided into 100 santeem ( ). The name "dinar" is ultimately derived from

the Roman denarius. The dinar was introduced in 1964, 1 April, replacing the Algerian new franc at

par. In 1964, coins in denominations of 1, 2, 5, 10, 20 and 50 santeem, and 1 dinar were introduced,

with the 1, 2 and 5 santeem struck in aluminium, the 10, 20 and 50 santeem in aluminium bronze and

the 1 dinar in cupro-nickel. The obverses showed the emblem of Algeria, while the reverses carried

the values in Eastern Arabic numerals. In later decades, coins were issued sporadically with various

commemorative subjects. However, the 1 and 2 santeem were not struck again, whilst the 5, 10 and

20 santeem were last struck in the 1980s.

In 1992, a new series of coins was introduced consisting of ¼, ½, 1, 2, 5, 10, 20, 50 and 100 dinar.

The 10, 20, 50 and 100 dinar coins are bimetallic.

Coins in general circulation are 5 dinar and higher. Following the massive inflation which

accompanied the slow transition to a more capitalist economy during the late 1990s, the santeem and

fractional dinar coins have dropped out of general circulation, whilst the 1 and 2 dinar coins are rarely

used, as prices are rounded to the nearest 5 dinar. Nonetheless, prices are typically quoted in santeem

in everyday speech; thus a price of 100 dinar is read as ("ten thousand").



MONEYS OF ALGERIAN PEOPLE

A reverse of the 200 dinar banknote

2 santeem, minted in


1974


1984, a palm tree


1972, an overflowing

cornucopia depicting the

theme of agricultural

revolution

20 santeem, minted in1975, a goat (?)


1975, "The 30th

remembering" in Arabic

and commemorating the

French Algerian Clash

1 dinar, minted in 1972,wheat, two hands

(peace), and a tractor in

foreground

5 dinar, minted in

1972,Wheat and

an petroleum-extractor

in the background and

commemorating the

10th anniversary of

independence

5 dinar, minted in 1974,

an Algerian soldier and

commemorating the

20th anniversary of the

Revolution

10 dinar, minted since

1979, "Bank of Algeria"

in ArabicCurrent 20 and 50 dinar

and obsolete 5 and 10

dinar coins



REPUBLIC OF ANGOLA

PRESIDENT - José Eduardo dos Santos

POPULATION (2009 est.): 17,300,000

GDP (2009 est.): $74.4 billion.

GDP growth rate (2010est.): 2.5%.

Per capita GDP (2009): $4,301.

Despite a fast-growing economy largely due to a major oil boom, Angola ranks in the bottom 10% of

most socioeconomic indicators. The International Monetary Fund (IMF) estimates that Angola's real

GDP increased by 16% in 2008. However, GDP growth in 2009 was flat due to significantly lower oil

prices owing to the global financial crisis. According to IMF the GDP growth in 2010 is projected at

around 2.5 percent, but a solid pick-up in the pace of growth is expected for 2011. Angola is still

recovering from 27 years of nearly continuous warfare, and it remains beset by corruption and

economic mismanagement. Despite abundant natural resources and rising per capita GDP, it was

ranked 157 out of 179 countries on the 2008 UN Development Program's (UNDP) Human

Development Index. Subsistence agriculture sustains one-third of the population.

The rapidly expanding petroleum industry reached its Organization of Petroleum Exporting Countries

(OPEC) cap of 2 million barrels per day (bpd) in 2008. However, Angola¶s production was cut to

1.51 million bpd in January 2009 by an OPEC mandate in response to plummeting oil prices.

Throughout 2009, Angola never got down to its OPEC quota and produced an average of 1.8 million

bpd. Angola is currently Africa¶s largest oil producer, a position that Angola has traded places back

and forth with Nigeria over the last year. Crude oil accounted for roughly 85% of GDP, 95% of

exports, and 85% of government revenues in 2009. Oil production remains largely offshore and has

few linkages with other sectors of the economy, though a local content initiative promulgated by the

Angolan Government is pressuring oil companies to source from local businesses. The government is

also pressuring oil companies to increase the number of Angolan staff.

Diamonds make up most of Angola's remaining exports, with yearly production at 6 million carats.

However, the financial crisis severely depressed diamond prices in 2009, sharply curtailing Angola¶s

diamond exports, and at one point forcing the state diamond authority, Endiama, to buy up production

at cost for stockpiling to keep operators going. Diamond sales reached approximately $1.1 billion in

2006. Despite increased corporate ownership of diamond fields, much production is currently in the



hands of small-scale prospectors, often operating illegally. Eight large-scale mines operate out of a

total of 145 concessions. In June 2005, De Beers signed a $10 million prospecting contract with the

government's diamond parastatal, ending a 4-year investment dispute between De Beers and the

government. Legal sales of rough diamonds may occur only through the government's diamond-

buying parastatal, although many producers continue to bypass the system to obtain higher prices.

The government has established an export certification scheme consistent with the "Kimberley

Process" to identify legitimate production and sales. Other mineral resources, including gold, remain

largely undeveloped, though granite and marble quarrying has begun.

Angola is the second-largest trading partner of the United States in sub-Saharan Africa, mainly

because of its petroleum exports. U.S. exports to Angola primarily consist of industrial goods and

services--such as oilfield equipment, mining equipment, chemicals, aircraft, and food.

The official currency of Angola is known as Kwanza. The ISO code is AOA. Since 1977 four

different currencies have been circulated which share the same name. The first series of Kwanza was

introduced in the market in 1977 and continued to be the medium of transaction till 1990. The ISO

Code was AOK and it replaced escudo. 1 Kwanza was equivalent to 100 Lwei. The first series of

coins was available in 50lwei, 1,2,5,10,50 and 100 kwanza denominations. The 20 kwanza was added

later in 1978. They did not bear any date except the date of independence. The second series of coins

was introduced in 1999 after the value of coins suffered from the high inflation rate.

Coins were revived after this. The last sets of coins were minted in 1999 that continues to be

circulated. They were made of either copper or cupro-nickel. On the obverse imprints of State title,

coat of arms year were there. The first set of banknotes was introduced in 1977. The Banco Nacional

introduced this. They were available in 20,50,100,500 and 1000kwanza denominations. In 1978 the

20Kwnza bank note was replaced by coins. The Novo Kwanza with ISO 4217 code AON was

introduced in 1990. It replaced Kwanza but later on suffered from inflation. These notes were

overprints of the previous ones. In 1991 the word novos was dropped from the banknotes. They were

available in 50, 500, 1000,5000,10000,50000,1000000,500000 kwanzas. This as followed by another

series of banknotes known as Kwanza Reajustado. The notes were available from 1000-

5000000kwanzas. The banknotes were of different colors. On the obverse was impressed the portrait

of Agostinho Neto, Jose Eduardo dos Santos. On the reverse side were pictures of mountains, cotton

plantation, antelope, Banco Nacional de Angola, coffee plantation.



MONEYS OF ANGOLAN PEOPLE

Current coins used by Angolans.

50 lwei 1979 1 lwei 1979

200 and 500 kwanzas banknotes

1000 kwanzas

2000 kwanzas



ARAB REPUBLIC OF EGYPT

PRESIDENT - Mohamed Hosni Mubarak

POPULATION (July 2007 est.): 80,335,036

GDP (FY 2009 est.): $188 billion.

Annual growth rate (FY 2009 est.): 4.7%.

Per capita GDP (PPP, FY 2009 est.): $5,650.

The economy of Egypt showed dramatic improvement in the 90s. The International Monetary Fund

provided assistance in various spheres. Major portion of Egypt debts were borne by Arabs. Efforts

were put in to keep inflation at the base level. There was a decline in the budget deficit.

The GDP or the gross domestic product accounted for 4% to 5%. Despite a fairly good progress in the

economy of Egypt, there are many snags which Egypt is subjected to. Rate of growth in the economy

of Egypt has considerably declined since '98 owing to the crisis which Asia is facing in terms of

economy. The foreign reserves of Egypt also increased.

With the installation of the 2004 Egyptian cabinet and the 2005 presidential election, the Government

of Egypt began a new reform movement, following a stalled economic reform program begun in

1991, but moribund since the mid-1990s. Since 2004, the cabinet economic team has simplified and

reduced tariffs and taxes, improved the transparency of the national budget, revived stalled

privatizations of public enterprises and implemented economic legislation designed to foster private

sector-driven economic growth and improve Egypt's competitiveness. The Egyptian economy

experienced steady GDP growth rates around 7% between 2005 and 2008, before dropping below 5%

amidst the global economic crisis. Despite Egypt¶s growth, the economy is still hampered by

government intervention, substantial subsidies for food, housing, and energy, and bloated public

sector payrolls. Limited energy subsidy reform began in 2007 but has stalled since the 2008 global

economic crisis. In sectoral terms, agriculture is mainly in private hands, and has been largely

deregulated, with the exception of cotton, sugar, and rice production. Construction, non-financial

services, and domestic marketing are also largely private. The Egyptian economy, however, relies

heavily on tourism, oil and gas exports, and Suez Canal revenues, much of which is controlled by the

public sector and is also vulnerable to outside factors. The tourism sector suffered tremendously

following a terrorist attack in Luxor in October 1997. The tourism sector feared a repeat of the

downturn in tourist numbers when terrorists attacked resorts in the Sinai Peninsula in 2004 and 2005.



So far, however, the sector has not suffered as greatly as expected. As a result of the global economic

crisis, annual revenues for the Suez Canal fell sharply in 2008 and began only a partial recovery in

2009. The U.S. has a large assistance program in Egypt and provides funding for a variety of

programs. Through its Human and Economic Sector Development cash transfer program, the U.S.

Agency for International Development (USAID) is supporting benchmarks that aim to stimulate the

small and microenterprise sectors, improve budget transparency to increase macroeconomic stability,

and improve the trade regime and business climate. To support the Middle East peace process through

regional economic integration, the United States permits products to be imported from Egypt without

tariffs if they have been produced by factories registered. The drop in Canal traffic and revenues has

been partially offset by high international oil prices, as the shorter Suez route cuts costs for some

shippers.

In this country pound is used for the purpose of commutation. In Arabic it is popularly known as the

gunaih and is divided into 100 qirsh or 1000 malleem. In the year 1834, a Royal Decree proclaiming a

Parliamentary Bill was issued in order to provide the issuance of an Egyptian currency placed on a

bimetal base and finally in 1836 the Egyptian pound was coined and put to serve the circulation

purpose. Egypt currency, the pound was divided into the 100 piastres and the force of law fixed the

legal exchange rates for major foreign currencies that acquired acceptance in the settlement of

internal transactions. On 3rd April 1899, for the first time, the National Bank of Egypt issued

banknotes. Coins, on the other hand, are encountered much less frequently than the Egyptian notes.

However, 5, 10, 20, and 25 piastres coins have still remained as legal currency in Egypt. In 1834, a

Royal Decree promulgating a Parliamentary Bill was issued providing for the issuing of an Egyptian

currency based on a bimetallic base. The Egyptian pound was introduced, replacing the Egyptian

piastre as the chief unit of currency. The piastre continued to circulate, as 1 » 100 of a pound, with the

piastre subdivided into 40 para. In 1885, the para ceased to be issued and the piastre was divided into

tenths ( o shr el-qirsh). These tenths were renamed malleem (milliemes) in 1916. The legal

exchange rates were fixed by force of law for important foreign currencies which became acceptable

in the settlement of internal transactions. Eventually this led to Egypt using a de fact o gold

standard between 1885 and 1914, with 1 Egyptian Pound = 7.4375 grams pure gold.

Moreover, at the end of 2005, plans were implemented for the introduction of a new 200 pounds note

and coins for 1 pound and 50 piastres and finally on 1st June 2006, 1 pound and 50 piastres were

introduced.



MONEY OF EGYPTIAN PEOPLE

Coins used from past until now. Coins, even for the smallest amounts, are encountered much less

frequently than notes.

The first one Egyptian Pound banknote issued in 1899

200 Pounds with Mosque of Qanibay and Seated Scribe as the printed image

1 » 40 EPT Coin -1839 1 » 40 EPT Coin -1909

10 EPT Coin -1909 20 EPT coin -1915

2 Millieme Coin -1916 21 » 2 Millieme Coin -1933

1 » 2 Millieme Coin -1938 1 EGP golden Coin -1938

10 millieme coin -1943 2 EPT coin -1944

1 millieme coin -1954 25 EPT coin -1970



FEDERAL DEMOCRATIC REPUBLIC OFETHIOPIA

PRESIDENT - Girma Wolde-Giorgis

POPULATION (est.): 80 million

GDP (FY 2008-2009): $32.3 billion.

GDP growth rate (2009-2010, estimate): 9.9%.

GDP per capita (2009): $404

Ethiopia's economy is agriculture dominated. The agriculture sector constitutes approximately half of

the gross domestic product. Agriculture in Ethiopia provides employment to 80% of the total

workforce in Ethiopia. However, owing to drought conditions and improper cultivation methods,

agriculture in Ethiopia has suffered considerable losses. Coffee exports play an important role in

the economy of Ethiopia. In the year 2002, coffee worth USD$156 million was exported to different

countries. Arable land in Ethiopia is retained by the Government. The Government leases out land to

the renters for a specific period of time. This land tenure system adopted by the Government is

forbidding the industries to use land as security for taking loans. Important industries in Ethiopia

include textile, chemicals, processing metals, cement, beverages, food processing. 10.01% of land in

Ethiopia is used for agriculture, 0.65% of land is used for permanent crops and approximately 89.34%

is used for other purposes. Gold, products of leather, oilseeds, live animals, coffee, and qat are some

of the products Ethiopia exports to other countries leading to more income as a whole of the country.

Ethiopia's poverty-stricken economy is based on agriculture, accounting for 45% of GDP, and 85% of

total employment. The agricultural sector suffers from frequent drought and poor cultivation

practices. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but

historically low prices have seen many farmers switching to qat to supplement income. The war with

Eritrea in 1998-2000 and recurrent drought have buffeted the economy, in particular coffee

production. In November 2001, Ethiopia qualified for debt relief from the Highly Indebted Poor

Countries (HIPC) initiative, and in December 2005 the IMF forgave Ethiopia's debt. Under Ethiopia's

constitution, the state owns all land and provides long-term leases to the tenants; the system continues

to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for

loans. Drought struck again late in 2002, leading to a 3.3% decline in GDP in 2003. Although GDP

growth has since rebounded, soaring commodity prices in 2007 and 2008 and the global economic

downturn led to balance of payments pressures, partially alleviated by recent emergency funding from

the IMF.



The birr (Amharic: ?) is the unit of currency in Ethiopia. Before 1976, d ollar was the official

English translation of birr . Today, it is officially birr in English as well.

In 1931, the Emperor of Ethiopia, Haile Selassie I, formally requested that the international

community use the name Ethiopia (as it had already been known internally for at least 1600 years)

instead of Abyssinia, and the issuing Bank o f Abyssinia also became the Bank o f Ethiopia. Thus, the

pre-1931 currency could be considered the Abyssinian birr and the post-1931 currency the

Ethiopian birr , although it was the same country and the same currency before and after.

The Ethiopian Birr is the second most used currency in Africa with 88 million users, after

the Nigerian naira. 186 billion birr were in circulation in 2008 ($14.7 billion or 9.97 billion).

Between 1894 and 1897 copper coins were introduced in denominations of 1»100 and 1»32 birr,

together with silver 1 ghersh, , , ½ and 1 birr , and gold , ½ and 1 werk . In 1931, a new series of

coins was introduced consisting of copper 1 and 5 metonnyas, and nickel 10, 20 and 50 metonnyas.

The Bank of Abyssinia introduced notes for 5, 10, 100, and 500 talari in 1915. 280,000 talari worth of

notes was printed. The text on the notes was in Amharic and French. A 50-talari note was added in

1929, by which time over 1.5 million talari in notes were circulating. The birr was reintroduced in

1945 at a rate of 1 birr = 2 shillings. The name Ethiopian d ollar was used in the English text on the

banknotes. It was divided into 100 santim (derived from the French centime). The name birr became

the official name, used in all languages, in 1976.

The Bank of Ethiopia issued notes in 1932 in denominations of 5, 10, 50, 100 and 500 talari. A 2-

talari note dated 1 June 1933 was issued in honour of the Imperial couple. By the end of 1934 some

3.3 million talari in notes were circulating.



MONEYS OF ANGOLAN PEOPLE

One, five, ten, twenty five and fifty birr in coins

One hundred birr having front and reverse side 1966 one Ethiopian birr in banknotes

Five Ethiopian birr One Ethiopian birr

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