Economy of Mauritania: Wikis

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Economy of Mauritania
Currency Ouguiya
Fiscal year Calendar Year
Trade organisations AU, WTO
Statistics [1]
GDP ranking 147rd (2007) [2]
GDP $5.947 billion (2007)
GDP growth 0.9% (2007)
GDP per capita $2,000 (2007)
GDP by sector agriculture (25%), industry (29%), services (46%) (2001)
Inflation 7.3% (2007)
Pop below poverty line 40% (2004)
Labour force 786,000 (2001)
Labour force by occupation agriculture (50%), industry (10%), services (40%) (2001)
Unemployment 20% (2004)
Main industries fish processing, mining of iron ore and gypsum
Trading Partners [3]
Exports $1.395 billion (2006)
Export - Commodities iron ore, fish and fish products, gold
Main partners China 33.1%, France 9.1%, Italy 8.2%, Spain 8.2%, Japan 5.3%, Netherlands 5.1%, Belgium 4.8%, , Cote d'Ivoire 4.6% (2006)
Imports $1.475 billion (2006)
Imports - Commodities machinery and equipment, petroleum products, capital goods, foodstuffs, consumer goods
Main Partners France 16.6%, China 8.4%, Spain 6.7%, U.S. 6.1%, Belgium 5.8%, Brazil 5.4% (2006)
Public finances [4]
Public debt N/A (2004)
Revenues $421 million (2002)
Expenses $378 million (2002)
Economic aid $220 million (recipient) (2000)

Economy - overview: A majority of the population of Mauritania still depends on agriculture and livestock for a livelihood, even though most of the nomads and many subsistence farmers were forced into the cities by recurrent droughts in the 1970s and 1980s. Mauritania has extensive deposits of iron ore, which account for almost 50% of total exports. The decline in world demand for this ore, however, has led to cutbacks in production. With the current rise in metal prices, gold and copper mining companies are opening mines in the interior. The nation's coastal waters are among the richest fishing areas in the world, but overexploitation by foreigners threatens this key source of revenue. The country's first deep water port opened near Nouakchott in 1986. In recent years, drought and economic mismanagement have resulted in a buildup of foreign debt. In March 1999, the government signed an agreement with a joint World Bank-IMF mission on a $54 million enhanced structural adjustment facility (ESAF). The economic objectives have been set for 1999-2002. Privatization remains one of the key issues.

Mauritanian exports in 2006

Contents

Macro-economic trend

This is a chart of trend of gross domestic product of Mauritania at market prices estimated by the International Monetary Fund with figures in millions of Mauritanian Ougulyas.

Year Gross Domestic Product US Dollar Exchange Inflation Index (2000=100)
1980 37,211 45.93 Ougulyas 23
1985 60,197 77.07 Ougulyas 36
1990 97,819 80.64 Ougulyas 52
1995 158,443 129.76 Ougulyas 73
2000 258,245 240.00 Ougulyas 100
2005 514,642 265.55 Ougulyas 144

Current GDP per capita of Mauritania grew 82% in the Sixties reaching a peak growth of 166% in the Seventies. But this proved unsustainable and growth consequently scaled back to 14% in the Eighties. Finally, it shrank by 29% in the Nineties.

Average wages in 2007 hover around $4-5 per day.

Diversification

In 2007, mining industries accounted for well over 35 per cent of the Mauritanian economy, with the fish industry so much as 54% (with big changes between these industries in the power relationship). Diversification of the economy into non-mining industries remains a long-term issue. Mauritania is a net importer of food, reportedly importing 70% of its domestic food needs.[1]

Dispute with Woodside Petroleum

In February 2006, the Mauritanian government denounced amendments to an oil contract made by former leader Maaouiya Ould Taya with Woodside Petroleum, an Australian company. In 2004, Woodside had agreed to invest $US 600 million in developing Mauritania's Chinguetti offshore oil project. The controversial amendments, which Mauritanian authorities declared had been signed "outside the legal framework of normal practice, to the great detriment of our country", could cost Mauritania up to $200 million a year, according to BBC News. Signed by Woodside two weeks after the February 1, 2005 legislation authorizing the four amendments, they provided for a lower state quota in the profit-oil, and reduced taxes by 15 percent in certain zones. They also eased environmental constraints, and extended the length and scope of the exploitation and exploration monopoly, among other measures.

The disputed amendments were signed by former oil minister Zeidane Ould Hmeida in February 2004 and March 2005. Hmeida was arrested in January 2006 on charges of "serious crimes against the country's essential economic interests".

Nouakchott's authorities declared that the government would likely seek international arbitration, which Woodside (which operated for Hardman, BG Group, Premier, ROC Oil, Fusion, Petronas, Dana Petroleum, Energy Africa and the Hydrocarbons Mauritanian Society) also contemplated.

Discovered in 2001, Chinguetti has proven reserves of about 120 million barrels of oil. At the end of December 2005, authorities estimated that in 2006, the oil profits would be 47 billion ouguiyas (about US$180 million) and represent a quarter of the state budget, according to RFI.[2]

The Australian Federal Police are currently investigating Woodside for allegations of bribery and corruption in Mauritania (according to the Sydney Morning Herald [5] [6]).

Some U.S. oil companies are alleged to be playing a part in Mauritania's oil related corruption.[7]

See also

References

PD-icon.svg This article incorporates public domain material from websites or documents of the CIA World Factbook.

External links

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