VLVL 4: Vietnam

[Terrance]

> >
> >
> > >
> > > Well, the times that Germany could be regarded as a "rich country" are
> > > over since the Berlin Wall fell.
> >
> > Otto, get a grip.
> >
> 
> You seem to have no idea how things have changed in the last decade over
> here.

Germany's affluent and technologically 
powerful economy turned in a
relatively weak performance throughout much 
of the 1990s. The modernization and
integration of the eastern German economy 
continues to be a costly long-term problem, 
with annual transfers from west to east amounting 
to roughly $70 billion. Germany's
ageing population, combined with high unemployment, 
has pushed social security
outlays to a level exceeding contributions from workers. 
Structural rigidities in the
labor market - including strict regulations 
on laying off workers and the setting of
wages on a basis - have made unemployment 
a chronic problem.
Business and income tax cuts introduced 
in 2001 did not spare
Germany from the impact of the 
downturn in international
trade, and domestic demand faltered as 
unemployment began to rise.
Growth in 2002 again fell short of 1%. 
Corporate restructuring and
growing capital markets are setting the 
foundations that could allow Germany to meet the
long-term challenges of European economic 
integration and globalization,
particularly if labor market rigidities are addressed. 
In the short run, however, the fall in 
government revenues and the rise in expenditures 
has brought the deficit close to the EU's 3% debt limit.

Looks like heaven and street made of gold to most of the developing
world where the description "rich country" is only something people talk
about when they are thinking about emigrating. 

Uruguay's economy is characterized by an export-oriented agricultural
sector, a
well-educated workforce, and high levels of social spending. 

After averaging growth of 5% annually 
during 1996-98, in 1999-2002 
the economy suffered a major downturn, 
stemming largely from lower demand in 
Argentina and Brazil, which together account 
for nearly half of Uruguay's exports. Total 
GDP in these four years dropped by nearly 20%, 
with 2002 the worst year. Unemployment rose to
 nearly 20% in 2002, inflation surged, 
and the burden of external debt doubled. 

Familiar story in America.