l hardwoods, not fully exploited, support
an expanding sawmill industry which provides sawn logs for export.
Cultivation of crops is limited to the coastal area, where the
population is largely concentrated; rice and manioc are the major
crops. French Guiana is heavily dependent on imports of food and
energy. Unemployment is a serious problem, particularly among
younger workers.

French Polynesia:
Since 1962, when France stationed military
personnel in the region, French Polynesia has changed from a
subsistence economy to one in which a high proportion of the work
force is either employed by the military or supports the tourist
industry. Tourism accounts for about one-fourth of GDP and is a
primary source of hard currency earnings. The small manufacturing
sector primarily processes agricultural products. The territory
benefited from a five-year (1994-98) development agreement with
France aimed principally at creating new jobs.

French Southern and Antarctic Lands:
Economic activity is limited to
servicing meteorological and geophysical research stations and
French and other fishing fleets. The fish catches landed on Iles
Kerguelen by foreign ships are exported to France and Reunion.

Gabon:
Gabon enjoys a per capita income four times that of most
nations of sub-Saharan Africa. This has supported a sharp decline in
extreme poverty; yet because of high income inequality a large
proportion of the population remains poor. Gabon depended on timber
and manganese until oil was discovered offshore in the early 1970s.
The oil sector now accounts for 50% of GDP. Gabon continues to face
fluctuating prices for its oil, timber, manganese, and uranium
exports. Despite the abundance of natural wealth, the economy is
hobbled by poor fiscal management. In 1992, the fiscal deficit
widened to 2.4% of GDP, and Gabon failed to settle arrears on its
bilateral debt, leading to a cancellation of rescheduling agreements
with official and private creditors. Devaluation of its Francophone
currency by 50% on 12 January 1994 sparked a one-time inflationary
surge, to 35%; the rate dropped to 6% in 1996. The IMF provided a
one-year standby arrangement in 1994-95, a three-year Enhanced
Financing Facility (EFF) at near commercial rates beginning in late
1995, and stand-by credit of $119 million in October 2000. Those
agreements mandate progress in privatization and fiscal d