lahu to the right of the middle star and Akbar to the left of
the middle star--was added in January 1991 during the Persian Gulf
crisis; similar to the flag of Syria that has two stars but no script
and the flag of Yemen that has a plain white band; also similar to the
flag of Egypt that has a symbolic eagle centered in the white band

_*_Economy
_#_Overview: The Bathist regime engages in extensive central
planning and management of industrial production and foreign trade while
leaving some small-scale industry and services and most agriculture to
private enterprise. The economy has been dominated by the oil sector,
which has provided about 95% of foreign exchange earnings. In the 1980s
financial problems, caused by massive expenditures in the eight-year
war with Iran and damage to oil export facilities by Iran, led the
government to implement austerity measures and to borrow heavily and
later reschedule foreign debt payments. After the end of hostilities in
1988, oil exports gradually increased with the construction of new
pipelines and restoration of damaged facilities. Agricultural development
remained hampered by labor shortages, salinization, and dislocations
caused by previous land reform and collectivization programs. The
industrial sector, although accorded high priority by the government,
also was under financial constraints. Iraq's seizure of Kuwait in August
1990, subsequent international economic embargoes, and military actions
by an international coalition beginning in January 1991 drastically
changed the economic picture. Oil exports were cut to near zero,
and industrial and transportation facilities severely damaged.

_#_GNP: $35 billion, per capita $1,940; real growth rate 5%
(1989 est.)

_#_Inflation rate (consumer prices): 30-40% (1989 est.)

_#_Unemployment rate: less than 5% (1989 est.)

_#_Budget: revenues $NA billion; expenditures $35 billion,
including capital expenditures of NA (1989)

_#_Exports: $12.1 billion (f.o.b., 1989);

commodities--crude oil and refined products, fertilizer, sulfur;

partners--US, Brazil, Turkey, Japan, France, Italy, USSR (1989)

_#_Imports: $10.3 billion (c.i.f., 1989);

commodities--manufactures, food;

partners--US, FRG, Turkey, UK, Romania, Japan, France (1989)

_#_External debt: $40 billion (1989 est.), excluding debt to Arab
Gulf states

_#_Industrial production: NA%; manufacturing accounts for 10% of GDP
(1987)

_#_Electricit