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South America and South Atlantic Islands
Suriname |
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Last reviewed: 4 July 2008 |
Country information
SURINAME TODAY
Country Facts
Area: 163,265 sq km (63,037 sq miles)
Population: 437,024 (2004 census)
Capital City: Paramaribo (population: 180,000)
People: Surinamese. Ethnic groups include: East Indian 27%, Mixed 19%, Creole 18%, Javanese 15%, Bush Negro 14.5%, Amerindians 3%, Chinese 2%, European 1%
Languages: Dutch (official), English, Sranan Tongo (Creole Language), Hindustani, and Javanese
Religions: Hindu, Muslim, Roman Catholic, Dutch Reformed, Moravian, Jewish, Baha'i
Currency: Suriname Guilder was replaced by the Surinamese dollar in January 2004. Approximately 5.717 SRD to one UK pound (October 2007)
Major Political Parties: National Party of Suriname (NPS), Progressive Reform Party (VHP), Pertjaja Luhur, Suriname Workers Party (SPA), National Democratic Party (NDP)
Government: Constitutional Democracy
Head of State: His Excellency the President Runaldo R VENETIAAN
Minister of Foreign Affairs: Lygia Kraag-Keteldijk
Environment
The current environmental issues facing Suriname are deforestation, as timber is cut for export and pollution of inland waterways by small-scale mining activities. Suriname is party to the international environmental agreements on Biodiversity, Climate Change, Desertification, Endangered Species, Law of the Sea, Marine Dumping, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 94 and Wetlands.
ECONOMY
GDP: Sr$5,802m (US$2,149m) (2006, EIU)
GDP per head: Sr$11,841 (US$4,386) (2006, EIU)
Annual Growth: 5.8% (2006, EIU)
Inflation: 8.5% (May 2007, EIU)
Major Industries: bauxite and gold mining, alumina production, logging, food processing, fishing in 2006 UK exported £9.6 million of goods / UK imported £5.4 million of goods to the market.
Major Export Partners (2005): Norway 23.6%, EU 23.4%, US 16.5%, Canada 16.1%
Major Import Partners: US 29.3%, EU 29.1%, Trinidad & Tobago 12.7%, China 6.5%
By the end of 1997, the allocation of new Dutch development funds were frozen as Surinameese Government relations with the Netherlands deteriorated. Economic growth slowed in 1998 with decline in the mining construction and utility sectors. Rampant government expenditures, poor tax collection, a bloated civil service and reduced foreign aid in 1999 contributed to the fiscal deficit, estimated at 11% of GDP. The government sought to cover this deficit through monetary expansion, which led to a dramatic increase in inflation and exchange rate depreciation. Suriname's economic prospects depend on renewed commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalise markets and promote competition.
Venetiaan's Government began an austerity program, raised taxes, and attempted to control spending. This led to a stable exchange rate, slowing inflation and strong foreign investment. This, together with strong prices for Suriname's principal commodities has led to a steady upturn in the economy. The Dutch Government resumed aid, which has helped Suriname to access international development financing. The Netherlands has recently forgiven €70m in debt owed to the Dutch development bank.
The economy is dominated by the bauxite industry, which accounts for more than 15% of GDP and 70% of export earnings. After assuming power in 1996, the Wijdenbosch Government ended the structural adjustment program of the previous government, claiming it was unfair to the poorer elements of society. Tax revenues fell as old taxes lapsed and the new government failed to implement new tax alternatives.
Growth expanded at a rate of 5.8% in 2006 due to strong rises in investment in mining, oil and the informal sector. This growth rate is expected to decline slightly in 2007, but stay above the 5% mark. However, further investment in the bauxite industry has been mooted and could push this figure up again. The outlook for the on-shore oil industry is good with drilling being undertaken. Off-shore exploration projects are well advanced but drilling is unlikely in the short- to medium-term. Gold output fell slightly in 2006, but new reserves have been identified in the east of the country.
Agriculture is a major employer, and therefore key to the economy, but the outlook does not look good. The banana industry looks healthier after a restructuring programme, but the uncertain future of the EU banana regime is a concern. The industry also benefited from the first-come-first-served proportion of the EU’s overall quota. The rice industry has a huge debt and suffers from high costs, as well as being threatened by a phasing out of EU trade preferences. The state owned rice company was closed in July. The only bright spot is a palm oil plantation, funded by China, may move ahead and provide employment opportunities and improve the sector’s long-term outlook.
In May 2007, there was a proposal to increase taxes on gambling facilities by 300%. In addition, casinos pay a 50% corporate tax rate (compared to 36% for other business). However, many casinos do not pay income tax, claiming they are not profitable.
New telecommunications legislation, introduced in April 2007, partly liberalises the market with a new regulatory body being formed. The need for further infrastructural investment in the sector was highlighted by a two-week disruption in May, following damage to a fibre-optic cable. Heavy rains allowed the generation of extra electricity in June and July, which was sold at a much cheaper rate than normal.
Inflation rose sharply in the second quarter of 2007, largely due to significant increases in the price of local food after heavy rainfall in April and May. Inflation is likely to remain volatile and on an upward trend.
In May, Suriname was given a B in the Fitch credit ratings system, with both local- and foreign-currency areas having stable outlooks. Suriname was noted to have modest debt levels and an improved fiscal position, although the economy is still vulnerable to external shocks.
HISTORY
Pre-1500
Arawak and Carib tribes lived in the region before Columbus sighted the coast in 1498.
1500-1815
Spain claimed the area in 1593, but Portuguese and Spanish explorers of the time gave the area little attention. The English established the first European settlement in 1651 and control passed between the English, French and Dutch until it finally became a Dutch colony in 1815.
1815-1990
An autonomous part of the Netherlands from 1954, Suriname became fully independent in 1975. Suriname was a working parliamentary democracy in the years immediately following independence. Henk Arron became the first Prime Minister and was re-elected in 1977. On 25 February 1980, 16 non-commissioned officers overthrew the elected government. The military-dominated government then suspended the constitution, dissolved the legislature, and formed a regime that ruled by decree. Although a civilian filled the post of president, a military man, Desi Bouterse, actually ruled the country. Throughout 1982, pressure grew for a return to civilian rule. In response, the military ordered drastic action, the authorities arrested and killed 15 prominent opposition leaders, including journalists, lawyers, and trade union leaders. Following the murders, the United States and the Netherlands suspended economic and military co-operation with the Bouterse regime, which increasingly began to follow an erratic but generally leftist political course. Economic decline rapidly set in after the suspension of economic aid from the Netherlands. The regime restricted the press and limited the rights of its citizens. Continuing economic decline brought pressure for change. The military eventually agreed to free elections in 1987, a new constitution and a civilian government.
1990-to date
On 24 December 1990, military officers forced the resignations of the civilian President and Vice President elected in 1987. The National Assembly hastily approved military-selected replacements on 29 December. The government held new elections on 25 May 1991. NPS candidate Runaldo Venetiaan was elected President, and the VHP's Jules Ajodhia became Vice President of the New Front Coalition government. The NDP won more National Assembly seats (16 of 51) than any other party in the May 1996 national elections and in September 1996, joined with the KTPI, dissenters from the VHP, and several smaller parties to elect NDP vice-chairman Jules Wijdenbosch president of a NDP-led coalition government. Divisions and subsequent reshuffling of coalition members in the fall of 1997 and early 1998 weakened the coalition's mandate and slowed legislative action.
In May 1999, after mass demonstrations protesting poor economic conditions, the government was forced to call early elections. The elections in May 2000 returned Runaldo Venetiaan and his coalition to the presidency. The NF ran its campaign on a platform to fix the faltering Surinamese economy. But while the Venetiaan administration has made progress in stabilising the economy, the government's popularity began to decline as the standard of living for most Surinamese showed little sign of improvement. The opposition NDP, led by Desi Bouterse gained some ground. At the 2005 elections the New Front coalition held on to power although its share of the vote fell and it failed to gain an overall majority. The NDP became the largest single party in parliament.
BBC News Country Timeline: Surinam
INTERNATIONAL RELATIONS
Relations with the International Community
Suriname’s long-standing maritime border dispute with Guyana was settled in September 2007 when the UN Tribunal on the Law of the Sea awarded two-thirds of the disputed area to Guyana. Suriname still claims territory between New (Upper Corentyne) and Corentyne/Kutari (Koetari) rivers (all headwaters of the Corentyne). French Guiana disputes the area between Riviere Litani and Riviere Marouini (both headwaters of the Lawa). Suriname is a trans-shipment point for illicit South American drugs destined for Europe and Brazil. It is also a trans-shipment point for arms-for-drugs dealing.
Relations with the UK
UK/Suriname relations are friendly. Our High Commissioner at Georgetown also holds the position of Ambassador to Suriname. In June 2002, the UK signed a bilateral Prisoner Transfer Agreement with Suriname.
GEOGRAPHY
- Suriname is located in northern South America, bordering the North Atlantic Ocean, between French Guiana and Guyana.
- The terrain varies from a narrow coastal plain with swamps to savannah to rolling hills and includes large areas of tropical rainforest. There is a great diversity of flora and fauna.
- The climate is tropical and moderated by trade winds.
- Much of the coastal belt in low-lying and prone to flooding.
POLITICS
Elections
Peaceful elections took place on 25 May 2005. The incumbent New Front coalition won 23 of the 51 seats in the National Assembly but this was not enough to directly nominate a president. On 3 August the 891 member assembly of regional councils re-elected President Venetiaan with 560 votes. The opposition candidate Rabin Parmessar received 315 votes. The seats in the National Assembly by party were: NF (23), NDP (15), AC (5), VVV (5), A1 (3).
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Contacts
Address:
Alexander Gogelweg 2
The Hague
The Netherlands
Telephone:
(00) (31) 703650844
Fax:
(00) 31 703617445
Email: ambassade.suriname@wxs.nl