Editing Economy of the Comoros (section)

==Economic history==
[[File:Historical economic growth of the Comores.jpg|thumb|right|GDP per capita development, since 1950]]
During the colonial period, the French and local leading citizens established plantations to grow cash crops for export. Even after independence, French companies, such as [[Société Bambao]] and [[Établissements Grimaldi]] — and other concerns, such as [[Kalfane and Company]] and later, President Abdallah's Établissements Abdallah et Fils—dominated the Comoran economy. These firms diverted most of their profits overseas, investing little in the infrastructure of the islands beyond what was needed for profitable management of the plantations, or what could benefit these businesses' associates or related concerns. A serious consequence of this approach has been the languishing of the food-crop agricultural sector and the resultant dependence on overseas food imports, particularly [[rice]]. In 1993 the Comoros remained hostage to fluctuating prices on the international market for such crops as vanilla, [[ylang-ylang]], and cloves.<ref name=cs>[http://lcweb2.loc.gov/frd/cs/kmtoc.html Comoros: Country Studies - Federal Research Division, Library of Congress<!-- Bot generated title -->]</ref>

The Comoros is one of the world's poorest countries; its per capita gross national product (GNP—see Glossary) was estimated at US$400 in 1994, following the January devaluation of the [[Comorian franc]]. Although GNP increased in real terms at an average annual rate of 3.1 percent during the 1980s, rapid population growth effaced these gains and caused an average annual decrease in per capita GNP of 0.6 percent. Gross domestic product (GDP—see Glossary) grew in real terms by 4.2 percent per year from 1980 to 1985, 1.8 percent from 1985 to 1988, and 1.5 percent in 1990. In 1991, because of its balance of payments difficulties, the Comoros became eligible for the IDA's Special Program of Assistance for debt-distressed countries of sub-Saharan Africa.<ref name=cs/>

The economy is based on private ownership, frequently by foreign investors. Nationalization, even during the Soilih years, has been limited. Soilih did expropriate the facilities of a foreign oil company, but only after the government of [[Madagascar]] took over the company's plants in that country. The Abdallah government, despite its openness to foreign participation in the economy, nationalized the Société Bambao and another French-capitalized firm, the Comoran Meat Company (Société Comorienne des Viandes—Socovia), which specialized in sales of meat and other foods in the islands. The nationalization was short-lived, however, because Socovia and other government-held enterprises were either liquidated or privatized as part of economic restructuring efforts in 1992.<ref name=cs/>

Following the Abdallah regime's rapprochement with France in 1978, the Comoran economy became increasingly dependent on infusions of French aid, along with assistance from other governments and international organizations. By 1990, the year the Comoros concluded negotiations with the IMF for an economic restructuring program, the republic's total external public debt was US$162.4 million, an amount equal to about three-quarters of GNP. The government delayed implementing the structural adjustment plan and was directed by the World Bank and the IMF to do so by September 1992. The plan recommendations entailed discharging about 2,800 of 9,000 civil servants, among other unpopular measures. The IMF granted the Comoros a new credit for US$1.9 million in March 1994 under the Structural Adjustment Facility. For the period 1994–96, the Comoros sought an economic growth rate of 4 percent as well as an inflation rate of 4 percent for 1995–96. The growth rate for 1994, however, was estimated only at 0.7 percent and the inflation rate at 15 percent. Meanwhile, in a move designed to encourage private enterprise and reduce unemployment, in May 1993 the UN Development Programme had given the Comoros a credit of US$2 million for programs in these areas. In January 1994, the European Development Fund (EDF) granted 1.3 million European Currency Units (ECUs; for value, see Glossary) to the Comoros to develop small businesses. The Comoros also received 5.7 million French francs from the French Aid and Cooperation Fund for agriculture and rural development.<ref name=cs/>

The results of foreign aid to the Comoros have been mixed at best. The purposes of the aid ranged from helping the government cover its payroll for such huge, seemingly endless projects as expanding the seaport at [[Moroni, Comoros|Moroni]] and developing a new port at [[Mutsamuda]] on [[Nzwani]]. Neither project had shown much promise by early 1994. Meanwhile, the islands have been unable to develop local resources or create the infrastructure needed for economic development. The few successes included the creation of national news media and limited improvements in public health, education, and telecommunications. Developmental assistance from the United States, which totaled US$700,000 in fiscal year (FY—see Glossary) 1991, was administered by CARE, the nongovernmental organization, and focused primarily on reforestation, soil conservation, and sustainable agriculture.<ref name=cs/>

The Comoros has officially participated in the [[African Franc Zone]] (Communauté Financière Africaine—CFA; see Glossary) since 1979. The CFA franc was qualed one French franc.<ref name=cs/>

A national labor organization, the [[Union of Comoran Workers]] (Union des Travailleurs des Comores), also had headquarters in Moroni. Strikes and worker demonstrations often occurred in response to political crises, economic restructuring mandated by international financial organizations, and the failure of the government — occasionally for months at a time — to pay civil servants.<ref name=cs/> Mean wages were $0.80 per [[man-hour]] in 2009.