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Suriname
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you arrive in Suriname. Choose Car Rental options on
size and manufacturer and pay in your own currency.
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First
explored by the Spaniards in the 16th century and then
settled by the English in the mid-17th century, Suriname
became a Dutch colony in 1667. With the abolition of slavery
in 1863, workers were brought in from India and Java.
Independence from the Netherlands was granted in 1975.
Five years later the civilian government was replaced
by a military regime that soon declared a socialist republic.
It continued to exert control through a succession of
nominally civilian administrations until 1987, when international
pressure finally forced a democratic election. In 1990,
the military overthrew the civilian leadership, but a
democratically elected government - a four-party New Front
coalition - returned to power in 1991 and has ruled since;
the coalition expanded to eight parties in 2005.
The economy is dominated by the mining industry, with
exports of alumina, gold, and oil accounting for about
85% of exports and 25% of government revenues, making
the economy highly vulnerable to mineral price volatility.
Prospects for local onshore oil production are good, and
a drilling program is underway. Offshore oil drilling
was given a boost in 2004 when the State Oil Company (Staatsolie)
signed exploration agreements with several Western oil
companies. Bidding on these new offshore blocks was completed
in July 2006. The short-term economic outlook depends
on the government's ability to control inflation and on
the development of projects in the bauxite and gold mining
sectors, though investment in these projects may slow
with the tightening of global credit markets. Suriname
has received aid for these projects from Netherlands,
Belgium, and the European Development Fund. Suriname's
economic prospects for the medium term will depend on
continued commitment to responsible monetary and fiscal
policies and to the introduction of structural reforms
to liberalize markets and promote competition. In 2000,
the government of Ronald VENETIAAN, returned to office
and inherited an economy with inflation of over 100% and
a growing fiscal deficit. He quickly implemented an austerity
program, raised taxes, attempted to control spending,
and tamed inflation. The VENETIAAN administration also
has created a stabilization fund to insulate future revenue
from commodity shocks. These economic policies are likely
to remain in effect during VENETIAAN's third term.
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