Management of the economy
Before the Soviet invasion, the government budget was divided into
two parts, ordinary and development. The former covered administrative
activities and the latter investment expenditures, incorporated
into the national plans of development. Total domestic revenue was
usually exceeded by expenditures; the difference was covered through
deficit financing and foreign loans and grants. Following the Soviet
invasion, a balanced budget was achieved with revenue derived principally
from the sale of natural gas and from foreign loans and grants.
Expenditures were mainly for government ministries, the developmental
budget, and foreign debt service.
The private sector engages primarily in agriculture and livestock
breeding. There formerly was a mixed pattern of small, medium, and
large landholdings, but this system underwent drastic change, particularly
after 1978. The bulk of the trade and transport and most manufacturing
were in the hands of private entrepreneurs until the late 1970s
when these sectors of the economy were nationalized. Public enterprise
formerly was confined to a section of the foreign trade, to mining,
and to some industries.
Because most of the population is engaged in agriculture, the industrial
labor force is insignificant, and labor unions have failed to develop.
Traditional loyalties to families and tribes are stronger than those
to workers' organizations.
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