dollar estimates for countries are reported both on an official exchange rate (OER) and a purchasing power parity (PPP) basis. Both measures contain information that is useful to the reader. The PPP method involves the use of standardized international dollar price weights, which are applied to the quantities of final goods and services produced in a given economy. The data derived from the PPP method probably provides the best available starting point for comparisons of economic strength and well- being between countries. In contrast, the currency exchange rate method involves a variety of international and domestic financial forces that may not capture the value of domestic output. Furthermore, exchange rates may suddenly go up or down by 10% or more because of market forces or official fiat whereas real output has remained unchanged. On 12 January 1994, for example, the 14 countries of the African Financial Community (whose currencies are tied to the French franc) devalued their currencies by 50%. This move, of course, did not cut the real output of these countries by half. Whereas PPP estimates for OECD countries are quite reliable, PPP estimates for developing countries are often rough approximations. In developing countries with weak currencies, the exchange rate estimate of GDP in dollars is typically one-fourth to one-half the PPP estimate. Most of the GDP estimates for developing countries are based on extrapolation of PPP numbers published by the UN International Comparison Program (UNICP) and by Professors Robert Summers and Alan Heston of the University of Pennsylvania and their colleagues. GDP derived using the OER method should be used for the purpose of calculating the share of items such as exports, imports, military expenditures, external debt, or the current account balance, because the dollar values presented in the Factbook for these items have been converted at official exchange rates, not at PPP. One should use the OER GDP figure to calculate the proportion of, say, Chinese defense expenditures in GDP, because that share will be the same as one calculated in local currency units. Comparison of OER GDP with PPP GDP may also indicate whether a currency is over- or under-valued. If OER GDP is smaller than PPP GDP, the official exchange rate may be undervalued, and vice versa. However, there is no strong historical evidence that market exchange rates move in the direction implied by the PPP rate, at least not in the short- or medium-term. Note: the numbers for GDP and other economic data should not be chained together from successive volumes of the Factbook because of changes in the US dollar measuring rod, revisions of data by statistical agencies, use of new or different sources of information, and changes in national statistical methods and practices.

GNP: Gross national product (GNP) is the value of all final goods and services produced within a nation in a given year, plus income earned by its citizens abroad, minus income earned by foreigners from domestic production. The Factbook, following current practice, uses GDP rather than GNP to measure national production. However, the user must realize that in certain countries net remittances from citizens working abroad may be important to national well-being.

GWP: This entry gives the gross world product (GWP) or aggregate value of all final goods and services produced worldwide in a given year.

Geographic coordinates: This entry includes rounded latitude and longitude figures for the purpose of finding the approximate geographic center of an entity and is based on the Gazetteer of Conventional Names, Third Edition, August 1988, US Board on Geographic Names and on other sources.

Geographic names: This information is presented in Appendix F: Cross- Reference List of Geographic Names. It includes a listing of various alternate names, former names, local names, and regional names referenced to one or more related Factbook entries. Spellings are normally, but not always, those approved by the US Board on Geographic Names (BGN). Alternate names and additional information are included in parentheses.

Geography: This category includes the entries dealing with the natural environment and the effects of human activity.

Geography - note: This entry includes miscellaneous geographic information of significance not included elsewhere.

Gini index: See entry for Distribution of family income - Gini index

Government: This category includes the entries dealing with the system for the adoption and administration of public policy.

Government - note: This entry includes miscellaneous government information of significance not included elsewhere.

Government type: This entry gives the basic form of government.
Definitions of the major governmental terms are as follows:

Anarchy - a condition of lawlessness or political disorder brought about by the absence of governmental authority.

Commonwealth - a nation, state, or other political entity founded on law and united by a compact of the people for the common good.

Communism - a system of government in which the state plans and controls the economy and a single - often authoritarian - party holds power; state controls are imposed with the elimination of private ownership of property or capital while claiming to make progress toward a higher social order in which all goods are equally shared by the people (i.e., a classless society).

Confederacy (Confederation) - a union by compact or treaty between states, provinces, or territories, that creates a central government with limited powers; the constituent entities retain supreme authority over all matters except those delegated to the central government.

Constitutional - a government by or operating under an authoritative document (constitution) that sets forth the system of fundamental laws and principles that determines the nature, functions, and limits of that government.

Constitutional democracy - a form of government in which the sovereign power of the people is spelled out in a governing constitution.

Constitutional monarchy - a system of government in which a monarch is guided by a constitution whereby his/her rights, duties, and responsibilities are spelled out in written law or by custom.

Democracy - a form of government in which the supreme power is retained by the people, but which is usually exercised indirectly through a system of representation and delegated authority periodically renewed.

Democratic republic - a state in which the supreme power rests in the body of citizens entitled to vote for officers and representatives responsible to them.

Dictatorship - a form of government in which a ruler or small clique wield absolute power (not restricted by a constitution or laws).

Ecclesiastical - a government administrated by a church.

Emirate - similar to a monarchy or sultanate, but a government in which the supreme power is in the hands of an emir (the ruler of a Muslim state); the emir may be an absolute overlord or a sovereign with constitutionally limited authority.

Federal (Federative) - a form of government in which sovereign power is formally divided - usually by means of a constitution - between a central authority and a number of constituent regions (states, colonies, or provinces) so that each region retains some management of its internal affairs; differs from a confederacy in that the central government exerts influence directly upon both individuals as well as upon the regional units.

Federal republic - a state in which the powers of the central government are restricted and in which the component parts (states, colonies, or