Annual Review 1990 – Exploration 1990

Exploration for non-fuel minerals has declined since 1988 as recessionary pressures have slowed growth in the industrialized economies. By most accounts, however, 1990 expenditures were still significantly greater than the low levels experienced in the mid-1980s. The Persian Gulf crisis introduced instability in energy prices and greater uncertainty into an already cloudy economic picture. As 1990 unfolded, the US savings and loan problems spread to the commercial banking system, leading to the failure of several major US commercial banks. The Japanese stock market also suffered significant losses as Japan's Central Bank raised interest rates. The Soviet Union experienced shortages of food and other basic items. Its government faces resistance to changes leading to a market economy. Individual Soviet republics also are seeking more control of their own destiny. The cost of German reunification, in terms of the capital required to bring the east's infrastructure and industrial base to western standards, also appears to have been underestimated.