Chapter CIX: Section 3: , Taipei, Taiwan, telephone: 886 (2) 2162-2000, FAX (40)

Hong Kong
Chinese General Chamber of Commerce (pro-China); Chinese
Manufacturers' Association of Hong Kong; Confederation of Trade
Unions or CTU (pro-democracy) [LAU Chin-shek, president; LEE
Cheuk-yan, general secretary]; Federation of Hong Kong Industries;
Federation of Trade Unions or FTU (pro-China) [CHENG Yiu-tong,
executive councilor]; Hong Kong Alliance in Support of the Patriotic
Democratic Movement in China [Szeto WAH, chairman]; Hong Kong and
Kowloon Trade Union Council (pro-Taiwan); Hong Kong General Chamber
of Commerce; Hong Kong Professional Teachers' Union [CHEUNG
Man-kwong, president]; Neighborhood and Workers' Service Center or
NWSC (pro-democracy); The Alliance [Bernard CHAN, exco member]

Hungary
NA

Iceland
NA

India
numerous religious or militant/chauvinistic organizations,
including Vishwa Hindu Parishad, Bajrang Dal, and Rashtriya
Swayamsevak Sangh; various separatist groups seeking greater
communal and/or regional autonomy, including the All Parties
Hurriyat Conference in the Kashmir Valley and the National Socialist
Council of Nagaland in the Northeast

Indonesia
NA

Iran
political pressure groups conduct most of Iran's political
activities; groups that generally support the Islamic Republic
include Ansar-e Hizballah, Muslim Students Following the Line of the
Imam, Tehran Militant Clergy Association (Ruhaniyat), Islamic
Coalition Party (Motalefeh), and Islamic Engineers Society; active
pro-reform student groups include the Office of Strengthening Unity
(OSU); opposition groups include Freedom Movement of Iran, the
National Front, Marz-e Por Gohar, and various ethnic and Monarchist
organizations; armed political groups that have been almost
completely repressed by the government include Mujahidin-e Khalq
Organization (MEK), People's Fedayeen, Democratic Party of Iranian
Kurdistan, and Komala

Iraq
an insurgency against the Government of Iraq and Coalition
forces is primarily concentrated in Baghdad and in areas north,
northeast, and west of the capital; the diverse, multigroup
insurgency consists principally of Sunni Arabs whose only common
denominator is a shared desire to oust the Coalition and end US
influence in Iraq; a number of predominantly Shia militias, some of
which are associated with political parties, challenge governmental
authority in Baghdad and southern Iraq

Ireland
NA

Isle of Man
none

Israel
Israeli nationalists advocating Jewish settlement on the West
Bank and Gaza Strip; Peace Now [Yariv OPPENHEIMER, Secretary
General]supports territorial concessions in the West Bank and Gaza
Strip; Yesha Council of Settlements [Bentzi LIEBERMAN, Chairman]
promotes settler interests and opposes territorial compromise;
B'Tselem monitors human rights abuses

Italy
Italian manufacturers and merchants associations
(Confindustria, Confcommercio); organized farm groups
(Confcoltivatori, Confagricoltura); Roman Catholic Church; three
major trade union confederations (Confederazione Generale Italiana
del Lavoro or CGIL [Guglielmo EPIFANI] which is left wing,
Confederazione Italiana dei Sindacati Lavoratori or CISL [Savino
PEZZOTTA], which is Roman Catholic centrist, and Unione Italiana del
Lavoro or UIL [Luigi ANGELETTI] which is lay centrist)

Jamaica
New Beginnings Movement or NBM; Rastafarians (black
religious/racial cultists, pan-Africanists)

Japan
NA

Jersey
none

Jordan
Anti-Normalization Committee [Ali Abu SUKKAR, president vice
chairman]; Jordan Bar Association [Hussein Mujalli, chairman];
Jordanian Press Association [Sayf al-SHARIF, president]; Muslim
Brotherhood [Salem AL-FALAHAT, controller general]

Kazakhstan
Adil-Soz [Tamara KALEYEVA]; Almaty Helsinki Group [Ninel
FOKINA]; Confederation of Free Trade Unions [Sergei BELKIN]; For a
Just Kazakhstan [Bolat ABILOV]; For Fair Elections [Yevgeniy
ZHOVTIS, Sabit ZHUSUPOV, Sergey DUVANOV, Ibrash NUSUPBAYEV];
Kazakhstan International Bureau on Human Rights [Yevgeniy ZHOVTIS,
executive director]; Pan-National Social Democratic Party of
Kazakhstan [Zharmakhan TUYAKBAI]; Pensioners Movement or Pokoleniye
[Irina SAVOSTINA, chairwoman]; Republican Network of International
Monitors [Dos KUSHIM]; Transparency International [Sergei ZLOTNIKOV]

Kenya
human rights groups; labor unions; Muslim organizations;
National Convention Executive Council or NCEC, a proreform coalition
of political parties and nongovernment organizations [Ndung'u
WAINANA]; Protestant National Council of Churches of Kenya or NCCK
[Mutava MUSYIMI]; Roman Catholic and other Christian churches;
Supreme Council of Kenya Muslims or SUPKEM [Shaykh Abdul Gafur
al-BUSAIDY]

Kiribati
NA

Korea, North
none

Korea, South
Federation of Korean Industries; Federation of Korean
Trade Unions; Korean Confederation of Trade Unions; Korean National
Council of Churches; Korean Traders Association; Korean Veterans'
Association; National Council of Labor Unions; National Democratic
Alliance of Korea; National Federation of Farmers' Associations;
National Federation of Student Associations

Kuwait
a number of political groups act as de facto parties; several
legislative blocs operate in the National Assembly: tribal groups,
merchants, Shi'a activists, Islamists, and secular liberals; in
mid-2006, a coalition of Islamists, liberals, and Shia campaigned
successfully for electoral reform to reduce corruption

Kyrgyzstan
Adilet Legal Clinic [Cholpon JAKUPOVA]; Coalition for
Democracy and Civil Society [Edil BAISALOV]; For Reforms [Omurbek
TEKEBAYEV and Almazbek ATAMBAYEV]; Interbilim [Asiya SASYKBAYEVA]

Laos
noncommunist political groups proscribed; most opposition
leaders fled the country in 1975

Latvia
Headquarters for the Protection of Russian Schools (SHTAB)
[Aleksandr KAZAKOV]

Lebanon
none

Lesotho
NA

Liberia
Demobilized former military officers

Libya
various Arab nationalist movements with almost negligible
memberships may be functioning clandestinely, as well as some
Islamic elements; an anti-QADHAFI Libyan exile movement exists,
primarily based in London, but has little influence

Liechtenstein
NA

Lithuania
NA

Luxembourg
ABBL (bankers' association); ALEBA (financial sector
trade union); Centrale Paysanne (federation of agricultural
producers); CEP (professional sector chamber); CGFP (trade union
representing civil service); Chambre de Commerce (Chamber of
Commerce); Chambre des Metiers (Chamber of Artisans); FEDIL
(federation of industrialists); Greenpeace (environment protection);
LCGP (center-right trade union); Mouvement Ecologique (protection of
ecology); OGBL (center-left trade union)

Macau
NA

Macedonia
Federation of Free Trade Unions [Svetlana PETROVIC];
Federation of Trade Unions [Vanco MURATOVSKI]; World Macedonian
Congress [Todor PETROV]

Madagascar
Committee for the Defense of Truth and Justice or KMMR;
Committee for National Reconciliation or CRN [Albert Zafy]; National
Council of Christian Churches or FFKM

Malawi
NA

Malaysia
NA

Maldives
various unregistered political parties

Mali
Alliance for Democratic Change or ACD; Patriotic Movement of
the Ghanda Koye or MPGK; United Movement and Fronts of Azawad or MFUA

Malta
NA

Marshall Islands
NA

Mauritania
Arab nationalists; Ba'thists; General Confederation of
Mauritanian Workers or CGTM [Abdallahi Ould MOHAMED, secretary
general]; Independent Confederation of Mauritanian Workers or CLTM
[Samory Ould BEYE]; Islamists; Mauritanian Workers Union or UTM
[Mohamed Ely Ould BRAHIM, secretary general]

Mauritius
various labor unions

Mayotte
NA

Mexico
Broad Progressive Front or FAP; Businessman's Coordinating
Council or CCE; Confederation of Employers of the Mexican Republic
or COPARMEX; Confederation of Industrial Chambers or CONCAMIN;
Confederation of Mexican Workers or CTM; Confederation of National
Chambers of Commerce or CONCANACO; Coordinator for Foreign Trade
Business Organizations or COECE; Federation of Unions Providing
Goods and Services or FESEBES; National Chamber of Transformation
Industries or CANACINTRA; National Peasant Confederation or CNC;
National Small Business Chamber or CANACOPE; National Syndicate of
Education Workers or SNTE; National Union of Workers or UNT; Popular
Assembly of the People of Oaxaca or APPO; Roman Catholic Church

Moldova
NA

Monaco
NA

Mongolia
NA

Montserrat
NA

Morocco
Democratic Confederation of Labor or CDT [Noubir AMAOUI];
General Union of Moroccan Workers or UGTM [Abderrazzak AFILAL];
Moroccan Employers Association or CGEM [Hassan CHAMI]; National
Labor Union of Morocco or UNMT [Abdelslam MAATI]; Union of Moroccan
Workers or UMT [Mahjoub BENSEDDIK]

Mozambique
Institute for Peace and Democracy (Instituto para Paz e
Democracia) or IPADE [Raul DOMINGOS, president]; Etica [Abdul CARIMO
Issa, chairman]; Movement for Peace and Citizenship (Movimento para
Paz e Cidadania); Mozambican League of Human Rights (Liga
Mocambicana dos Direitos Humanos) or LDH [Alice MABOTE, president];
Human Rights and Development (Direitos Humanos e Desenvolvimento) or
DHD [Artemisia FRANCO, secretary general]

Namibia
NA

Nauru
NA

Nepal
Maoist guerrilla-based insurgency [Pushpa Kamal DAHAL, a.k.a.
PRACHANDA, chairman; Dr. Baburam BHATTARAI, deputy]; numerous small,
left-leaning student groups in the capital; several small, radical
Nepalese antimonarchist groups

Netherlands
Netherlands Trade Union Federation or FNV (consisting of
a merger of Socialist and Catholic trade unions); Christian Trade
Union Federation or CNV; Trade Union Federation of Middle and High
Personnel or MHP; Federation of Catholic and Protestant Employers
Associations; Interchurch Peace Council or IKV; large multinational
firms; the nondenominational Federation of Netherlands Enterprises

Netherlands Antilles
Unions (AVBO) and Employers Association (VBC)

New Caledonia
NA

New Zealand
NA

Nicaragua
National Workers Front or FNT is a Sandinista umbrella
group of eight labor unions including - Farm Workers Association or
ATC, Health Workers Federation or FETASALUD, Heroes and Martyrs
Confederation of Professional Associations or CONAPRO, National
Association of Educators of Nicaragua or ANDEN, National Union of
Employees or UNE, National Union of Farmers and Ranchers or UNAG,
Sandinista Workers Central or CST, and Union of Journalists of
Nicaragua or UPN; Permanent Congress of Workers or CPT is an
umbrella group of four non-Sandinista labor unions including -
Autonomous Nicaraguan Workers Central or CTN-A, Confederation of
Labor Unification or CUS, Independent General Confederation of Labor
or CGT-I, and Labor Action and Unity Central or CAUS; Nicaraguan
Workers' Central or CTN is an independent labor union; Superior
Council of Private Enterprise or COSEP is a confederation of
business groups

Niger
Coalition Against a High Cost of Living [Nouhou ARZIKA]

Nigeria
NA

Niue
NA

Norfolk Island
none

Northern Mariana Islands
NA

Norway
NA

Oman
none

Pakistan
military remains most important political force; ulema
(clergy), landowners, industrialists, and small merchants also
influential

Palau
NA

Panama
Chamber of Commerce; National Civic Crusade; National Council
of Organized Workers or CONATO; National Council of Private
Enterprise or CONEP; National Union of Construction and Similar
Workers (SUNTRACS); Panamanian Association of Business Executives or
APEDE; Panamanian Industrialists Society or SIP; Workers
Confederation of the Republic of Panama or CTRP

Papua New Guinea
NA

Paraguay
Ahorristas Estafados or AE; National Coordinating Board of
Campesino Organizations or MCNOC [Luis AGUAYO]; National Federation
of Campesinos or FNC [Odilon ESPINOLA]; National Workers Central or
CNT [Secretary General Juan TORRALES]; Paraguayan Workers
Confederation or CPT; Roman Catholic Church; Unitary Workers Central
or CUT [Jorge Guzman ALVARENGA Malgarejo]

Peru
leftist guerrilla groups include Shining Path [Abimael GUZMAN
Reynoso (imprisoned), Gabriel MACARIO (top leader at-large)]; Tupac
Amaru Revolutionary Movement or MRTA [Victor POLAY (imprisoned),
Hugo AVALLENEDA Valdez (top leader at-large)]

Philippines
AKBAYAN [Reps. Etta ROSALES, Mario AGUJA, and Risa
HONTIVEROS-BARAQUIEL]; ALAGAD [Rep. Rodante MARROLITA]; ALIF [Rep.
Acmad TOMAWIS]; An Waray [Rep. Horencio NOEL]; Anak Mindanao [Mujiv
HATAMIN]; ANAKPAWIS [Reps. Crispin BELTRAN and Rafael MARIANO]; APEC
[Reps. Ernesto PABLO, Edgar VALDEZ]; Association of Philippine
Electric Cooperatives (APEC) [Reps. Edgar VALDEZ, Ernesto PABLO, and
Sunny Rose MADAMBA]; AVE [Rep. Eulogio MAGSAYSAY]; Bayan Muna [Reps.
Satur OCAMPO, Joel VIRADOR, and Teodoro CASINO, Jr.]; BUHAY [Reps.
Rene VELARDE and Hans Christian SENERES]; BUTIL [Rep. Benjamin
CRUZ]; CIBAC [Rep. Emmanuel Joel VILLANUEVA]; COOP-NATCO [Rep.
Guillermo CUA]; GABRIELA [Rep. Liza MAZA]; Partido Ng Manggagawa
[Rep. Renato MAGTUBO]; Veterans Federation of the Philippines [Rep.
Ernesto GIDAYA] (2006)

Pitcairn Islands
none

Poland
All Poland Trade Union Alliance or OPZZ (trade union) [Jan
GUZ]; Roman Catholic Church [Cardinal Jozef GLEMP]; Solidarity Trade
Union [Janusz SNIADEK]

Portugal
NA

Puerto Rico
Boricua Popular Army or EPB (a revolutionary group also
known as Los Macheteros); note - the following radical groups are
considered dormant by Federal law enforcement: Armed Forces for
National Liberation or FALN, Armed Forces of Popular Resistance,
Volunteers of the Puerto Rican Revolution

Qatar
none

Romania
various human rights and professional associations

Russia
NA

Rwanda
IBUKA - association of genocide survivors

Saint Helena
none

Saint Kitts and Nevis
NA

Saint Lucia
NA

Saint Pierre and Miquelon
NA

Saint Vincent and the Grenadines
NA

Samoa
NA

San Marino
NA

Sao Tome and Principe
NA

Saudi Arabia
none

Senegal
labor; Muslim brotherhoods; students; teachers

Seychelles
Roman Catholic Church; trade unions

Sierra Leone
trade unions and student unions

Singapore
NA

Slovakia
Federation of Employers' Associations of the Slovak
Republic; Association of Towns and Villages or ZMOS; Confederation
of Trade Unions or KOZ; National Union of Employers or RUZ; Slovak
Chamber of Commerce and Industry or SOPK; Entrepreneurs Association
of Slovakia or ZPS; The Business Alliance of Slovakia or PAS

Slovenia
NA

Solomon Islands
Isatabu Freedom Movement (IFM); Malaita Eagle Force
(MEF); note - these rival armed ethnic factions crippled the Solomon
Islands in a wave of violence from 1999 to 2003

Somalia
numerous clan and sub-clan factions are currently vying for
power; Supreme Council of Islamic Courts (SCIC)

South Africa
Congress of South African Trade Unions or COSATU
[Zwelinzima VAVI, general secretary]; South African Communist Party
or SACP [Blade NZIMANDE, general secretary]; South African National
Civics Organization or SANCO [Mlungisi HLONGWANE, national
president]; note - COSATU and SACP are in a formal alliance with the
ANC

Spain
business and landowning interests; Catholic Church; free labor
unions (authorized in April 1977); Socialist General Union of
Workers or UGT and the smaller independent Workers Syndical Union or
USO; university students; Trade Union Confederation of Workers'
Commissions or CC.OO.

Sri Lanka
Buddhist clergy; labor unions; Liberation Tigers of Tamil
Eelam or LTTE [Velupillai PRABHAKARAN](insurgent group fighting for
a separate state); radical chauvinist Sinhalese groups such as the
National Movement Against Terrorism; Sinhalese Buddhist lay groups

Sudan
Umma Party [Sadiq al-MAHDI]; Popular Congress Party or PCP
[Hassan al-TURABI]

Suriname
Association of Indigenous Village Chiefs [Ricardo PANE];
Association of Saramaccan Authorities or Maroon [Head Captain WASE];
Women's Parliament Forum or PVF [Iris GILLIAD]

Swaziland
NA

Sweden
NA

Switzerland
NA

Syria
Damascus Declaration [Riyad SEIF, secretary general] (a broad
alliance of opposition groups including: Committee for Revival of
Civil Society [Michel KILO, Riyad SEIF]; Kurdish Democratic
Alliance; Kurdish Democratic Front; National Democratic Front;
Syrian Human Rights Society or HRAS [Fawed FAWUZ]); National
Salvation Front (alliance between former Vice President Abd al-Halim
KHADDAM, the SMB, and other small opposition groups); Syrian Muslim
Brotherhood or SMB [Sadr al-Din al-BAYANUNI]; (operates in exile in
London; endorsed the Damascus Declaration but is not an official
member)

Taiwan
Taiwan independence movement, various business and
environmental groups
note: debate on Taiwan independence has become acceptable within the
mainstream of domestic politics on Taiwan; political liberalization
and the increased representation of opposition parties in Taiwan's
legislature have opened public debate on the island's national
identity; a broad popular consensus has developed that the island
currently enjoys sovereign independence and - whatever the ultimate
outcome regarding reunification or independence - that Taiwan's
people must have the deciding voice; public opinion polls
consistently show a substantial majority of Taiwan people supports
maintaining Taiwan's status quo for the foreseeable future;
advocates of Taiwan independence oppose the stand that the island
will eventually unify with mainland China; goals of the Taiwan
independence movement include establishing a sovereign nation on
Taiwan and entering the UN; other organizations supporting Taiwan
independence include the World United Formosans for Independence and
the Organization for Taiwan Nation Building

Tajikistan
unregistered political parties: Agrarian Party
[Hikmatullo NASREDDINOV]; Party of Justice [Abdurahim KARIMOV];
People's Unity Party [Abdumalik ABDULLOJONOV]; Progressive Party
[Sulton QUVVATOV]; Socialist Party [Mirhuseyn NAZRIYEV]; note - this
is the SPT that was disbanded, another pro-government SPT (listed
above under political parties) replaced it; Unity Party [Hikmatullo
SAIDOV]

Tanzania
NA

Thailand
NA

Togo
NA

Tokelau
none

Tonga
Human Rights and Democracy Movement Tonga or HRDMT [Rev.
Simote VEA, chairman]; Public Servant's Association [Finau TUTONE]

Trinidad and Tobago
Jamaat-al Muslimeen [Yasin BAKR]

Tunisia
18 October Group [collective leadership]; Democratic Forum
for Labor and Liberties or FDTL [Mustapha Ben JAFAAR]; Tunisian
League for Human Rights or LTDH [Mokhtar TRIFI]; note - the Islamic
fundamentalist party, Al Nahda (Renaissance), is outlawed

Turkey
Confederation of Public Sector Unions or KESK [Ismail Hakki
TOMBUL]; Confederation of Revolutionary Workers Unions or DISK
[Suleyman CELEBI]; Independent Industrialists' and Businessmen's
Association or MUSIAD [Omer BOLAT]; Moral Rights Workers Union or
Hak-Is [Salim USLU]; Turkish Confederation of Employers' Unions or
TISK [Tugurl KUDATGOBILIK]; Turkish Confederation of Labor or
Turk-Is [Salih KILIC]; Turkish Confederation of Tradesmen and
Craftsmen or TESK [Dervis GUNDAY]; Turkish Industrialists' and
Businessmen's Association or TUSIAD [Omer SABANCI]; Turkish Union of
Chambers of Commerce and Commodity Exchanges or TOBB [M. Rifat
HISARCIKLIOGLU]

Turkmenistan
NA

Turks and Caicos Islands
NA

Tuvalu
none

Uganda
Popular Resistance Against a Life President or PRALP

Ukraine
Committee of Voters of Ukraine [Ihor POPOV]; Peoples'
Self-Defense [Yuriy LUTSENKO]; Ne Tak [Leonid KRAVCHUK]

United Arab Emirates
NA

United Kingdom
Campaign for Nuclear Disarmament; Confederation of
British Industry; National Farmers' Union; Trades Union Congress

United States
NA

Uruguay
Architect's Society of Uruguay (professional organization);
Catholic Church; Chamber of Uruguayan Industries (manufacturer's
association); Chemist and Pharmaceutical Association (professional
organization); PIT-CNT (powerful federation of Uruguayan unions);
Rural Association of Uruguay (rancher's association); students;
Uruguayan Construction League

Uzbekistan
Agrarian and Entrepreneurs' Party [Marat ZAHIDOV]; Birlik
(Unity) Movement [Abdurakhim POLAT, chairman]; Committee for the
Protection of Human Rights [Marat ZAHIDOV]; Erk (Freedom) Democratic
Party [Muhammad SOLIH, chairman] was banned 9 December 1992; Ezgulik
Human Rights Society [Vasila INOYATOVA]; Free Farmers' Party or Ozod
Dehqonlar [Nigora KHIDOYATOVA]; Human Rights Society of Uzbekistan
[Talib YAKUBOV, chairman]; Independent Human Rights Organization of
Uzbekistan [Mikhail ARDZINOV, chairman]; Mazlum; Sunshine Coalition
[Sanjar UMAROV, chairman]

Vanuatu
NA

Venezuela
FEDECAMARAS, a conservative business group; VECINOS
groups; Venezuelan Confederation of Workers or CTV (labor
organization dominated by the Democratic Action)

Vietnam
8406 Bloc; Democratic Party of Vietnam or DPV; People's
Democratic Party Vietnam or PDP-VN; Alliance for Democracy; groups
advocate for democracy, are not recognized by government (2006)

Virgin Islands
NA

Wallis and Futuna
NA

Western Sahara
none

Yemen
NA

Zambia
NA

Zimbabwe
Crisis in Zimbabwe Coalition [Wellington CHIBEBE]; National
Constitutional Assembly or NCA [Lovemore MADHUKU]; Zimbabwe Congress
of Trade Unions or ZCTU [Lovemore MATOMBO]

This page was last updated on 8 February, 2007

======================================================================

@2116 Economy - overview

Afghanistan
Afghanistan's economy is recovering from decades of
conflict. The economy has improved significantly since the fall of
the Taliban regime in 2001 largely because of the infusion of
international assistance, the recovery of the agricultural sector,
and service sector growth. Real GDP growth probably exceeded 8% in
2006. Despite the progress of the past few years, Afghanistan is
extremely poor, landlocked, and highly dependent on foreign aid,
agriculture, and trade with neighboring countries. Much of the
population continues to suffer from shortages of housing, clean
water, electricity, medical care, and jobs. Criminality, insecurity,
and the Afghan Government's inability to extend rule of law to all
parts of the country pose challenges to future economic growth. It
will probably take the remainder of the decade and continuing donor
aid and attention to significantly raise Afghanistan's living
standards from its current status, among the lowest in the world.
While the international community remains committed to Afghanistan's
development, pledging over $24 billion at three donors' conferences
since 2002, Kabul will need to overcome a number of challenges.
Expanding poppy cultivation and a growing opium trade generate
roughly $3 billion in illicit economic activity and looms as one of
Kabul's most serious policy concerns. Other long-term challenges
include: budget sustainability, job creation, corruption, government
capacity, and rebuilding war torn infrastructure.

Akrotiri
Economic activity is limited to providing services to the
military and their families located in Akrotiri. All food and
manufactured goods must be imported.

Albania
Lagging behind its Balkan neighbors, Albania is making the
difficult transition to a more modern open-market economy. The
government has taken measures to curb violent crime and reduce the
large grey economy. The economy is bolstered by annual remittances
from abroad of $600-$800 million, mostly from Albanians residing in
Greece and Italy; this helps offset the towering trade deficit.
Agriculture, which accounts for about one-quarter of GDP, is held
back because of lack of modern equipment, unclear property rights,
and the prevalence of small, inefficient plots of land. Energy
shortages and antiquated and inadequate infrastructure contribute to
Albania's poor business environment, which make it difficult to
attract and sustain foreign investment. The planned construction of
a new thermal power plant near Vlore and improved transmission and
distribution facilities eventually will help relieve the energy
shortages. Also, the government is moving slowly to improve the poor
national road and rail network, a long-standing barrier to sustained
economic growth. On the positive side: growth was strong in 2003-06
and inflation is low and stable.

Algeria
The hydrocarbons sector is the backbone of the economy,
accounting for roughly 60% of budget revenues, 30% of GDP, and over
95% of export earnings. Algeria has the seventh-largest reserves of
natural gas in the world and is the second-largest gas exporter; it
ranks 14th in oil reserves. Sustained high oil prices in recent
years, along with macroeconomic policy reforms supported by the IMF,
have helped improve Algeria's financial and macroeconomic
indicators. Algeria is running substantial trade surpluses and
building up record foreign exchange reserves. Algeria has decreased
its external debt to less than 10% of GDP after repaying its Paris
Club and London Club debt in 2006. Real GDP has risen due to higher
oil output and increased government spending. The government's
continued efforts to diversify the economy by attracting foreign and
domestic investment outside the energy sector, however, has had
little success in reducing high unemployment and improving living
standards. Structural reform within the economy, such as development
of the banking sector and the construction of infrastructure, moves
ahead slowly hampered by corruption and bureaucratic resistance.

American Samoa
American Samoa has a traditional Polynesian economy
in which more than 90% of the land is communally owned. Economic
activity is strongly linked to the US with which American Samoa
conducts most of its foreign trade. Tuna fishing and tuna processing
plants are the backbone of the private sector, with canned tuna the
primary export. Transfers from the US Government add substantially
to American Samoa's economic well being. Attempts by the government
to develop a larger and broader economy are restrained by Samoa's
remote location, its limited transportation, and its devastating
hurricanes. Tourism is a promising developing sector.

Andorra
Tourism, the mainstay of Andorra's tiny, well-to-do economy,
accounts for more than 80% of GDP. An estimated 11.6 million
tourists visit annually, attracted by Andorra's duty-free status and
by its summer and winter resorts. Andorra's comparative advantage
has recently eroded as the economies of neighboring France and Spain
have been opened up, providing broader availability of goods and
lower tariffs. The banking sector, with its partial "tax haven"
status, also contributes substantially to the economy. Agricultural
production is limited - only 2% of the land is arable - and most
food has to be imported. The principal livestock activity is sheep
raising. Manufacturing output consists mainly of cigarettes, cigars,
and furniture. Andorra is a member of the EU Customs Union and is
treated as an EU member for trade in manufactured goods (no tariffs)
and as a non-EU member for agricultural products.

Angola
Angola's high growth rate is driven by its oil sector, with
record oil prices and rising petroleum production. Oil production
and its supporting activities contribute about half of GDP and 90%
of exports. Increased oil production supported 12% growth in 2004,
19% growth in 2005, and nearly 17% growth in 2006. A postwar
reconstruction boom and resettlement of displaced persons has led to
high rates of growth in construction and agriculture as well. Much
of the country's infrastructure is still damaged or undeveloped from
the 27-year-long civil war. Remnants of the conflict such as
widespread land mines still mar the countryside even though an
apparently durable peace was established after the death of rebel
leader Jonas SAVIMBI in February 2002. Subsistence agriculture
provides the main livelihood for half of the population, but half of
the country's food must still be imported. In 2005, the government
started using a $2 billion line of credit from China to rebuild
Angola's public infrastructure, and several large-scale projects
were completed in 2006. The central bank in 2003 implemented an
exchange rate stabilization program using foreign exchange reserves
to buy kwanzas out of circulation, a policy that was more
sustainable in 2005 because of strong oil export earnings, and has
significantly reduced inflation. Consumer inflation declined from
325% in 2000 to about 13% in 2006, but the stabilization policy
places pressure on international net liquidity. To fully take
advantage of its rich national resources - gold, diamonds, extensive
forests, Atlantic fisheries, and large oil deposits - Angola will
need to continue reforming government policies and to reduce
corruption. The government has made little progress on reforms
recommended by the IMF such as promoting greater transparency in
government spending and continues to be without a formal monitoring
agreement with the institution. Corruption, especially in the
extractive sectors, is a major challenge facing Angola.

Anguilla
Anguilla has few natural resources, and the economy depends
heavily on luxury tourism, offshore banking, lobster fishing, and
remittances from emigrants. Increased activity in the tourism
industry, which has spurred the growth of the construction sector,
has contributed to economic growth. Anguillan officials have put
substantial effort into developing the offshore financial sector,
which is small, but growing. In the medium term, prospects for the
economy will depend largely on the tourism sector and, therefore, on
revived income growth in the industrialized nations as well as on
favorable weather conditions.

Antarctica
Fishing off the coast and tourism, both based abroad,
account for Antarctica's limited economic activity. Antarctic
fisheries in 2003-04 (1 July-30 June) reported landing 136,262
metric tons (estimated fishing from the area covered by the
Convention on the Conservation of Antarctic Marine Living Resources
(CCAMLR), which extends slightly beyond the Antarctic Treaty area).
Unregulated fishing, particularly of Patagonian toothfish, is a
serious problem. The CCAMLR determines the recommended catch limits
for marine species. A total of 23,175 tourists visited in the
2004-05 Antarctic summer, up from the 19,486 visitors the previous
year. Nearly all of them were passengers on commercial
(nongovernmental) ships and several yachts that make trips during
the summer. Most tourist trips last approximately two weeks.

Antigua and Barbuda
Tourism continues to dominate the economy,
accounting for more than half of GDP. Weak tourist arrival numbers
since early 2000 have slowed the economy and pressed the government
into a tight fiscal corner. The dual-island nation's agricultural
production is focused on the domestic market and constrained by a
limited water supply and a labor shortage stemming from the lure of
higher wages in tourism and construction. Manufacturing comprises
enclave-type assembly for export with major products being bedding,
handicrafts, and electronic components. Prospects for economic
growth in the medium term will continue to depend on income growth
in the industrialized world, especially in the US, which accounts
for slightly more than one-third of tourist arrivals.

Arctic Ocean
Economic activity is limited to the exploitation of
natural resources, including petroleum, natural gas, fish, and seals.

Argentina
Argentina benefits from rich natural resources, a highly
literate population, an export-oriented agricultural sector, and a
diversified industrial base. Although one of the world's wealthiest
countries 100 years ago, Argentina suffered during most of the
twentieth century from recurring economic crises, persistent fiscal
and current account deficits, high inflation, mounting external
debt, and capital flight. Beginning in 1998, with external debt
equivalent to more than 400 percent of annual exports, economic
growth slowed and ultimately fell into a full-blown depression, as
investors' fears grew in the wake of Russia's debt default,
political discord caused by then-President Carlos MENEM's unpopular
efforts to run for a constitutionally prohibited third term, and
Brazil's devaluation. The government of Fernando DE LA RUA, elected
President in late 1999, tried several measures to cut the fiscal
deficit and instill confidence and received large IMF credit
facilities, but nothing worked to revive the economy. Depositors
began withdrawing money from the banks in late 2001, and the
government responded with strict limits on withdrawals. When street
protests turned deadly, DE LA RUA was forced to resign in December
2001. Interim President Adolfo Rodriguez SAA declared a default, the
largest in history, on Argentina's foreign debt, but he stepped down
only a few days later when he failed to garner political support
from the country's governors. Eduardo DUHALDE became President in
January 2002 and announced an end to the peso's decade-long 1-to-1
peg to the US dollar. When the peso depreciated and inflation rose,
DUHALDE's government froze utility tariffs indefinitely, curtailed
creditors' rights, and imposed high taxes on exports. The economy
rebounded strongly from the crisis, inflation started falling, and
DUHALDE called for special elections. Nestor KIRCHNER was elected
President, taking office in May 2003, and continued the restrictions
imposed by DUHALDE. With the reemergence of double-digit inflation
in 2005, the KIRCHNER administration pressured businesses into a
series of agreements to hold down prices. The government also
restructured its defaulted debt in 2005, convincing most bondholders
to accept a large cut on the value of their holdings, and paid off
its IMF obligations from reserves in full in early 2006, both of
which have reduced Argentina's external debt burden. Real GDP has
continued growing strongly, averaging 9 percent during the period
2003-2006, bolstering government revenues and keeping the fiscal
accounts-a key vulnerability in the past-in surplus.

Armenia
Under the old Soviet central planning system, Armenia had
developed a modern industrial sector, supplying machine tools,
textiles, and other manufactured goods to sister republics in
exchange for raw materials and energy. Since the implosion of the
USSR in December 1991, Armenia has switched to small-scale
agriculture away from the large agroindustrial complexes of the
Soviet era. The agricultural sector has long-term needs for more
investment and updated technology. The privatization of industry has
been at a slower pace, but has been given renewed emphasis by the
current administration. Armenia is a food importer, and its mineral
deposits (copper, gold, bauxite) are small. The ongoing conflict
with Azerbaijan over the ethnic Armenian-dominated region of
Nagorno-Karabakh and the breakup of the centrally directed economic
system of the former Soviet Union contributed to a severe economic
decline in the early 1990s. By 1994, however, the Armenian
Government had launched an ambitious IMF-sponsored economic
liberalization program that resulted in positive growth rates in
1995-2006. Armenia joined the WTO in January 2003. Armenia also has
managed to slash inflation, stabilize its currency, and privatize
most small- and medium-sized enterprises. Armenia's unemployment
rate, however, remains high, despite strong economic growth. The
chronic energy shortages Armenia suffered in the early and mid-1990s
have been offset by the energy supplied by one of its nuclear power
plants at Metsamor. Armenia is now a net energy exporter, although
it does not have sufficient generating capacity to replace Metsamor,
which is under international pressure to close. The electricity
distribution system was privatized in 2002 and bought by Russia's
RAO-UES in 2005. Armenia's severe trade imbalance has been offset
somewhat by international aid, remittances from Armenians working
abroad, and foreign direct investment. Economic ties with Russia
remain close, especially in the energy sector. The government made
some improvements in tax and customs administration in 2005, but
anti-corruption measures will be more difficult to implement.
Construction of a natural gas pipeline between Iran and Armenia has
been completed and it is scheduled to be commissioned by April 2007.
Investment in the construction and industrial sectors is expected to
continue in 2007 and will help to ensure annual average real GDP
growth of more than 10%.

Aruba
Tourism is the mainstay of the small, open Aruban economy,
with offshore banking and oil refining and storage also important.
The rapid growth of the tourism sector over the last decade has
resulted in a substantial expansion of other activities. Over 1.5
million tourists per year visit Aruba, with 75% of those from the
US. Construction continues to boom, with hotel capacity five times
the 1985 level. In addition, the reopening of the country's oil
refinery in 1993, a major source of employment and foreign exchange
earnings, has further spurred growth. Tourist arrivals have
rebounded strongly following a dip after the 11 September 2001
attacks. The island experiences only a brief low season, and hotel
occupancy in 2004 averaged 80%, compared to 68% throughout the rest
of the Caribbean. The government has made cutting the budget and
trade deficits a high priority.

Ashmore and Cartier Islands
no economic activity

Atlantic Ocean
The Atlantic Ocean provides some of the world's most
heavily trafficked sea routes, between and within the Eastern and
Western Hemispheres. Other economic activity includes the
exploitation of natural resources, e.g., fishing, dredging of
aragonite sands (The Bahamas), and production of crude oil and
natural gas (Caribbean Sea, Gulf of Mexico, and North Sea).

Australia
Australia has an enviable Western-style capitalist economy
with a per capita GDP on par with the four dominant West European
economies. Rising output in the domestic economy, robust business
and consumer confidence, and high export prices for raw materials
and agricultural products are fueling the economy. Australia's
emphasis on reforms, low inflation, and growing ties with China are
other key factors behind the economy's strength. The impact of
drought and strong import demand pushed the trade deficit up in
recent years, although the trade balance improved in 2006. Housing
prices probably peaked in 2005, diminishing the prospect that
interest rates would be raised to prevent a speculative bubble.
Conservative fiscal policies have kept Australia's budget in surplus
since 2002.

Austria
Austria, with its well-developed market economy and high
standard of living, is closely tied to other EU economies,
especially Germany's. The Austrian economy also benefits greatly
from strong commercial relations, especially in the banking and
insurance sectors, with central, eastern, and southeastern Europe.
The economy features a large service sector, a sound industrial
sector, and a small, but highly developed agricultural sector.
Membership in the EU has drawn an influx of foreign investors
attracted by Austria's access to the single European market and
proximity to the new EU economies. The outgoing government has
successfully pursued a comprehensive economic reform program, aimed
at streamlining government, creating a more competitive business
environment, further strengthening Austria's attractiveness as an
investment location, and implementing effective pension reforms;
however, lower taxes in 2005-2006 have lead to a small budget
deficit in 2006. Weak domestic consumption and slow growth in Europe
have held the economy to growth rates below 3% in 2002-05. Due to
higher growth across Europe, Austrian grew 3.3 percent in 2006. To
meet increased competition from both EU and Central European
countries, particularly the new EU members, Austria will need to
continue restructuring, emphasizing knowledge-based sectors of the
economy, and encouraging greater labor flexibility and greater labor
participation by its aging population.

Azerbaijan
Azerbaijan's number one export is oil. Azerbaijan's oil
production declined through 1997, but has registered an increase
every year since. Negotiation of production-sharing arrangements
(PSAs) with foreign firms, which have thus far committed $60 billion
to long-term oilfield development, should generate the funds needed
to spur future industrial development. Oil production under the
first of these PSAs, with the Azerbaijan International Operating
Company, began in November 1997. A consortium of Western oil
companies began pumping 1 million barrels a day from a large
offshore field in early 2006, through a $4 billion pipeline it built
from Baku to Turkey's Mediterranean port of Ceyhan. Economists
estimate that by 2010 revenues from this project will double the
country's current GDP. Azerbaijan shares all the formidable problems
of the former Soviet republics in making the transition from a
command to a market economy, but its considerable energy resources
brighten its long-term prospects. Baku has only recently begun
making progress on economic reform, and old economic ties and
structures are slowly being replaced. Several other obstacles impede
Azerbaijan's economic progress: the need for stepped up foreign
investment in the non-energy sector, the continuing conflict with
Armenia over the Nagorno-Karabakh region, and the pervasive
corruption. Trade with Russia and the other former Soviet republics
is declining in importance while trade is building with Turkey and
the nations of Europe. Long-term prospects will depend on world oil
prices, the location of new pipelines in the region, and
Azerbaijan's ability to manage its oil wealth.

Bahamas, The
The Bahamas is a stable, developing nation with an
economy heavily dependent on tourism and offshore banking. Tourism
together with tourism-driven construction and manufacturing accounts
for approximately 60% of GDP and directly or indirectly employs half
of the archipelago's labor force. Steady growth in tourism receipts
and a boom in construction of new hotels, resorts, and residences
had led to solid GDP growth in recent years, but the slowdown in the
US economy and the attacks of 11 September 2001 held back growth in
these sectors in 2001-03. The current government has presided over a
period of economic recovery and an upturn in large-scale private
sector investments in tourism. Financial services constitute the
second-most important sector of the Bahamian economy, accounting for
about 15% of GDP. However, since December 2000, when the government
enacted new regulations on the financial sector, many international
businesses have left The Bahamas. Manufacturing and agriculture
together contribute approximately a tenth of GDP and show little
growth, despite government incentives aimed at those sectors.
Overall growth prospects in the short run rest heavily on the
fortunes of the tourism sector, which depends on growth in the US,
the source of more than 80% of the visitors.

Bahrain
With its highly developed communication and transport
facilities, Bahrain is home to numerous multinational firms with
business in the Gulf. Petroleum production and refining account for
about 60% of Bahrain's export receipts, 70% of government revenues,
and 20% of GDP, underpinning Bahrain's strong economic growth in
recent years. The financial and construction sectors have also
bolstered GDP growth. Bahrain is actively pursuing the
diversification and privatization of its economy to reduce the
country's dependence on oil. As part of this effort, Bahrain and the
US in August 2006 implemented a Free Trade Agreement (FTA), the
first FTA between the US and a Gulf state. Unemployment, especially
among the young, and the depletion of oil and underground water
resources are major long-term economic problems.

Baker Island
no economic activity

Bangladesh
Despite sustained domestic and international efforts to
improve economic and demographic prospects, Bangladesh remains a
poor, overpopulated, and inefficiently-governed nation. Although
more than half of GDP is generated through the service sector,
nearly two-thirds of Bangladeshis are employed in the agriculture
sector, with rice as the single-most-important product. Major
impediments to growth include frequent cyclones and floods,
inefficient state-owned enterprises, inadequate port facilities, a
rapidly growing labor force that cannot be absorbed by agriculture,
delays in exploiting energy resources (natural gas), insufficient
power supplies, and slow implementation of economic reforms. Reform
is stalled in many instances by political infighting and corruption
at all levels of government. Progress also has been blocked by
opposition from the bureaucracy, public sector unions, and other
vested interest groups. The BNP government, led by Prime Minister
Khaleda ZIA, has the parliamentary strength to push through needed
reforms, but the party's political will to do so has been lacking in
key areas. On an encouraging note, growth has been a steady 5-6% for
the past several years.

Barbados
Historically, the Barbadian economy had been dependent on
sugarcane cultivation and related activities, but production in
recent years has diversified into light industry and tourism.
Offshore finance and information services are important foreign
exchange earners. The government continues its efforts to reduce
unemployment, to encourage direct foreign investment, and to
privatize remaining state-owned enterprises. The economy contracted
in 2002-03 mainly due to a decline in tourism. Growth was positive
in 2005-06, as economic conditions in the US and Europe moderately
improved.

Bassas da India
no economic activity

Belarus
Belarus's economy in 2006 posted more than 8% growth. The
government has succeeded in lowering inflation over the past several
years. Trade with Russia - by far its largest single trade partner -
decreased in 2006, largely as a result of a change in the way the
Value Added Tax (VAT) on trade was collected. Trade with European
countries increased. Belarus has seen little structural reform since
1995, when President LUKASHENKO launched the country on the path of
"market socialism." In keeping with this policy, LUKASHENKO
reimposed administrative controls over prices and currency exchange
rates and expanded the state's right to intervene in the management
of private enterprises. Since 2005, the government has
re-nationalized a number of private companies. In addition,
businesses have been subject to pressure by central and local
governments, e.g., arbitrary changes in regulations, numerous
rigorous inspections, retroactive application of new business
regulations, and arrests of "disruptive" businessmen and factory
owners. A wide range of redistributive policies has helped those at
the bottom of the ladder; the Gini coefficient is among the lowest
in the world. Because of these restrictive economic policies,
Belarus has had trouble attracting foreign investment, which remains
low. Growth has been strong in recent years, despite the roadblocks
in a tough, centrally directed economy with a high, but decreasing,
rate of inflation. Belarus receives heavily discounted oil and
natural gas from Russia and much of Belarus' growth can be
attributed to the re-export of Russian oil at market prices. This
growth will be threatened in 2007, however, when Russia raises
energy prices closer to world market prices for Belarus. Russia is
planning to increase Belarusian gas prices from $47 per thousand
cubic meters (tcm) to $200 per tcm and introduce a first-time export
duty of $180 per ton on oil shipped to Belarus.

Belgium
This modern, private-enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north. With
few natural resources, Belgium must import substantial quantities of
raw materials and export a large volume of manufactures, making its
economy unusually dependent on the state of world markets. Roughly
three-quarters of its trade is with other EU countries. Public debt
is more than 90% of GDP. On the positive side, the government has
succeeded in balancing its budget, and income distribution is
relatively equal. Belgium began circulating the euro currency in
January 2002. Economic growth in 2001-03 dropped sharply because of
the global economic slowdown, with moderate recovery in 2004-06.

Belize
In this small, essentially private-enterprise economy the
tourism industry is the number one foreign exchange earner followed
by marine products, citrus, cane sugar, bananas, and garments. The
government's expansionary monetary and fiscal policies, initiated in
September 1998, led to sturdy GDP growth averaging nearly 4% in
1999-2006. Major concerns continue to be the sizable trade deficit
and unsustainable foreign debt. The government in 2006 announced it
would seek a restructuring of its sovereign debt and has been
negotiating with international creditors to find an acceptable
formula for doing so. A key short-term objective remains the
reduction of poverty with the help of international donors.

Benin
The economy of Benin remains underdeveloped and dependent on
subsistence agriculture, cotton production, and regional trade.
Growth in real output has averaged around 5% in the past six years,
but rapid population growth has offset much of this increase.
Inflation has subsided over the past several years. In order to
raise growth still further, Benin plans to attract more foreign
investment, place more emphasis on tourism, facilitate the
development of new food processing systems and agricultural
products, and encourage new information and communication
technology. Many of these proposals were included in Benin's $307
million Millennium Challenge Account grant signed in February 2006.
The 2001 privatization policy continues in telecommunications,
water, electricity, and agriculture in spite of government
reluctance. The Paris Club and bilateral creditors have eased the
external debt situation, with Benin benefiting from a G8 debt
reduction announced in July 2005, while pressing for more rapid
structural reforms. Benin continues to be hurt by Nigerian trade
protection that bans imports of a growing list of products from
Benin and elsewhere, which has resulted in increased smuggling and
criminality in the border region.

Bermuda
Bermuda enjoys the highest per capita income in the world,
more than 50% higher than that of the US. Its economy is primarily
based on providing financial services for international business and
luxury facilities for tourists. A number of reinsurance companies
relocated to the island following 11 September 2001 and again after
Hurricane Katrina, contributing to the expansion of an already
robust international business sector. Bermuda's tourism industry -
which derives over 80% of its visitors from the US - continues to
struggle but remains the island's number two industry. Most capital
equipment and food must be imported. Bermuda's industrial sector is
small, although construction continues to be important; the average
cost of a house in June 2003 had risen to $976,000. Agriculture is
limited with only 20% of the land being arable.

Bhutan
The economy, one of the world's smallest and least developed,
is based on agriculture and forestry, which provide the main
livelihood for more than 80% of the population. Agriculture consists
largely of subsistence farming and animal husbandry. Rugged
mountains dominate the terrain and make the building of roads and
other infrastructure difficult and expensive. The economy is closely
aligned with India's through strong trade and monetary links and
dependence on India's financial assistance. The industrial sector is
technologically backward, with most production of the cottage
industry type. Most development projects, such as road construction,
rely on Indian migrant labor. Bhutan's hydropower potential and its
attraction for tourists are key resources. Model education, social,
and environment programs are underway with support from multilateral
development organizations. Each economic program takes into account
the government's desire to protect the country's environment and
cultural traditions. For example, the government, in its cautious
expansion of the tourist sector, encourages visits by upscale,
environmentally conscientious tourists. Detailed controls and
uncertain policies in areas like industrial licensing, trade, labor,
and finance continue to hamper foreign investment.

Bolivia
Bolivia, long one of the poorest and least developed Latin
American countries, reformed its economy after suffering a
disastrous economic crisis in the early 1980s. The reforms spurred
real GDP growth, which averaged 4% in the 1990s, and poverty rates
fell. Economic growth, however, lagged again beginning in 1999
because of a global slowdown and homegrown factors such as political
turmoil, civil unrest, and soaring fiscal deficits, all of which
hurt investor confidence. In 2003, violent protests against the
pro-foreign investment economic policies of President SANCHEZ DE
LOZADA led to his resignation and the cancellation of plans to
export Bolivia's newly discovered natural gas reserves to large
northern hemisphere markets. In 2005, the government passed a
controversial natural gas law that imposes on the oil and gas firms
significantly higher taxes as well as new contracts that give the
state control of their operations. Bolivian officials are in the
process of implementing the law; meanwhile, foreign investors have
stopped investing and have taken the first legal steps to secure
their investments. Real GDP growth in 2003-06 - helped by increased
demand for natural gas in neighboring Brazil - was positive, but
still below the levels seen during the 1990s. Bolivia's fiscal
position has improved in recent years, but the country remains
dependent on foreign aid from multilateral lenders and foreign
governments to meet budget shortfalls. In 2005, the G8 announced a
$2 billion debt-forgiveness plan over the next few decades that
should help reduce some fiscal pressures on the government in the
near term.

Bosnia and Herzegovina
Bosnia and Herzegovina ranked next to
Macedonia as the poorest republic in the old Yugoslav federation.
Although agriculture is almost all in private hands, farms are small
and inefficient, and the republic traditionally is a net importer of
food. Industry remains greatly overstaffed, a holdover from the
socialist economic structure of Yugoslavia. TITO had pushed the
development of military industries in the republic with the result
that Bosnia was saddled with a host of industrial firms with little
commercial potential. The interethnic warfare in Bosnia caused
production to plummet by 80% from 1992 to 1995 and unemployment to
soar. With an uneasy peace in place, output recovered in 1996-99 at
high percentage rates from a low base; but output growth slowed in
2000-02. Part of the lag in output was made up in 2003-06.
National-level statistics are limited and do not capture the large
share of black market activity. The konvertibilna marka (convertible
mark or BAM)- the national currency introduced in 1998 - is pegged
to the euro, and confidence in the currency and the banking sector
has increased. Implementation of privatization, however, has been
slow, and local entities only reluctantly support national-level
institutions. Banking reform accelerated in 2001 as all the
Communist-era payments bureaus were shut down; foreign banks,
primarily from Western Europe, now control most of the banking
sector. A sizeable current account deficit and high unemployment
rate remain the two most serious economic problems. The country
receives substantial amounts of reconstruction assistance and
humanitarian aid from the international community but will have to
prepare for an era of declining assistance.

Botswana
Botswana has maintained one of the world's highest economic
growth rates since independence in 1966. Through fiscal discipline
and sound management, Botswana has transformed itself from one of
the poorest countries in the world to a middle-income country with a
per capita GDP of $11,200 in 2006. Two major investment services
rank Botswana as the best credit risk in Africa. Diamond mining has
fueled much of the expansion and currently accounts for more than
one-third of GDP and for 70-80% of export earnings. Tourism,
financial services, subsistence farming, and cattle raising are
other key sectors. On the downside, the government must deal with
high rates of unemployment and poverty. Unemployment officially was
23.8% in 2004, but unofficial estimates place it closer to 40%.
HIV/AIDS infection rates are the second highest in the world and
threaten Botswana's impressive economic gains. An expected leveling
off in diamond mining production overshadows long-term prospects.

Bouvet Island
no economic activity; declared a nature reserve

Brazil
Characterized by large and well-developed agricultural,
mining, manufacturing, and service sectors, Brazil's economy
outweighs that of all other South American countries and is
expanding its presence in world markets. From 2001-03 real wages
fell and Brazil's economy grew, on average only 2.2% per year, as
the country absorbed a series of domestic and international economic
shocks. That Brazil absorbed these shocks without financial collapse
is a tribute to the resiliency of the Brazilian economy and the
economic program put in place by former President CARDOSO and
strengthened by President LULA DA SILVA. Since 2004, Brazil has
enjoyed more robust growth that yielded increases in employment and
real wages. The three pillars of the economic program are a floating
exchange rate, an inflation-targeting regime, and tight fiscal
policy, all reinforced by a series of IMF programs. The currency
depreciated sharply in 2001 and 2002, which contributed to a
dramatic current account adjustment; from 2003 to 2006, Brazil ran
record trade surpluses and recorded its first current account
surpluses since 1992. Productivity gains - particularly in
agriculture - also contributed to the surge in exports. While
economic management has been good, there remain important economic
vulnerabilities. The most significant are debt-related: the
government's largely domestic debt increased steadily from 1994 to
2003 - straining government finances - before falling as a
percentage of GDP in 2005. Brazil has improved its debt profile over
the past year by shifting its debt burden toward real denominated
and domestically held instruments. LULA DA SILVA restated his
commitment to fiscal austerity by maintaining the country's primary
surplus during the 2006 election and plans to pass a package of
further economic reforms upon entering office for his second term.
Another challenge is maintaining economic growth over a period of
time to generate employment and make the government debt burden more
manageable.

British Indian Ocean Territory
All economic activity is concentrated
on the largest island of Diego Garcia, where joint UK-US defense
facilities are located. Construction projects and various services
needed to support the military installations are done by military
and contract employees from the UK, Mauritius, the Philippines, and
the US. There are no industrial or agricultural activities on the
islands. When the Ilois return, they plan to reestablish sugarcane
production and fishing. The country makes money by selling fishing
licenses and postage stamps.

British Virgin Islands
The economy, one of the most stable and
prosperous in the Caribbean, is highly dependent on tourism,
generating an estimated 45% of the national income. An estimated
350,000 tourists, mainly from the US, visited the islands in 1998.
Tourism suffered in 2002 because of the lackluster US economy. In
the mid-1980s, the government began offering offshore registration
to companies wishing to incorporate in the islands, and
incorporation fees now generate substantial revenues. Roughly
400,000 companies were on the offshore registry by yearend 2000. The
adoption of a comprehensive insurance law in late 1994, which
provides a blanket of confidentiality with regulated statutory
gateways for investigation of criminal offenses, made the British
Virgin Islands even more attractive to international business.
Livestock raising is the most important agricultural activity; poor
soils limit the islands' ability to meet domestic food requirements.
Because of traditionally close links with the US Virgin Islands, the
British Virgin Islands has used the US dollar as its currency since
1959.

Brunei
This small, well-to-do economy encompasses a mixture of
foreign and domestic entrepreneurship, government regulation,
welfare measures, and village tradition. Crude oil and natural gas
production account for nearly half of GDP and more than 90% of
government revenues. Per capita GDP is far above most other Third
World countries, and substantial income from overseas investment
supplements income from domestic production. The government provides
for all medical services and free education through the university
level and subsidizes rice and housing. Brunei's leaders are
concerned that steadily increased integration in the world economy
will undermine internal social cohesion. Plans for the future
include upgrading the labor force, reducing unemployment,
strengthening the banking and tourist sectors, and, in general,
further widening the economic base beyond oil and gas.

Bulgaria
Bulgaria, a former communist country that entered the
European Union on 1 January 2007, has experienced macroeconomic
stability and strong growth since a major economic downturn in 1996
led to the fall of the then socialist government. As a result, the
government became committed to economic reform and responsible
fiscal planning. Minerals, including coal, copper, and zinc, play an
important role in industry. In 1997, macroeconomic stability was
reinforced by the imposition of a fixed exchange rate of the lev
against the German D-mark - the currency is now fixed against the
euro - and the negotiation of an IMF standby agreement. Low
inflation and steady progress on structural reforms improved the
business environment; Bulgaria has averaged 5.1% growth since 2000
and has begun to attract significant amounts of foreign direct
investment. Corruption in the public administration, a weak
judiciary, and the presence of organized crime remain the largest
challenges for Bulgaria.