Chapter CXV: Part 115

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

Kosovo
Council for the Defense of Human Rights and Freedom (human
rights); Humanitarian Law Centre (human rights); Movement for
Self-Determination; Serb National Council (SNV)

Kuwait
other: Islamists; merchants; political groups; secular
liberals and pro-governmental deputies; Shia activists; tribal groups

Kyrgyzstan
Adilet Legal Clinic [Cholpon JAKUPOVA]; Coalition for
Democracy and Civil Society [Dinara OSHURAKHUNOVA]; Interbilim
[Asiya SASYKBAYEVA]

Laos
NA

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

Lebanon
Hizballah military wing
other: Palestinian militias; Maronite Christians; Sunnis and their
militias; Shi'as and their militias

Lesotho
Media Institute of Southern Africa, Lesotho chapter [Thabang
MATJAMA] (pushes for media freedom)

Liberia
other: demobilized former military officers

Libya
other: Arab nationalist movements; anti-QADHAFI Libyan exile
Movement; Islamic elements

Liechtenstein
NA

Lithuania
Europe House (promotes the EU); European Movement
(promotes the EU); Lithuanian Future Forum (promotes the EU)

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
Macau Society of Tourism and Entertainment or STDM [Stanley
HO]; Roman Catholic Church; Union for Democracy Development [Antonio
NG Kuok-cheong]

Macedonia
Federation of Free Trade Unions [Svetlana PETROVIC];
Federation of Trade Unions [Vanco MURATOVSKI]; Trade Union of
Education, Science and Culture [Dojcin CVETANOSKI]; 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
Agri-Ecology Media (agriculture and environmental group);
Malawi Law Society (human rights); Malawi Movement for the
Restoration of Democracy or MMRD (acts to restore and maintain
democracy); National Democratic Alliance or NDA (acts to restore
democracy; Public Affairs Committee or PAC (promotes democracy,
development, peace and unity)

Malaysia
Bersih (electoral reform); Sharia High Court
other: religious groups; women's groups; youth groups

Maldives
other: various unregistered political parties

Mali
other: the army; Islamic authorities; rebels in the northern
region; state-run cotton company CMDT; tuaregs

Malta
Alleanza Liberal-Demokratika Maltra ro ALDM (against illegal
immigration); Alleanza Nazzionali Repubblikana or ANR (encourages
tourism); Alternattiva Demokratika (campaign to reform rent law, and
other campaigns); Azzjoni Nazzjonali or AN (freedom to participate
in democratic government); Ghazdatal-Konsumaturi (consumer rights);
Nazi Watch Malta (exposing Nazis)
other: environmentalists

Marshall Islands
NA

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

Mauritius
other: various labor unions

Mayotte
NA

Mexico
Broad Progressive Front or FAP; Businessmen'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

Micronesia, Federated States of
NA

Moldova
NA

Monaco
NA

Mongolia
other: human rights groups; women's groups

Montenegro
Sandzak People's Movement [Cemal SULFEJIC]

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
Etica [Abdul CARIMO Issa, chairman]; Human Rights and
Development (Direitos Humanos e Desenvolvimento) or DHD [Artemisia
FRANCO, secretary general]; Institute for Peace and Democracy
(Instituto para Paz e Democracia) or IPADE [Raul DOMINGOS,
president]; 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]

Namibia
Earthlife Namibia [Berthchen KOHRS] (environmentalist
group); National Society for Human Rights or NSHR; The World
Information Services of Energy or WISE (group against nuclear power)

Nauru
Woman Information and News Agency (women's issues)

Nepal
other: several small armed Madhesi groups along the southern
border with India; a variety of groups advocating regional autonomy
for individual ethnic groups

Netherlands
Christian Trade Union Federation or CNV [Rene PAAS];
Confederation of Netherlands Industry and Employers or VNO-NCW
[Bernard WIENTJES]; Federation for Small and Medium-sized businesses
or MKB [Loek HERMANS]; Netherlands Trade Union Federation or FNV
[Agnes JONGERIUS]; Social Economic Council or SER [Alexander RINNOOY
Kan]; Trade Union Federation of Middle and High Personnel or MHP [Ad
VERHOEVEN]

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

New Caledonia
NA

New Zealand
Women's Electoral Lobby or WEL
other: apartheid groups; civil rights groups; farmers groups; Maori;
nuclear weapons groups; women's rights groups

Nicaragua
National Workers Front or FNT (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 (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 (an independent labor union); Superior
Council of Private Enterprise or COSEP (a confederation of business
groups)

Niger
The Nigerien Movement for Justice or MNJ, a predominantly
Tuareg rebel group

Nigeria
Academic Staff Union for Universities or ASUU; Campaign for
Democracy or CD; Civil Liberties Organization or CLO; Committee for
the Defense of Human Rights or CDHR; Constitutional Right Project or
CRP; Human Right Africa; National Association of Democratic Lawyers
or NADL; National Association of Nigerian Students or NANS; Nigerian
Bar Association or NBA; Nigerian Labor Congress or NLC; Nigerian
Medical Association or NMA; the Press; Universal Defenders of
Democracy or UDD

Niue
NA

Norfolk Island
none

Northern Mariana Islands
NA

Norway
Norwegian Aid Committee or NORWAC; Norwegian Association of
the Disabled; Pure Salmon Campaign; The Consumer Council (consumer
advocacy group)
other: environmental groups; media; reform movements

Oman
none

Pakistan
other: military (most important political force); ulema
(clergy); landowners; industrialists; small merchants

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
Ahora [Andrew MAMOKO] (represents local tribes);
Centre for Environment Law and Community Rights or Celcor [Damien
ASE]; Community Coalition Against Corruption

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

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

Pitcairn Islands
none

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

Portugal
the media

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
other: various human rights and professional associations

Russia
Levada Center (conducts polls); Memorial (human rights group;
Movement Against Illegal Migration; Pamjat (preservation of
historical monuments and recording of history); Russian Orthodox
Church; Russian-Chechen Friendship Society
other: ecology groups; human rights groups; nationalist pragmatists
(no foreign influence over Central Eurasia); neo-Eurasianists
(against Western influence for the area); religious groups;
westernizers (lean towards the West)

Rwanda
IBUKA (association of genocide survivors)

Saint Barthelemy
The Marine Reserve (protection of fish); Rotary Club

Saint Helena
other: private sector; unions

Saint Kitts and Nevis
NA

Saint Lucia
NA

Saint Martin
NA

Saint Pierre and Miquelon
NA

Saint Vincent and the Grenadines
NA

Samoa
NA

San Marino
NA

Sao Tome and Principe
Association of Sao Tome and Principe NGOs or
FONG
other: the media

Saudi Arabia
Ansar Al Marah (supports women's rights)
other: gas companies; religious groups

Senegal
other: labor; students; Sufi brotherhoods, including the
Mourides and Tidjanes; teachers

Serbia
NA

Seychelles
Roman Catholic Church
other: trade unions

Sierra Leone
other: student unions; trade unions

Singapore
UNFEM [Saleeman ISMAIL]
other: investment companies; news organizations

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

Slovenia
Democratic Party of Slovenian Pensioners or DeSUS
(protecting the rights of the older generation); Slovenian Roma
Association [Jozek Horvat MUC]
other: Catholic Church

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
other: numerous clan and sub-clan factions exist both in
support and in opposition to the transitional government

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: note - COSATU and SACP are in a formal alliance with the ANC

Spain
Association for Victims of Terrorism or AVT (grassroots
organization devoted primarily to opposing ETA terrorist attacks and
supporting its victims); Basta Ya (Spanish for "Enough is Enough";
grassroots organization devoted primarily to opposing ETA terrorist
attacks and supporting its victims); Nunca Mais (Galician for "Never
Again"; formed in response to the oil Tanker Prestige oil spill);
Socialist General Union of Workers or UGT and the smaller
independent Workers Syndical Union or USO; Trade Union Confederation
of Workers' Commissions or CC.OO.
other: business and landowning interests; Catholic Church; free
labor unions (authorized in April 1977); university students

Sri Lanka
Liberation Tigers of Tamil Eelam or LTTE [Velupillai
PRABHAKARAN](insurgent group fighting for a separate state); Tamil
Makkal Viduthalai Pulikal (TMVP) or Karuna Faction [Vinayagamurthi
MURALITHARAN] (paramilitary breakaway from LTTE and fighting LTTE)
other: Buddhist clergy; labor unions; 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]

Svalbard
NA

Swaziland
Swaziland Federation of Trade Unions; Swaziland and
Solidarity Network or SSN

Sweden
Children's Rights in Society; Central Association of
Salarited Emplyees or TCO; Swedish Federation of Trade Unions or LO
other: media

Switzerland
NA

Syria
Damascus Declaration National Council [Riyad SEIF, secretary
general] (a broad alliance of opposition groups and individuals
including: Committee for Revival of Civil Society [Michel KILO,
Riyad SEIF], Communist Action Party [Fateh JAMOUS], Kurdish
Democratic Alliance, Kurdish Democratic Front, Liberal Nationalists'
Movement, National Democratic Front, National Democratic Rally, and
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
Organization for Taiwan Nation Building; World United
Formosans for Independence
other: environmental groups; independence movement; various business
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

Tajikistan
Agrarian Party [Hikmatullo NASREDDINOV] (unregistered
political party); Democratic Party or DPT [Masud SOBIROV]
(splintered from Iskanderov's DPT); Progressive Party [Sulton
QUVVATOV]; Socialist Party or SPT [Abdualim GHAFFOROV] (splintered
from Narziyev's SPT); Unity Party [Hikmatullo SAIDOV]
other: splinter parties recognized by the government but not by the
base of the party; unregistered political parties

Tanzania
Economic and Social Research Foundation or ESRF; Free
Zanzibar; Tanzania Media Women's Association or TAMWA

Thailand
People's Alliance for Democracy; Campaign for Democracy
[Pibob THONGCHAI]

Timor-Leste
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]; Tunisian League
for Human Rights or LTDH [Mokhtar TRIFI]

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
Lord's Resistence Group or LRA [Joseph KONY]; Young
Parliamentary Association [Henry BANYENZAKI]; Parliamentary Advocacy
Forum or PAFO; National Association of Women Organizations in Uganda
or NAWOU [Florence NEKYON]; The Ugandan Coalition for Political
Accountability to Wormen or COPAW

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

United Arab Emirates
NA

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

United States
environmentalists; business groups; labor unions;
churches; ethnic groups; political action committees or PAC; health
groups; education groups; cuvuc griyos; youth groups; transportation
groups; agricultural groups; veterans groups; women's groups; reform
lobbies

Uruguay
Architect's Society of Uruguay (professional organization);
Chamber of Uruguayan Industries (manufacturer's association);
Chemist and Pharmaceutical Association (professional organization);
PIT/CNT (powerful federation of Uruguayan Unions - umbrella labor
organization); Rural Association of Uruguay (rancher's association);
Uruguayan Construction League; Uruguayan Network of Political Women
other: Catholic Church; students

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
note: these groups advocate democracy but are not recognized by the
government

Virgin Islands
NA

Wallis and Futuna
NA

Western Sahara
none

Yemen
Muslim Brotherhood; Women National Committee
other: conservative tribal groups

Zambia
NA

Zimbabwe
Crisis in Zimbabwe Coalition [Xolani ZITHA]; National
Constitutional Assembly or NCA [Lovemore MADHUKU]; Women of Zimbabwe
Arise or WOZA [Jenny WILLIAMS]; Zimbabwe Congress of Trade Unions or
ZCTU [Wellington CHIBEBE]

This page was last updated on 18 December 2008

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@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 exceeded 7% in 2007.
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 level, among the lowest in the world. International
pledges made by more than 60 countries and international financial
institutions at the Berlin Donors Conference for Afghan
reconstruction in March 2004 reached $8.9 billion for 2004-09. 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 $4 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 recently
adopted a fiscal reform package aimed at reducing the large gray
economy and attracting foreign investment. 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 more than
one-fifth 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 completion of a new thermal power plant near Vlore and improved
transmission line between Albania and Montenegro 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,
macroeconomic growth was strong in 2003-07 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 eighth-largest reserves of
natural gas in the world and is the fourth-largest gas exporter; it
ranks 14th in oil reserves. Sustained high oil prices in recent
years 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 commerce. 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.
note: as a territory of the US, American Samoa does not treat the US
as an external trade partner

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 85% of GDP. Increased
oil production supported growth averaging more than 15% per year
from 2004 to 2007. 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 most of the
people, but half of the country's food must still be imported. In
2005, the government started using a $2 billion line of credit,
since increased to $7 billion, from China to rebuild Angola's public
infrastructure, and several large-scale projects were completed in
2006. Angola also has large credit lines from Brazil, Portugal,
Germany, Spain, and the EU. The central bank in 2003 implemented an
exchange rate stabilization program using foreign exchange reserves
to buy kwanzas out of circulation. This policy became more
sustainable in 2005 because of strong oil export earnings; it has
significantly reduced inflation. Although consumer inflation
declined from 325% in 2000 to under 13% in 2007, the stabilization
policy has put pressure on international net liquidity. Angola
became a member of OPEC in late 2006 and in late 2007 was assigned a
production quota of 1.9 million barrels a day, somewhat less than
the 2-2.5 million bbl Angola's government had wanted. To fully take
advantage of its rich national resources - gold, diamonds, extensive
forests, Atlantic fisheries, and large oil deposits - Angola will
need to implement government reforms, increase transparency, and
reduce corruption. The government has rejected a formal IMF
monitored program, although it continues Article IV consultations
and ad hoc cooperation. Corruption, especially in the extractive
sectors, and the negative effects of large inflows of foreign
exchange, are major challenges 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 has spurred the growth of the construction sector,
contributing 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 2005-06 (1 July-30 June) reported landing 128,081
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
(Dissostichus eleginoides), is a serious problem. The CCAMLR
determines the recommended catch limits for marine species. A total
of 36,460 tourists visited the Antarctic Treaty area in the 2006-07
Antarctic summer, up from the 30,877 visitors the previous year
(estimates provided to the Antarctic Treaty by the International
Association of Antarctica Tour Operators (IAATO); this does not
include passengers on overflights). 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
Antigua has a relatively high GDP per capita in
comparison to most other Caribbean nations. It has experienced solid
growth since 2003, driven by a construction boom in hotels and
housing that which should wind down in 2008. Tourism continues to
dominate the economy, accounting for more than half of GDP. 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. Since taking office in 2004, the
SPENCER government has adopted an ambitious fiscal reform program,
but will continue to be saddled by its debt burden with a
debt-to-GDP ratio exceeding 100%.

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 20th
century from recurring economic crises, persistent fiscal and
current account deficits, high inflation, mounting external debt,
and capital flight. A severe depression, growing public and external
indebtedness, and a bank run culminated in 2001 in the most serious
economic, social, and political crisis in the country's turbulent
history. Interim President Adolfo RODRIGUEZ SAA declared a default -
the largest in history - on the government's foreign debt in
December of that year, and abruptly resigned only a few days after
taking office. His successor, Eduardo DUHALDE, announced an end to
the peso's decade-long 1-to-1 peg to the US dollar in early 2002.
The economy bottomed out that year, with real GDP 18% smaller than
in 1998 and almost 60% of Argentines under the poverty line. Real
GDP rebounded to grow by an average 9% annually over the subsequent
five years, taking advantage of previously idled industrial capacity
and labor, an audacious debt restructuring and reduced debt burden,
excellent international financial conditions, and expansionary
monetary and fiscal policies. Inflation, however, reached
double-digit levels in 2006 and the government of President Nestor
KIRCHNER responded with "voluntary" price agreements with
businesses, as well as export taxes and restraints. Multi-year price
freezes on electricity and natural gas rates for residential users
stoked consumption and kept private investment away, leading to
restrictions on industrial use and blackouts in 2007.

Armenia
Since the breakup of the Soviet Union in 1991, Armenia has
made progress in implementing many economic reforms including
privatization, price reforms, and prudent fiscal policies. The
conflict with Azerbaijan over the ethnic Armenian-dominated region
of Nagorno-Karabakh contributed to a severe economic decline in the
early 1990s. By 1994, however, the Armenian Government launched an
ambitious IMF-sponsored economic liberalization program that
resulted in positive growth rates. Economic growth has averaged over
13% in recent years. Armenia has managed to reduce poverty, slash
inflation, stabilize its currency, and privatize most small- and
medium-sized enterprises. Under the old Soviet central planning
system, Armenia developed a modern industrial sector, supplying
machine tools, textiles, and other manufactured goods to sister
republics, in exchange for raw materials and energy. Armenia has
since switched to small-scale agriculture and away from the large
agroindustrial complexes of the Soviet era. Nuclear power plants
built at Metsamor in the 1970s were closed following the 1988 Spitak
Earthquake, though they sustained no damage. One of the two reactors
was re-opened in 1995, but the Armenian government is under
international pressure to close it due to concerns that the Soviet
era design lacks important safeguards. Metsamor provides 40 percent
of the country's electricity - hydropower accounts for about
one-fourth. Economic ties with Russia remain close, especially in
the energy sector. The electricity distribution system was
privatized in 2002 and bought by Russia's RAO-UES in 2005.
Construction of a pipeline to deliver natural gas from Iran to
Armenia is halfway completed and is scheduled to be commissioned by
January 2009. Armenia has some mineral deposits (copper, gold,
bauxite). Pig iron, unwrought copper, and other nonferrous metals
are Armenia's highest valued exports. Armenia's severe trade
imbalance has been offset somewhat by international aid, remittances
from Armenians working abroad, and foreign direct investment.
Armenia joined the WTO in January 2003. The government made some
improvements in tax and customs administration in recent years, but
anti-corruption measures will be more difficult to implement.
Despite strong economic growth, Armenia's unemployment rate remains
high. Armenia will need to pursue additional economic reforms in
order to improve its economic competitiveness and to build on recent
improvements in poverty and unemployment, especially given its
economic isolation from two of its nearest neighbors, Turkey and
Azerbaijan.

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 country's oil refinery reopened in
1993, providing a major source of employment, foreign exchange
earnings, and 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, strong economy with a per
capita GDP on par with the four dominant West European economies.
Robust business and consumer confidence and high export prices for
raw materials and agricultural products are fueling the economy,
particularly in mining states. Australia's emphasis on reforms, low
inflation, a housing market boom, and growing ties with China have
been key factors behind the economy's 16 solid years of expansion.
Drought, robust import demand, and a strong currency have pushed the
trade deficit up in recent years, while infrastructure bottlenecks
and a tight labor market are constraining growth in export volumes
and stoking inflation. Australia's budget has been in surplus since
2002 due to strong revenue growth.

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 and creating a more competitive business
environment, further strengthening Austria's attractiveness as an
investment location. It has implemented effective pension reforms;
however, lower taxes in 2005-06 led to a small budget deficit in
2006 and 2007. Boosted by strong exports, growth nevertheless
reached 3.3% in both 2006 and 2007, although the economy may slow in
2008 because of the strong euro, high oil prices, and problems in
international financial markets. To meet increased competition -
especially from new EU members and Central European countries -
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 high economic growth in 2006 and 2007 is
attributable to large and growing oil exports. 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 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. 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,
pervasive corruption, and elevated inflation. 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 oil
and gas pipelines in the region, and Azerbaijan's ability to manage
its energy wealth.

Bahamas, The
The Bahamas is one of the wealthiest Caribbean
countries 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 tourist arrivals have been on the decline since 2006. Financial
services constitute the second-most important sector of the Bahamian
economy and, when combined with business services, account for about
36% 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
combined 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. Tourism, in turn, 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
over 60% of Bahrain's export receipts, over 70% of government
revenues, and 11% of GDP (exclusive of allied industries),
underpinning Bahrain's strong economic growth in recent years.
Aluminum is Bahrain's second major export after oil. Other major
segments of Bahrain's economy are the financial and construction
sectors. Bahrain is focused on Islamic banking and is competing on
an international scale with Malaysia as a worldwide banking center.
Bahrain is actively pursuing the diversification and privatization
of its economy to reduce the country's dependence on oil. As part of
this effort, in August 2006 Bahrain and the US implemented a Free
Trade Agreement (FTA), the first FTA between the US and a Gulf
state. Continued strong growth hinges on Bahrain's ability to
acquire new natural gas supplies as feedstock to support its
expanding petrochemical and aluminum industries. Unemployment,
especially among the young, and the depletion of oil and underground
water resources are long-term economic problems.

Bangladesh
The economy has grown 5-6% over the past few years
despite inefficient state-owned enterprises, delays in exploiting
natural gas resources, insufficient power supplies, and slow
implementation of economic reforms. 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. Garment exports and
remittances from Bangladeshis working overseas, mainly in the Middle
East and East Asia, fuel economic growth.

Barbados
Historically, the Barbadian economy was dependent on
sugarcane cultivation and related activities. However, production in
recent years has diversified into light industry and tourism, with
about three-quarters of GDP and 80% of exports being attributed to
services. Growth has rebounded since 2003, bolstered by increases in
construction projects and tourism revenues - reflecting its success
in the higher-end segment. The country enjoys one of the highest per
capita incomes in the region and an investment grade rating which
benefits from its political stability and stable institutions.
Offshore finance and information services are important foreign
exchange earners and thrive from having the same time zone as
eastern US financial centers and a relatively highly educated
workforce. The government continues its efforts to reduce
unemployment, to encourage direct foreign investment, and to
privatize remaining state-owned enterprises.

Belarus
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. Nevertheless, GDP growth has been strong in
recent years, reaching nearly 7% in 2007, despite the roadblocks of
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. Trade
with Russia - by far its largest single trade partner - decreased in
2007, largely as a result of a change in the way the Value Added Tax
(VAT) on trade was collected. Russia has introduced an export duty
on oil shipped to Belarus, which will increase gradually through
2009, and a requirement that Belarusian duties on re-exported
Russian oil be shared with Russia - 80% will go to Russia in 2008,
and 85% in 2009. Russia also increased Belarusian natural gas prices
from $47 per thousand cubic meters (tcm) to $100 per tcm in 2007,
and plans to increase prices gradually to world levels by 2011.
Russia's recent policy of bringing energy prices for Belarus to
world market levels may result in a slowdown in economic growth in
Belarus over the next few years. Some policy measures, including
tightening of fiscal and monetary policies, improving energy
efficiency, and diversifying exports, have been introduced, but
external borrowing has been the main mechanism used to manage the
growing pressures on the economy.

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 85% 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 2004-07.
Economic growth and foreign direct investment are expected to slow
down in 2008, due to credit tightening, falling consumer and
business confidence, and above average inflation. However, with the
successful negotiation of the 2008 budget and devolution of power
within the government, political tensions seem to be easing and
could lead to an improvement in the economic outlook for 2008.

Belize
In this small, essentially private-enterprise economy,
tourism is the number one foreign exchange earner followed by
exports of 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 1999-2007. Oil discoveries in 2006 bolstered
the economic growth in 2006 and 2007. Major concerns continue to be
the sizable trade deficit and unsustainable foreign debt. In
February 2007, the government restructured nearly all of its public
external commercial debt, which will reduce interest payments and
relieve liquidity concerns. 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 seven
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. Specific projects to improve the business climate by
reforms to the land tenure system, the commercial justice system,
and the financial sector 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 though the government annulled the
privatization of Benin's state cotton company in November 2007 after
the discovery of irregularities in the bidding process. 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. An
insufficient electrical supply continues to adversely affect Benin's
economic growth though the government recently has taken steps to
increase domestic power production.

Bermuda
Bermuda enjoys the third 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 the 11 September 2001
attacks and again after Hurricane Katrina in August 2005,
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 60% 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. 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 such as industrial licensing, trade,
labor, and finance continue to hamper foreign investment. Hydropower
exports to India had a major impact on growth in 2007.

Bolivia
Bolivia is one of the poorest and least developed countries
in Latin America. Following a disastrous economic crisis during the
early 1980s, reforms spurred private investment, stimulated economic
growth, and cut poverty rates in the 1990s. The period 2003-05 was
characterized by political instability, racial tensions, and violent
protests against plans - subsequently abandoned - to export
Bolivia's newly discovered natural gas reserves to large northern
hemisphere markets. In 2005, the government passed a controversial
hydrocarbons law that imposed significantly higher royalties and
required foreign firms then operating under risk-sharing contracts
to surrender all production to the state energy company, which was
made the sole exporter of natural gas. The law also required that
the state energy company regain control over the five companies that
were privatized during the 1990s - a process that is still underway.
In 2006, higher earnings for mining and hydrocarbons exports pushed
the current account surplus to about 12% of GDP and the government's
higher tax take produced a fiscal surplus after years of large
deficits. Debt relief from the G8 - announced in 2005 - also has
significantly reduced Bolivia's public sector debt burden. Private
investment as a share of GDP, however, remains among the lowest in
Latin America, and inflation reached double-digit levels in 2007.

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. The private sector is growing and foreign investment is slowly
increasing, but government spending, at nearly 40% of adjusted GDP,
remains unreasonably high. 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 2003-07 when GDP
growth exceeded 5% per year. 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. Implementing
privatization, however, has been slow, particularly in the
Federation, although more successful in the Republika Srpska.
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 macroeconomic problems. On 1 January 2006 a new value-added
tax (VAT) went into effect. The VAT has been successful in capturing
much of the gray market economy and has developed into a significant
and predictable source of revenues for all layers of government.
Bosnia and Herzegovina became a full member of the Central European
Free Trade Agreement in September 2007. The country receives
substantial 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, though growth slowed to
4.7% annually in 2006-07. 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 nearly $15,000 in 2007. 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. Having weathered 2001-03
financial turmoil, capital inflows are regaining strength and the
currency has resumed appreciating. The appreciation has slowed
export volume growth, but since 2004, Brazil's growth has yielded
increases in employment and real wages. The resilience in the
economy stems from commodity-driven current account surpluses, and
sound macroeconomic policies that have bolstered international
reserves to historically high levels, reduced public debt, and
allowed a significant decline in real interest rates. A floating
exchange rate, an inflation-targeting regime, and a tight fiscal
policy are the three pillars of the economic program. From 2003 to
2007, Brazil ran record trade surpluses and recorded its first
current account surpluses since 1992. Productivity gains coupled
with high commodity prices contributed to the surge in exports.
Brazil improved its debt profile in 2006 by shifting its debt burden
toward real denominated and domestically held instruments. "LULA" DA
SILVA restated his commitment to fiscal responsibility by
maintaining the country's primary surplus during the 2006 election.
Following his second inauguration, "LULA" DA SILVA announced a
package of further economic reforms to reduce taxes and increase
investment in infrastructure. The government's goal of achieving
strong growth while reducing the debt burden is likely to create
inflationary pressures.

British Indian Ocean Territory
All economic activity is concentrated
on the largest island of Diego Garcia, where a joint UK-US military
facility is located. Construction projects and various services
needed to support the military installation are performed 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 native Ilois return, they plan
to reestablish sugarcane production and fishing. The territory earns
foreign exchange 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
820,000 tourists, mainly from the US, visited the islands in 2005.
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
Brunei has a small well-to-do economy that encompasses a
mixture of foreign and domestic entrepreneurship, government
regulation, welfare measures, and village tradition. Crude oil and
natural gas production account for just over half of GDP and more
than 90% of exports. Per capita GDP is among the highest in Asia,
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.