Chapter LXXXII: Part 82

Luxembourg
Founded in 963, Luxembourg became a grand duchy in 1815
and an independent state under the Netherlands. It lost more than
half of its territory to Belgium in 1839, but gained a larger
measure of autonomy. Full independence was attained in 1867. Overrun
by Germany in both World Wars, it ended its neutrality in 1948 when
it entered into the Benelux Customs Union and when it joined NATO
the following year. In 1957, Luxembourg became one of the six
founding countries of the European Economic Community (later the
European Union), and in 1999 it joined the euro currency area.

Macau
Colonized by the Portuguese in the 16th century, Macau was the
first European settlement in the Far East. Pursuant to an agreement
signed by China and Portugal on 13 April 1987, Macau became the
Macau Special Administrative Region (SAR) of China on 20 December
1999. In this agreement, China promised that, under its "one
country, two systems" formula, China's socialist economic system
would not be practiced in Macau, and that Macau would enjoy a high
degree of autonomy in all matters except foreign and defense affairs
for the next 50 years.

Macedonia
Macedonia gained its independence peacefully from
Yugoslavia in 1991, but Greece's objection to the new state's use of
what it considered a Hellenic name and symbols delayed international
recognition, which occurred under the provisional designation of
"the Former Yugoslav Republic of Macedonia." In 1995, Greece lifted
a 20-month trade embargo and the two countries agreed to normalize
relations. The United States began referring to Macedonia by its
constitutional name, Republic of Macedonia, in 2004 and negotiations
continue between Greece and Macedonia to resolve the name issue.
Some ethnic Albanians, angered by perceived political and economic
inequities, launched an insurgency in 2001 that eventually won the
support of the majority of Macedonia's Albanian population and led
to the internationally-brokered Framework Agreement, which ended the
fighting by establishing a set of new laws enhancing the rights of
minorities. Fully implementating the Framework Agreement and
stimulating economic growth and development continue to be
challenges for Macedonia, although progress has been made on both
fronts over the past several years.

Madagascar
Formerly an independent kingdom, Madagascar became a
French colony in 1896 but regained independence in 1960. During
1992-93, free presidential and National Assembly elections were held
ending 17 years of single-party rule. In 1997, in the second
presidential race, Didier RATSIRAKA, the leader during the 1970s and
1980s, was returned to the presidency. The 2001 presidential
election was contested between the followers of Didier RATSIRAKA and
Marc RAVALOMANANA, nearly causing secession of half of the country.
In April 2002, the High Constitutional Court announced RAVALOMANANA
the winner. RAVALOMANANA is now in his second term following a
landslide victory in the generally free and fair presidential
elections of 2006.

Malawi
Established in 1891, the British protectorate of Nyasaland
became the independent nation of Malawi in 1964. After three decades
of one-party rule under President Hastings Kamuzu BANDA the country
held multiparty elections in 1994, under a provisional constitution
that came into full effect the following year. Current President
Bingu wa MUTHARIKA, elected in May 2004 after a failed attempt by
the previous president to amend the constitution to permit another
term, struggled to assert his authority against his predecessor and
subsequently started his own party, the Democratic Progressive Party
(DPP) in 2005. As president, MUTHARIKA has overseen substantial
economic improvement but because of political deadlock in the
legislature, his minority party has been unable to pass significant
legislation, and anti-corruption measures have stalled. Population
growth, increasing pressure on agricultural lands, corruption, and
the spread of HIV/AIDS pose major problems for Malawi.

Malaysia
During the late 18th and 19th centuries, Great Britain
established colonies and protectorates in the area of current
Malaysia; these were occupied by Japan from 1942 to 1945. In 1948,
the British-ruled territories on the Malay Peninsula formed the
Federation of Malaya, which became independent in 1957. Malaysia was
formed in 1963 when the former British colonies of Singapore and the
East Malaysian states of Sabah and Sarawak on the northern coast of
Borneo joined the Federation. The first several years of the
country's history were marred by a Communist insurgency, Indonesian
confrontation with Malaysia, Philippine claims to Sabah, and
Singapore's secession from the Federation in 1965. During the
22-year term of Prime Minister MAHATHIR bin Mohamad (1981-2003),
Malaysia was successful in diversifying its economy from dependence
on exports of raw materials to expansion in manufacturing, services,
and tourism.

Maldives
The Maldives was long a sultanate, first under Dutch and
then under British protection. It became a republic in 1968, three
years after independence. President Maumoon Abdul GAYOOM dominated
the islands' political scene for 30 years, elected to six successive
terms by single-party referendums. Following riots in the capital
Male in August 2004, the president and his government pledged to
embark upon democratic reforms including a more representative
political system and expanded political freedoms. Progress was
sluggish, however, and many promised reforms were slow to be
realized. Nonetheless, political parties were legalized in 2005. In
June 2008, a constituent assembly - termed the "Special Majlis" -
finalized a new constitution, which was ratified by the president in
August. The first-ever presidential elections under a
multi-candidate, multi-party system were held in October 2008.
GAYOOM was defeated in a runoff poll by Mohamed NASHEED, a political
activist who had been jailed several years earlier by the former
regime. Challenges facing the new president include strengthening
democracy and combating poverty and drug abuse.

Mali
The Sudanese Republic and Senegal became independent of France
in 1960 as the Mali Federation. When Senegal withdrew after only a
few months, what formerly made up the Sudanese Republic was renamed
Mali. Rule by dictatorship was brought to a close in 1991 by a
military coup - led by the current president Amadou TOURE - enabling
Mali's emergence as one of the strongest democracies on the
continent. President Alpha KONARE won Mali's first democratic
presidential election in 1992 and was reelected in 1997. In keeping
with Mali's two-term constitutional limit, KONARE stepped down in
2002 and was succeeded by Amadou TOURE, who was subsequently elected
to a second term in 2007. The elections were widely judged to be
free and fair.

Malta
Great Britain formally acquired possession of Malta in 1814.
The island staunchly supported the UK through both World Wars and
remained in the Commonwealth when it became independent in 1964. A
decade later Malta became a republic. Since about the mid-1980s, the
island has transformed itself into a freight transshipment point, a
financial center, and a tourist destination. Malta became an EU
member in May 2004 and began to use the euro as currency in 2008.

Marshall Islands
After almost four decades under US administration
as the easternmost part of the UN Trust Territory of the Pacific
Islands, the Marshall Islands attained independence in 1986 under a
Compact of Free Association. Compensation claims continue as a
result of US nuclear testing on some of the atolls between 1947 and
1962. The Marshall Islands hosts the US Army Kwajalein Atoll (USAKA)
Reagan Missile Test Site, a key installation in the US missile
defense network.

Mauritania
Independent from France in 1960, Mauritania annexed the
southern third of the former Spanish Sahara (now Western Sahara) in
1976, but relinquished it after three years of raids by the
Polisario guerrilla front seeking independence for the territory.
Maaouya Ould Sid Ahmed TAYA seized power in a coup in 1984 and ruled
Mauritania with a heavy hand for over two decades. A series of
presidential elections that he held were widely seen as flawed. A
bloodless coup in August 2005 deposed President TAYA and ushered in
a military council that oversaw a transition to democratic rule.
Independent candidate Sidi Ould Cheikh ABDALLAHI was inaugurated in
April 2007 as Mauritania's first freely and fairly elected
president. His term ended prematurely in August 2008 when a coup
deposed him and ushered in a military council government. Meanwhile,
the country continues to experience ethnic tensions among its black
population (Afro-Mauritanians) and White and Black Moor
(Arab-Berber) communities.

Mauritius
Although known to Arab and Malay sailors as early as the
10th century, Mauritius was first explored by the Portuguese in the
16th century and subsequently settled by the Dutch - who named it in
honor of Prince Maurits van NASSAU - in the 17th century. The French
assumed control in 1715, developing the island into an important
naval base overseeing Indian Ocean trade, and establishing a
plantation economy of sugar cane. The British captured the island in
1810, during the Napoleonic Wars. Mauritius remained a strategically
important British naval base, and later an air station, playing an
important role during World War II for anti-submarine and convoy
operations, as well as the collection of signals intelligence.
Independence from the UK was attained in 1968. A stable democracy
with regular free elections and a positive human rights record, the
country has attracted considerable foreign investment and has earned
one of Africa's highest per capita incomes. Recent poor weather,
declining sugar prices, and declining textile and apparel
production, have slowed economic growth, leading to some protests
over standards of living in the Creole community.

Mayotte
Mayotte was ceded to France along with the other islands of
the Comoros group in 1843. It was the only island in the archipelago
that voted in 1974 to retain its link with France and forego
independence.

Mexico
The site of advanced Amerindian civilizations, Mexico came
under Spanish rule for three centuries before achieving independence
early in the 19th century. A devaluation of the peso in late 1994
threw Mexico into economic turmoil, triggering the worst recession
in over half a century. The nation continues to make an impressive
recovery. Ongoing economic and social concerns include low real
wages, underemployment for a large segment of the population,
inequitable income distribution, and few advancement opportunities
for the largely Amerindian population in the impoverished southern
states. The elections held in 2000 marked the first time since the
1910 Mexican Revolution that an opposition candidate - Vicente FOX
of the National Action Party (PAN) - defeated the party in
government, the Institutional Revolutionary Party (PRI). He was
succeeded in 2006 by another PAN candidate Felipe CALDERON.

Micronesia, Federated States of
In 1979 the Federated States of
Micronesia, a UN Trust Territory under US administration, adopted a
constitution. In 1986 independence was attained under a Compact of
Free Association with the US, which was amended and renewed in 2004.
Present concerns include large-scale unemployment, overfishing, and
overdependence on US aid.

Moldova
Formerly part of Romania, Moldova was incorporated into the
Soviet Union at the close of World War II. Although independent from
the USSR since 1991, Russian forces have remained on Moldovan
territory east of the Dniester River supporting the Slavic majority
population, mostly Ukrainians and Russians, who have proclaimed a
"Transnistria" republic. One of the poorest nations in Europe,
Moldova became the first former Soviet state to elect a Communist as
its president in 2001.

Monaco
The Genoese built a fortress on the site of present-day
Monaco in 1215. The current ruling Grimaldi family secured control
in the late 13th century, and a principality was established in
1338. Economic development was spurred in the late 19th century with
a railroad linkup to France and the opening of a casino. Since then,
the principality's mild climate, splendid scenery, and gambling
facilities have made Monaco world famous as a tourist and recreation
center.

Mongolia
The Mongols gained fame in the 13th century when under
Chinggis KHAN they conquered a huge Eurasian empire. After his death
the empire was divided into several powerful Mongol states, but
these broke apart in the 14th century. The Mongols eventually
retired to their original steppe homelands and in the late 17th
century came under Chinese rule. Mongolia won its independence in
1921 with Soviet backing. A Communist regime was installed in 1924.
Following a peaceful democratic revolution, the ex-Communist
Mongolian People's Revolutionary Party (MPRP) won elections in 1990
and 1992, but was defeated by the Democratic Union Coalition (DUC)
in the 1996 parliamentary election. Since then, parliamentary
elections returned the MPRP overwhelmingly to power in 2000, but
2004 elections reduced MPRP representation and, therefore, its
authority.

Montenegro
The use of the name Montenegro began in the 15th century
when the Crnojevic dynasty began to rule the Serbian principality of
Zeta; over subsequent centuries Montenegro was able to maintain its
independence from the Ottoman Empire. From the 16th to 19th
centuries, Montenegro became a theocracy ruled by a series of bishop
princes; in 1852, it was transformed into a secular principality.
After World War I, Montenegro was absorbed by the Kingdom of Serbs,
Croats, and Slovenes, which became the Kingdom of Yugoslavia in
1929; at the conclusion of World War II, it became a constituent
republic of the Socialist Federal Republic of Yugoslavia. When the
latter dissolved in 1992, Montenegro federated with Serbia, first as
the Federal Republic of Yugoslavia and, after 2003, in a looser
union of Serbia and Montenegro. In May 2006, Montenegro invoked its
right under the Constitutional Charter of Serbia and Montenegro to
hold a referendum on independence from the state union. The vote for
severing ties with Serbia exceeded 55% - the threshold set by the EU
- allowing Montenegro to formally declare its independence on 3 June
2006.

Montserrat
English and Irish colonists from St. Kitts first settled
on Montserrat in 1632; the first African slaves arrived three
decades later. The British and French fought for possession of the
island for most of the 18th century, but it finally was confirmed as
a British possession in 1783. The island's sugar plantation economy
was converted to small farm landholdings in the mid 19th century.
Much of this island was devastated and two-thirds of the population
fled abroad because of the eruption of the Soufriere Hills Volcano
that began on 18 July 1995. Montserrat has endured volcanic activity
since, with the last eruption occurring in July 2003.

Morocco
In 788, about a century after the Arab conquest of North
Africa, successive Moorish dynasties began to rule in Morocco. In
the 16th century, the Sa'adi monarchy, particularly under Ahmad
AL-MANSUR (1578-1603), repelled foreign invaders and inaugurated a
golden age. In 1860, Spain occupied northern Morocco and ushered in
a half century of trade rivalry among European powers that saw
Morocco's sovereignty steadily erode; in 1912, the French imposed a
protectorate over the country. A protracted independence struggle
with France ended successfully in 1956. The internationalized city
of Tangier and most Spanish possessions were turned over to the new
country that same year. Morocco virtually annexed Western Sahara
during the late 1970s, but final resolution on the status of the
territory remains unresolved. Gradual political reforms in the 1990s
resulted in the establishment of a bicameral legislature, which
first met in 1997. Improvements in human rights have occurred and
there is a largely free press. Despite the continuing reforms,
ultimate authority remains in the hands of the monarch.

Mozambique
Almost five centuries as a Portuguese colony came to a
close with independence in 1975. Large-scale emigration by whites,
economic dependence on South Africa, a severe drought, and a
prolonged civil war hindered the country's development until the mid
1990's. The ruling Front for the Liberation of Mozambique (FRELIMO)
party formally abandoned Marxism in 1989, and a new constitution the
following year provided for multiparty elections and a free market
economy. A UN-negotiated peace agreement between FRELIMO and rebel
Mozambique National Resistance (RENAMO) forces ended the fighting in
1992. In December 2004, Mozambique underwent a delicate transition
as Joaquim CHISSANO stepped down after 18 years in office. His
elected successor, Armando Emilio GUEBUZA, promised to continue the
sound economic policies that have encouraged foreign investment.
Mozambique has seen very strong economic growth since the end of the
civil war largely due to post-conflict reconstruction.

Namibia
South Africa occupied the German colony of South-West Africa
during World War I and administered it as a mandate until after
World War II, when it annexed the territory. In 1966 the Marxist
South-West Africa People's Organization (SWAPO) guerrilla group
launched a war of independence for the area that was soon named
Namibia, but it was not until 1988 that South Africa agreed to end
its administration in accordance with a UN peace plan for the entire
region. Namibia has been governed by SWAPO since the country won
independence in 1990. Hifikepunye POHAMBA was elected president in
November 2004 in a landslide victory replacing Sam NUJOMA who led
the country during its first 14 years of self rule.

Nauru
The exact origins of the Nauruans are unclear, since their
language does not resemble any other in the Pacific. The island was
annexed by Germany in 1888 and its phosphate deposits began to be
mined early in the 20th century by a German-British consortium.
Nauru was occupied by Australian forces in World War I and
subsequently became a League of Nations mandate. After the Second
World War - and a brutal occupation by Japan - Nauru became a UN
trust territory. It achieved its independence in 1968 and joined the
UN in 1999 as the world's smallest independent republic.

Navassa Island
This uninhabited island was claimed by the US in 1857
for its guano. Mining took place between 1865 and 1898. The
lighthouse, built in 1917, was shut down in 1996 and administration
of Navassa Island transferred from the Coast Guard to the Department
of the Interior. A 1998 scientific expedition to the island
described it as a unique preserve of Caribbean biodiversity; the
following year it became a National Wildlife Refuge and annual
scientific expeditions have continued.

Nepal
In 1951, the Nepalese monarch ended the century-old system of
rule by hereditary premiers and instituted a cabinet system of
government. Reforms in 1990 established a multiparty democracy
within the framework of a constitutional monarchy. An insurgency led
by Maoist extremists broke out in 1996. The ensuing nine-year civil
war between insurgents and government forces witnessed the
dissolution of the cabinet and parliament and assumption of absolute
power by the king. Several weeks of mass protests in April 2006 were
followed by several months of peace negotiations between the Maoists
and government officials, and culminated in a November 2006 peace
accord and the promulgation of an interim constitution. The newly
formed interim parliament declared Nepal a democratic federal
republic at its first meeting in May 2008, the king vacated the
throne in mid-June 2008, and parliament elected the country's first
president the following month.

Netherlands
The Dutch United Provinces declared their independence
from Spain in 1579; during the 17th century, they became a leading
seafaring and commercial power, with settlements and colonies around
the world. After a 20-year French occupation, a Kingdom of the
Netherlands was formed in 1815. In 1830 Belgium seceded and formed a
separate kingdom. The Netherlands remained neutral in World War I,
but suffered invasion and occupation by Germany in World War II. A
modern, industrialized nation, the Netherlands is also a large
exporter of agricultural products. The country was a founding member
of NATO and the EEC (now the EU), and participated in the
introduction of the euro in 1999.

Netherlands Antilles
Once the center of the Caribbean slave trade,
the island of Curacao was hard hit by the abolition of slavery in
1863. Its prosperity (and that of neighboring Aruba) was restored in
the early 20th century with the construction of oil refineries to
service the newly discovered Venezuelan oil fields. The island of
Saint Martin is shared with France; its southern portion is named
Sint Maarten and is part of the Netherlands Antilles; its northern
portion, called Saint Martin, is an overseas collectivity of France.

New Caledonia
Settled by both Britain and France during the first
half of the 19th century, the island was made a French possession in
1853. It served as a penal colony for four decades after 1864.
Agitation for independence during the 1980s and early 1990s ended in
the 1998 Noumea Accord, which over a period of 15 to 20 years will
transfer an increasing amount of governing responsibility from
France to New Caledonia. The agreement also commits France to
conduct as many as three referenda between 2013 and 2018, to decide
whether New Caledonia should assume full sovereignty and
independence.

New Zealand
The Polynesian Maori reached New Zealand in about A.D.
800. In 1840, their chieftains entered into a compact with Britain,
the Treaty of Waitangi, in which they ceded sovereignty to Queen
Victoria while retaining territorial rights. In that same year, the
British began the first organized colonial settlement. A series of
land wars between 1843 and 1872 ended with the defeat of the native
peoples. The British colony of New Zealand became an independent
dominion in 1907 and supported the UK militarily in both World Wars.
New Zealand's full participation in a number of defense alliances
lapsed by the 1980s. In recent years, the government has sought to
address longstanding Maori grievances.

Nicaragua
The Pacific coast of Nicaragua was settled as a Spanish
colony from Panama in the early 16th century. Independence from
Spain was declared in 1821 and the country became an independent
republic in 1838. Britain occupied the Caribbean Coast in the first
half of the 19th century, but gradually ceded control of the region
in subsequent decades. Violent opposition to governmental
manipulation and corruption spread to all classes by 1978 and
resulted in a short-lived civil war that brought the Marxist
Sandinista guerrillas to power in 1979. Nicaraguan aid to leftist
rebels in El Salvador caused the US to sponsor anti-Sandinista
contra guerrillas through much of the 1980s. Free elections in 1990,
1996, and 2001, saw the Sandinistas defeated, but voting in 2006
announced the return of former Sandinista President Daniel ORTEGA
Saavedra. Nicaragua's infrastructure and economy - hard hit by the
earlier civil war and by Hurricane Mitch in 1998 - are slowly being
rebuilt.

Niger
Niger became independent from France in 1960 and experienced
single-party and military rule until 1991, when Gen. Ali SAIBOU was
forced by public pressure to allow multiparty elections, which
resulted in a democratic government in 1993. Political infighting
brought the government to a standstill and in 1996 led to a coup by
Col. Ibrahim BARE. In 1999 BARE was killed in a coup by military
officers who promptly restored democratic rule and held elections
that brought Mamadou TANDJA to power in December of that year.
TANDJA was reelected in 2004. Niger is one of the poorest countries
in the world with minimal government services and insufficient funds
to develop its resource base. The largely agrarian and
subsistence-based economy is frequently disrupted by extended
droughts common to the Sahel region of Africa. A predominately
Tuareg ethnic group emerged in February 2007, the Nigerien Movement
for Justice (MNJ), and attacked several military targets in Niger's
northern region throughout 2007. Events have since evolved into a
budding insurrection.

Nigeria
British influence and control over what would become Nigeria
grew through the 19th century. A series of constitutions after World
War II granted Nigeria greater autonomy; independence came in 1960.
Following nearly 16 years of military rule, a new constitution was
adopted in 1999, and a peaceful transition to civilian government
was completed. The government continues to face the daunting task of
reforming a petroleum-based economy, whose revenues have been
squandered through corruption and mismanagement, and
institutionalizing democracy. In addition, Nigeria continues to
experience longstanding ethnic and religious tensions. Although both
the 2003 and 2007 presidential elections were marred by significant
irregularities and violence, Nigeria is currently experiencing its
longest period of civilian rule since independence. The general
elections of April 2007 marked the first civilian-to-civilian
transfer of power in the country's history.

Niue
Niue's remoteness, as well as cultural and linguistic
differences between its Polynesian inhabitants and those of the rest
of the Cook Islands, have caused it to be separately administered.
The population of the island continues to drop (from a peak of 5,200
in 1966 to an estimated 1,444 in 2008), with substantial emigration
to New Zealand, 2,400 km to the southwest.

Norfolk Island
Two British attempts at establishing the island as a
penal colony (1788-1814 and 1825-55) were ultimately abandoned. In
1856, the island was resettled by Pitcairn Islanders, descendants of
the Bounty mutineers and their Tahitian companions.

Northern Mariana Islands
Under US administration as part of the UN
Trust Territory of the Pacific, the people of the Northern Mariana
Islands decided in the 1970s not to seek independence but instead to
forge closer links with the US. Negotiations for territorial status
began in 1972. A covenant to establish a commonwealth in political
union with the US was approved in 1975, and came into force on 24
March 1976. A new government and constitution went into effect in
1978.

Norway
Two centuries of Viking raids into Europe tapered off
following the adoption of Christianity by King Olav TRYGGVASON in
994. Conversion of the Norwegian kingdom occurred over the next
several decades. In 1397, Norway was absorbed into a union with
Denmark that lasted more than four centuries. In 1814, Norwegians
resisted the cession of their country to Sweden and adopted a new
constitution. Sweden then invaded Norway but agreed to let Norway
keep its constitution in return for accepting the union under a
Swedish king. Rising nationalism throughout the 19th century led to
a 1905 referendum granting Norway independence. Although Norway
remained neutral in World War I, it suffered heavy losses to its
shipping. Norway proclaimed its neutrality at the outset of World
War II, but was nonetheless occupied for five years by Nazi Germany
(1940-45). In 1949, neutrality was abandoned and Norway became a
member of NATO. Discovery of oil and gas in adjacent waters in the
late 1960s boosted Norway's economic fortunes. The current focus is
on containing spending on the extensive welfare system and planning
for the time when petroleum reserves are depleted. In referenda held
in 1972 and 1994, Norway rejected joining the EU.

Oman
The inhabitants of the area of Oman have long prospered on
Indian Ocean trade. In the late 18th century, a newly established
sultanate in Muscat signed the first in a series of friendship
treaties with Britain. Over time, Oman's dependence on British
political and military advisors increased, but it never became a
British colony. In 1970, QABOOS bin Said al-Said overthrew the
restrictive rule of his father; he has ruled as sultan ever since.
His extensive modernization program has opened the country to the
outside world while preserving the longstanding close ties with the
UK. Oman's moderate, independent foreign policy has sought to
maintain good relations with all Middle Eastern countries.

Pacific Ocean
The Pacific Ocean is the largest of the world's five
oceans (followed by the Atlantic Ocean, Indian Ocean, Southern
Ocean, and Arctic Ocean). Strategically important access waterways
include the La Perouse, Tsugaru, Tsushima, Taiwan, Singapore, and
Torres Straits. The decision by the International Hydrographic
Organization in the spring of 2000 to delimit a fifth ocean, the
Southern Ocean, removed the portion of the Pacific Ocean south of 60
degrees south.

Pakistan
The Indus Valley civilization, one of the oldest in the
world and dating back at least 5,000 years, spread over much of what
is presently Pakistan. During the second millennium B.C., remnants
of this culture fused with the migrating Indo-Aryan peoples. The
area underwent successive invasions in subsequent centuries from the
Persians, Greeks, Scythians, Arabs (who brought Islam), Afghans, and
Turks. The Mughal Empire flourished in the 16th and 17th centuries;
the British came to dominate the region in the 18th century. The
separation in 1947 of British India into the Muslim state of
Pakistan (with West and East sections) and largely Hindu India was
never satisfactorily resolved, and India and Pakistan fought two
wars - in 1947-48 and 1965 - over the disputed Kashmir territory. A
third war between these countries in 1971 - in which India
capitalized on Islamabad's marginalization of Bengalis in Pakistani
politics - resulted in East Pakistan becoming the separate nation of
Bangladesh. In response to Indian nuclear weapons testing, Pakistan
conducted its own tests in 1998. The dispute over the state of
Kashmir is ongoing, but discussions and confidence-building measures
have led to decreased tensions since 2002. Mounting public
dissatisfaction with President MUSHARRAF, coupled with the
assassination of the prominent and popular political leader, Benazir
BHUTTO, in late 2007, and MUSHARRAF?s resignation in August 2008,
led to the September presidential election of Asif ZARDARI, BHUTTO?s
widower. Pakistani government and military leaders are struggling to
control Islamist militants, many of whom are located in the tribal
areas adjacent to the border with Afghanistan. The Pakistani
government is also faced with a deteriorating economy as foreign
exchange reserves decline, the currency depreciates, and the current
account deficit widens.

Palau
After three decades as part of the UN Trust Territory of the
Pacific under US administration, this westernmost cluster of the
Caroline Islands opted for independence in 1978 rather than join the
Federated States of Micronesia. A Compact of Free Association with
the US was approved in 1986, but not ratified until 1993. It entered
into force the following year, when the islands gained independence.

Panama
Explored and settled by the Spanish in the 16th century,
Panama broke with Spain in 1821 and joined a union of Colombia,
Ecuador, and Venezuela - named the Republic of Gran Colombia. When
the latter dissolved in 1830, Panama remained part of Colombia. With
US backing, Panama seceded from Colombia in 1903 and promptly signed
a treaty with the US allowing for the construction of a canal and US
sovereignty over a strip of land on either side of the structure
(the Panama Canal Zone). The Panama Canal was built by the US Army
Corps of Engineers between 1904 and 1914. In 1977, an agreement was
signed for the complete transfer of the Canal from the US to Panama
by the end of the century. Certain portions of the Zone and
increasing responsibility over the Canal were turned over in the
subsequent decades. With US help, dictator Manuel NORIEGA was
deposed in 1989. The entire Panama Canal, the area supporting the
Canal, and remaining US military bases were transferred to Panama by
the end of 1999. In October 2006, Panamanians approved an ambitious
plan to expand the Canal. The project, which began in 2007 and could
double the Canal's capacity, is expected to be completed in 2014-15.

Papua New Guinea
The eastern half of the island of New Guinea -
second largest in the world - was divided between Germany (north)
and the UK (south) in 1885. The latter area was transferred to
Australia in 1902, which occupied the northern portion during World
War I and continued to administer the combined areas until
independence in 1975. A nine-year secessionist revolt on the island
of Bougainville ended in 1997 after claiming some 20,000 lives.

Paracel Islands
The Paracel Islands are surrounded by productive
fishing grounds and by potential oil and gas reserves. In 1932,
French Indochina annexed the islands and set up a weather station on
Pattle Island; maintenance was continued by its successor, Vietnam.
China has occupied the Paracel Islands since 1974, when its troops
seized a South Vietnamese garrison occupying the western islands.
China built a military installation on Mischief Reef in 1999. The
islands are claimed by Taiwan and Vietnam.

Paraguay
In the disastrous War of the Triple Alliance (1865-70) -
between Paraguay and Argentina, Brazil, and Uruguay - Paraguay lost
two-thirds of all adult males and much of its territory. It
stagnated economically for the next half century. In the Chaco War
of 1932-35, Paraguay won large, economically important areas from
Bolivia. The 35-year military dictatorship of Alfredo STROESSNER
ended in 1989, and, despite a marked increase in political
infighting in recent years, Paraguay has held relatively free and
regular presidential elections since then.

Peru
Ancient Peru was the seat of several prominent Andean
civilizations, most notably that of the Incas whose empire was
captured by the Spanish conquistadors in 1533. Peruvian independence
was declared in 1821, and remaining Spanish forces defeated in 1824.
After a dozen years of military rule, Peru returned to democratic
leadership in 1980, but experienced economic problems and the growth
of a violent insurgency. President Alberto FUJIMORI's election in
1990 ushered in a decade that saw a dramatic turnaround in the
economy and significant progress in curtailing guerrilla activity.
Nevertheless, the president's increasing reliance on authoritarian
measures and an economic slump in the late 1990s generated mounting
dissatisfaction with his regime, which led to his ouster in 2000. A
caretaker government oversaw new elections in the spring of 2001,
which ushered in Alejandro TOLEDO as the new head of government -
Peru's first democratically elected president of Native American
ethnicity. The presidential election of 2006 saw the return of Alan
GARCIA who, after a disappointing presidential term from 1985 to
1990, returned to the presidency with promises to improve social
conditions and maintain fiscal responsibility.

Philippines
The Philippine Islands became a Spanish colony during
the 16th century; they were ceded to the US in 1898 following the
Spanish-American War. In 1935 the Philippines became a
self-governing commonwealth. Manuel QUEZON was elected president and
was tasked with preparing the country for independence after a
10-year transition. In 1942 the islands fell under Japanese
occupation during World War II, and US forces and Filipinos fought
together during 1944-45 to regain control. On 4 July 1946 the
Republic of the Philippines attained its independence. The 20-year
rule of Ferdinand MARCOS ended in 1986, when a "people power"
movement in Manila ("EDSA 1") forced him into exile and installed
Corazon AQUINO as president. Her presidency was hampered by several
coup attempts, which prevented a return to full political stability
and economic development. Fidel RAMOS was elected president in 1992
and his administration was marked by greater stability and progress
on economic reforms. In 1992, the US closed its last military bases
on the islands. Joseph ESTRADA was elected president in 1998, but
was succeeded by his vice-president, Gloria MACAPAGAL-ARROYO, in
January 2001 after ESTRADA's stormy impeachment trial on corruption
charges broke down and another "people power" movement ("EDSA 2")
demanded his resignation. MACAPAGAL-ARROYO was elected to a six-year
term as president in May 2004. The Philippine Government faces
threats from three terrorist groups on the US Government's Foreign
Terrorist Organization list, but in 2006 and 2007 scored some major
successes in capturing or killing key wanted terrorists. Decades of
Muslim insurgency in the southern Philippines have led to a peace
accord with one group and an ongoing cease-fire and peace talks with
another.

Pitcairn Islands
Pitcairn Island was discovered in 1767 by the
British and settled in 1790 by the Bounty mutineers and their
Tahitian companions. Pitcairn was the first Pacific island to become
a British colony (in 1838) and today remains the last vestige of
that empire in the South Pacific. Outmigration, primarily to New
Zealand, has thinned the population from a peak of 233 in 1937 to
less than 50 today.

Poland
Poland is an ancient nation that was conceived near the
middle of the 10th century. Its golden age occurred in the 16th
century. During the following century, the strengthening of the
gentry and internal disorders weakened the nation. In a series of
agreements between 1772 and 1795, Russia, Prussia, and Austria
partitioned Poland amongst themselves. Poland regained its
independence in 1918 only to be overrun by Germany and the Soviet
Union in World War II. It became a Soviet satellite state following
the war, but its government was comparatively tolerant and
progressive. Labor turmoil in 1980 led to the formation of the
independent trade union "Solidarity" that over time became a
political force and by 1990 had swept parliamentary elections and
the presidency. A "shock therapy" program during the early 1990s
enabled the country to transform its economy into one of the most
robust in Central Europe, but Poland still faces the lingering
challenges of high unemployment, underdeveloped and dilapidated
infrastructure, and a poor rural underclass. Solidarity suffered a
major defeat in the 2001 parliamentary elections when it failed to
elect a single deputy to the lower house of Parliament, and the new
leaders of the Solidarity Trade Union subsequently pledged to reduce
the Trade Union's political role. Poland joined NATO in 1999 and the
European Union in 2004. With its transformation to a democratic,
market-oriented country largely completed, Poland is an increasingly
active member of Euro-Atlantic organizations.

Portugal
Following its heyday as a world power during the 15th and
16th centuries, Portugal lost much of its wealth and status with the
destruction of Lisbon in a 1755 earthquake, occupation during the
Napoleonic Wars, and the independence in 1822 of Brazil as a colony.
A 1910 revolution deposed the monarchy; for most of the next six
decades, repressive governments ran the country. In 1974, a
left-wing military coup installed broad democratic reforms. The
following year, Portugal granted independence to all of its African
colonies. Portugal is a founding member of NATO and entered the EC
(now the EU) in 1986.

Puerto Rico
Populated for centuries by aboriginal peoples, the
island was claimed by the Spanish Crown in 1493 following COLUMBUS'
second voyage to the Americas. In 1898, after 400 years of colonial
rule that saw the indigenous population nearly exterminated and
African slave labor introduced, Puerto Rico was ceded to the US as a
result of the Spanish-American War. Puerto Ricans were granted US
citizenship in 1917. Popularly-elected governors have served since
1948. In 1952, a constitution was enacted providing for internal
self government. In plebiscites held in 1967, 1993, and 1998, voters
chose not to alter the existing political status.

Qatar
Ruled by the Al-Thani family since the mid-1800s, Qatar
transformed itself from a poor British protectorate noted mainly for
pearling into an independent state with significant oil and natural
gas revenues. During the late 1980s and early 1990s, the Qatari
economy was crippled by a continuous siphoning off of petroleum
revenues by the Amir, who had ruled the country since 1972. His son,
the current Amir HAMAD bin Khalifa Al-Thani, overthrew him in a
bloodless coup in 1995. In 2001, Qatar resolved its longstanding
border disputes with both Bahrain and Saudi Arabia. As of 2007, oil
and natural gas revenues had enabled Qatar to attain the highest per
capita income in the world.

Romania
The principalities of Wallachia and Moldavia - for centuries
under the suzerainty of the Turkish Ottoman Empire - secured their
autonomy in 1856; they united in 1859 and a few years later adopted
the new name of Romania. The country gained recognition of its
independence in 1878. It joined the Allied Powers in World War I and
acquired new territories - most notably Transylvania - following the
conflict. In 1940, Romania allied with the Axis powers and
participated in the 1941 German invasion of the USSR. Three years
later, overrun by the Soviets, Romania signed an armistice. The
post-war Soviet occupation led to the formation of a Communist
"people's republic" in 1947 and the abdication of the king. The
decades-long rule of dictator Nicolae CEAUSESCU, who took power in
1965, and his Securitate police state became increasingly oppressive
and draconian through the 1980s. CEAUSESCU was overthrown and
executed in late 1989. Former Communists dominated the government
until 1996 when they were swept from power. Romania joined NATO in
2004 and the EU in 2007.

Russia
Founded in the 12th century, the Principality of Muscovy, was
able to emerge from over 200 years of Mongol domination (13th-15th
centuries) and to gradually conquer and absorb surrounding
principalities. In the early 17th century, a new Romanov Dynasty
continued this policy of expansion across Siberia to the Pacific.
Under PETER I (ruled 1682-1725), hegemony was extended to the Baltic
Sea and the country was renamed the Russian Empire. During the 19th
century, more territorial acquisitions were made in Europe and Asia.
Defeat in the Russo-Japanese War of 1904-05 contributed to the
Revolution of 1905, which resulted in the formation of a parliament
and other reforms. Repeated devastating defeats of the Russian army
in World War I led to widespread rioting in the major cities of the
Russian Empire and to the overthrow in 1917 of the imperial
household. The Communists under Vladimir LENIN seized power soon
after and formed the USSR. The brutal rule of Iosif STALIN (1928-53)
strengthened Communist rule and Russian dominance of the Soviet
Union at a cost of tens of millions of lives. The Soviet economy and
society stagnated in the following decades until General Secretary
Mikhail GORBACHEV (1985-91) introduced glasnost (openness) and
perestroika (restructuring) in an attempt to modernize Communism,
but his initiatives inadvertently released forces that by December
1991 splintered the USSR into Russia and 14 other independent
republics. Since then, Russia has shifted its post-Soviet democratic
ambitions in favor of a centralized semi-authoritarian state whose
legitimacy is buttressed, in part, by carefully managed national
elections, former President PUTIN's genuine popularity, and the
prudent management of Russia's windfall energy wealth. Russia has
severely disabled a Chechen rebel movement, although violence still
occurs throughout the North Caucasus.

Rwanda
In 1959, three years before independence from Belgium, the
majority ethnic group, the Hutus, overthrew the ruling Tutsi king.
Over the next several years, thousands of Tutsis were killed, and
some 150,000 driven into exile in neighboring countries. The
children of these exiles later formed a rebel group, the Rwandan
Patriotic Front (RPF), and began a civil war in 1990. The war, along
with several political and economic upheavals, exacerbated ethnic
tensions, culminating in April 1994 in the genocide of roughly
800,000 Tutsis and moderate Hutus. The Tutsi rebels defeated the
Hutu regime and ended the killing in July 1994, but approximately 2
million Hutu refugees - many fearing Tutsi retribution - fled to
neighboring Burundi, Tanzania, Uganda, and Zaire. Since then, most
of the refugees have returned to Rwanda, but several thousand
remained in the neighboring Democratic Republic of the Congo (DRC;
the former Zaire) and formed an extremist insurgency bent on
retaking Rwanda, much as the RPF tried in 1990. Despite substantial
international assistance and political reforms - including Rwanda's
first local elections in March 1999 and its first post-genocide
presidential and legislative elections in August and September 2003
- the country continues to struggle to boost investment and
agricultural output, and ethnic reconciliation is complicated by the
real and perceived Tutsi political dominance. Kigali's increasing
centralization and intolerance of dissent, the nagging Hutu
extremist insurgency across the border, and Rwandan involvement in
two wars in recent years in the neighboring DRC continue to hinder
Rwanda's efforts to escape its bloody legacy.

Saint Barthelemy
Discovered in 1493 by Christopher COLUMBUS who
named it for his brother Bartolomeo, St. Barthelemy was first
settled by the French in 1648. In 1784, the French sold the island
to Sweden, who renamed the largest town Gustavia, after the Swedish
King GUSTAV III, and made it a free port; the island prospered as a
trade and supply center during the colonial wars of the 18th
century. France repurchased the island in 1878 and placed it under
the administration of Guadeloupe. St. Barthelemy retained its free
port status along with various Swedish appelations such as Swedish
street and town names, and the three-crown symbol on the coat of
arms. In 2003, the populace of the island voted to secede from
Guadeloupe and in 2007, the island became a French overseas
collectivity.

Saint Helena
Saint Helena is a British Overseas Territory consisting
of Saint Helena and Ascension Islands, and the island group of
Tristan da Cunha.
Saint Helena: Uninhabited when first discovered by the Portuguese in
1502, Saint Helena was garrisoned by the British during the 17th
century. It acquired fame as the place of Napoleon BONAPARTE's
exile, from 1815 until his death in 1821, but its importance as a
port of call declined after the opening of the Suez Canal in 1869.
During the Anglo-Boer War in South Africa, several thousand Boer
prisoners were confined on the island between 1900 and 1903.
Ascension Island: This barren and uninhabited island was discovered
and named by the Portuguese in 1503. The British garrisoned the
island in 1815 to prevent a rescue of Napoleon from Saint Helena and
it served as a provisioning station for the Royal Navy's West Africa
Squadron on anti-slavery patrol. The island remained under Admiralty
control until 1922, when it became a dependency of Saint Helena.
During World War II, the UK permitted the US to construct an
airfield on Ascension in support of trans-Atlantic flights to Africa
and anti-submarine operations in the South Atlantic. In the 1960s
the island became an important space tracking station for the US. In
1982, Ascension was an essential staging area for British forces
during the Falklands War, and it remains a critical refueling point
in the air-bridge from the UK to the South Atlantic.
Tristan da Cunha: The island group consists of the islands of
Tristan da Cunha, Nightingale, Inaccessible, and Gough. Tristan da
Cunha is named after its Portuguese discoverer (1506); it was
garrisoned by the British in 1816 to prevent any attempt to rescue
Napoleon from Saint Helena. Gough and Inaccessible Islands have been
designated World Heritage Sites. South Africa leases a site for a
meteorological station on Gough Island.

Saint Kitts and Nevis
First settled by the British in 1623, the
islands became an associated state with full internal autonomy in
1967. The island of Anguilla rebelled and was allowed to secede in
1971. Saint Kitts and Nevis achieved independence in 1983. In 1998,
a vote in Nevis on a referendum to separate from Saint Kitts fell
short of the two-thirds majority needed. Nevis continues in its
efforts to try and separate from Saint Kitts.

Saint Lucia
The island, with its fine natural harbor at Castries,
was contested between England and France throughout the 17th and
early 18th centuries (changing possession 14 times); it was finally
ceded to the UK in 1814. Even after the abolition of slavery on its
plantations in 1834, Saint Lucia remained an agricultural island,
dedicated to producing tropical commodity crops. Self-government was
granted in 1967 and independence in 1979.

Saint Martin
Although sighted by Christopher COLUMBUS in 1493 and
claimed for Spain, it was the Dutch who occupied the island in 1631
and set about exploiting its salt deposits. The Spanish retook the
island in 1633, but continued to be harassed by the Dutch. The
Spanish finally relinquished St. Martin to the French and Dutch, who
divided it amongst themselves in 1648. The cultivation of sugar cane
introduced slavery to the island in the late 18th century; the
practice was not abolished until 1848. The island became a free port
in 1939; the tourism industry was dramatically expanded during the
1970s and 1980s. In 2003, the populace of St. Martin voted to secede
from Guadeloupe and in 2007, the northern portion of the island
became a French overseas collectivity.

Saint Pierre and Miquelon
First settled by the French in the early
17th century, the islands represent the sole remaining vestige of
France's once vast North American possessions.

Saint Vincent and the Grenadines
Resistance by native Caribs
prevented colonization on St. Vincent until 1719. Disputed between
France and the United Kingdom for most of the 18th century, the
island was ceded to the latter in 1783. Between 1960 and 1962, Saint
Vincent and the Grenadines was a separate administrative unit of the
Federation of the West Indies. Autonomy was granted in 1969 and
independence in 1979.

Samoa
New Zealand occupied the German protectorate of Western Samoa
at the outbreak of World War I in 1914. It continued to administer
the islands as a mandate and then as a trust territory until 1962,
when the islands became the first Polynesian nation to reestablish
independence in the 20th century. The country dropped the "Western"
from its name in 1997.

San Marino
The third smallest state in Europe (after the Holy See
and Monaco), San Marino also claims to be the world's oldest
republic. According to tradition, it was founded by a Christian
stonemason named Marinus in A.D. 301. San Marino's foreign policy is
aligned with that of Italy; social and political trends in the
republic also track closely with those of its larger neighbor.

Sao Tome and Principe
Discovered and claimed by Portugal in the late
15th century, the islands' sugar-based economy gave way to coffee
and cocoa in the 19th century - all grown with plantation slave
labor, a form of which lingered into the 20th century. While
independence was achieved in 1975, democratic reforms were not
instituted until the late 1980s. The country held its first free
elections in 1991, but frequent internal wrangling between the
various political parties precipitated repeated changes in
leadership and two failed coup attempts in 1995 and 2003. The recent
discovery of oil in the Gulf of Guinea promises to attract increased
attention to the small island nation.

Saudi Arabia
Saudi Arabia is the birthplace of Islam and home to
Islam's two holiest shrines in Mecca and Medina. The king's official
title is the Custodian of the Two Holy Mosques. The modern Saudi
state was founded in 1932 by ABD AL-AZIZ bin Abd al-Rahman AL SAUD
(Ibn Saud) after a 30-year campaign to unify most of the Arabian
Peninsula. A male descendent of Ibn Saud, his son ABDALLAH bin Abd
al-Aziz, rules the country today as required by the country's 1992
Basic Law. Following Iraq's invasion of Kuwait in 1990, Saudi Arabia
accepted the Kuwaiti royal family and 400,000 refugees while
allowing Western and Arab troops to deploy on its soil for the
liberation of Kuwait the following year. The continuing presence of
foreign troops on Saudi soil after the liberation of Kuwait became a
source of tension between the royal family and the public until all
operational US troops left the country in 2003. Major terrorist
attacks in May and November 2003 spurred a strong on-going campaign
against domestic terrorism and extremism. King ABDALLAH has
continued the cautious reform program begun when he was crown
prince. To promote increased political participation, the government
held elections nationwide from February through April 2005 for half
the members of 179 municipal councils. In December 2005, King
ABDALLAH completed the process by appointing the remaining members
of the advisory municipal councils. The country remains a leading
producer of oil and natural gas and holds more than 20% of the
world's proven oil reserves. The government continues to pursue
economic reform and diversification, particularly since Saudi
Arabia's accession to the WTO in December 2005, and promotes foreign
investment in the kingdom. A burgeoning population, aquifer
depletion, and an economy largely dependent on petroleum output and
prices are all ongoing governmental concerns.

Senegal
The French colonies of Senegal and the French Sudan were
merged in 1959 and granted their independence as the Mali Federation
in 1960. The union broke up after only a few months. Senegal joined
with The Gambia to form the nominal confederation of Senegambia in
1982, but the envisaged integration of the two countries was never
carried out, and the union was dissolved in 1989. The Movement of
Democratic Forces in the Casamance (MFDC) has led a low-level
separatist insurgency in southern Senegal since the 1980s, and
several peace deals have failed to resolve the conflict.
Nevertheless, Senegal remains one of the most stable democracies in
Africa. Senegal was ruled by a Socialist Party for 40 years until
current President Abdoulaye WADE was elected in 2000. He was
reelected in February 2007, but complaints of fraud led opposition
parties to boycott June 2007 legislative polls. Senegal has a long
history of participating in international peacekeeping.