the oil sector ' s contribution to gdp to 9 percent by 2020. muscat is attempting to " omanize " the labor force by replacing foreign expatriate workers with local workers. oman actively seeks private foreign investors, especially in the industrial, information technology, tourism, and higher education fields. industrial development plans focus on gas resources, metal manufacturing, petrochemicals, and international transshipment ports. the pacific ocean is a major contributor to the world economy and particularly to those nations its waters directly touch. it provides low - cost sea transportation between east and west, extensive fishing grounds, offshore oil and gas fields, minerals, and sand and gravel for the construction industry. in 1996, over 60 % of the world ' s fish catch came from the pacific ocean. exploitation of offshore oil and gas reserves is playing an ever - increasing role in the energy supplies of the us, australia, nz, china, and peru. the high cost of recovering offshore oil and gas, combined with the wide swings in world prices for oil since 1985, has led to fluctuations in new drillings. pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring india. however, imf - approved government policies, bolstered by generous foreign assistance and renewed access to global markets since 2001, have generated solid macroeconomic recovery the last five years. the government has made substantial macroeconomic reforms since 2000, most notably privatizing the banking sector. poverty levels have decreased by 10 % since 2001, and islamabad has steadily raised development spending in recent years, including a 52 % real increase in the budget allocation for development in fy07, a necessary step toward reversing the broad underdevelopment of its social sector. the fiscal deficit - the result of chronically low tax collection and increased spending, including reconstruction costs from the october 2005 earthquake - appears manageable for now. gdp growth, spurred by gains in the industrial and service sectors, remained in the 6 - 8 % range in 2004 - 07. inflation remains the biggest threat to the economy, jumping to more than 9 % in 2005 before easing to 6. 9 % in 2007. the central bank is pursuing tighter monetary policy while trying to preserve growth. foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit - driven by a widening trade gap as import growth outstrips export expansion - could draw down reserves and dampen gdp


trying to preserve growth. foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit - driven by a widening trade gap as import growth outstrips export expansion - could draw down reserves and dampen gdp growth in the medium term. the economy consists primarily of tourism, subsistence agriculture, and fishing. the government is the major employer of the work force, relying heavily on financial assistance from the us. business and tourist arrivals numbered 63, 000 in 2003. the population enjoys a per capita income roughly 50 % higher than that of the philippines and much of micronesia. long - run prospects for the key tourist sector have been greatly bolstered by the expansion of air travel in the pacific, the rising prosperity of leading east asian countries, and the willingness of foreigners to finance infrastructure development. panama ' s dollarized economy rests primarily on a well - developed services sector that accounts for three - fourths of gdp. services include operating the panama canal, banking, the colon free zone, insurance, container ports, flagship registry, and tourism. economic growth will be bolstered by the panama canal expansion project that began in 2007 and should be completed by 2014 at a cost of $ 5. 3 billion ( about 30 % of current gdp ). the expansion project will more than double the canal ' s capacity, enabling it to accommodate ships that are now too large to transverse the transoceanic crossway and should help to reduce the high unemployment rate. the government has implemented tax reforms, as well as social security reforms, and backs regional trade agreements and development of tourism. not a cafta signatory, panama in december 2006 independently negotiated a free trade agreement with the us, which, when implemented, will help promote the country ' s economic growth. papua new guinea is richly endowed with natural resources, but exploitation has been hampered by rugged terrain and the high cost of developing infrastructure. agriculture provides a subsistence livelihood for 85 % of the population. mineral deposits, including copper, gold, and oil, account for nearly two - thirds of export earnings. the government of prime minister somare has expended much of its energy remaining in power. he was the first prime minister ever to serve a full five - year term. the government also brought stability to the national budget, largely through expenditure control ; however, it relaxed spending constraints in 2006 and 2007 as elections approached. numerous challenges still face the government including regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and


, largely through expenditure control ; however, it relaxed spending constraints in 2006 and 2007 as elections approached. numerous challenges still face the government including regaining investor confidence, restoring integrity to state institutions, promoting economic efficiency by privatizing moribund state institutions, and balancing relations with australia, its former colonial ruler. other socio - cultural challenges could upend the economy including a worsening hiv / aids epidemic and chronic law and order and land tenure issues. australia will supply more than $ 300 million in aid in fy07 / 08, which accounts for nearly 20 % of the national budget. landlocked paraguay has a market economy marked by a large informal sector. this sector features both reexport of imported consumer goods to neighboring countries, as well as the activities of thousands of microenterprises and urban street vendors. because of the importance of the informal sector, accurate economic measures are difficult to obtain. a large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis. on a per capita basis, real income has stagnated at 1980 levels. most observers attribute paraguay ' s poor economic performance to political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure. the economy rebounded between 2003 and 2007, posting modest growth each year. growing world demand for commodities combined with high prices and favorable weather to support paraguay ' s commodity - based export expansion. peru ' s economy reflects its varied geography - an arid coastal region, the andes further inland, and tropical lands bordering colombia and brazil. abundant mineral resources are found in the mountainous areas, and peru ' s coastal waters provide excellent fishing grounds. however, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and a lack of infrastructure deters trade and investment. after several years of inconsistent economic performance, the peruvian economy grew by more than 4 % per year during the period 2002 - 06, with a stable exchange rate and low inflation. growth jumped to 7. 5 % in 2007, driven by higher world prices for minerals and metals. risk premiums on peruvian bonds on secondary markets reached historically low levels in late 2004, reflecting investor optimism regarding the government ' s prudent fiscal policies and openness to trade and investment. despite the strong macroeconomic performance, underemployment and poverty have stayed persistently high. growth prospects depend on exports of minerals, textiles, and agricultural products, and by expectations for the camisea natural gas megaproject and for other promising energy projects.


. in 2007, gdp grew an estimated 6. 5 %, based on rising private consumption, a jump in corporate investment, and eu funds inflows. gdp per capita is still much below the eu average, but is similar to that of the three baltic states. since 2004, eu membership and access to eu structural funds have provided a major boost to the economy. unemployment is falling rapidly, though at roughly 11 % in december 2007, it remains well above the eu average. tightening labor markets, and rising global energy and food prices, pose a risk to consumer price stability. in december 2007 inflation reached 4. 1 % on a year - over - year basis, or higher than the upper limit of the national bank of poland ' s target range. poland ' s economic performance could improve further if the country addresses some of the remaining deficiencies in its business environment. an inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent low - level corruption keep the private sector from performing up to its full potential. rising demands to fund health care, education, and the state pension system present a challenge to the polish government ' s effort to hold the consolidated public sector budget deficit under 3. 0 % of gdp, a target which was achieved in 2007. the po / psl coalition government which came to power in november 2007 plans to further reduce the budget deficit with the aim of eventually adopting the euro. the new government has also announced its intention to enact business - friendly reforms, reduce public sector spending growth, lower taxes, and accelerate privatization. however, the government does not have the necessary two - thirds majority needed to override a presidential veto, and thus may have to water down initiatives in order to garner enough support to pass its pro - business policies. portugal has become a diversified and increasingly service - based economy since joining the european community in 1986. over the past two decades, successive governments have privatized many state - controlled firms and liberalized key areas of the economy, including the financial and telecommunications sectors. the country qualified for the european monetary union ( emu ) in 1998 and began circulating the euro on 1 january 2002 along with 11 other eu member economies. economic growth had been above the eu average for much of the 1990s, but fell back in 2001 - 07. gdp per capita stands at roughly two - thirds of the eu - 27 average. a poor educational system, in particular, has been an obstacle to greater productivity and growth. portugal has been increasingly overshadowed by lower - cost producers in


in 2001 - 07. gdp per capita stands at roughly two - thirds of the eu - 27 average. a poor educational system, in particular, has been an obstacle to greater productivity and growth. portugal has been increasingly overshadowed by lower - cost producers in central europe and asia as a target for foreign direct investment. the budget deficit surged to an all - time high of 6 % of gdp in 2005, but the government estimates it at 3 % in 2007 - a year ahead of portugal ' s targeted schedule - thanks partly to deficit - cutting efforts. nonetheless, the government faces tough choices in its attempts to boost portugal ' s economic competitiveness while keeping the budget deficit within the eurozone ' s 3 % - of - gdp ceiling. puerto rico has one of the most dynamic economies in the caribbean region. a diverse industrial sector has far surpassed agriculture as the primary locus of economic activity and income. encouraged by duty - free access to the us and by tax incentives, us firms have invested heavily in puerto rico since the 1950s. us minimum wage laws apply. sugar production has lost out to dairy production and other livestock products as the main source of income in the agricultural sector. tourism has traditionally been an important source of income, with estimated arrivals of nearly 5 million tourists in 2004. growth fell off in 2001 - 03, largely due to the slowdown in the us economy, recovered in 2004 - 05, but declined again in 2006 - 07. qatar is in the midst of an economic boom supported by its expanding production of natural gas and oil. economic policy is focused on development of qatar ' s nonassociated natural gas reserves and increasing private and foreign investment in non - energy sectors. oil and gas account for more than 60 % of gdp, roughly 85 % of export earnings, and 70 % of government revenues. oil and gas have made qatar one of the world ' s faster growing and higher per - capita income countries - equal to the eu in 2007 per - capita income. sustained high oil prices and increased natural gas exports in recent years have helped build qatar ' s budget and trade surpluses and foreign reserves. proved oil reserves of more than 15 billion barrels should ensure continued output at current levels for 22 years. qatar ' s proved reserves of natural gas are roughly 25 trillion cubic meters, about 15 % of the world total and third largest in the world. qatar has permitted substantial foreign investment in the development of its gas fields during the last decade and became the world ' s top liquefied natural gas ( lng ) exporter in 2007. romania, which


world total and third largest in the world. qatar has permitted substantial foreign investment in the development of its gas fields during the last decade and became the world ' s top liquefied natural gas ( lng ) exporter in 2007. romania, which joined the european union on 1 january 2007, began the transition from communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country ' s needs. the country emerged in 2000 from a punishing three - year recession thanks to strong demand in eu export markets. domestic consumption and investment have fueled strong gdp growth in recent years, but have led to large current account imbalances. romania ' s macroeconomic gains have only recently started to spur creation of a middle class and address romania ' s widespread poverty. corruption and red tape continue to handicap its business environment. inflation rose in 2007 for the first time in eight years, driven in part by the depreciation of the currency, rising energy costs, a nation - wide drought affecting food prices, and a relaxation of fiscal discipline. romania hopes to adopt the euro by 2014. russia ended 2007 with its ninth straight year of growth, averaging 7 % annually since the financial crisis of 1998. although high oil prices and a relatively cheap ruble initially drove this growth, since 2003 consumer demand and, more recently, investment have played a significant role. over the last six years, fixed capital investments have averaged real gains greater than 10 % per year and personal incomes have achieved real gains more than 12 % per year. during this time, poverty has declined steadily and the middle class has continued to expand. russia has also improved its international financial position since the 1998 financial crisis. the federal budget has run surpluses since 2001 and ended 2007 with a surplus of about 3 % of gdp. over the past several years, russia has used its stabilization fund based on oil taxes to prepay all soviet - era sovereign debt to paris club creditors and the imf. foreign debt is approximately one - third of gdp. the state component of foreign debt has declined, but commercial debt to foreigners has risen strongly. oil export earnings have allowed russia to increase its foreign reserves from $ 12 billion in 1999 to some $ 470 billion at yearend 2007, the third largest reserves in the world. during putin ' s first administration, a number of important reforms were implemented in the areas of tax, banking, labor, and land codes. these achievements have raised business and investor confidence in russia ' s economic prospects, with foreign direct investment rising from $ 14. 6 billion


first administration, a number of important reforms were implemented in the areas of tax, banking, labor, and land codes. these achievements have raised business and investor confidence in russia ' s economic prospects, with foreign direct investment rising from $ 14. 6 billion in 2005 to approximately $ 45 billion in 2007. in 2007, russia ' s gdp grew 7. 6 %, led by non - tradable services and goods for the domestic market, as opposed to oil or mineral extraction and exports. rising inflation returned in the second half of 2007, driven largely by unsterilized capital inflows and by rising food costs, and approached 12 % by year - end. in 2006, russia signed a bilateral market access agreement with the us as a prelude to possible wto entry, and its companies are involved in global merger and acquisition activity in the oil and gas, metals, and telecom sectors. despite russia ' s recent success, serious problems persist. oil, natural gas, metals, and timber account for more than 80 % of exports and 30 % of government revenues, leaving the country vulnerable to swings in world commodity prices. russia ' s manufacturing base is dilapidated and must be replaced or modernized if the country is to achieve broad - based economic growth. the banking system, while increasing consumer lending and growing at a high rate, is still small relative to the banking sectors of russia ' s emerging market peers. political uncertainties associated with this year ' s power transition, corruption, and lack of trust in institutions continue to dampen domestic and foreign investor sentiment. president putin has granted more influence to forces within his government that desire to reassert state control over the economy. russia has made little progress in building the rule of law, the bedrock of a modern market economy. the government has promised additional legislative amendments to make its intellectual property protection wto - consistent, but enforcement remains problematic. rwanda is a poor rural country with about 90 % of the population engaged in ( mainly subsistence ) agriculture. it is the most densely populated country in africa and is landlocked with few natural resources and minimal industry. primary foreign exchange earners are coffee and tea. the 1994 genocide decimated rwanda ' s fragile economic base, severely impoverished the population, particularly women, and eroded the country ' s ability to attract private and external investment. however, rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre - 1994 levels, although poverty levels are higher now. gdp has rebounded and inflation has been curbed. despite rwanda ' s fertile ecosystem


investment. however, rwanda has made substantial progress in stabilizing and rehabilitating its economy to pre - 1994 levels, although poverty levels are higher now. gdp has rebounded and inflation has been curbed. despite rwanda ' s fertile ecosystem, food production often does not keep pace with population growth, requiring food imports. rwanda continues to receive substantial aid money and obtained imf - world bank heavily indebted poor country ( hipc ) initiative debt relief in 2005 - 06. rwanda also received millennium challenge account threshold status in 2006. the government has embraced an expansionary fiscal policy to reduce poverty by improving education, infrastructure, and foreign and domestic investment and pursuing market - oriented reforms, although energy shortages, instability in neighboring states, and lack of adequate transportation linkages to other countries continue to handicap growth. the economy of saint barthelemy is based upon high - end tourism and duty - free luxury commerce, serving visitors primarily from north america. the luxury hotels and villas host 70, 000 visitors each year with another 130, 000 arriving by boat. the relative isolation and high cost of living inhibits mass tourism. the construction and public sectors also enjoy significant investment in support of tourism. with limited fresh water resources, all food must be imported, as must all energy resources and most manufactured goods. employment is strong and attracts labor from brazil and portugal. the economy depends largely on financial assistance from the uk, which will amount to about $ 27 million in fy06 / 07 or almost 70 % of annual budgetary revenues. the local population earns income from fishing, raising livestock, and sales of handicrafts. because there are few jobs, 25 % of the work force has left to seek employment on ascension island, on the falklands, and in the uk. sugar was the traditional mainstay of the saint kitts economy until the 1970s. following the 2005 harvest, the government closed the sugar industry after decades of losses of 3 - 4 % of gdp annually. to compensate for employment losses, the government has embarked on a program to diversify the agricultural sector and to stimulate other sectors of the economy. activities such as tourism, export - oriented manufacturing, and offshore banking have assumed larger roles in the economy and have contributed to the recent robust growth. tourism revenues are now the chief source of the islands ' foreign exchange ; about 341, 800 tourists visited nevis in 2005. the current government is constrained by a high debt burden, public debt reached 190 % of gdp by the end of 2005, largely attributable to


chief source of the islands ' foreign exchange ; about 341, 800 tourists visited nevis in 2005. the current government is constrained by a high debt burden, public debt reached 190 % of gdp by the end of 2005, largely attributable to public enterprise losses. the island nation has been able to attract foreign business and investment, especially in its offshore banking and tourism industries, with a surge in foreign direct investment in 2006, attributed to the construction of several tourism projects. tourism is the main source of foreign exchange, with more than 700, 000 arrivals in 2005. the manufacturing sector is the most diverse in the eastern caribbean area, and the government is trying to revitalize the banana industry. saint lucia is vulnerable to a variety of external shocks including declines in european union banana preferences, volatile tourism receipts, natural disasters, and dependence on foreign oil. high debt servicing obligations constrain the king administration ' s ability to respond to adverse external shocks. economic fundamentals remain solid, even though unemployment needs to be reduced. the economy of saint martin centers around tourism with 85 % of the labor force engaged in this sector. over one million visitors come to the island each year with most arriving through the princess juliana international airport in sint maarten. no significant agriculture and limited local fishing means that almost all food must be imported. energy resources and manufactured goods are also imported, primarily from mexico and the united states. saint martin is reported to have the highest per capita income in the caribbean. the inhabitants have traditionally earned their livelihood by fishing and by servicing fishing fleets operating off the coast of newfoundland. the economy has been declining, however, because of disputes with canada over fishing quotas and a steady decline in the number of ships stopping at saint pierre. in 1992, an arbitration panel awarded the islands an exclusive economic zone of 12, 348 sq km to settle a longstanding territorial dispute with canada, although it represents only 25 % of what france had sought. france heavily subsidizes the islands to the great betterment of living standards. the government hopes an expansion of tourism will boost economic prospects. fish farming, crab fishing, and agriculture are being developed to diversify the local economy. recent test drilling for oil may pave the way for development of the energy sector. economic growth slowed slightly in 2007 after reaching a 10 year high of nearly 7 % in 2006, but is expected to remain robust, hinging upon seasonal variations in the agricultural and tourism sectors and a recent increase in construction activity. this lower - middle - income country is vulnerable to


2007 after reaching a 10 year high of nearly 7 % in 2006, but is expected to remain robust, hinging upon seasonal variations in the agricultural and tourism sectors and a recent increase in construction activity. this lower - middle - income country is vulnerable to natural disasters - tropical storms wiped out substantial portions of crops in 1994, 1995, and 2002. in 2005, the islands had more than 160, 000 tourist arrivals, mostly to the grenadines. saint vincent is home to a small offshore banking sector and has moved to adopt international regulatory standards. the government ' s ability to invest in social programs and respond to external shocks is constrained by its high debt burden - 25 percent of current revenues are directed towards debt servicing. the economy of samoa has traditionally been dependent on development aid, family remittances from overseas, agriculture, and fishing. the country is vulnerable to devastating storms. agriculture employs two - thirds of the labor force and furnishes 90 % of exports, featuring coconut cream, coconut oil, and copra. the fish catch declined during the el nino of 2002 - 03 but returned to normal by mid - 2005. the manufacturing sector mainly processes agricultural products. one factory in the foreign trade zone employs 3, 000 people to make automobile electrical harnesses for an assembly plant in australia. tourism is an expanding sector, accounting for 25 % of gdp ; about 100, 000 tourists visited the islands in 2005. the samoan government has called for deregulation of the financial sector, encouragement of investment, and continued fiscal discipline, while at the same time protecting the environment. observers point to the flexibility of the labor market as a basic strength for future economic advances. foreign reserves are in a relatively healthy state, the external debt is stable, and inflation is low. the tourist sector contributes over 50 % of gdp. in 2006 more than 2. 1 million tourists visited san marino. the key industries are banking, clothing and apparel, electronics, and ceramics. main agricultural products are wine and cheeses. the per capita level of output and standard of living are comparable to those of the most prosperous regions of italy, which supplies much of its food. this small, poor island economy has become increasingly dependent on cocoa since independence in 1975. cocoa production has substantially declined in recent years because of drought and mismanagement. sao tome has to import all fuels, most manufactured goods, consumer goods, and a substantial amount of food. over the years, it has had difficulty servicing its external debt and has relied heavily on concessional aid and debt rescheduling


lacks the education and technical skills the private sector needs. riyadh has substantially boosted spending on job training and education, infrastructure development, and government salaries. as part of its effort to attract foreign investment and diversify the economy, saudi arabia acceded to the wto in december 2005 after many years of negotiations. the government has announced plans to establish six " economic cities " in different regions of the country to promote development and diversification. in january 1994, senegal undertook a bold and ambitious economic reform program with the support of the international donor community. this reform began with a 50 % devaluation of senegal ' s currency, the cfa franc, which was linked at a fixed rate to the french franc. government price controls and subsidies have been steadily dismantled. after seeing its economy contract by 2. 1 % in 1993, senegal made an important turnaround, thanks to the reform program, with real growth in gdp averaging over 5 % annually during 1995 - 2007. annual inflation had been pushed down to the low single digits. as a member of the west african economic and monetary union ( waemu ), senegal is working toward greater regional integration with a unified external tariff and a more stable monetary policy. high unemployment, however, continues to prompt illegal migrants to flee senegal in search of better job opportunities in europe. senegal was also beset by an energy crisis that caused widespread blackouts in 2006 and 2007. the phosphate industry has struggled for two years to secure capital, and reduced output has directly impacted gdp. in 2007, senegal signed agreements for major new mining concessions for iron, zircon, and gold with foreign companies. firms from dubai have agreed to manage and modernize dakar ' s maritime port, and create a new special economic zone. senegal still relies heavily upon outside donor assistance. under the imf ' s highly indebted poor countries ( hipc ) debt relief program, senegal has benefited from eradication of two - thirds of its bilateral, multilateral, and private - sector debt. in 2007, senegal and the imf agreed to a new, non - disbursing, policy support initiative program. milosevic - era mismanagement of the economy, an extended period of economic sanctions, and the damage to yugoslavia ' s infrastructure and industry during the nato airstrikes in 1999 left the economy only half the size it was in 1990. after the ousting of former federal yugoslav president milosevic in october 2000, the democratic opposition of serbia ( dos ) coalition government implemented stabilization measures and embarked on a market


and tuna sectors, but resumed in 2005 - 07. real gdp grew by 5. 8 % in 2007, driven by tourism and a boom in tourism - related construction. the seychelles rupee was allowed to depreciate in 2006 after being overvalued for years and fell by 10 % in the first 9 months of 2007. sierra leone is an extremely poor nation with tremendous inequality in income distribution. while it possesses substantial mineral, agricultural, and fishery resources, its physical and social infrastructure is not well developed, and serious social disorders continue to hamper economic development. nearly half of the working - age population engages in subsistence agriculture. manufacturing consists mainly of the processing of raw materials and of light manufacturing for the domestic market. alluvial diamond mining remains the major source of hard currency earnings accounting for nearly half of sierra leone ' s exports. the fate of the economy depends upon the maintenance of domestic peace and the continued receipt of substantial aid from abroad, which is essential to offset the severe trade imbalance and supplement government revenues. the imf has completed a poverty reduction and growth facility program that helped stabilize economic growth and reduce inflation. a recent increase in political stability has led to a revival of economic activity such as the rehabilitation of bauxite and rutile mining. singapore has a highly developed and successful free - market economy. it enjoys a remarkably open and corruption - free environment, stable prices, and a per capita gdp equal to that of the four largest west european countries. the economy depends heavily on exports, particularly in consumer electronics and information technology products. it was hard hit from 2001 - 03 by the global recession, by the slump in the technology sector, and by an outbreak of severe acute respiratory syndrome ( sars ) in 2003, which curbed tourism and consumer spending. fiscal stimulus, low interest rates, a surge in exports, and internal flexibility led to vigorous growth in 2004 - 07 with real gdp growth averaging 7 % annually. the government hopes to establish a new growth path that will be less vulnerable to the global demand cycle for information technology products - it has attracted major investments in pharmaceuticals and medical technology production - and will continue efforts to establish singapore as southeast asia ' s financial and high - tech hub. slovakia has mastered much of the difficult transition from a centrally planned economy to a modern market economy. the dzurinda government made excellent progress during 2001 - 04 in macroeconomic stabilization and structural reform. major privatizations are nearly complete, the banking sector is almost completely in foreign hands, and the government has helped facilitate a foreign investment boom


economy. the dzurinda government made excellent progress during 2001 - 04 in macroeconomic stabilization and structural reform. major privatizations are nearly complete, the banking sector is almost completely in foreign hands, and the government has helped facilitate a foreign investment boom with business friendly policies such as labor market liberalization and a 19 % flat tax. foreign investment in the automotive sector has been strong. slovakia ' s economic growth exceeded expectations in 2001 - 07 despite the general european slowdown. unemployment, at an unacceptable 18 % in 2003 - 04, dropped to 8. 6 % in 2007 but remains the economy ' s achilles heel. slovakia joined the eu on 1 may 2004 and will be the second of the new eu member states to adopt the euro in 2009 if it continues to meet euro adoption criteria in 2008. despite its 2006 pre - election promises to loosen fiscal policy and reverse the previous dzurinda government ' s pro - market reforms, fico ' s cabinet has thus far been careful to keep a lid on spending in order to meet euro adoption criteria. the fico government is pursuing a state - interventionist economic policy, however, and has pushed to regulate energy and food prices. slovenia, which on 1 january 2007 became the first 2004 european union entrant to adopt the euro, is a model of economic success and stability for the region. with the highest per capita gdp in central europe, slovenia has excellent infrastructure, a well - educated work force, and a strategic location between the balkans and western europe. privatization has lagged since 2002, and the economy has one of highest levels of state control in the eu. structural reforms to improve the business environment have allowed for somewhat greater foreign participation in slovenia ' s economy and have helped to lower unemployment. in march 2004, slovenia became the first transition country to graduate from borrower status to donor partner at the world bank. in december 2007, slovenia was invited to begin the accession process for joining the oecd. despite its economic success, foreign direct investment ( fdi ) in slovenia has lagged behind the region average, and taxes remain relatively high. furthermore, the labor market is often seen as inflexible, and legacy industries are losing sales to more competitive firms in china, india, and elsewhere. the bulk of the population depends on agriculture, fishing, and forestry for at least part of its livelihood. most manufactured goods and petroleum products must be imported. the islands are rich in undeveloped mineral resources such as lead, zinc, nickel, and gold. prior to the arrival of the regional assistance


, fishing, and forestry for at least part of its livelihood. most manufactured goods and petroleum products must be imported. the islands are rich in undeveloped mineral resources such as lead, zinc, nickel, and gold. prior to the arrival of the regional assistance mission to the solomon islands ( ramsi ), severe ethnic violence, the closing of key businesses, and an empty government treasury culminated in economic collapse. ramsi ' s efforts to restore law and order and economic stability have led to modest growth as the economy rebuilds. despite the lack of effective national governance, somalia has maintained a healthy informal economy, largely based on livestock, remittance / money transfer companies, and telecommunications. agriculture is the most important sector, with livestock normally accounting for about 40 % of gdp and about 65 % of export earnings. nomads and semi - pastoralists, who are dependent upon livestock for their livelihood, make up a large portion of the population. livestock, hides, fish, charcoal, and bananas are somalia ' s principal exports, while sugar, sorghum, corn, qat, and machined goods are the principal imports. somalia ' s small industrial sector, based on the processing of agricultural products, has largely been looted and sold as scrap metal. somalia ' s service sector also has grown. telecommunication firms provide wireless services in most major cities and offer the lowest international call rates on the continent. in the absence of a formal banking sector, money exchange services have sprouted throughout the country, handling between $ 500 million and $ 1 billion in remittances annually. mogadishu ' s main market offers a variety of goods from food to the newest electronic gadgets. hotels continue to operate and are supported with private - security militias. somalia ' s arrears to the imf continued to grow in 2006 - 07. statistics on somalia ' s gdp, growth, per capita income, and inflation should be viewed skeptically. in late december 2004, a major tsunami caused an estimated 150 deaths and resulted in destruction of property in coastal areas. south africa is a middle - income, emerging market with an abundant supply of natural resources ; well - developed financial, legal, communications, energy, and transport sectors ; a stock exchange that is 17th largest in the world ; and modern infrastructure supporting an efficient distribution of goods to major urban centers throughout the region. growth has been robust since 2004, as south africa has reaped the benefits of macroeconomic stability and a global commodities boom. however, unemployment remains high and outdated infrastructure has constrained growth. at


distribution of goods to major urban centers throughout the region. growth has been robust since 2004, as south africa has reaped the benefits of macroeconomic stability and a global commodities boom. however, unemployment remains high and outdated infrastructure has constrained growth. at the end of 2007, south africa began to experience an electricity crisis because state power supplier eskom suffered supply problems with aged plants, necessitating " load - shedding " cuts to residents and businesses in the major cities. daunting economic problems remain from the apartheid era - especially poverty, lack of economic empowerment among the disadvantaged groups, and a shortage of public transportation. south african economic policy is fiscally conservative but pragmatic, focusing on controlling inflation, maintaining a budget surplus, and using state - owned enterprises to deliver basic services to low - income areas as a means to increase job growth and household income. some fishing takes place in adjacent waters. there is a potential source of income from harvesting finfish and krill. the islands receive income from postage stamps produced in the uk, sale of fishing licenses, and harbor and landing fees from tourist vessels. tourism from specialized cruise ships is increasing rapidly. fisheries in 2003 - 04 landed 136, 262 metric tons, of which 87 % ( 118, 166 tons ) was krill and 8 % ( 11, 182 tons ) patagonian toothfish, compared to 142, 555 tons in 2002 - 03 of which 83 % ( 117, 728 tons ) was krill and 12 % ( 16, 479 tons ) patagonian toothfish ( estimated fishing from the area covered by the convention of the conservation of antarctic marine living resources ( ccamlr ), which extends slightly beyond the southern ocean area ). international agreements were adopted in late 1999 to reduce illegal, unreported, and unregulated fishing, which in the 2000 - 01 season landed, by one estimate, 8, 376 metric tons of patagonian and antarctic toothfish. in the 2004 - 05 antarctic summer, 28, 202 tourists, most of them seaborne ( approximately 97 % ), visited the southern ocean and antarctica, compared to 14, 762 in 1999 - 2000. the spanish economy boomed from 1986 to 1990 averaging 5 % annual growth. after a european - wide recession in the early 1990s, the spanish economy resumed moderate growth starting in 1994. spain ' s mixed capitalist economy supports a gdp that on a per capita basis is equal to that of the leading west european economies. the center - right government of former president jose maria aznar


1990s, the spanish economy resumed moderate growth starting in 1994. spain ' s mixed capitalist economy supports a gdp that on a per capita basis is equal to that of the leading west european economies. the center - right government of former president jose maria aznar successfully worked to gain admission to the first group of countries launching the european single currency ( the euro ) on 1 january 1999. the aznar administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. unemployment fell steadily under the aznar administration but remains high at 7. 6 %. growth averaging more than 3 % annually during 2003 - 07 was satisfactory given the background of a faltering european economy. the socialist president, rodriguez zapatero, has made mixed progress in carrying out key structural reforms, which need to be accelerated and deepened to sustain spain ' s economic growth. despite the economy ' s relative solid footing significant downside risks remain including spain ' s continued loss of competitiveness, the potential for a housing market collapse, the country ' s changing demographic profile, and a decline in eu structural funds. economic activity is limited to commercial fishing. the proximity to nearby oil - and gas - producing sedimentary basins suggests the potential for oil and gas deposits, but the region is largely unexplored. there are no reliable estimates of potential reserves. commercial exploitation has yet to be developed. in 1977, colombo abandoned statist economic policies and its import substitution trade policy for more market - oriented policies, export - oriented trade, and encouragement of foreign investment. recent changes in government, however, have brought some policy reversals. currently, the ruling sri lanka freedom party has a more statist economic approach, which seeks to reduce poverty by steering investment to disadvantaged areas, developing small and medium enterprises, promoting agriculture, and expanding the already enormous civil service. the government has halted privatizations. although suffering a brutal civil war that began in 1983, sri lanka saw gdp growth average 4. 5 % in the last 10 years with the exception of a recession in 2001. in late december 2004, a major tsunami took about 31, 000 lives, left more than 6, 300 missing and 443, 000 displaced, and destroyed an estimated $ 1. 5 billion worth of property. government spending and reconstruction drove growth to more than 7 % in 2006 but reduced agriculture output probably slowed growth to about 6 percent in 2007. government spending and lose monetary policy drove inflation to 16 % in 2007. sri lanka ' s most dynamic sectors now are food processing, textiles


drove growth to more than 7 % in 2006 but reduced agriculture output probably slowed growth to about 6 percent in 2007. government spending and lose monetary policy drove inflation to 16 % in 2007. sri lanka ' s most dynamic sectors now are food processing, textiles and apparel, food and beverages, port construction, telecommunications, and insurance and banking. in 2006, plantation crops made up only about 15 % of exports ( compared with more than 90 % in 1970 ), while textiles and garments accounted for more than 60 %. about 800, 000 sri lankans work abroad, 90 % of them in the middle east. they send home more than $ 1 billion a year. the struggle by the tamil tigers of the north and east for an independent homeland continues to cast a shadow over the economy. sudan ' s economy is booming on the back of increases in oil production, high oil prices, and large inflows of foreign direct investment. gdp growth registered more than 10 % per year in 2006 and 2007. from 1997 to date, sudan has been working with the imf to implement macroeconomic reforms, including a managed float of the exchange rate. sudan began exporting crude oil in the last quarter of 1999. agricultural production remains important, because it employs 80 % of the work force and contributes a third of gdp. the darfur conflict, the aftermath of two decades of civil war in the south, the lack of basic infrastructure in large areas, and a reliance by much of the population on subsistence agriculture ensure much of the population will remain at or below the poverty line for years despite rapid rises in average per capita income. in january 2007, the government introduced a new currency, the sudanese pound, at an initial exchange rate of $ 1. 00 equals 2 sudanese pounds. the economy is dominated by the mining industry, with exports of alumina, gold, and oil accounting for about 55 % of gdp, 85 % of exports, and 25 % of government revenues, making the economy highly vulnerable to mineral price volatility. the short - term economic outlook depends on the government ' s ability to control inflation and on the development of projects in the bauxite and gold mining sectors. suriname ' s economic prospects for the medium term will depend on continued commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalize markets and promote competition. in 2000, the government of ronald venetiaan, returned to office and inherited an economy with inflation of over 100 % and a growing fiscal deficit. he quickly implemented an austerity program, raised


reforms to liberalize markets and promote competition. in 2000, the government of ronald venetiaan, returned to office and inherited an economy with inflation of over 100 % and a growing fiscal deficit. he quickly implemented an austerity program, raised taxes, attempted to control spending, and tamed inflation. these economic policies are likely to remain in effect during venetiaan ' s third term. prospects for local onshore oil production are good as a drilling program is underway. offshore oil drilling was given a boost in 2004 when the state oil company ( staatsolie ) signed exploration agreements with repsol, maersk, and occidental. bidding on these new offshore blocks was completed in july 2006. coal mining is the major economic activity on svalbard. the treaty of 9 february 1920 gave the 41 signatories equal rights to exploit mineral deposits, subject to norwegian regulation. although us, uk, dutch, and swedish coal companies have mined in the past, the only companies still mining are norwegian and russian. the settlements on svalbard are essentially company towns. the norwegian state - owned coal company employs nearly 60 % of the norwegian population on the island, runs many of the local services, and provides most of the local infrastructure. there is also some hunting of seal, reindeer, and fox. in this small, landlocked economy, subsistence agriculture occupies approximately 70 % of the population. the manufacturing sector has diversified since the mid - 1980s. sugar and wood pulp remain important foreign exchange earners. in 2007, the sugar industry increased efficiency and diversification efforts, in response to a 17 % decline in eu sugar prices. mining has declined in importance in recent years with only coal and quarry stone mines remaining active. surrounded by south africa, except for a short border with mozambique, swaziland is heavily dependent on south africa from which it receives more than nine - tenths of its imports and to which it sends 60 % of its exports. swaziland ' s currency is pegged to the south african rand, subsuming swaziland ' s monetary policy to south africa. customs duties from the southern african customs union, which may equal as much as 70 % of government revenue this year, and worker remittances from south africa substantially supplement domestically earned income. swaziland is not poor enough to merit an imf program ; however, the country is struggling to reduce the size of the civil service and control costs at public enterprises. the government is trying to improve the atmosphere for foreign investment. with


income. swaziland is not poor enough to merit an imf program ; however, the country is struggling to reduce the size of the civil service and control costs at public enterprises. the government is trying to improve the atmosphere for foreign investment. with an estimated 40 % unemployment rate, swaziland ' s need to increase the number and size of small and medium enterprises and attract foreign direct investment is acute. overgrazing, soil depletion, drought, and sometimes floods persist as problems for the future. more than one - fourth of the population needed emergency food aid in 2006 - 07 because of drought, and nearly two - fifths of the adult population has been infected by hiv / aids. aided by peace and neutrality for the whole of the 20th century, sweden has achieved an enviable standard of living under a mixed system of high - tech capitalism and extensive welfare benefits. it has a modern distribution system, excellent internal and external communications, and a skilled labor force. timber, hydropower, and iron ore constitute the resource base of an economy heavily oriented toward foreign trade. privately owned firms account for about 90 % of industrial output, of which the engineering sector accounts for 50 % of output and exports. agriculture accounts for only 1 % of gdp and 2 % of employment. sweden is in the midst of a sustained economic upswing, boosted by increased domestic demand and strong exports. this and robust finances have offered the center - right government considerable scope to implement its reform program aimed at increasing employment, reducing welfare dependence, and streamlining the state ' s role in the economy. the govenment plans to sell $ 31 billion in state assets during the next three years to further stimulate growth and raise revenue to pay down the federal debt. in september 2003, swedish voters turned down entry into the euro system concerned about the impact on the economy and sovereignty. switzerland is a peaceful, prosperous, and stable modern market economy with low unemployment, a highly skilled labor force, and a per capita gdp larger than that of the big western european economies. the swiss in recent years have brought their economic practices largely into conformity with the eu ' s to enhance their international competitiveness. switzerland remains a safehaven for investors, because it has maintained a degree of bank secrecy and has kept up the franc ' s long - term external value. reflecting the anemic economic conditions of europe, gdp growth stagnated during the 2001 - 03 period, improved during 2004 - 05, and jumped to 2. 9 % in 2006, and 2. 6 % in


long - term external value. reflecting the anemic economic conditions of europe, gdp growth stagnated during the 2001 - 03 period, improved during 2004 - 05, and jumped to 2. 9 % in 2006, and 2. 6 % in 2007. unemployment has remained at less than half the eu average. the syrian economy grew by an estimated 3. 5 % in real terms in 2007 led by the petroleum and agricultural sectors, which together account for about one - half of gdp. higher crude oil prices countered declining oil production and led to higher budgetary and export receipts. damascus has implemented modest economic reforms in the past few years, including cutting lending interest rates, opening private banks, consolidating all of the multiple exchange rates, raising prices on some subsidized items, most notably, gasoline and cement, and establishing the damascus stock exchange - which is set to begin operations in 2008. in october 2007, for example, damascus raised the price of subsidized gasoline by 20 %, and may institute a rationing system in 2008. in addition, president asad signed legislative decrees to encourage corporate ownership reform, and to allow the central bank to issue treasury bills and bonds for government debt. nevertheless, the economy remains highly controlled by the government. long - run economic constraints include declining oil production, high unemployment and inflation, rising budget deficits, and increasing pressure on water supplies caused by heavy use in agriculture, rapid population growth, industrial expansion, and water pollution. taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by the authorities. in keeping with this trend, some large, state - owned banks and industrial firms are being privatized. exports have provided the primary impetus for industrialization. the island runs a large trade surplus, and its foreign reserves are among the world ' s largest. despite restrictions on cross - strait links, china has overtaken the us to become taiwan ' s largest export market and its second - largest source of imports after japan. china is also the island ' s number one destination for foreign direct investment. strong trade performance in 2007 pushed taiwan ' s gdp growth rate above 5 %, and unemployment is below 4 %. tajikistan has one of the lowest per capita gdps among the 15 former soviet republics. only 7 % of the land area is arable ; cotton is the most important crop. mineral resources include silver, gold, uranium, and tungsten. industry consists only of a large aluminum plant, hydropower facilities, and small obsolete factories mostly in light industry and food


the land area is arable ; cotton is the most important crop. mineral resources include silver, gold, uranium, and tungsten. industry consists only of a large aluminum plant, hydropower facilities, and small obsolete factories mostly in light industry and food processing. the civil war ( 1992 - 97 ) severely damaged the already weak economic infrastructure and caused a sharp decline in industrial and agricultural production. while tajikistan has experienced steady economic growth since 1997, nearly two - thirds of the population continues to live in abject poverty. economic growth reached 10. 6 % in 2004, but dropped to 8 % in 2005, 7 % in 2006, and 7. 2 % in 2007. tajikistan ' s economic situation remains fragile due to uneven implementation of structural reforms, weak governance, widespread unemployment, and the external debt burden. continued privatization of medium and large state - owned enterprises could increase productivity. a debt restructuring agreement was reached with russia in december 2002 including a $ 250 million write - off of tajikistan ' s $ 300 million debt. tajikistan ranks third in the world in terms of water resources per head. russian investment in the sangtuda i hydropower dam, set to go online late 2007 or early 2008, will increase production of electricity for domestic consumption. the completion of sangtuda ii and rogun dams would substantially add to electricity output, which could also be exported for profit. if finished, rogun will be the world ' s tallest dam. tajikistan was also the recipient of substantial infrastructure development credits from the shanghai cooperation organization to improve roads and an electricity transmission network. to help increase north - south trade, the us funded a $ 36 million bridge which opened in august 2007 and links tajikistan and afghanistan. tanzania is one of the poorest countries in the world. the economy depends heavily on agriculture, which accounts for more than 40 % of gdp, provides 85 % of exports, and employs 80 % of the work force. topography and climatic conditions, however, limit cultivated crops to only 4 % of the land area. industry traditionally featured the processing of agricultural products and light consumer goods. the world bank, the imf, and bilateral donors have provided funds to rehabilitate tanzania ' s out - of - date economic infrastructure and to alleviate poverty. long - term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals led by gold. recent banking reforms have helped increase private - sector growth and investment. continued donor assistance and solid macroeconomic policies supported real gdp growth of nearly 7 % in 2007. with a well - developed infrastructure, a


substantial increase in output of minerals led by gold. recent banking reforms have helped increase private - sector growth and investment. continued donor assistance and solid macroeconomic policies supported real gdp growth of nearly 7 % in 2007. with a well - developed infrastructure, a free - enterprise economy, and generally pro - investment policies, thailand appears to have fully recovered from the 1997 - 98 asian financial crisis. the country was one of east asia ' s best performers from 2002 - 04. boosted by strong export growth, the thai economy grew 4. 5 % in 2007. bangkok has pursued preferential trade agreements with a variety of partners in an effort to boost exports and to maintain high growth. by 2007, the tourism sector had largely recovered from the major 2004 tsunami. following the military coup in september 2006, investment and consumer confidence stagnated due to the uncertain political climate that lasted through the december 2007 elections. foreign investor sentiment was further tempered by a 30 % reserve requirement on capital inflows instituted in december 2006, and discussion of amending thailand ' s rules governing foreign - owned businesses. economic growth in 2007 was due almost entirely to robust export performance - despite the pressure of an appreciating currency. exports have performed at record levels, rising nearly 17 % in 2006 and 12 % in 2007. export - oriented manufacturing - in particular automobile production - and farm output are driving these gains. in late 1999, about 70 % of the economic infrastructure of timor - leste was laid waste by indonesian troops and anti - independence militias. three hundred thousand people fled westward. over the next three years a massive international program, manned by 5, 000 peacekeepers ( 8, 000 at peak ) and 1, 300 police officers, led to substantial reconstruction in both urban and rural areas. by the end of 2005, refugees had returned or had settled in indonesia. the country continues to face great challenges in rebuilding its infrastructure, strengthening the civil administration, and generating jobs for young people entering the work force. the development of oil and gas resources in offshore waters has begun to supplement government revenues ahead of schedule and above expectations - the result of high petroleum prices. the technology - intensive industry, however, has done little to create jobs for the unemployed because there are no production facilities in timor. gas is piped to australia. in june 2005 the national parliament unanimously approved the creation of a petroleum fund to serve as a repository for all petroleum revenues and preserve the value of timor - leste ' s petroleum wealth for future generations. the fund held assets of us $ 1. 8 billion as of


the national parliament unanimously approved the creation of a petroleum fund to serve as a repository for all petroleum revenues and preserve the value of timor - leste ' s petroleum wealth for future generations. the fund held assets of us $ 1. 8 billion as of september 2007. the mid - 2006 outbreak of violence and civil unrest disrupted both private and public sector economic activity and created 100, 000 internally displaced persons - about 10 percent of the population. while real non - oil gdp growth in 2006 was negative, the economy probably rebounded in 2007. the underlying economic policy challenge the country faces remains how best to use oil - and - gas wealth to lift the non - oil economy onto a higher growth path and reduce poverty. in late 2007, the new government announced plans aimed at increasing spending, reducing poverty, and improving the country ' s infrastructure, but it continues to face capacity constraints. in the short term, the government must also address continuing problems related to the crisis of 2006, especially the displaced timorese. this small, sub - saharan economy is heavily dependent on both commercial and subsistence agriculture, which provides employment for 65 % of the labor force. some basic foodstuffs must still be imported. cocoa, coffee, and cotton generate about 40 % of export earnings with cotton being the most important cash crop. togo is the world ' s fourth - largest producer of phosphate. the government ' s decade - long effort, supported by the world bank and the imf, to implement economic reform measures, encourage foreign investment, and bring revenues in line with expenditures has moved slowly. progress depends on follow through on privatization, increased openness in government financial operations, progress toward legislative elections, and continued support from foreign donors. togo is working with donors to write a poverty reduction and growth facility ( prgf ) that could eventually lead to a debt reduction plan. economic growth remains marginal due to declining cotton production, underinvestment in phosphate mining, and strained relations with donors. tokelau ' s small size ( three villages ), isolation, and lack of resources greatly restrain economic development and confine agriculture to the subsistence level. the people rely heavily on aid from new zealand - about $ 4 million annually - to maintain public services with annual aid being substantially greater than gdp. the principal sources of revenue come from sales of copra, postage stamps, souvenir coins, and handicrafts. money is also remitted to families from relatives in new zealand. tonga has a small, open, south pacific island economy. it has a narrow export base in agricultural


gradually lessened over the past decade with increasing privatization, simplification of the tax structure, and a prudent approach to debt. progressive social policies also have helped raise living conditions in tunisia relative to the region. real growth, which averaged almost 5 % over the past decade, reached 6. 3 % in 2007 because of development in non - textile manufacturing, a recovery in agricultural production, and strong growth in the services sector. however, tunisia will need to reach even higher growth levels to create sufficient employment opportunities for an already large number of unemployed as well as the growing population of university graduates. broader privatization, further liberalization of the investment code to increase foreign investment, improvements in government efficiency, and reduction of the trade deficit are among the challenges ahead. turkey ' s dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for more than 35 % of employment. it has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. the largest industrial sector is textiles and clothing, which accounts for one - third of industrial employment ; it faces stiff competition in international markets with the end of the global quota system. however, other sectors, notably the automotive and electronics industries, are rising in importance within turkey ' s export mix. real gnp growth has exceeded 6 % in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. the economy is turning around with the implementation of economic reforms, and 2004 gdp growth reached 9 %, followed by roughly 5 % annual growth from 2005 - 07. inflation fell to 7. 7 % in 2005 - a 30 - year low but climbed back to 8. 5 % in 2007. despite the strong economic gains from 2002 - 07, which were largely due to renewed investor interest in emerging markets, imf backing, and tighter fiscal policy, the economy is still burdened by a high current account deficit and high external debt. further economic and judicial reforms and prospective eu membership are expected to boost foreign direct investment. the stock value of fdi currently stands at about $ 85 billion. privatization sales are currently approaching $ 21 billion. oil began to flow through the baku - tblisi - ceyhan pipeline in may 2006, marking a major milestone that will bring up to 1 million barrels per day from the caspian to market. in 2007, turkish financial markets weathered significant domestic political turmoil, including turbulence sparked by controversy over the selection of former foreign minister


of tourists, accounting for more than three - quarters of the 175, 000 visitors that arrived in 2004. major sources of government revenue also include fees from offshore financial activities and customs receipts. tuvalu consists of a densely populated, scattered group of nine coral atolls with poor soil. the country has no known mineral resources and few exports. subsistence farming and fishing are the primary economic activities. fewer than 1, 000 tourists, on average, visit tuvalu annually. government revenues largely come from the sale of stamps and coins and remittances from seamen on merchant ships abroad. substantial income is received annually from an international trust fund established in 1987 by australia, nz, and the uk and supported also by japan and south korea. thanks to wise investments and conservative withdrawals, this fund grew from an initial $ 17 million to over $ 35 million in 1999. the us government is also a major revenue source for tuvalu because of payments from a 1988 treaty on fisheries. in an effort to reduce its dependence on foreign aid, the government is pursuing public sector reforms, including privatization of some government functions and personnel cuts of up to 7 %. tuvalu derives around $ 1. 5 million per year from the lease of its ". tv " internet domain name. with merchandise exports only a fraction of merchandise imports, continued reliance must be placed on fishing and telecommunications license fees, remittances from overseas workers, official transfers, and income from overseas investments. uganda has substantial natural resources, including fertile soils, regular rainfall, and sizable mineral deposits of copper, cobalt, gold, and other minerals. agriculture is the most important sector of the economy, employing over 80 % of the work force. coffee accounts for the bulk of export revenues. since 1986, the government - with the support of foreign countries and international agencies - has acted to rehabilitate and stabilize the economy by undertaking currency reform, raising producer prices on export crops, increasing prices of petroleum products, and improving civil service wages. the policy changes are especially aimed at dampening inflation and boosting production and export earnings. during 1990 - 2001, the economy turned in a solid performance based on continued investment in the rehabilitation of infrastructure, improved incentives for production and exports, reduced inflation, gradually improved domestic security, and the return of exiled indian - ugandan entrepreneurs. growth continues to be solid, despite variability in the price of coffee, uganda ' s principal export, and a consistent upturn in uganda ' s export markets. in 2000, uganda qualified for enhanced highly indebted poor countries (


ugandan entrepreneurs. growth continues to be solid, despite variability in the price of coffee, uganda ' s principal export, and a consistent upturn in uganda ' s export markets. in 2000, uganda qualified for enhanced highly indebted poor countries ( hipc ) debt relief worth $ 1. 3 billion and paris club debt relief worth $ 145 million. these amounts combined with the original hipc debt relief added up to about $ 2 billion. after russia, the ukrainian republic was far and away the most important economic component of the former soviet union, producing about four times the output of the next - ranking republic. its fertile black soil generated more than one - fourth of soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. likewise, its diversified heavy industry supplied the unique equipment ( for example, large diameter pipes ) and raw materials to industrial and mining sites ( vertical drilling apparatus ) in other regions of the former ussr. shortly after independence was ratified in december 1991, the ukrainian government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. output by 1999 had fallen to less than 40 % of the 1991 level. ukraine ' s dependence on russia for energy supplies and the lack of significant structural reform have made the ukrainian economy vulnerable to external shocks. ukraine depends on imports to meet about three - fourths of its annual oil and natural gas requirements. a dispute with russia over pricing in late 2005 and early 2006 led to a temporary gas cut - off ; ukraine concluded a deal with russia in january 2006 that almost doubled the price ukraine pays for russian gas. outside institutions - particularly the imf - have encouraged ukraine to quicken the pace and scope of reforms. ukrainian government officials eliminated most tax and customs privileges in a march 2005 budget law, bringing more economic activity out of ukraine ' s large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. ukraine ' s economy remains buoyant despite political turmoil between the prime minister and president. real gdp growth reached about 7 % in 2006 - 07, fueled by high global prices for steel - ukraine ' s top export - and by strong domestic consumption, spurred by rising pensions and wages. although the economy is likely to expand in 2008, long - term growth could be threatened by the government ' s plans to reinstate tax, trade, and customs privileges and to maintain restrictive grain export quota


domestic consumption, spurred by rising pensions and wages. although the economy is likely to expand in 2008, long - term growth could be threatened by the government ' s plans to reinstate tax, trade, and customs privileges and to maintain restrictive grain export quotas. the uae has an open economy with a high per capita income and a sizable annual trade surplus. despite largely successful efforts at economic diversification, nearly 40 % of gdp is still directly based on oil and gas output. since the discovery of oil in the uae more than 30 years ago, the uae has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. the government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. in april 2004, the uae signed a trade and investment framework agreement with washington and in november 2004 agreed to undertake negotiations toward a free trade agreement with the us. the country ' s free trade zones - offering 100 % foreign ownership and zero taxes - are helping to attract foreign investors. higher oil revenue, strong liquidity, housing shortages, and cheap credit in 2005 - 07 led to a surge in asset prices ( shares and real estate ) and consumer inflation. rising prices are increasing the operating costs for businesses in the uae and adversely impacting government employees and others on fixed incomes. dependence on oil and a large expatriate workforce are significant long - term challenges. the uae ' s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment. the uk, a leading trading power and financial center, is one of the quintet of trillion dollar economies of western europe. over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. agriculture is intensive, highly mechanized, and efficient by european standards, producing about 60 % of food needs with less than 2 % of the labor force. the uk has large coal, natural gas, and oil reserves ; primary energy production accounts for 10 % of gdp, one of the highest shares of any industrial nation. services, particularly banking, insurance, and business services, account by far for the largest proportion of gdp while industry continues to decline in importance. since emerging from recession in 1992, britain ' s economy has enjoyed the longest period of expansion on record ; growth has remained in the 2 - 3 % range since 2004, outpacing most of europe. the economy ' s strength has complicated the labor government ' s


recession in 1992, britain ' s economy has enjoyed the longest period of expansion on record ; growth has remained in the 2 - 3 % range since 2004, outpacing most of europe. the economy ' s strength has complicated the labor government ' s efforts to make a case for britain to join the european economic and monetary union ( emu ). critics point out that the economy is doing well outside of emu, and public opinion polls show a majority of britons are opposed to the euro. the brown government has been speeding up the improvement of education, health services, and affordable housing at a cost in higher taxes and a widening public deficit. the us has the largest and most technologically powerful economy in the world, with a per capita gdp of $ 46, 000. in this market - oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. us business firms enjoy greater flexibility than their counterparts in western europe and japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. at the same time, they face higher barriers to enter their rivals ' home markets than foreign firms face entering us markets. us firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment ; their advantage has narrowed since the end of world war ii. the onrush of technology largely explains the gradual development of a " two - tier labor market " in which those at the bottom lack the education and the professional / technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. since 1975, practically all the gains in household income have gone to the top 20 % of households. the response to the terrorist attacks of 11 september 2001 showed the remarkable resilience of the economy. the war in march - april 2003 between a us - led coalition and iraq, and the subsequent occupation of iraq, required major shifts in national resources to the military. the rise in gdp in 2004 - 07 was undergirded by substantial gains in labor productivity. hurricane katrina caused extensive damage in the gulf coast region in august 2005, but had a small impact on overall gdp growth for the year. soaring oil prices in 2005 - 2007 threatened inflation and unemployment, yet the economy continued to grow through year - end 2007. imported oil accounts for about two - thirds of us consumption. long - term problems include inadequate investment in economic infrastructure


for the year. soaring oil prices in 2005 - 2007 threatened inflation and unemployment, yet the economy continued to grow through year - end 2007. imported oil accounts for about two - thirds of us consumption. long - term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizable trade and budget deficits, and stagnation of family income in the lower economic groups. the merchandise trade deficit reached a record $ 847 billion in 2007. together, these problems caused a marked reduction in the value and status of the dollar worldwide in 2007. uruguay ' s economy is characterized by an export - oriented agricultural sector, a well - educated work force, and high levels of social spending. after averaging growth of 5 % annually during 1996 - 98, in 1999 - 2002 the economy suffered a major downturn, stemming largely from the spillover effects of the economic problems of its large neighbors, argentina and brazil. for instance, in 2001 - 02 argentina made massive withdrawals of dollars deposited in uruguayan banks, which led to a plunge in the uruguayan peso and a massive rise in unemployment. total gdp in these four years dropped by nearly 20 %, with 2002 the worst year due to the banking crisis. the unemployment rate rose to nearly 20 % in 2002, inflation surged, and the burden of external debt doubled. cooperation with the imf helped stem the damage. uruguay in 2007 improved its debt profile by paying off $ 1. 1 billion in imf debt, and continues to follow the orthodox economic plan set by the fund in 2005. the construction of a pulp mill in fray bentos, which represents the largest foreign direct investment in uruguay ' s history at $ 1. 2 billion, came online in november 2007 and is expected to add 1. 6 % to gdp and boost already rising exports. the economy has grown strongly since 2004 as a result of high commodity prices for uruguayan exports, a strong peso, growth in the region, and low international interest rates. uzbekistan is a dry, landlocked country of which 11 % consists of intensely cultivated, irrigated river valleys. more than 60 % of its population lives in densely populated rural communities. uzbekistan is now the world ' s second - largest cotton exporter and fifth largest producer ; it relies heavily on cotton production as the major source of export earnings. other major export earners include gold, natural gas, and oil. following independence in september 1991, the government sought to prop up its soviet - style command economy with subsidies and tight controls on production and prices.


as the major source of export earnings. other major export earners include gold, natural gas, and oil. following independence in september 1991, the government sought to prop up its soviet - style command economy with subsidies and tight controls on production and prices. while aware of the need to improve the investment climate, the government still sponsors measures that often increase, not decrease, its control over business decisions. a sharp increase in the inequality of income distribution has hurt the lower ranks of society since independence. in 2003, the government accepted article viii obligations under the imf, providing for full currency convertibility. however, strict currency controls and tightening of borders have lessened the effects of convertibility and have also led to some shortages that have further stifled economic activity. the central bank often delays or restricts convertibility, especially for consumer goods. potential investment by russia and china in uzbekistan ' s gas and oil industry may boost growth prospects. in november 2005, russian president vladimir putin and uzbekistan president karimov signed an " alliance, " which included provisions for economic and business cooperation. russian businesses have shown increased interest in uzbekistan, especially in mining, telecom, and oil and gas. in 2006, uzbekistan took steps to rejoin the collective security treaty organization ( csto ) and the eurasian economic community ( eurasec ), both organizations dominated by russia. uzbek authorities have accused us and other foreign companies operating in uzbekistan of violating uzbek tax laws and have frozen their assets. us firms have not made major investments in uzbekistan in the last six years. this south pacific island economy is based primarily on small - scale agriculture, which provides a living for 65 % of the population. fishing, offshore financial services, and tourism, with more than 60, 000 visitors in 2005, are other mainstays of the economy. mineral deposits are negligible ; the country has no known petroleum deposits. a small light industry sector caters to the local market. tax revenues come mainly from import duties. economic development is hindered by dependence on relatively few commodity exports, vulnerability to natural disasters, and long distances from main markets and between constituent islands. in response to foreign concerns, the government has promised to tighten regulation of its offshore financial center. in mid - 2002 the government stepped up efforts to boost tourism through improved air connections, resort development, and cruise ship facilities. agriculture, especially livestock farming, is a second target for growth. australia and new zealand are the main suppliers of tourists and foreign aid. venezuela remains highly dependent on oil revenues, which account for roughly 90 % of export earnings


, and cruise ship facilities. agriculture, especially livestock farming, is a second target for growth. australia and new zealand are the main suppliers of tourists and foreign aid. venezuela remains highly dependent on oil revenues, which account for roughly 90 % of export earnings, more than 50 % of the federal budget revenues, and around 30 % of gdp. a nationwide strike between december 2002 and february 2003 had far - reaching economic consequences - real gdp declined by around 9 % in 2002 and 8 % in 2003 - but economic output since then has recovered strongly. fueled by high oil prices, record government spending helped to boost gdp in 2006 by about 9 % and in 2007 by about 8 %. this spending, combined with recent minimum wage hikes and improved access to domestic credit, has created a consumption boom but has come at the cost of higher inflation - roughly 20 percent in 2007. imports also have jumped significantly. embolden by his december 2006 reelection, president hugo chavez in 2007 nationalized firms in the petroleum, communications, and electricity sectors, which reduced foreign influence in the economy. although voters in december 2007 rejected chavez ' s proposed constitutional changes, chavez still has significant control of the economy and has indicated he intends to continue to consolidate and centralize authority over the economy by implementing " 21st century socialism. " vietnam is a densely - populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old soviet bloc, and the rigidities of a centrally - planned economy. economic stagnation marked the period after reunification from 1975 to 1985. in 1986, the sixth party congress approved a broad economic reform package that introduced market reforms and set the groundwork for vietnam ' s improved investment climate. substantial progress was achieved from 1986 to 1997 in moving forward from an extremely low level of development and significantly reducing poverty. the 1997 asian financial crisis highlighted the problems in the vietnamese economy and temporarily allowed opponents of reform to slow progress toward a market - oriented economy. gdp growth averaged 6. 8 % per year from 1997 to 2004 even against the background of the asian financial crisis and a global recession. since 2001, vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. they have moved to implement the structural reforms needed to modernize the economy and to produce more competitive, export - driven industries. the economy grew 8. 5 % in 2007. vietnam ' s membership in the asean free trade area ( afta ) and entry into force of the us - vietnam bilateral trade agreement in december 2001


and to produce more competitive, export - driven industries. the economy grew 8. 5 % in 2007. vietnam ' s membership in the asean free trade area ( afta ) and entry into force of the us - vietnam bilateral trade agreement in december 2001 have led to even more rapid changes in vietnam ' s trade and economic regime. vietnam ' s exports to the us increased 900 % from 2001 to 2007. vietnam joined the wto in january 2007, following over a decade long negotiation process. wto membership has provided vietnam an anchor to the global market and reinforced the domestic economic reform process. among other benefits, accession allows vietnam to take advantage of the phase - out of the agreement on textiles and clothing, which eliminated quotas on textiles and clothing for wto partners on 1 january 2005. agriculture ' s share of economic output has continued to shrink, from about 25 % in 2000 to less than 20 % in 2007. deep poverty, defined as a percent of the population living under $ 1 per day, has declined significantly and is now smaller than that of china, india, and the philippines. vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one - and - a - half million people every year. in an effort to stem high inflation which took off in 2007, early in 2008 vietnamese authorities began to raise benchmark interest rates and reserve requirements. hanoi is targeting an economic growth rate of 7. 5 - 8 % during the next four years. tourism is the primary economic activity, accounting for 80 % of gdp and employment. the islands hosted 2. 6 million visitors in 2005. the manufacturing sector consists of petroleum refining, textiles, electronics, pharmaceuticals, and watch assembly. one of the world ' s largest petroleum refineries is at saint croix. the agricultural sector is small, with most food being imported. international business and financial services are small but growing components of the economy. the islands are vulnerable to substantial damage from storms. the government is working to improve fiscal discipline, to support construction projects in the private sector, to expand tourist facilities, to reduce crime, and to protect the environment. the economy is limited to traditional subsistence agriculture, with about 80 % of labor force earnings from agriculture ( coconuts and vegetables ), livestock ( mostly pigs ), and fishing. about 4 % of the population is employed in government. revenues come from french government subsidies, licensing of fishing rights to japan and south korea, import taxes, and remittances from expatriate workers in new caledonia. the


and fishing. about 4 % of the population is employed in government. revenues come from french government subsidies, licensing of fishing rights to japan and south korea, import taxes, and remittances from expatriate workers in new caledonia. the west bank - the larger of the two areas comprising the palestinian authority ( pa ) - has experienced a general decline in economic conditions since the second intifada began in september 2000. the downturn has been largely a result of israeli closure policies - the imposition of closures and access restrictions in response to security concerns in israel - which disrupted labor and trading relationships. in 2001, and even more severely in 2002, israeli military measures in pa areas resulted in the destruction of capital, the disruption of administrative structures, and widespread business closures. international aid of at least $ 1. 14 billion to the west bank and gaza strip in 2004 prevented the complete collapse of the economy and allowed some reforms in the government ' s financial operations. in 2005, high unemployment and limited trade opportunities - due to continued closures both within the west bank and externally - stymied growth. israel ' s and the international community ' s financial embargo of the pa when hamas ran the pa during march 2006 - june 2007 has interrupted the provision of pa social services and the payment of pa salaries. since june the fayyad government in the west bank has restarted salary payments and the provision of services but would be unable to operate absent high levels of international assistance. western sahara depends on pastoral nomadism, fishing, and phosphate mining as the principal sources of income for the population. the territory lacks sufficient rainfall for sustainable agricultural production, and most of the food for the urban population must be imported. incomes in western sahara are substantially below the moroccan level. the moroccan government controls all trade and other economic activities in western sahara. morocco and the eu signed a four - year agreement in july 2006 allowing european vessels to fish off the coast of morocco, including the disputed waters off the coast of western sahara. moroccan energy interests in 2001 signed contracts to explore for oil off the coast of western sahara, which has angered the polisario. however, in 2006 the polisario awarded similar exploration licenses in the disputed territory, which would come into force if morocco and the polisario resolve their dispute over western sahara. global output rose by 5. 2 % in 2007, led by china ( 11. 4 % ), india ( 8. 5 % ), and russia ( 7. 4 % ). the 14 other successor nations of the


dispute over western sahara. global output rose by 5. 2 % in 2007, led by china ( 11. 4 % ), india ( 8. 5 % ), and russia ( 7. 4 % ). the 14 other successor nations of the ussr and the other old warsaw pact nations again experienced widely divergent growth rates ; the three baltic nations continued as strong performers, in the 8 % - 10 % range of growth. from 2006 to 2007 growth rates slowed in all the major industrial countries except for the united kingdom ( 3. 0 % ). analysts attribute the slowdown to uncertainties in the financial markets and lowered consumer confidence. worldwide, nations varied widely in their growth results. externally, the nation - state, as a bedrock economic - political institution, is steadily losing control over international flows of people, goods, funds, and technology. internally, the central government often finds its control over resources slipping as separatist regional movements - typically based on ethnicity - gain momentum, e. g., in many of the successor states of the former soviet union, in the former yugoslavia, in india, in iraq, in indonesia, and in canada. externally, the central government is losing decisionmaking powers to international bodies, notably the eu. in western europe, governments face the difficult political problem of channeling resources away from welfare programs in order to increase investment and strengthen incentives to seek employment. the addition of 80 million people each year to an already overcrowded globe is exacerbating the problems of pollution, desertification, underemployment, epidemics, and famine. because of their own internal problems and priorities, the industrialized countries devote insufficient resources to deal effectively with the poorer areas of the world, which, at least from an economic point of view, are becoming further marginalized. the introduction of the euro as the common currency of much of western europe in january 1999, while paving the way for an integrated economic powerhouse, poses economic risks because of varying levels of income and cultural and political differences among the participating nations. the terrorist attacks on the us on 11 september 2001 accentuated a growing risk to global prosperity, illustrated, for example, by the reallocation of resources away from investment to anti - terrorist programs. the opening of war in march 2003 between a us - led coalition and iraq added new uncertainties to global economic prospects. after the initial coalition victory, the complex political difficulties and the high economic cost of establishing domestic order in iraq became major global problems that continued through 2007. yemen, one of the poorest


led coalition and iraq added new uncertainties to global economic prospects. after the initial coalition victory, the complex political difficulties and the high economic cost of establishing domestic order in iraq became major global problems that continued through 2007. yemen, one of the poorest countries in the arab world, reported average annual growth in the range of 3 - 4 % from 2000 through 2007. its economic fortunes depend mostly on declining oil resources, but the country is trying to diversify its earnings. in 2006 yemen began an economic reform program designed to bolster non - oil sectors of the economy and foreign investment. as a result of the program, international donors pledged about $ 5 billion for development projects. in addition, yemen has made some progress on reforms over the last year that will likely encourage foreign investment. oil revenues probably increased in 2007 as a result of higher prices. zambia ' s economy has experienced modest growth in recent years, with real gdp growth in 2005 - 07 between 5 - 6 % per year. privatization of government - owned copper mines in the 1990s relieved the government from covering mammoth losses generated by the industry and greatly improved the chances for copper mining to return to profitability and spur economic growth. copper output has increased steadily since 2004, due to higher copper prices and foreign investment. in 2005, zambia qualified for debt relief under the highly indebted poor country initiative, consisting of approximately usd 6 billion in debt relief. zambia experienced a bumper harvest in 2007, which helped to boost gdp and agricultural exports and contain inflation. although poverty continues to be significant problem in zambia, its economy has strengthened, featuring single - digit inflation, a relatively stable currency, decreasing interest rates, and increasing levels of trade. the government of zimbabwe faces a wide variety of difficult economic problems as it struggles with an unsustainable fiscal deficit, an overvalued official exchange rate, hyperinflation, and bare store shelves. its 1998 - 2002 involvement in the war in the democratic republic of the congo drained hundreds of millions of dollars from the economy. the government ' s land reform program, characterized by chaos and violence, has badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400, 000 jobs, turning zimbabwe into a net importer of food products. badly needed support from the imf has been suspended because of the government ' s arrears on past loans and the government ' s unwillingness to enact reforms that would stabilize the economy. the reserve bank of zimbabwe routinely prints money to fund the budget deficit, causing the official annual


stop the violence relationship violence is defined as intentional violent or controlling behavior by a person who is, or was, in a relationship with the victim. it can include such behavior as actual or threatened physical injury, sexual assault, psychological abuse, economic control, and / or progressive social isolation. relationship violence cuts across all lines including race, age, sexual orientation, and social - economic class. it is rarely isolated and almost always escalates in severity over time. relationship violence can be stopped. everyone has the right to live with respect and dignity. the boston college code of student conduct affirms that all students have “ the right to be free from violence, force, threats, and abuse, and the right to move about freely. ” emotional abuse is controlling behavior through degradation and fear. the abuser ' s actions often work toward his / her dependency on the abuser so that the manifestation of control over him / her can escalate and become endless. emotional abuse covers a wide range of potentially damaging and dangerous behavior : - diminishing his / her self - esteem by calling him / her names and insisting that she / he does not look desirable and is inadequate as a person. - threatening to leave him / her or cause harm to themselves or to him / her and intimidating and ordering him / her to do things that she is not comfortable doing. - controlling him / her economically. - isolating her / him from his / her family, friends, and roommates. - emotional / psychological abuse can lead and usually does lead to physical abuse. for many people living in a violent environment abuse occurs in cycles. for each situation the cycle varies in time, intensity and in the form of abuse. tension building - victim senses abuser ' s edginess and begins to feel that abuse is deserved. violent episode - victim is battered, yet denies severity of the issues. loving stage - abuser and victim believe it will never happen again but it almost always does. what to do : - get medical attention - get counseling - find support while learning to change, deal with, or leave the violent environment - go to a safe place and call for advice / help. no one deserves to be abused - press criminal charges : you have the right to file assault and batter charges against your abuser - abuse prevention act : under this law you may obtain a restraining and vacate order from the court if you are threatened with abuse or have been abused - family support : find those friends or relatives who support you and will offer you shelter if needed no