Chapter LXVII: Section 3: , telephone 886 (2) 2709-2000, FAX 886 (2) 2702-7675, (2)

Laos:
parts of the border with Thailand are indefinite

Latvia:
draft treaty delimiting the boundary with Russia has not
been signed; has not ratified 1998 maritime boundary agreement with
Lithuania (primary concern is oil exploration rights)

Lebanon:
Syrian troops in northern, central, and eastern Lebanon
since October 1976; Lebanese government claims Shab'a Farms area of
Israeli-occupied Golan Heights as a part of Lebanon from which
Hizballah conducts cross-border attacks

Lesotho:
none

Liberia:
large refugee population from civil war in Sierra Leone

Libya:
Libya claims about 19,400 sq km in northern Niger and also a
part of southeastern Algeria

Liechtenstein:
Liechtenstein's royal family claims restitution for
1,600 sq km of land in the Czech Republic confiscated in 1918

Lithuania:
Latvia has not ratified a 1998 maritime boundary
agreement with Lithuania (primary concern is oil exploration
rights); 1997 border agreement with Russia not yet ratified by Russia

Luxembourg:
none

Macau:
none

Macedonia, The Former Yugoslav Republic of:
dispute with Greece over
its name; February 2001 agreement with Yugoslavia settled alignment
of boundary, stipulating implementation within two years

Madagascar:
claims Bassas da India, Europa Island, Glorioso Islands,
Juan de Nova Island, and Tromelin Island (all administered by France)

Malawi:
dispute with Tanzania over the boundary in Lake Nyasa (Lake
Malawi)

Malaysia:
involved in a complex dispute over the Spratly Islands
with China, Philippines, Taiwan, Vietnam, and possibly Brunei;
Philippines have not fully revoked claim to Sabah State; Pulau Batu
Putih (Pedra Branca Island) disputed with Singapore; Sipadan and
Ligitan Islands in dispute with Indonesia

Maldives:
none

Mali:
none

Malta:
none

Man, Isle of:
none

Marshall Islands:
claims US territory of Wake Island

Martinique:
none

Mauritania:
none

Mauritius:
claims the Chagos Archipelago (UK-administered British
Indian Ocean Territory); claims French-administered Tromelin Island

Mayotte:
claimed by Comoros

Mexico:
none

Micronesia, Federated States of:
none

Midway Islands:
none

Moldova:
separatist Transnistria region, comprising the area between
the Nistru (Dniester) River and Ukraine, has its own de facto
government, dominated by Moldovan Slavs

Monaco:
none

Mongolia:
none

Montserrat:
none

Morocco:
claims and administers Western Sahara, but sovereignty is
unresolved and the UN is attempting to hold a referendum on the
issue; the UN-administered cease-fire has been in effect since
September 1991; Spain controls five places of sovereignty (plazas de
soberania) on and off the coast of Morocco - the coastal enclaves of
Ceuta and Melilla which Morocco contests, as well as the islands of
Penon de Alhucemas, Penon de Velez de la Gomera, and Islas Chafarinas

Mozambique:
none

Namibia:
none

Nauru:
none

Navassa Island:
claimed by Haiti

Nepal:
refugee issue over the presence in Nepal of approximately
98,700 Bhutanese refugees, 90% of whom are in seven United Nations
Office of the High Commissioner for Refugees (UNHCR) camps

Netherlands:
none

Netherlands Antilles:
none

New Caledonia:
Matthew and Hunter Islands east of New Caledonia
claimed by France and Vanuatu

New Zealand:
territorial claim in Antarctica (Ross Dependency)

Nicaragua:
territorial disputes with Colombia over the Archipelago
de San Andres y Providencia and Quita Sueno Bank; with respect to
the maritime boundary question in the Golfo de Fonseca, the ICJ
referred to the line determined by the 1900 Honduras-Nicaragua Mixed
Boundary Commission and advised that some tripartite resolution
among El Salvador, Honduras, and Nicaragua likely would be required;
maritime boundary dispute with Honduras in the Caribbean Sea is
before the ICJ; legal dispute over navigational rights of San Juan
River on border with Costa Rica

Niger:
Libya claims about 19,400 sq km in northern Niger;
delimitation of international boundaries in the vicinity of Lake
Chad, the lack of which led to border incidents in the past, has
been completed and awaits ratification by Cameroon, Chad, Niger, and
Nigeria

Nigeria:
delimitation of international boundaries in the vicinity of
Lake Chad, the lack of which led to border incidents in the past,
has been completed and awaits ratification by Cameroon, Chad, Niger,
and Nigeria; dispute with Cameroon over land and maritime boundaries
around the Bakasi Peninsula is currently before the ICJ; tripartite
maritime boundary and economic zone dispute with Equatorial Guinea
and Cameroon is currently before the ICJ

Niue:
none

Norfolk Island:
none

Northern Mariana Islands:
none

Norway:
territorial claim in Antarctica (Queen Maud Land); Svalbard
is the focus of a maritime boundary dispute between Norway and Russia

Oman:
boundary with the UAE has not been bilaterally defined;
northern section in the Musandam Peninsula is an administrative
boundary

Pacific Ocean:
some maritime disputes (see littoral states)

Pakistan:
status of Kashmir with India; water-sharing problems with
India over the Indus River (Wular Barrage)

Palau:
none

Palmyra Atoll:
none

Panama:
none

Papua New Guinea:
none

Paracel Islands:
occupied by China, but claimed by Taiwan and Vietnam

Peru:
none

Philippines:
involved in a complex dispute over the Spratly Islands
with China, Malaysia, Taiwan, Vietnam, and possibly Brunei; claim to
Malaysia's Sabah State has not been fully revoked

Pitcairn Islands:
none

Poland:
none

Puerto Rico:
none

Qatar:
in March of 2001, the International Court of Justice (ICJ)
awarded the Hawar Islands to Bahrain and adjusted its maritime
boundary with Qatar; a final border resolution was agreed to with
Saudi Arabia in March of 2001

Reunion:
none

Romania:
none

Russia:
dispute over at least two small sections of the boundary
with China remains to be settled, despite 1997 boundary agreement;
islands of Etorofu, Kunashiri, and Shikotan and the Habomai group
occupied by the Soviet Union in 1945, now administered by Russia,
claimed by Japan; Caspian Sea boundaries are not yet determined
among Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan;
Estonian and Russian negotiators reached a technical border
agreement in December 1996, which has not been signed or ratified by
Russia as of February 2001; draft treaty delimiting the boundary
with Latvia has not been signed; 1997 border agreement with
Lithuania not yet ratified; has made no territorial claim in
Antarctica (but has reserved the right to do so) and does not
recognize the claims of any other nation; Svalbard is the focus of a
maritime boundary dispute between Norway and Russia

Rwanda:
Rwandan military forces are supporting the rebel forces in
the civil war in the Democratic Republic of the Congo

Saint Helena:
none

Saint Kitts and Nevis:
none

Saint Lucia:
none

Saint Pierre and Miquelon:
none

Saint Vincent and the Grenadines:
none

Samoa:
none

San Marino:
none

Sao Tome and Principe:
none

Saudi Arabia:
a final border resolution was agreed to with Qatar in
March of 2001; location and status of boundary with UAE is not
final, de facto boundary reflects a 1974 agreement; a June 2000
treaty delimited the boundary with Yemen, but final demarcation
requires adjustments based on tribal considerations

Senegal:
none

Seychelles:
claims the Chagos Archipelago (UK-administered British
Indian Ocean Territory)

Sierra Leone:
civil war has engendered massive refugee movements
into neighboring Guinea and Liberia

Singapore:
Pedra Branca Island (Pulau Batu Putih) disputed with
Malaysia

Slovakia:
Gabcikovo/Nagymaros Dam dispute with Hungary is before the
ICJ

Slovenia:
progress with Croatia on discussions of adjustments to
land boundary, but problems remain in defining maritime boundary in
Gulf of Piran; Austria has minor dispute with Slovenia over nuclear
power plants and post-World War II treatment of German-speaking
minorities

Solomon Islands:
none

Somalia:
most of the southern half of the boundary with Ethiopia is
a Provisional Administrative Line; territorial dispute with Ethiopia
over the Ogaden

South Africa:
Swaziland has asked South Africa to open negotiations
on reincorporating some nearby South African territories that are
populated by ethnic Swazis or that were long ago part of the Swazi
Kingdom

South Georgia and the South Sandwich Islands:
claimed by Argentina

Southern Ocean:
Antarctic Treaty defers claims (see Antarctic Treaty
Summary in the Antarctica entry); sections (some overlapping)
claimed by Argentina, Australia, Chile, France, New Zealand, Norway,
and UK; the US and most other nations do not recognize the maritime
claims of other nations and have made no claims themselves (the US
and Russia have reserved the right to do so); no formal claims have
been made in the sector between 90 degrees west and 150 degrees west

Spain:
Gibraltar issue with UK; Spain controls five places of
sovereignty (plazas de soberania) on and off the coast of Morocco -
the coastal enclaves of Ceuta and Melilla, which Morocco contests,
as well as the islands of Penon de Alhucemas, Penon de Velez de la
Gomera, and Islas Chafarinas

Spratly Islands:
all of the Spratly Islands are claimed by China,
Taiwan, and Vietnam; parts of them are claimed by Malaysia and the
Philippines; in 1984, Brunei established an exclusive fishing zone
that encompasses Louisa Reef in the southern Spratly Islands, but
has not publicly claimed the island; in 2000, China joined ASEAN
discussions towards creating a South China Sea "code of conduct" - a
non-legally binding confidence building measure

Sri Lanka:
none

Sudan:
administrative boundary with Kenya does not coincide with
international boundary; Egypt asserts its claim to the "Hala'ib
Triangle," a barren area of 20,580 sq km under partial Sudanese
administration that is defined by an administrative boundary which
supersedes the treaty boundary of 1899

Suriname:
area disputed by French Guiana between Riviere Litani and
Riviere Marouini (both headwaters of the Lawa); area disputed by
Guyana between New (Upper Courantyne) and Courantyne/Koetari
[Kutari] rivers (all headwaters of the Courantyne)

Svalbard:
focus of a maritime boundary dispute between Norway and
Russia

Swaziland:
Swaziland has asked South Africa to open negotiations on
reincorporating some nearby South African territories that are
populated by ethnic Swazis or that were long ago part of the Swazi
Kingdom

Sweden:
none

Switzerland:
none

Syria:
Golan Heights is Israeli occupied; dispute with upstream
riparian Turkey over Turkish water development plans for the Tigris
and Euphrates rivers; Syrian troops in northern, central, and
eastern Lebanon since October 1976

Tajikistan:
portions of Tajikistan's northern and western border
with Uzbekistan and its eastern border with China have not been
officially demarcated; territorial dispute with Kyrgyzstan on
northern boundary in Isfara Valley area

Tanzania:
dispute with Malawi over the boundary in Lake Nyasa (Lake
Malawi); a resurvey of the latitudinal boundary with Uganda in 2000
revealed a 300-meter discrepancy that both sides are currently
adjudicating

Thailand:
parts of the border with Laos are indefinite; parts of
border with Cambodia are indefinite; sporadic border hostilities
with Burma over border alignment and ethnic Shan rebels operating in
cross-border region

Togo:
none

Tokelau:
none

Tonga:
none

Trinidad and Tobago:
none

Tromelin Island:
claimed by Madagascar and Mauritius

Tunisia:
none

Turkey:
complex maritime, air, and territorial disputes with Greece
in Aegean Sea; Cyprus question with Greece; dispute with downstream
riparian states (Syria and Iraq) over water development plans for
the Tigris and Euphrates rivers; traditional demands regarding
former Armenian lands in Turkey have subsided

Turkmenistan:
Caspian Sea boundaries are not yet determined among
Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan

Turks and Caicos Islands:
none

Tuvalu:
none

Uganda:
the Ugandan military is deployed to the Democratic Republic
of Congo in support of rebel forces in that country's civil war; a
resurvey of the latitudinal boundary with Tanzania in 2000 revealed
a 300-meter discrepancy that both sides are currently adjudicating

Ukraine:
has made no territorial claim in Antarctica (but has
reserved the right to do so) and does not recognize the claims of
any other nation

United Arab Emirates:
location and status of boundary with Saudi
Arabia is not final, de facto boundary reflects 1974 agreement;
boundary with Oman has not been bilaterally defined; northern
section in the Musandam Peninsula is an administrative boundary;
claims two islands in the Persian Gulf occupied by Iran: Lesser Tunb
(called Tunb as Sughra in Arabic by UAE and Jazireh-ye Tonb-e Kuchek
in Persian by Iran) and Greater Tunb (called Tunb al Kubra in Arabic
by UAE and Jazireh-ye Tonb-e Bozorg in Persian by Iran); claims
island in the Persian Gulf jointly administered with Iran (called
Abu Musa in Arabic by UAE and Jazireh-ye Abu Musa in Persian by
Iran) - over which Iran has taken steps to exert unilateral control
since 1992, including access restrictions and a military build-up on
the island; the UAE has garnered significant diplomatic support in
the region in protesting these Iranian actions

United Kingdom:
Northern Ireland issue with Ireland (historic peace
agreement signed 10 April 1998); Gibraltar issue with Spain;
Argentina claims Falkland Islands (Islas Malvinas); Argentina claims
South Georgia and the South Sandwich Islands; Mauritius and the
Seychelles claim Chagos Archipelago (UK-administered British Indian
Ocean Territory); Rockall continental shelf dispute involving
Denmark and Iceland; territorial claim in Antarctica (British
Antarctic Territory) overlaps Argentine claim and partially overlaps
Chilean claim; disputes with Iceland, Denmark, and Ireland over the
Faroe Islands continental shelf boundary outside 200 NM

United States:
maritime boundary disputes with Canada (Dixon
Entrance, Beaufort Sea, Strait of Juan de Fuca, Machias Seal
Island); US Naval Base at Guantanamo Bay is leased from Cuba and
only mutual agreement or US abandonment of the area can terminate
the lease; Haiti claims Navassa Island; US has made no territorial
claim in Antarctica (but has reserved the right to do so) and does
not recognize the claims of any other nation; Marshall Islands
claims Wake Island

Uruguay:
none

Uzbekistan:
occasional target of Islamic insurgents based in
Tajikistan and Afghanistan

Vanuatu:
claims Matthew and Hunter Islands east of New Caledonia

Venezuela:
claims all of Guyana west of the Essequibo (river);
maritime boundary dispute with Colombia in the Gulf of Venezuela

Vietnam:
maritime boundary with Cambodia not defined; involved in a
complex dispute over the Spratly Islands with China, Malaysia,
Philippines, Taiwan, and possibly Brunei; maritime boundary
agreement with China in the Gulf of Tonkin awaits ratification;
Paracel Islands occupied by China but claimed by Vietnam and Taiwan;
portions of boundary with Cambodia are in dispute; agreement on land
border with China was signed in December 1999, but details of
alignment have not yet been made public

Virgin Islands:
none

Wake Island:
claimed by Marshall Islands

Wallis and Futuna:
none

West Bank:
West Bank and Gaza Strip are Israeli-occupied with
current status subject to the Israeli-Palestinian Interim Agreement
- permanent status to be determined through further negotiation

Western Sahara:
claimed and administered by Morocco, but sovereignty
is unresolved and the UN is attempting to hold a referendum on the
issue; the UN-administered cease-fire has been in effect since
September 1991

Yemen:
a June 2000 treaty delimited the boundary with Saudi Arabia,
but final demarcation requires adjustments based on tribal
considerations

Yugoslavia:
Albanian majority in Kosovo seeks independence from
Yugoslavia; Croatia and Yugoslavia are negotiating the status of the
strategically important Prevlaka Peninsula, which is currently under
a UN military observer mission (UNMOP); the February 2001 agreement
with the Former Yugoslav Republic of Macedonia settled alignment of
boundary, stipulating implementation within two years

Taiwan:
involved in complex dispute over the Spratly Islands with
China, Malaysia, Philippines, Vietnam, and possibly Brunei; Paracel
Islands occupied by China, but claimed by Vietnam and Taiwan; claims
Japanese-administered Senkaku-shoto (Senkaku Islands/Diaoyu Tai), as
does China

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

@Economic aid - donor

Australia:
ODA, $1.43 billion (FY97/98)

Austria:
ODA, $472 million (1999)

Belgium:
ODA, $764 million (1997)

Canada:
ODA, $1.3 billion (1999)

Denmark:
ODA, $1.63 billion (1999)

Finland:
ODA, $379 million (1997)

France:
ODA, $6.3 billion (1997)

Germany:
ODA, $5.6 billion (1998)

Iceland:
$NA

Ireland:
ODA, $245 million (2000)

Italy:
ODA, $1.3 billion (1997)

Japan:
ODA, $9.1 billion (1999)

Luxembourg:
ODA, $160 million (1999)

Netherlands:
ODA, $3.5 billion (2000 est.)

New Zealand:
ODA, $123 million (1995)

Norway:
ODA, $1.4 billion (1998)

Portugal:
ODA, $271 million (1995)

Saudi Arabia:
pledged $100 million in 1993 to fund reconstruction of
Lebanon; since 1993, Saudi Arabia has committed $208 million for
assistance to the Palestinians

Spain:
ODA, $1.3 billion (1995)

Sweden:
ODA, $1.7 billion (1997)

Switzerland:
ODA, $1.1 billion (1995)

United Kingdom:
ODA, $3.4 billion (1997)

United States:
ODA, $6.9 billion (1997)

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

@Economic aid - recipient

Afghanistan:
US provided about $70 million in humanitarian
assistance in 1997; US continues to contribute to multilateral
assistance through the UN programs of food aid, immunization, land
mine removal, and a wide range of aid to refugees and displaced
persons

Albania:
$NA; aid for energy from China, Germany, Norway (2000)

Algeria:
$100 million (1999 est.)

American Samoa:
important financial support from the US, more than
$40 million in 1994

Andorra:
none

Angola:
$493.1 million (1995)

Anguilla:
$3.5 million (1995)

Antigua and Barbuda:
$2.3 million (1995)

Argentina:
IMF offer of $13.7 billion (January 2001)

Armenia:
$245.5 million (1995)

Aruba:
$26 million (1995); note - the Netherlands provided a $127
million aid package to Aruba and Suriname in 1996

Azerbaijan:
ODA, $113 million (1996)

Bahamas, The:
$9.8 million (1995)

Bahrain:
$48.4 million (1995)

Bangladesh:
$1.575 billion (2000 est.)

Barbados:
$9.1 million (1995)

Belarus:
$194.3 million (1995)

Belize:
$NA

Benin:
$274.6 million (1997)

Bermuda:
$27.9 million (1995)

Bhutan:
$73.8 million (1995)

Bolivia:
$588 million (1997)

Bosnia and Herzegovina:
$1 billion (1999 est.)

Botswana:
$73 million (1995)

Brazil:
NA

British Virgin Islands:
$2.6 million (1995)

Brunei:
$4.3 million (1995)

Bulgaria:
$1 billion (1999 est.)

Burkina Faso:
$484.1 million (1995)

Burma:
$99 million (FY98/99)

Burundi:
$1.344 billion (1999 est.)

Cambodia:
$548 million pledged in grants and concessional loans for
2001 by international donors

Cameroon:
on 23 January 2001, the Paris Club agreed to reduce
Cameroon's debt of $1.3 billion by $900 million; total debt relief
now amounts to $1.26 billion

Cape Verde:
$111.3 million (1995)

Cayman Islands:
$NA

Central African Republic:
$172.2 million (1995); note - traditional
budget subsidies from France

Chad:
$238.3 million (1995); note - $125 million committed by Taiwan
(August 1997); $30 million committed by African Development Bank

Chile:
ODA, $40 million (2001 est.)

China:
$NA

Christmas Island:
$NA

Cocos (Keeling) Islands:
$NA

Colombia:
$40.7 million (1995)

Comoros:
$28.1 million (1997)

Congo, Democratic Republic of the:
$195.3 million (1995)

Congo, Republic of the:
$159.1 million (1995)

Cook Islands:
$13.1 million (1995); note - New Zealand continues to
furnish the greater part

Cote d'Ivoire:
ODA, $1 billion (1996 est.)

Croatia:
$NA

Cuba:
$68.2 million (1997 est.)

Cyprus:
Greek Cypriot area - $17 million (1998); Turkish Cypriot
area - $700 million from Turkey in grants and loans (1990-97) that
are usually forgiven

Czech Republic:
$NA

Djibouti:
$106.3 million (1995)

Dominica:
$24.4 million (1995)

Dominican Republic:
$239.6 million (1995)

Ecuador:
$695.7 million (1995)

Egypt:
ODA, $2.25 billion (1999)

El Salvador:
total $252 million; $57 million from US (1999 est.)

Equatorial Guinea:
$33.8 million (1995)

Eritrea:
$77 million (1999)

Estonia:
$137.3 million (1995)

Ethiopia:
$367 million (FY95/96)

Falkland Islands (Islas Malvinas):
$1.7 million (1995)

Faroe Islands:
$135 million (annual subsidy from Denmark) (1999)

Fiji:
$40.3 million (1995)

French Guiana:
$NA

French Polynesia:
$367 million (1997)

Gabon:
$331 million (1995)

Gambia, The:
$45.4 million (1995)

Gaza Strip:
$121 million disbursed (2000) (includes West Bank)

Georgia:
$212.7 million (1995)

Ghana:
$477.3 million (1995)

Gibraltar:
$NA

Greece:
$5.4 billion from EU (1997 est.)

Greenland:
$380 million subsidy from Denmark (1999)

Grenada:
$8.3 million (1995)

Guadeloupe:
$NA; note - substantial annual French subsidies

Guam:
Guam receives large transfer payments from the US Federal
Treasury ($143 million in 1997) into which Guamanians pay no income
or excise taxes; under the provisions of a special law of Congress,
the Guam Treasury, rather than the US Treasury, receives federal
income taxes paid by military and civilian Federal employees
stationed in Guam

Guatemala:
$212 million (1995)

Guernsey:
$NA

Guinea:
$359.2 million (1998)

Guinea-Bissau:
$115.4 million (1995)

Guyana:
$84 million (1995), Heavily Indebted Poor Country Initiative
(HIPC) $253 million (1997)

Haiti:
$730.6 million (1995)

Holy See (Vatican City):
none

Honduras:
$557.8 million (1999)

Hungary:
$122.7 million (1995)

India:
$2.9 billion (FY98/99)

Indonesia:
$43 billion from IMF program and other official external
financing (1997-2000)

Iran:
$116.5 million (1995)

Iraq:
$327.5 million (1995)

Israel:
$1.1 billion from the US (1999)

Jamaica:
$102.7 million (1995)

Jersey:
none

Jordan:
ODA, $850 million (1996 est.)

Kazakhstan:
$409.6 million (1995)

Kenya:
$457 million (1997)

Kiribati:
$15.5 million (1995), largely from UK and Japan

Korea, North:
$NA; note - an estimated $200 million to $300 million
in humanitarian aid from US, South Korea, Japan, and EU in 1997 plus
much additional aid from the UN and non-governmental organizations;
substantial continuing humanitarian aid, 1998-2000

Korea, South:
$NA

Kuwait:
$27.6 million (1995)

Kyrgyzstan:
$329.4 million (1995)

Laos:
$345 million (1999 est.)

Latvia:
$96.2 million (1995)

Lebanon:
$3.5 billion (pledges 1997-2001)

Lesotho:
$123.7 million (1995)

Liberia:
$200 million pledged (1998)

Libya:
$8.4 million (1995)

Liechtenstein:
none

Lithuania:
$228.5 million (1995)

Macau:
$NA

Macedonia, The Former Yugoslav Republic of:
$100 million from the EU
(2000)

Madagascar:
$838 million (1997)

Malawi:
$427 million (1999)

Maldives:
$NA

Mali:
$596.4 million (1995)

Malta:
$NA

Man, Isle of:
$NA

Marshall Islands:
approximately $65 million annually from the US

Martinique:
$NA; note - substantial annual aid from France

Mauritania:
$300 million (1998)

Mauritius:
$42 million (1997)

Mayotte:
$107.7 million (1995); note - extensive French financial
assistance

Mexico:
$1.166 billion (1995)

Micronesia, Federated States of:
under terms of the Compact of Free
Association, the US will provide $1.3 billion in grant aid during
the period 1986-2001

Moldova:
$100.8 million (1995); note - $547 million from the IMF and
World Bank (1992-99)

Monaco:
$NA

Mongolia:
$200 million (1998 est.)

Montserrat:
$9.8 million (1995); note - about $100 million (1996-98)
in reconstruction aid from the UK; Country Policy Plan (1999) is a
three-year program for spending $122.8 million in British budgetary
assistance

Morocco:
$565.6 million (1995)

Mozambique:
$1.04 billion (1998)

Namibia:
$127 million (1998)

Nauru:
$2.25 million from Australia (FY96/97 est.)

Nepal:
$411 million (FY97/98)

Netherlands Antilles:
IMF provided $61 million in 2000, and the
Netherlands continued its support with $40 million

New Caledonia:
$880 million annual subsidy from France

Nicaragua:
NA

Niger:
$341 million (1997)

note: the IMF approved a $73 million poverty reduction and growth
facility for Niger in 2000 and announced $115 million in debt relief
under the Heavily Indebted Poor Countries (HIPC) initiative

Nigeria:
ODA $250 million (1998)

Niue:
$8.3 million (1995)

Norfolk Island:
$NA

Northern Mariana Islands:
extensive funding from US

Oman:
$76.4 million (1995)

Pakistan:
$2 billion (FY99/00)

Palau:
$155.8 million (1995); note - the Compact of Free Association
with the US, entered into after the end of the UN trusteeship on 1
October 1994, will provide Palau with up to $700 million in US aid
over 15 years in return for furnishing military facilities

Panama:
$197.1 million (1995)

Papua New Guinea:
$400 million (1999 est.)

Paraguay:
$NA

Peru:
$895.1 million (1995)

Philippines:
ODA, $1.1 billion (1998)

Pitcairn Islands:
$NA

Poland:
$NA

Puerto Rico:
$NA

Qatar:
$NA

Reunion:
$NA; note - substantial annual subsidies from France

Russia:
$8.523 billion (1995)

Rwanda:
$591.5 million (1997); note - in summer 1998, Rwanda
presented its policy objectives and development priorities to donor
governments resulting in multiyear pledges in the amount of $250
million

Saint Helena:
$12.6 million (1995); note - $5.3 million from UK
(1997)

Saint Kitts and Nevis:
$5.5 million (1995)

Saint Lucia:
$51.8 million (1995)

Saint Pierre and Miquelon:
approximately $65 million in annual
grants from France

Saint Vincent and the Grenadines:
$47.5 million (1995); note - EU
$34.5 million (1998)

Samoa:
$42.9 million (1995)

San Marino:
$NA

Sao Tome and Principe:
$200 million in December 2000 under the HIPC
program

Senegal:
$647.5 million (1995)

Seychelles:
$16.4 million (1995)

Sierra Leone:
$203.7 million (1995)

Singapore:
$NA

Slovakia:
$421.9 million (1995)

Slovenia:
ODA, $5 million (1993)

Solomon Islands:
$47 million (1999 est.), mainly from Japan,
Australia, China, and NZ

Somalia:
$191.5 million (1995)

South Africa:
$676.3 million

Sri Lanka:
$577 million (1998)

Sudan:
$187 million (1997)

Suriname:
Netherlands provided $37 million for project and program
assistance, European Development Fund $4 million, Belgium $2 million
(1998)

Svalbard:
$8.2 million from Norway (1998)

Swaziland:
$55 million (1995)

Syria:
$199 million (1997 est.)

Tajikistan:
$64.7 million (1995)

Tanzania:
$963 million (1997)

Thailand:
$131.5 million (1998 est.)

Togo:
$201.1 million (1995)

Tokelau:
$3.8 million (1995)

Tonga:
$38.8 million (1995)

Trinidad and Tobago:
$121.4 million (1995)

Tunisia:
$933.2 million (1995); note - ODA, $90 million (1998 est.)

Turkey:
ODA, $195 million (1993)

Turkmenistan:
$27.2 million (1995)

Turks and Caicos Islands:
$4.1 million (1997)

Tuvalu:
$13 million (1999 est.); note - major donors are Japan and
Australia

Uganda:
$1.4 billion (2000)

Ukraine:
$637.7 million (1995); IMF Extended Funds Facility $2.2
billion (1998)

United Arab Emirates:
$NA

Uruguay:
$NA

Uzbekistan:
$276.6 million (1995)

Vanuatu:
$45.8 million (1995)

Venezuela:
$35 million with more assistance likely as a result of
flooding (1999)

Vietnam:
$2.1 billion in credits and grants pledged by international
donors for 2000

Virgin Islands:
$NA

Wallis and Futuna:
assistance from France

West Bank:
$121 million disbursed (includes Gaza Strip) (2000)

Western Sahara:
$NA

World:
traditional worldwide foreign aid $50 billion (1997 est.)

Yemen:
$176.1 million (1995)

Yugoslavia:
$NA

Zambia:
$1.99 billion (1995)

Zimbabwe:
$200 million (2000 est.)

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

@Economy - overview

Afghanistan:
Afghanistan is an extremely poor, landlocked country,
highly dependent on farming and livestock raising (sheep and goats).
Economic considerations have played second fiddle to political and
military upheavals during two decades of war, including the nearly
10-year Soviet military occupation (which ended 15 February 1989).
During that conflict one-third of the population fled the country,
with Pakistan and Iran sheltering a combined peak of more than 6
million refugees. In early 2000, 2 million Afghan refugees remained
in Pakistan and about 1.4 million in Iran. Gross domestic product
has fallen substantially over the past 20 years because of the loss
of labor and capital and the disruption of trade and transport;
severe drought added to the nation's difficulties in 1998-2000. The
majority of the population continues to suffer from insufficient
food, clothing, housing, and medical care. Inflation remains a
serious problem throughout the country. International aid can deal
with only a fraction of the humanitarian problem, let alone promote
economic development. In 1999-2000, internal civil strife continued,
hampering both domestic economic policies and international aid
efforts. Numerical data are likely to be either unavailable or
unreliable. Afghanistan was by far the largest producer of opium
poppies in 2000, and narcotics trafficking is a major source of
revenue.

Albania:
Poor by European standards, Albania is making the difficult
transition to a more open-market economy. The economy rebounded in
1993-95 after a severe depression accompanying the end of the
previous centrally planned system in 1990 and 1991. However, a
weakening of government resolve to maintain stabilization policies
in the election year of 1996 contributed to renewal of inflationary
pressures, spurred by the budget deficit which exceeded 12% of GDP.
The collapse of financial pyramid schemes in early 1997 - which had
attracted deposits from a substantial portion of Albania's
population - triggered severe social unrest which led to more than
1,500 deaths, widespread destruction of property, and a 7% drop in
GDP. The government has taken measures to curb violent crime and to
revive economic activity and trade. The economy is bolstered by
remittances from some 20% of the labor force that works abroad,
mostly in Greece and Italy. These remittances supplement GDP and
help offset the large foreign trade deficit. Most agricultural land
was privatized in 1992, substantially improving peasant incomes. In
1998, Albania recovered the 7% drop in GDP of 1997 and pushed ahead
by 8% in 1999 and by 7.5% in 2000. International aid helped defray
the high costs of receiving and returning refugees from the Kosovo
conflict. Privatization scored some successes in 2000, but other
reforms lagged.

Algeria:
The hydrocarbons sector is the backbone of the economy,
accounting for roughly 60% of budget revenues, 30% of GDP, and over
95% of export earnings. Algeria has the fifth-largest reserves of
natural gas in the world and is the second largest gas exporter; it
ranks fourteenth for oil reserves. Algiers' efforts to reform one of
the most centrally planned economies in the Arab world stalled in
1992 as the country became embroiled in political turmoil. Algeria's
financial and economic indicators improved during the mid-1990s, in
part because of policy reforms supported by the IMF and debt
rescheduling from the Paris Club. Algeria's finances in 2000
benefited from the spike in oil prices and the government's tight
fiscal policy, leading to a large increase in the trade surplus, the
near tripling of foreign exchange reserves, and reduction in foreign
debt. The government continues efforts to diversify the economy by
attracting foreign and domestic investment outside the energy
sector, but has had little success in reducing high unemployment and
improving living standards.

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

Andorra:
Tourism, the mainstay of Andorra's tiny, well-to-do
economy, accounts for roughly 80% of GDP. An estimated 9 million
tourists visit annually, attracted by Andorra's duty-free status and
by its summer and winter resorts. Andorra's comparative advantage
has recently eroded as the economies of neighboring France and Spain
have been opened up, providing broader availability of goods and
lower tariffs. The banking sector, with its "tax haven" status, also
contributes substantially to the economy. Agricultural production is
limited by a scarcity of arable land, and most food has to be
imported. The principal livestock activity is sheep raising.
Manufacturing output consists mainly of cigarettes, cigars, and
furniture. Andorra is a member of the EU Customs Union and is
treated as an EU member for trade in manufactured goods (no tariffs)
and as a non-EU member for agricultural products.

Angola:
Angola is an economy in disarray because of a quarter
century of nearly continuous warfare. Despite its abundant natural
resources, output per capita is among the world's lowest.
Subsistence agriculture provides the main livelihood for 85% of the
population. Oil production and the supporting activities are vital
to the economy, contributing about 45% to GDP and 90% of exports.
Violence continues, millions of land mines remain, and many farmers
are reluctant to return to their fields. As a result, much of the
country's food must still be imported. To fully take advantage of
its rich resources - gold, diamonds, extensive forests, Atlantic
fisheries, and large oil deposits - Angola will need to end its
conflict and continue reforming government policies. Despite the
increase in the pace of civil warfare in late 1998, the economy grew
by an estimated 5% in 2000. The government introduced new currency
denominations in 1999, including 1 and 5 kwanza notes. Internal
strife discourages investment outside of the petroleum sector, which
is producing roughly 800,000 barrels of oil per day. Angola has
entered into a Staff Monitored Program (SMP) with the IMF. Continued
growth depends on sharp cuts in inflation, further economic reform,
and a lessening of fighting.

Anguilla:
Anguilla has few natural resources, and the economy
depends heavily on luxury tourism, offshore banking, lobster
fishing, and remittances from emigrants. The economy, and especially
the tourism sector, suffered a setback in late 1995 due to the
effects of Hurricane Luis in September but recovered in 1996.
Increased activity in the tourism industry, which has spurred the
growth of the construction sector, has contributed to economic
growth. Anguillan officials have put substantial effort into
developing the offshore financial sector. A comprehensive package of
financial services legislation was enacted in late 1994. In the
medium term, prospects for the economy will depend on the tourism
sector and, therefore, on continuing income growth in the
industrialized nations as well as favorable weather conditions.

Antarctica:
Fishing off the coast and tourism, both based abroad,
account for the limited economic activity. Antarctic fisheries in
1998-99 (1 July-30 June) reported landing 119,898 metric tons.
Unregulated fishing landed five to six times more than the regulated
fishery, and allegedly illegal fishing in antarctic waters in 1998
resulted in the seizure (by France and Australia) of at least eight
fishing ships. Companies interested in commercial fishing activities
in Antarctica have put forward proposals. The Convention on the
Conservation of Antarctic Marine Living Resources determines the
recommended catch limits for marine species. A total of 13,193
tourists visited in the 1999-2000 summer, up from the 10,013 who
visited the previous year. Nearly all of them were passengers on 24
commercial (nongovernmental) ships and several yachts that made 143
trips during the summer. Most tourist trips lasted approximately two
weeks.

Antigua and Barbuda:
Tourism continues to be the dominant activity
in the economy accounting directly or indirectly for more than half
of GDP. The budding offshore financial sector has been seriously
hurt by financial sanctions imposed by the US and UK as a result of
the loosening of its money-laundering controls. The government has
made efforts to comply with international demands in order to get
the sanctions lifted. Antigua and Barbuda was listed as a tax haven
by the OECD in 2000. The dual island nation's agricultural
production is mainly directed to the domestic market; the sector is
constrained by the limited water supply and labor shortages that
reflect the pull of higher wages in tourism and construction.
Manufacturing comprises enclave-type assembly for export with major
products being bedding, handicrafts, and electronic components.
Prospects for economic growth in the medium term will continue to
depend on income growth in the industrialized world, especially in
the US, which accounts for about one-third of all tourist arrivals.

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

Argentina:
Argentina benefits from rich natural resources, a highly
literate population, an export-oriented agricultural sector, and a
diversified industrial base. However, when President Carlos MENEM
took office in 1989, the country had piled up huge external debts,
inflation had reached 200% per month, and output was plummeting. To
combat the economic crisis, the government embarked on a path of
trade liberalization, deregulation, and privatization. In 1991, it
implemented radical monetary reforms which pegged the peso to the US
dollar and limited the growth in the monetary base by law to the
growth in reserves. Inflation fell sharply in subsequent years. In
1995, the Mexican peso crisis produced capital flight, the loss of
banking system deposits, and a severe, but short-lived, recession; a
series of reforms to bolster the domestic banking system followed.
Real GDP growth recovered strongly, reaching 8% in 1997. In 1998,
international financial turmoil caused by Russia's problems and
increasing investor anxiety over Brazil produced the highest
domestic interest rates in more than three years, halving the growth
rate of the economy. Conditions worsened in 1999 with GDP falling by
3%. President Fernando DE LA RUA, who took office in December 1999,
sponsored tax increases and spending cuts to reduce the deficit,
which had ballooned to 2.5% of GDP in 1999. Growth in 2000 was a
disappointing 0.8%, as both domestic and foreign investors remained
skeptical of the government's ability to pay debts and maintain its
fixed exchange rate with the US dollar. One bright spot at the start
of 2001 was the IMF's offer of $13.7 billion in support.

Armenia:
Under the old Soviet central planning system, Armenia had
developed a modern industrial sector, supplying machine tools,
textiles, and other manufactured goods to sister republics in
exchange for raw materials and energy. Since the implosion of the
USSR in December 1991, Armenia has switched to small-scale
agriculture away from the large agroindustrial complexes of the
Soviet era. The agricultural sector has long-term needs for more
investment and updated technology. The privatization of industry has
been at a slower pace, but has been given renewed emphasis by the
current administration. Armenia is a food importer, and its mineral
deposits (gold, bauxite) are small. The ongoing conflict with
Azerbaijan over the ethnic Armenian-dominated region of
Nagorno-Karabakh and the breakup of the centrally directed economic
system of the former Soviet Union contributed to a severe economic
decline in the early 1990s. By 1994, however, the Armenian
Government had launched an ambitious IMF-sponsored economic program
that has resulted in positive growth rates in 1995-2000. Armenia
also managed to slash inflation and to privatize most small- and
medium-sized enterprises. The chronic energy shortages Armenia
suffered in recent years have been largely offset by the energy
supplied by one of its nuclear power plants at Metsamor. Armenia's
severe trade imbalance, importing three times its exports, has been
offset somewhat by international aid, domestic restructuring of the
economy, and foreign direct investment.

Aruba:
Tourism is the mainstay of the Aruban economy, although
offshore banking and oil refining and storage are also important.
The rapid growth of the tourism sector over the last decade has
resulted in a substantial expansion of other activities.
Construction has boomed, with hotel capacity five times the 1985
level. In addition, the reopening of the country's oil refinery in
1993, a major source of employment and foreign exchange earnings,
has further spurred growth. Aruba's small labor force and less than
1% unemployment rate have led to a large number of unfilled job
vacancies, despite sharp rises in wage rates in recent years.

Ashmore and Cartier Islands:
no economic activity

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

Australia:
Australia has a prosperous Western-style capitalist
economy, with a per capita GDP at the level of the four dominant
West European economies. Rich in natural resources, Australia is a
major exporter of agricultural products, minerals, metals, and
fossil fuels. Commodities account for 57% of the value of total
exports, so that a downturn in world commodity prices can have a big
impact on the economy. The government is pushing for increased
exports of manufactured goods, but competition in international
markets continues to be severe. While Australia has suffered from
the low growth and high unemployment characterizing the OECD
countries in the early 1990s and during the recent financial
problems in East Asia, the economy has expanded at a solid 4% annual
growth pace in the last five years. Canberra's emphasis on reforms
is a key factor behind the economy's resilience to the regional
crisis and its stronger than expected growth rate. Growth in 2001
will depend on key international commodity prices, the extent of
recovery in nearby Asian economies, and the strength of US and
European markets.

Austria:
Austria with its well-developed market economy and high
standard of living is closely tied to other EU economies, especially
Germany's. Membership in the EU has drawn an influx of foreign
investors attracted by Austria's access to the single European
market and proximity to EU aspirant economies. In 2000, Austria
moved to further cut government spending and raise taxes to meet EMU
deficit targets after facing unexpected difficulties in reducing the
public deficit. To meet increased competition from both EU and
Central European countries, Austria will need to emphasize
knowledge-based sectors of the economy and continue to deregulate
the service sector. Growth is expected to remain at about 3% in 2001.

Azerbaijan:
Azerbaijan's most prominent products are oil, cotton,
and natural gas. Azerbaijan's oil production declined through 1997
but has registered an increase every year since. Negotiation of 19
production-sharing arrangements (PSAs) with foreign firms, which
have thus far committed $60 billion to oil field development, should
generate the funds needed to spur future industrial development. Oil
production under the first of these PSAs, with the Azerbaijan
International Operating Company, began in November 1997. Azerbaijan
shares all the formidable problems of the former Soviet republics in
making the transition from a command to a market economy, but its
considerable energy resources brighten its long-term prospects. Baku
has only recently begun making progress on economic reform, and old
economic ties and structures are slowly being replaced. An obstacle
to economic progress, including stepped up foreign investment, is
the continuing conflict with Armenia over the Nagorno-Karabakh
region. Trade with Russia and the other former Soviet republics is
declining in importance while trade is building up with Turkey,
Iran, UAE, and the nations of Europe. Long-term prospects will
depend on world oil prices, the location of new pipelines in the
region, and Azerbaijan's ability to manage its oil wealth.

Bahamas, The:
The Bahamas is a stable, developing nation with an
economy heavily dependent on tourism and offshore banking. Tourism
alone accounts for more than 60% of GDP and directly or indirectly
employs 40% of the archipelago's labor force. Moderate growth in
tourism receipts and a boom in construction of new hotels, resorts,
and residences led to an increase of the country's GDP by an
estimated 3% in 1998, 6% in 1999, and 4.5% in 2000. Manufacturing
and agriculture together contribute only 10% of GDP and show little
growth, despite government incentives aimed at those sectors.
Overall growth prospects in the short run will depend heavily on the
fortunes of the tourism sector and continued sturdy growth in the
US, which accounts for the majority of tourist visitors.

Bahrain:
In Bahrain, petroleum production and refining account for
about 60% of export receipts, 60% of government revenues, and 30% of
GDP. With its highly developed communication and transport
facilities, Bahrain is home to numerous multinational firms with
business in the Gulf. Bahrain is dependent on Saudi Arabia for oil
revenue granted as aid. A large share of exports consists of
petroleum products made from imported crude. Construction proceeds
on several major industrial projects. Unemployment, especially among
the young, and the depletion of both oil and underground water
resources are major long-term economic problems.

Baker Island:
no economic activity

Bangladesh:
Despite sustained domestic and international efforts to
improve economic and demographic prospects, Bangladesh remains one
of the world's poorest, most densely populated, and least developed
nations. Although more than half of GDP is generated through the
service sector, nearly two-thirds of Bangladeshis are employed in
the agriculture sector, with rice as the single most important
product. Major impediments to growth include frequent cyclones and
floods, inefficient state-owned enterprises, inadequate port
facilities, a rapidly growing labor force that cannot be absorbed by
agriculture, delays in exploiting energy resources (natural gas),
insufficient power supplies, and slow implementation of economic
reforms. Reform is stalled in many instances by political infighting
and corruption at all levels of government. Even so, Prime Minister
Sheikh HASINA's Awami League government has made some headway
improving the climate for foreign investors and liberalizing the
capital markets. Progress on other economic reforms has been halting
because of opposition from the bureaucracy, public sector unions,
and other vested interest groups.

Barbados:
Historically, the Barbadian economy had been dependent on
sugarcane cultivation and related activities, but production in
recent years has diversified into manufacturing and tourism. The
start of the Port Charles Marina project in Speightstown helped the
tourism industry continue to expand in 1996-2000. Offshore finance
and information services are important foreign exchange earners, and
there is also a light manufacturing sector. The government continues
its efforts to reduce unemployment, encourage direct foreign
investment, and privatize remaining state-owned enterprises. Growth
should remain steady in 2001, with new tourist facilities a plus
factor.

Bassas da India:
no economic activity

Belarus:
Belarus has seen little structural reform since 1995, when
President LUKASHENKO launched the country on the path of "market
socialism." In keeping with this policy, LUKASHENKO reimposed
administrative controls over prices and currency exchange rates and
expanded the state's right to intervene in the management of private
enterprise. In addition to the burdens imposed by extremely high
inflation, businesses have been subject to pressure on the part of
central and local governments, e.g., arbitrary changes in
regulations, numerous rigorous inspections, and retroactive
application of new business regulations prohibiting practices that
had been legal. Further economic problems are two consecutive bad
harvests, 1998-99, and persistent trade deficits. Close relations
with Russia, possibly leading to reunion, color the pattern of
economic developments. For the time being, Belarus remains
self-isolated from the West and its open-market economies.

Belgium:
This modern private enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north,
although the government is encouraging investment in the southern
region of Wallonia. With few natural resources, Belgium must import
substantial quantities of raw materials and export a large volume of
manufactures, making its economy unusually dependent on the state of
world markets. About three-quarters of its trade is with other EU
countries. Belgium's public debt is expected to fall below 100% of
GDP in 2002, and the government has succeeded in balancing is
budget. Belgium became a charter member of the European Monetary
Union (EMU) in January 1999. Economic growth in 2000 was broad
based, putting the government in a good position to pursue its
energy market liberalization policies and planned tax cuts.

Belize:
The small, essentially private enterprise economy is based
primarily on agriculture, agro-based industry, and merchandising,
with tourism and construction assuming greater importance. Sugar,
the chief crop, accounts for nearly half of exports, while the
banana industry is the country's largest employer. The government's
tough austerity program in 1997 resulted in an economic slowdown
that continued in 1998. The trade deficit has been growing, mostly
as a result of low export prices for sugar and bananas. The tourist
and construction sectors strengthened in early 1999, supporting
growth of 6% in 1999 and 4% in 2000. Aided by international donors,
the government's key short-term objective remains the reduction of
poverty.

Benin:
The economy of Benin remains underdeveloped and dependent on
subsistence agriculture, cotton production, and regional trade.
Growth in real output averaged a sound 5% in 1996-99, but a rapid
population rise offset much of this growth. Inflation has subsided
over the past several years. Commercial and transport activities,
which make up a large part of GDP, are vulnerable to developments in
Nigeria, particularly fuel shortages. The Paris Club and bilateral
creditors have eased the external debt situation in recent years.
While high fuel prices constrained growth in 2000, increased cotton
production - enabled by a major restructuring program - and an
expansion of the Cotonou port, may lead to increased growth in 2001.

Bermuda:
Bermuda enjoys one of the highest per capita incomes in the
world, having successfully exploited its location by providing
financial services for international firms and luxury tourist
facilities for 360,000 visitors annually. The tourist industry,
which accounts for an estimated 28% of GDP, attracts 84% of its
business from North America. The industrial sector is small, and
agriculture is severely limited by a lack of suitable land. About
80% of food needs are imported. International business contributes
over 60% of Bermuda's economic output; a failed independence vote in
late 1995 can be partially attributed to Bermudian fears of scaring
away foreign firms. Government economic priorities are the further
strengthening of the tourist and international financial sectors.

Bhutan:
The economy, one of the world's smallest and least
developed, is based on agriculture and forestry, which provide the
main livelihood for more than 90% of the population. Agriculture
consists largely of subsistence farming and animal husbandry. Rugged
mountains dominate the terrain and make the building of roads and
other infrastructure difficult and expensive. The economy is closely
aligned with India's through strong trade and monetary links. The
industrial sector is technologically backward, with most production
of the cottage industry type. Most development projects, such as
road construction, rely on Indian migrant labor. Bhutan's hydropower
potential and its attraction for tourists are key resources. The
Bhutanese Government has made some progress in expanding the
nation's productive base and improving social welfare. Model
education, social, and environment programs in Bhutan are underway
with support from multilateral development organizations. Each
economic program takes into account the government's desire to
protect the country's environment and cultural traditions. Detailed
controls and uncertain policies in areas like industrial licensing,
trade, labor, and finance continue to hamper foreign investment.

Bolivia:
Bolivia, long one of the poorest and least developed Latin
American countries, has made considerable progress toward the
development of a market-oriented economy. Successes under President
SANCHEZ DE LOZADA (1993-97) included the signing of a free trade
agreement with Mexico and joining the Southern Cone Common Market
(Mercosur), as well as the privatization of the state airline,
telephone company, railroad, electric power company, and oil
company. His successor, Hugo BANZER Suarez has tried to further
improve the country's investment climate with an anticorruption
campaign. Growth slowed in 1999, in part due to tight government
budget policies, which limited needed appropriations for
anti-poverty programs, and the fallout from the Asian financial
crisis. In 2000, major civil disturbances in April, and again in
September and October, held down overall growth to 2.5%.

Bosnia and Herzegovina:
Bosnia and Herzegovina ranked next to The
Former Yugoslav Republic of Macedonia as the poorest republic in the
old Yugoslav federation. Although agriculture is almost all in
private hands, farms are small and inefficient, and the republic
traditionally is a net importer of food. Industry has been greatly
overstaffed, one reflection of the socialist economic structure of
Yugoslavia. TITO had pushed the development of military industries
in the republic with the result that Bosnia hosted a large share of
Yugoslavia's defense plants. The bitter interethnic warfare in
Bosnia caused production to plummet by 80% from 1990 to 1995,
unemployment to soar, and human misery to multiply. With an uneasy
peace in place, output recovered in 1996-98 at high percentage rates
from a low base; but output growth slowed appreciably in 1999 and
2000, and GDP remains far below the 1990 level. Economic data are of
limited use because, although both entities issue figures,
national-level statistics are not available. Moreover, official data
do not capture the large share of activity that occurs on the black
market. The marka - the national currency introduced in 1998 - has
gained wide acceptance, and the Central Bank of Bosnia and
Herzegovina has dramatically increased its reserve holdings.
Implementation of privatization, however, has been slower than
anticipated. Banking reform accelerated in early 2001 as all the
communist-era payments bureaus were shut down. The country receives
substantial amounts of reconstruction assistance and humanitarian
aid from the international community but will have to prepare for an
era of declining assistance.

Botswana:
Botswana has maintained one of the world's highest growth
rates since independence in 1966. Through fiscal discipline and
sound management, Botswana has transformed itself from one of the
poorest countries in the world to a middle-income country with a per
capita GDP of $6,600 in 2000. Diamond mining has fueled much of
Botswana's economic expansion and currently accounts for more than
one-third of GDP and for three-fourths of export earnings. Tourism,
subsistence farming, and cattle raising are other key sectors. The
government must deal with high rates of unemployment and poverty.
Unemployment officially is 19%, but unofficial estimates place it
closer to 40%. HIV/AIDS infection rates are the highest in the world
and threaten Botswana's impressive economic gains.

Bouvet Island:
no economic activity; declared a nature reserve

Brazil:
Possessing large and well-developed agricultural, mining,
manufacturing, and service sectors, Brazil's economy outweighs that
of all other South American countries and is expanding its presence
in world markets. In the late eighties and early nineties, high
inflation hindered economic activity and investment. "The Real
Plan", instituted in the spring of 1994, sought to break
inflationary expectations by pegging the real to the US dollar.
Inflation was brought down to single digit annual figures, but not
fast enough to avoid substantial real exchange rate appreciation
during the transition phase of the "Real Plan". This appreciation
meant that Brazilian goods were now more expensive relative to goods
from other countries, which contributed to large current account
deficits. However, no shortage of foreign currency ensued because of
the financial community's renewed interest in Brazilian markets as
inflation rates stabilized and the debt crisis of the eighties faded
from memory. The maintenance of large current account deficits via
capital account surpluses became problematic as investors became
more risk averse to emerging market exposure as a consequence of the
Asian financial crisis in 1997 and the Russian bond default in
August 1998. After crafting a fiscal adjustment program and pledging
progress on structural reform, Brazil received a $41.5 billion
IMF-led international support program in November 1998. In January
1999, the Brazilian Central Bank announced that the real would no
longer be pegged to the US dollar. This devaluation helped moderate
the downturn in economic growth in 1999 that investors had expressed
concerns about over the summer of 1998. Brazil's debt to GDP ratio
for 1999 beat the IMF target and helped reassure investors that
Brazil will maintain tight fiscal and monetary policy even with a
floating currency. The economy continued to recover in 2000, with
inflation remaining in the single digits and expected growth for
2001 of 4.5%. Foreign direct investment set a record of more than
$30 billion in 2000.

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