Malaysia:
GDP grew at 8.6% in 2000, mainly on the strength of
double-digit export growth and continued government fiscal stimulus.
As an oil exporter, Malaysia also benefited from higher petroleum
prices. Higher export revenues allowed the country to register a
current account surplus, but foreign exchange reserves have been
declining - from a peak of $34.5 billion in April 2000 to $29.7
billion by December - as foreign investors pulled money out of the
country. Despite this development, Kuala Lumpur is unlikely to
abandon its currency peg soon. An economic slowdown in key Western
markets, especially the United States, and lower world demand for
electronics products will slow GDP growth to 3%-6% in 2001,
according to private forecasters. Over the longer term, Malaysia's
failure to make substantial progress on key reforms of the corporate
and financial sectors clouds prospects for sustained growth and the
return of critical foreign investment.

Maldives:
Tourism, Maldives largest industry, accounts for 20% of
GDP and more than 60% of the Maldives' foreign exchange receipts.
Over 90% of government tax revenue comes from import duties and
tourism-related taxes. Almost 400,000 tourists visited the islands
in 1998. Fishing is a second leading sector. The Maldivian
Government began an economic reform program in 1989 initially by
lifting import quotas and opening some exports to the private
sector. Subsequently, it has liberalized regulations to allow more
foreign investment. Agriculture and manufacturing continue to play a
minor role in the economy, constrained by the limited availability
of cultivable land and the shortage of domestic labor. Most staple
foods must be imported. Industry, which consists mainly of garment
production, boat building, and handicrafts, accounts for about 18%
of GDP. Maldivian authorities worry about the impact of erosion and
possible global warming on their low-lying country; 80% of the area
is one meter or less above sea level.

Mali:
Mali is among the poorest countries in the world, with 65% of
its land area desert or semidesert. Economic activity is largely
confined to the riverine area irrigated by the Niger. About 10% of
the population is nomadic and some 80% of the labor force is engaged
in farming and fishing. Industrial activity is concentrated on
processing farm commodities. Mali is heavily dependent on foreign
aid and vulnerable to fluctuations in world prices for cotton, its
main export. In 1997, the government continued its successful
implementation of an IMF-recommended structural adjustment program
that is helping the economy grow, diversify, and attract foreign
investment. Mali's adherence to economic reform and the 50%
devaluation of the African franc in January 1994 have pushed up
economic growth to a sturdy 5% average in 1996-2000. Growth should
remain around 5% in 2001-02, and inflation should stay less than 2%.

Malta:
Major resources are limestone, a favorable geographic
location, and a productive labor force. Malta produces only about
20% of its food needs, has limited freshwater supplies, and has no
domestic energy sources. The economy is dependent on foreign trade,
manufacturing (especially electronics and textiles), and tourism.
Malta is privatizing state-controlled firms and liberalizing markets
in order to prepare for membership in the European Union. However,
the island is divided politically over the question of joining the
EU. The sizable budget deficit remains a key concern.

Man, Isle of:
Offshore banking, manufacturing, and tourism are key
sectors of the economy. The government's policy of offering
incentives to high-technology companies and financial institutions
to locate on the island has paid off in expanding employment
opportunities in high-income industries. As a result, agriculture
and fishing, once the mainstays of the economy, have declined in
their shares of GDP. Banking and other services now contribute 42%
to GDP. Trade is mostly with the UK. The Isle of Man enjoys free
access to EU markets.

Marshall Islands:
US Government assistance is the mainstay of this
tiny island economy. Agricultural production is concentrated on
small farms, and the most important commercial crops are coconuts,
tomatoes, melons, and breadfruit. Small-scale industry is limited to
handicrafts, fish processing, and copra. The tourist industry, now a
small source of foreign exchange employing less than 10% of the
labor force, remains the best hope for future added income. The
islands have few natural resources, and imports far exceed exports.
Under the terms of the Compact of Free Association, the US provides
roughly $65 million in annual aid. Negotiations were underway in
1999 for an extended agreement. Government downsizing, drought, a
drop in construction, and the decline in tourism and foreign
investment due to the Asian financial difficulties caused GDP to
fall in 1996-98.

Martinique:
The economy is based on sugarcane, bananas, tourism, and
light industry. Agriculture accounts for about 6% of GDP and the
small industrial sector for 11%. Sugar production has declined, with
most of the sugarcane now used for the production of rum. Banana
exports are increasing, going mostly to France. The bulk of meat,
vegetable, and grain requirements must be imported, contributing to
a chronic trade deficit that requires large annual transfers of aid
from France. Tourism has become more important than agricultural
exports as a source of foreign exchange. The majority of the work
force is employed in the service sector and in administration.

Mauritania:
A majority of the population still depends on
agriculture and livestock for a livelihood, even though most of the
nomads and many subsistence farmers were forced into the cities by
recurrent droughts in the 1970s and 1980s. Mauritania has extensive
deposits of iron ore, which account for half of total exports. The
decline in world demand for this ore, however, has led to cutbacks
in production. The nation's coastal waters are among the richest
fishing areas in the world, but overexploitation by foreigners
threatens this key source of revenue. The country's first deepwater
port opened near Nouakchott in 1986. In the past, drought and
economic mismanagement have resulted in a buildup of foreign debt.
In March 1999, the government signed an agreement with a joint World
Bank-IMF mission on a $54 million enhanced structural adjustment
facility (ESAF). Mauritania withdrew its membership in the Economic
Community of West African States (ECOWAS) in 2000. Privatization and
debt relief are in full swing, and the rate of economic growth
appears to be accelerating, especially in the construction,
telecommunication, and information sectors. Diamonds and petroleum
are beginning to be explored and exploited.

Mauritius:
Since independence in 1968, Mauritius has developed from
a low-income, agriculturally based economy to a middle-income
diversified economy with growing industrial, financial, and tourist
sectors. For most of the period, annual growth has been in the order
of 5% to 6%. This remarkable achievement has been reflected in
increased life expectancy, lowered infant mortality, and a
much-improved infrastructure. Sugarcane is grown on about 90% of the
cultivated land area and accounts for 25% of export earnings. The
government's development strategy centers on foreign investment.
Mauritius has attracted more than 9,000 offshore entities, many
aimed at commerce in India and South Africa, and investment in the
banking sector alone has reached over $1 billion. Economic
performance since 1991 has continued strong with solid growth and
low unemployment.

Mayotte:
Economic activity is based primarily on the agricultural
sector, including fishing and livestock raising. Mayotte is not
self-sufficient and must import a large portion of its food
requirements, mainly from France. The economy and future development
of the island are heavily dependent on French financial assistance,
an important supplement to GDP. Mayotte's remote location is an
obstacle to the development of tourism.