Military expenditures - percent of GDP: 3.1% (FY99)

Chile Transnational Issues

Disputes - international: Bolivia has wanted a sovereign corridor to the South Pacific Ocean since the Atacama area was lost to Chile in 1884; dispute with Bolivia over Rio Lauca water rights; territorial claim in Antarctica (Chilean Antarctic Territory) partially overlaps Argentine and British claims

Illicit drugs: a growing transshipment country for cocaine destined for the US and Europe; economic prosperity has made Chile more attractive to traffickers seeking to launder drug profits; imported precursors passed on to Bolivia; domestic cocaine consumption is rising

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@China

China Introduction

Background: For centuries China has stood as a leading civilization, outpacing the rest of the world in the arts and sciences. But in the first half of the 20th century, China was beset by major famines, civil unrest, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established a dictatorship that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, his successor DENG Xiaoping gradually introduced market-oriented reforms and decentralized economic decision making. Output quadrupled in the next 20 years and China now has the world's second largest GDP. Political controls remain tight even while economic controls continue to weaken.

China Geography

Location: Eastern Asia, bordering the East China Sea, Korea Bay,
Yellow Sea, and South China Sea, between North Korea and Vietnam