Reunion
The economy has traditionally been based on agriculture, but
services now dominate. Sugarcane has been the primary crop for more
than a century, and in some years it accounts for 85% of exports.
The government has been pushing the development of a tourist
industry to relieve high unemployment, which amounts to one-third of
the labor force. The gap in Reunion between the well-off and the
poor is extraordinary and accounts for the persistent social
tensions. The white and Indian communities are substantially better
off than other segments of the population, often approaching
European standards, whereas minority groups suffer the poverty and
unemployment typical of the poorer nations of the African continent.
The outbreak of severe rioting in February 1991 illustrates the
seriousness of socioeconomic tensions. The economic well-being of
Reunion depends heavily on continued financial assistance from
France.

Romania
Romania 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.
Despite the global slowdown in 2001-02, strong domestic activity in
construction, agriculture, and consumption have kept growth above
4%. An IMF Standby Agreement, signed in 2001, has been accompanied
by slow but palpable gains in privatization, deficit reduction, and
the curbing of inflation. Nonetheless, recent macroeconomic gains
have done little to address Romania's widespread poverty, while
corruption and red tape hinder foreign investment.

Russia
A decade after the implosion of the Soviet Union in December
1991, Russia is still struggling to establish a modern market
economy and achieve strong economic growth. In contrast to its
trading partners in Central Europe - which were able within 3 to 5
years to overcome the initial production declines that accompanied
the launch of market reforms - Russia saw its economy contract for
five years, as the executive and legislature dithered over the
implementation of many of the basic foundations of a market economy.
Russia achieved a slight recovery in 1997, but the government's
stubborn budget deficits and the country's poor business climate
made it vulnerable when the global financial crisis swept through in
1998. The crisis culminated in the August depreciation of the ruble,
a debt default by the government, and a sharp deterioration in
living standards for most of the population. The economy
subsequently has rebounded, growing by an average of more than 6%
annually in 1999-2002 on the back of higher oil prices and the 60%
depreciation of the ruble in 1998. These GDP numbers, along with a
renewed government effort to advance lagging structural reforms,
have raised business and investor confidence over Russia's prospects
in its second decade of transition. Yet serious problems persist.
Oil, natural gas, metals, and timber account for more than 80% of
exports, leaving the country vulnerable to swings in world prices.
Russia's industrial base is increasingly dilapidated and must be
replaced or modernized if the country is to maintain vigorous
economic growth. Other problems include a weak banking system, a
poor business climate that discourages both domestic and foreign
investors, corruption, local and regional government intervention in
the courts, and widespread lack of trust in institutions. In 2003
President PUTIN further tightened his control over the "oligarchs,"
especially in the realm of political expression.

Rwanda
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; 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. Export earnings, however,
have been hindered by low beverage prices, depriving the country of
much needed hard currency. Attempts to diversify into
non-traditional agriculture exports such as flowers and vegetables
have been stymied by a lack of adequate transportation
infrastructure. Despite Rwanda's fertile ecosystem, food production
often does not keep pace with population growth, requiring food to
be imported. Rwanda continues to receive substantial amounts of aid
money and was approved for IMF-World Bank Heavily Indebted Poor
Country (HIPC) initiative debt relief in late 2000. But Kigali's
high defense expenditures cause tension between the government and
international donors and lending agencies.

Saint Helena
The economy depends largely on financial assistance
from the UK, which amounted to about $5 million in 1997 or almost
one-half of annual budgetary revenues. The local population earns
income from fishing, the raising of 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.

Saint Kitts and Nevis
Sugar was the traditional mainstay of the
Saint Kitts economy until the 1970s. Although the crop still
dominates the agricultural sector, activities such as tourism,
export-oriented manufacturing, and offshore banking have assumed
larger roles in the economy. As tourism revenues are now the chief
source of the islands' foreign exchange, a decline in stopover
tourist arrivals following the September 11, 2001 terrorist attacks
has eroded government finances. The opening of a 1,000+ bed Marriott
hotel in February 2003 is expected to bring in much-needed revenue.

Saint Lucia
The recent changes in the EU import preference regime
and the increased competition from Latin American bananas have made
economic diversification increasingly important in Saint Lucia. The
island nation has been able to attract foreign business and
investment, especially in its offshore banking and tourism
industries. The manufacturing sector is the most diverse in the
Eastern Caribbean area, and the government is trying to revitalize
the banana industry. Economic fundamentals remain solid.

Saint Pierre and Miquelon
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. The islands are heavily subsidized by France
to the great betterment of living standards. The government hopes an
expansion of tourism will boost economic prospects. Recent test
drilling for oil may pave the way for development of the energy
sector.

Saint Vincent and the Grenadines Bananas and other agricultural products remain the staple of this lower-middle income country's economy. Although tourism and other services have been growing moderately in recent years, the government has been ineffective at introducing new industries. Unemployment remains high, and economic growth hinges upon seasonal variations in the agricultural and tourism sectors. Tropical storms wiped out substantial portions of crops in 1994, 1995, and 2002, and tourism in the Eastern Caribbean has suffered low arrivals following 11 September 2001. Saint Vincent is home to a small offshore banking sector, but its restrictive secrecy laws have come under international review. As of June 2001, it remained on the Financial Action Task Force's list of noncooperative jurisdictions. Saint Vincent is also the largest producer of marijuana in the Eastern Caribbean and is increasingly being used as a transshipment point for illegal narcotics from South America.

Samoa
The economy of Samoa has traditionally been dependent on
development aid, family remittances from overseas, and 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
manufacturing sector mainly processes agricultural products. The
decline of fish stocks in the area is a continuing problem. Tourism
is an expanding sector, accounting for 25% of GDP; about 88,000
tourists visited the islands in 2001. The Samoan Government has
called for deregulation of the financial sector, encouragement of
investment, and continued fiscal discipline, meantime 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.