Libya
The Italians supplanted the Ottoman Turks from the area around
Tripoli in 1911 and did not relinquish their hold until 1943 when
defeated in World War II. Libya then passed to UN administration and
achieved independence in 1951. Following a 1969 military coup, Col.
Muammar Abu Minyar al-QADHAFI began to espouse his own political
system, the Third Universal Theory. The system is a combination of
socialism and Islam derived in part from tribal practices and is
supposed to be implemented by the Libyan people themselves in a
unique form of "direct democracy." QADHAFI has always seen himself
as a revolutionary and visionary leader. He used oil funds during
the 1970s and 1980s to promote his ideology outside Libya,
supporting subversives and terrorists abroad to hasten the end of
Marxism and capitalism. In addition, beginning in 1973, he engaged
in military operations in northern Chad's Aozou Strip - to gain
access to minerals and to use as a base of influence in Chadian
politics - but was forced to retreat in 1987. UN sanctions in 1992
isolated QADHAFI politically following the downing of Pan AM Flight
103 over Lockerbie, Scotland. Libyan support for terrorism appeared
to have decreased after the imposition of sanctions. During the
1990s, QADHAFI also began to rebuild his relationships with Europe.
UN sanctions were suspended in April 1999 and finally lifted in
September 2003 after Libya resolved the Lockerbie case. In December
2003, Libya announced that it had agreed to reveal and end its
programs to develop weapons of mass destruction, and QADHAFI has
made significant strides in normalizing relations with western
nations since then. He has received various Western European leaders
as well as many working-level and commercial delegations, and made
his first trip to Western Europe in 15 years when he traveled to
Brussels in April 2004. QADHAFI also resolved in 2004 some of the
outstanding cases against his government for terrorist activities in
the 1980s by compensating some families of victims of the Pan Am
103, French airliner UTA, and La Belle disco bombings. The US
resumed full diplomatic relations with Libya in May 2006 and
rescinded Libya's designation as a state sponsor of terrorism in
June.

Liechtenstein
The Principality of Liechtenstein was established
within the Holy Roman Empire in 1719; it became a sovereign state in
1806. Until the end of World War I, it was closely tied to Austria,
but the economic devastation caused by that conflict forced
Liechtenstein to enter into a customs and monetary union with
Switzerland. Since World War II (in which Liechtenstein remained
neutral), the country's low taxes have spurred outstanding economic
growth. Shortcomings in banking regulatory oversight resulted in
concerns about the use of financial institutions for money
laundering. However, Liechtenstein implemented anti-money-laundering
legislation over the past several years and a Mutual Legal
Assistance Treaty with the US went into effect in 2003.

Lithuania
Independent between the two World Wars, Lithuania was
annexed by the USSR in 1940 - an action never recognized by the US.
On 11 March 1990, Lithuania became the first of the Soviet republics
to declare its independence, but Moscow did not recognize this
proclamation until September of 1991 (following the abortive coup in
Moscow). The last Russian troops withdrew in 1993. Lithuania
subsequently restructured its economy for integration into Western
European institutions; it joined both NATO and the EU in the spring
of 2004.

Luxembourg
Founded in 963, Luxembourg became a grand duchy in 1815
and an independent state under the Netherlands. It lost more than
half of its territory to Belgium in 1839, but gained a larger
measure of autonomy. Full independence was attained in 1867. Overrun
by Germany in both World Wars, it ended its neutrality in 1948 when
it entered into the Benelux Customs Union and when it joined NATO
the following year. In 1957, Luxembourg became one of the six
founding countries of the European Economic Community (later the
European Union), and in 1999 it joined the euro currency area.

Macau
Colonized by the Portuguese in the 16th century, Macau was the
first European settlement in the Far East. Pursuant to an agreement
signed by China and Portugal on 13 April 1987, Macau became the
Macau Special Administrative Region (SAR) of China on 20 December
1999. China has promised that, under its "one country, two systems"
formula, China's socialist economic system will not be practiced in
Macau, and that Macau will enjoy a high degree of autonomy in all
matters except foreign and defense affairs for the next 50 years.

Macedonia
Macedonia gained its independence peacefully from
Yugoslavia in 1991, but Greece's objection to the new state's use of
what it considered a Hellenic name and symbols delayed international
recognition, which occurred under the provisional designation of
"the Former Yugoslav Republic of Macedonia." In 1995, Greece lifted
a 20-month trade embargo and the two countries agreed to normalize
relations. The United States began referring to Macedonia by its
constitutional name, Republic of Macedonia, in 2004 and negotiations
continue between Greece and Macedonia to resolve the name issue.
Some ethnic Albanians, angered by perceived political and economic
inequities, launched an insurgency in 2001 that eventually won the
support of the majority of Macedonia's Albanian population and led
to the internationally-brokered Framework Agreement, which ended the
fighting by establishing a set of new laws enhancing the rights of
minorities. The undetermined status of neighboring Kosovo,
implementation of the Framework Agreement, and a weak economy
continue to be challenges for Macedonia.

Madagascar
Formerly an independent kingdom, Madagascar became a
French colony in 1896, but regained its independence in 1960. During
1992-93, free presidential and National Assembly elections were
held, ending 17 years of single-party rule. In 1997, in the second
presidential race, Didier RATSIRAKA, the leader during the 1970s and
1980s, was returned to the presidency. The 2001 presidential
election was contested between the followers of Didier RATSIRAKA and
Marc RAVALOMANANA, nearly causing secession of half of the country.
In April 2002, the High Constitutional Court announced RAVALOMANANA
the winner.

Malawi
Established in 1891, the British protectorate of Nyasaland
became the independent nation of Malawi in 1964. After three decades
of one-party rule under President Hastings Kamuzu BANDA the country
held multiparty elections in 1994, under a provisional constitution
which came into full effect the following year. Current President
Bingu wa MUTHARIKA, elected in May 2004 after a failed attempt by
the previous president to amend the constitution to permit another
term, has struggled to assert his authority against his predecessor,
who still leads their shared political party. MUTHARIKA's
anti-corruption efforts have led to several high-level arrests and
one prominent conviction. Increasing corruption, population growth,
increasing pressure on agricultural lands, and the spread of
HIV/AIDS pose major problems for the country.

Malaysia
During the late 18th and 19th centuries, Great Britain
established colonies and protectorates in the area of current
Malaysia; these were occupied by Japan from 1942 to 1945. In 1948,
the British-ruled territories on the Malay Peninsula formed the
Federation of Malaya, which became independent in 1957. Malaysia was
formed in 1963 when the former British colonies of Singapore and the
East Malaysian states of Sabah and Sarawak on the northern coast of
Borneo joined the Federation. The first several years of the
country's history were marred by Indonesian efforts to control
Malaysia, Philippine claims to Sabah, and Singapore's secession from
the Federation in 1965. During the 22-year term of Prime Minister
MAHATHIR bin Mohamad (1981-2003), Malaysia was successful in
diversifying its economy from dependence on exports of raw
materials, to expansion in manufacturing, services, and tourism.

Maldives
The Maldives was long a sultanate, first under Dutch and
then under British protection. It became a republic in 1968, three
years after independence. Since 1978, President Maumoon Abdul GAYOOM
- currently in his sixth term in office - has dominated the islands'
political scene. Following riots in the capital Male in August 2004,
the president and his government pledged to embark upon democratic
reforms, including a more representative political system and
expanded political freedoms. Progress has been slow, however, and
many promised reforms have been delayed indefinitely. Tourism and
fishing are being developed on the archipelago.