Austria
Once the center of power for the large Austro-Hungarian
Empire, Austria was reduced to a small republic after its defeat in
World War I. Following annexation by Nazi Germany in 1938 and
subsequent occupation by the victorious Allies in 1945, Austria's
status remained unclear for a decade. A State Treaty signed in 1955
ended the occupation, recognized Austria's independence, and forbade
unification with Germany. A constitutional law that same year
declared the country's "perpetual neutrality" as a condition for
Soviet military withdrawal. The Soviet Union's collapse in 1991 and
Austria's entry into the European Union in 1995 have altered the
meaning of this neutrality. A prosperous, democratic country,
Austria entered the EU Economic and Monetary Union in 1999.

Azerbaijan
Azerbaijan - a nation with a majority-Turkic and
majority-Muslim population - was briefly independent from 1918 to
1920; it regained its independence after the collapse of the Soviet
Union in 1991. Despite a 1994 cease-fire, Azerbaijan has yet to
resolve its conflict with Armenia over the Azerbaijani
Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan
has lost 16% of its territory and must support some 600,000
internally displaced persons as a result of the conflict. Corruption
is ubiquitous, and the government has been accused of
authoritarianism. Although the poverty rate has been reduced in
recent years, the promise of widespread wealth from development of
Azerbaijan's energy sector remains largely unfulfilled.

Bahamas, The
Lucayan Indians inhabited the islands when Christopher
COLUMBUS first set foot in the New World on San Salvador in 1492.
British settlement of the islands began in 1647; the islands became
a colony in 1783. Since attaining independence from the UK in 1973,
The Bahamas have prospered through tourism and international banking
and investment management. Because of its geography, the country is
a major transshipment point for illegal drugs, particularly
shipments to the US and Europe, and its territory is used for
smuggling illegal migrants into the US.

Bahrain
In 1783, the al-Khalifa family captured Bahrain from the
Persians. In order to secure these holdings, it entered into a
series of treaties with the UK during the 19th century that made
Bahrain a British protectorate. The archipelago attained its
independence in 1971. Bahrain's small size and central location
among Persian Gulf countries require it to play a delicate balancing
act in foreign affairs among its larger neighbors. Facing declining
oil reserves, Bahrain has turned to petroleum processing and
refining and has transformed itself into an international banking
center. King HAMAD bin Isa al-Khalifa, after coming to power in
1999, pushed economic and political reforms to improve relations
with the Shia community. Shia political societies participated in
2006 parliamentary and municipal elections. Al Wifaq, the largest
Shia political society, won the largest number of seats in the
elected chamber of the legislature. However, Shi'a discontent has
resurfaced in recent years with street demonstrations and occasional
low-level violence.

Bangladesh
Europeans began to set up trading posts in the area of
Bangladesh in the 16th century; eventually the British came to
dominate the region and it became part of British India. In 1947,
West Pakistan and East Bengal (both primarily Muslim) separated from
India (largely Hindu) and jointly became the new country of
Pakistan. East Bengal became East Pakistan in 1955, but the awkward
arrangement of a two-part country with its territorial units
separated by 1,600 km left the Bengalis marginalized and
dissatisfied. East Pakistan seceded from its union with West
Pakistan in 1971 and was renamed Bangladesh. A military-backed
caretaker regime suspended planned parliamentary elections in
January 2007 in an effort to reform the political system and root
out corruption; the regime has pledged new democratic elections by
the end of 2008. About a third of this extremely poor country floods
annually during the monsoon rainy season, hampering economic
development.

Barbados
The island was uninhabited when first settled by the
British in 1627. Slaves worked the sugar plantations established on
the island until 1834 when slavery was abolished. The economy
remained heavily dependent on sugar, rum, and molasses production
through most of the 20th century. The gradual introduction of social
and political reforms in the 1940s and 1950s led to complete
independence from the UK in 1966. In the 1990s, tourism and
manufacturing surpassed the sugar industry in economic importance.

Belarus
After seven decades as a constituent republic of the USSR,
Belarus attained its independence in 1991. It has retained closer
political and economic ties to Russia than any of the other former
Soviet republics. Belarus and Russia signed a treaty on a two-state
union on 8 December 1999 envisioning greater political and economic
integration. Although Belarus agreed to a framework to carry out the
accord, serious implementation has yet to take place. Since his
election in July 1994 as the country's first president, Alexandr
LUKASHENKO has steadily consolidated his power through authoritarian
means. Government restrictions on freedom of speech and the press,
peaceful assembly, and religion continue.

Belgium
Belgium became independent from the Netherlands in 1830; it
was occupied by Germany during World Wars I and II. The country
prospered in the past half century as a modern, technologically
advanced European state and member of NATO and the EU. Tensions
between the Dutch-speaking Flemings of the north and the
French-speaking Walloons of the south have led in recent years to
constitutional amendments granting these regions formal recognition
and autonomy.

Belize
Belize was the site of several Mayan city states until their
decline at the end of the first millennium A.D. The British and
Spanish disputed the region in the 17th and 18th centuries; it
formally became the colony of British Honduras in 1854. Territorial
disputes between the UK and Guatemala delayed the independence of
Belize until 1981. Guatemala refused to recognize the new nation
until 1992. Tourism has become the mainstay of the economy. Current
concerns include an unsustainable foreign debt, high unemployment,
growing involvement in the South American drug trade, growing urban
crime, and increasing incidences of HIV/AIDS.

Benin
Present day Benin was the site of Dahomey, a prominent West
African kingdom that rose in the 15th century. The territory became
a French Colony in 1872 and achieved independence on 1 August 1960,
as the Republic of Benin. A succession of military governments ended
in 1972 with the rise to power of Mathieu KEREKOU and the
establishment of a government based on Marxist-Leninist principles.
A move to representative government began in 1989. Two years later,
free elections ushered in former Prime Minister Nicephore SOGLO as
president, marking the first successful transfer of power in Africa
from a dictatorship to a democracy. KEREKOU was returned to power by
elections held in 1996 and 2001, though some irregularities were
alleged. KEREKOU stepped down at the end of his second term in 2006
and was succeeded by Thomas YAYI Boni, a political outsider and
independent. YAYI has begun a high profile fight against corruption
and has strongly promoted accelerating Benin's economic growth.