ly of subsistence farming and animal husbandry. Rugged
mountains dominate the terrain and make the building of roads and
other infrastructure difficult and expensive. The economy is closely
aligned with India's through strong trade and monetary links. The
industrial sector is technologically backward, with most production
of the cottage industry type. Most development projects, such as
road construction, rely on Indian migrant labor. Bhutan's hydropower
potential and its attraction for tourists are key resources. The
Bhutanese Government has made some progress in expanding the
nation's productive base and improving social welfare. Model
education, social, and environment programs in Bhutan are underway
with support from multilateral development organizations. Each
economic program takes into account the government's desire to
protect the country's environment and cultural traditions. Detailed
controls and uncertain policies in areas like industrial licensing,
trade, labor, and finance continue to hamper foreign investment.

Bolivia:
Bolivia, long one of the poorest and least developed Latin
American countries, has made considerable progress toward the
development of a market-oriented economy. Successes under President
SANCHEZ DE LOZADA (1993-97) included the signing of a free trade
agreement with Mexico and joining the Southern Cone Common Market
(Mercosur), as well as the privatization of the state airline,
telephone company, railroad, electric power company, and oil
company. His successor, Hugo BANZER Suarez has tried to further
improve the country's investment climate with an anticorruption
campaign. Growth slowed in 1999, in part due to tight government
budget policies, which limited needed appropriations for
anti-poverty programs, and the fallout from the Asian financial
crisis. In 2000, major civil disturbances in April, and again in
September and October, held down overall growth to 2.5%.

Bosnia and Herzegovina:
Bosnia and Herzegovina ranked next to The
Former Yugoslav Republic of Macedonia as the poorest republic in the
old Yugoslav federation. Although agriculture is almost all in
private hands, farms are small and inefficient, and the republic
traditionally is a net importer of food. Industry has been greatly
overstaffed, one reflection of the socialist economic structure of
Yugoslavia. TITO had pushed the development of military indus