the nation's banks. In June 2000, the government completed an
IMF-sponsored, three-year structural adjustment program; however,
the IMF is pressing for more reforms, including increased budget
transparency and privatization. Higher oil prices in 2000 helped to
offset the country's lower cocoa export revenues. A rebound in the
cocoa market should increase growth to over 5% in 2001.

Canada:
As an affluent, high-tech industrial society, Canada today
closely resembles the US in its market-oriented economic system,
pattern of production, and high living standards. Since World War
II, the impressive growth of the manufacturing, mining, and service
sectors has transformed the nation from a largely rural economy into
one primarily industrial and urban. Real rates of growth have
averaged nearly 3.0% since 1993. Unemployment is falling and
government budget surpluses are being partially devoted to reducing
the large public sector debt. The 1989 US-Canada Free Trade
Agreement (FTA) and 1994 North American Free Trade Agreement (NAFTA)
(which included Mexico) have touched off a dramatic increase in
trade and economic integration with the US. With its great natural
resources, skilled labor force, and modern capital plant Canada
enjoys solid economic prospects. Two shadows loom, the first being
the continuing constitutional impasse between English- and
French-speaking areas, which has been raising the possibility of a
split in the federation. Another long-term concern is the flow south
to the US of professional persons lured by higher pay, lower taxes,
and the immense high-tech infrastructure.

Cape Verde:
Cape Verde's low per capita GDP reflects a poor natural
resource base, including serious water shortages exacerbated by
cycles of long-term drought. The economy is service-oriented, with
commerce, transport, and public services accounting for almost 70%
of GDP. Although nearly 70% of the population lives in rural areas,
the share of agriculture in GDP in 1998 was only 13%, of which
fishing accounts for 1.5%. About 90% of food must be imported. The
fishing potential, mostly lobster and tuna, is not fully exploited.
Cape Verde annually runs a high trade deficit, financed by foreign
aid and remittances from emigrants; remittances constitute a
supplement to GDP of more than 20%. Economic reforms, launched by
the new democratic government in 1991, are aimed at