ver,
traditional export sectors have not kept pace. Low coffee prices and
an overabundance of bananas have hurt the agricultural sector. The
government continues to grapple with its large deficit and massive
internal debt and with the need to modernize the state-owned
electricity and telecommunications sector.

Cote d'Ivoire:
Cote d'Ivoire is among the world's largest producers
and exporters of coffee, cocoa beans, and palm oil. Consequently,
the economy is highly sensitive to fluctuations in international
prices for these products and to weather conditions. Despite
government attempts to diversify the economy, it is still largely
dependent on agriculture and related activities, which engage
roughly 68% of the population. After several years of lagging
performance, the Ivorian economy began a comeback in 1994, due to
the 50% devaluation of the CFA franc and improved prices for cocoa
and coffee, growth in nontraditional primary exports such as
pineapples and rubber, limited trade and banking liberalization,
offshore oil and gas discoveries, and generous external financing
and debt rescheduling by multilateral lenders and France. Moreover,
government adherence to donor-mandated reforms led to a jump in
growth to 5% annually in 1996-99. Growth was negative in 2000
because of the difficulty of meeting the conditions of international
donors, continued low prices of key exports, and post-coup
instability. In 2001-02, a moderate rebound in the cocoa market
could boost growth back above 3%; however, political instability
could impede growth again.

Croatia:
Before the dissolution of Yugoslavia, the Republic of
Croatia, after Slovenia, was the most prosperous and industrialized
area, with a per capita output perhaps one-third above the Yugoslav
average. Croatia faces considerable economic problems stemming from:
the legacy of longtime communist mismanagement of the economy;
damage during the internecine fighting to bridges, factories, power
lines, buildings, and houses; the large refugee and displaced
population, both Croatian and Bosnian; and the disruption of
economic ties. Stepped-up Western aid and investment, especially in
the tourist and oil industries, would help bolster the economy. The
economy emerged from its mild recession in 2000 with tourism the
main factor. Massive unemployment remains a key negative element.
The government's failure t