o press the economic reforms needed to
spur growth is largely the result of coalition politics and public
resistance, particularly from the trade unions, to measures that
would cut jobs, wages, or social benefits.

Cuba:
The government, the primary player in the economy, has
undertaken limited reforms in recent years to stem excess liquidity,
increase enterprise efficiency, and alleviate serious shortages of
food, consumer goods, and services, but prioritizing of political
control makes extensive reforms unlikely. Living standards for the
average Cuban, without access to dollars, remain at a depressed
level compared with 1990. The liberalized farmers' markets
introduced in 1994, sell above-quota production at market prices,
expand legal consumption alternatives, and reduce black market
prices. Income taxes and increased regulations introduced since 1996
have sharply reduced the number of legally self-employed from a high
of 208,000 in January 1996. Havana announced in 1995 that GDP
declined by 35% during 1989-93 as a result of lost Soviet aid and
domestic inefficiencies. The slide in GDP came to a halt in 1994
when Cuba reported growth in GDP of 0.7%. Cuba reported that GDP
increased by 2.5% in 1995 and 7.8% in 1996, before slowing down in
1997 and 1998 to 2.5% and 1.2% respectively. Growth recovered with a
6.2% increase in GDP in 1999 and a 5.6% increase in 2000. Much of
Cuba's recovery can be attributed to tourism revenues and foreign
investment. Growth in 2001 should continue at the same level as the
government balances the need for economic loosening against its
concern for firm political control.

Cyprus:
Economic affairs are affected by the division of the
country. The Greek Cypriot economy is prosperous but highly
susceptible to external shocks. Erratic growth rates in the 1990s
reflect the economy's vulnerability to swings in tourist arrivals,
caused by political instability on the island and fluctuations in
economic conditions in Western Europe. Economic policy is focused on
meeting the criteria for admission to the EU. As in the Turkish
sector, water shortage is a growing problem, and several
desalination plants are planned. The Turkish Cypriot economy has
about one-fifth the population and one-third the per capita GDP of
the south. Because it is recognized only by Turkey, it has had much
difficulty arranging foreign financing, and f