ollar shortages. External payments
were not in crisis, but Cairo's attempts to curb demand for foreign
exchange convinced some investors and currency traders that
government financial operations lacked transparency and
coordination. Monetary pressures have since eased, however, with the
1999-2000 higher oil prices, a rebound in tourism, and a series of
mini-devaluations of the pound. The development of a gas export
market is a major plus factor in future growth.

El Salvador:
El Salvador is a struggling Central American economy
which has been suffering from a weak tax collection system, factory
closings, the aftermaths of Hurricane Mitch of 1998 and the
devastating earthquakes of early 2001, and weak world coffee prices.
On the bright side, in recent years inflation has fallen to single
digit levels, and total exports have grown substantially. The trade
deficit has been offset by remittances (an estimated $1.6 billion in
2000) from Salvadorans living abroad and by external aid. As of 1
January 2001, the US dollar was made legal tender alongside the
colon.

Equatorial Guinea:
The discovery and exploitation of large oil
reserves have contributed to dramatic economic growth in recent
years. Forestry, farming, and fishing are also major components of
GDP. Subsistence farming predominates. Although pre-independence
Equatorial Guinea counted on cocoa production for hard currency
earnings, the deterioration of the rural economy under successive
brutal regimes has diminished potential for agriculture-led growth.
A number of aid programs sponsored by the World Bank and the IMF
have been cut off since 1993 because of the government's gross
corruption and mismanagement. Businesses, for the most part, are
owned by government officials and their family members. Undeveloped
natural resources include titanium, iron ore, manganese, uranium,
and alluvial gold. The country responded favorably to the
devaluation of the CFA franc in January 1994. Boosts in production
and high world oil prices stimulated growth in 2000, with oil
accounting for 90% of greatly increased exports.

Eritrea:
With independence from Ethiopia on 24 May 1993, Eritrea
faced the economic problems of a small, desperately poor country.
The economy is largely based on subsistence agriculture, with 80% of
the population involved in farming and herding. The small industrial
sector consists m