ions. President JAGDEO, the former finance minister, is
taking steps to reform the economy, including drafting an investment
code and restructuring the inefficient and unresponsive public
sector. Problems include a shortage of skilled labor and a deficient
infrastructure. The government must persist in efforts to manage its
sizable external debt and attract new investment.

Haiti:
About 80% of the population lives in abject poverty. Nearly
70% of all Haitians depend on the agriculture sector, which consists
mainly of small-scale subsistence farming and employs about
two-thirds of the economically active work force. The country has
experienced little job creation since the former President PREVAL
took office in February 1996, although the informal economy is
growing. Following legislative elections in May 2000, fraught with
irregularities, international donors - including the US and EU -
suspended almost all aid to Haiti. This destabilized the Haitian
currency, the gourde, and, combined with a 40% fuel price hike in
September, caused widespread price increases. Prices appear to have
leveled off in January 2001.

Heard Island and McDonald Islands:
no economic activity

Holy See (Vatican City):
This unique, noncommercial economy is
supported financially by contributions (known as Peter's Pence) from
Roman Catholics throughout the world, the sale of postage stamps and
tourist mementos, fees for admission to museums, and the sale of
publications. The incomes and living standards of lay workers are
comparable to, or somewhat better than, those of counterparts who
work in the city of Rome.

Honduras:
Honduras, one of the poorest countries in the Western
Hemisphere, is banking on expanded trade privileges under the
Enhanced Caribbean Basin Initiative and on debt relief under the
Heavily Indebted Poor Countries (HIPC) initiative. While
reconstruction from 1998's Hurricane Mitch is at an advanced stage,
and the country has met most of its macroeconomic targets, it failed
to meet the IMF's goals to liberalize its energy and
telecommunications sectors. Economic growth has rebounded nicely
since the hurricane and should continue in 2001.

Hong Kong:
Hong Kong has a bustling free market economy highly
dependent on international trade. Natural resources are limited, and
food and raw materials must be imported. Indeed, imports and
exports, including