hing central control over key national
assets or undergoing market-oriented reforms.

Korea, South:
As one of the Four Dragons of East Asia, South Korea
has achieved an incredible record of growth. Three decades ago GDP
per capita was comparable with levels in the poorer countries of
Africa and Asia. Today its GDP per capita is seven times India's, 16
times North Korea's, and comparable to the lesser economies of the
European Union. This success through the late 1980s was achieved by
a system of close government/business ties, including directed
credit, import restrictions, sponsorship of specific industries, and
a strong labor effort. The government promoted the import of raw
materials and technology at the expense of consumer goods and
encouraged savings and investment over consumption. The Asian
financial crisis of 1997-99 exposed certain longstanding weaknesses
in South Korea's development model, including high debt/equity
ratios, massive foreign borrowing, and an undisciplined financial
sector. By 1999 GDP growth had recovered, reversing the substantial
decline of 1998. Seoul has pressed the country's largest business
groups to restructure and to strengthen their financial base. Growth
in 2001 likely will be a more sustainable rate of 5%.

Kuwait:
Kuwait is a small, relatively open economy with proved crude
oil reserves of about 94 billion barrels - 10% of world reserves.
Petroleum accounts for nearly half of GDP, 90% of export revenues,
and 75% of government income. Kuwait's climate limits agricultural
development. Consequently, with the exception of fish, it depends
almost wholly on food imports. About 75% of potable water must be
distilled or imported. Higher oil prices put the FY99/00 budget into
a $2 billion surplus. The FY00/01 budget covers only nine months
because of a change in the fiscal year. The budget for FY01/02,
which begins 1 April, contains higher expenditures for salaries,
construction, and other general categories. Kuwait continues its
discussions with foreign oil companies to develop fields in the
northern part of the country.

Kyrgyzstan:
Kyrgyzstan is a small, poor, mountainous country with a
predominantly agricultural economy. Cotton, wool, and meat are the
main agricultural products and exports. Industrial exports include
gold, mercury, uranium, and electricity. Kyrgyzstan has been one of
the most progressive cou