he restoration of the
infrastructure and the raising of incomes in this ravaged economy
depend on the implementation of sound macro- and micro-economic
policies of the new government, including the encouragement of
foreign investment. Recent growth has been from a low base, and
continued growth will require major policy successes.

Libya:
The socialist-oriented economy depends primarily upon
revenues from the oil sector, which contributes practically all
export earnings and about one-quarter of GDP. These oil revenues and
a small population give Libya one of the highest per capita GDPs in
Africa, but little of this income flows down to the lower orders of
society. In this statist society, import restrictions and
inefficient resource allocations have led to periodic shortages of
basic goods and foodstuffs. The nonoil manufacturing and
construction sectors, which account for about 20% of GDP, have
expanded from processing mostly agricultural products to include the
production of petrochemicals, iron, steel, and aluminum. Climatic
conditions and poor soils severely limit agricultural output, and
Libya imports about 75% of its food requirements. Higher oil prices
in 1999 and 2000 led to an increase in export revenues, which
improved macroeconomic balances and helped to stimulate the economy.
Following the suspension of UN sanctions in 1999, Libya has been
trying to increase its attractiveness to foreign investors, and
several foreign companies have visited in search of contracts.

Liechtenstein:
Despite its small size and limited natural resources,
Liechtenstein has developed into a prosperous, highly
industrialized, free-enterprise economy with a vital financial
service sector and living standards on a par with the urban areas of
its large European neighbors. Low business taxes - the maximum tax
rate is 18% - and easy incorporation rules have induced 73,700
holding or so-called letter box companies to establish nominal
offices in Liechtenstein, providing 30% of state revenues. The
country participates in a customs union with Switzerland and uses
the Swiss franc as its national currency. It imports more than 90%
of its energy requirements. Liechtenstein has been a member of the
European Economic Area (an organization serving as a bridge between
European Free Trade Association (EFTA) and EU) since May 1995. The
government is working to harmonize it