s economic policies with those
of an integrated Europe.

Lithuania:
Lithuania, the Baltic state that has conducted the most
trade with Russia, has been slowly rebounding from the 1998 Russian
financial crisis. High unemployment and weak consumption have held
back recovery. GDP growth for 2000 - estimated at 2.9% - fell behind
that of Estonia and Latvia, and unemployment is estimated at 10.8%,
the country's highest since regaining independence in 1990. For
2001, Lithuanians forecast 3.2% growth, 1.8% inflation, and a fiscal
deficit of 3.3%. In early 2001, the Lithuanian Government announced
that it will repeg its currency, the litas, to the euro (the litas
is currently pegged to the dollar) some time in 2002. Lithuania must
ratify 25 agreements along with other legal documents and
obligations by 1 May 2001 before gaining World Trade Organization
membership. Lithuania was invited to the Helsinki summit in December
1999 and began EU accession talks in early 2000. Privatization of
the large, state-owned utilities, particularly in the energy sector,
remains a key challenge for 2001.

Luxembourg:
The stable, high-income economy features solid growth,
low inflation, and low unemployment. The industrial sector,
initially dominated by steel, has become increasingly diversified to
include chemicals, rubber, and other products. Growth in the
financial sector has more than compensated for the decline in steel.
Services, especially banking, account for a substantial proportion
of the economy. Agriculture is based on small family-owned farms.
The economy depends on foreign and trans-border workers for 30% of
its labor force. Luxembourg has a custom union with Belgium and the
Netherlands, and, as a member of the EU, enjoys the advantages of
the open European market. It joined with 10 other EU members to
launch the euro on 1 January 1999.

Macau:
The economy is based largely on tourism (including gambling)
and textile and fireworks manufacturing. Efforts to diversify have
spawned other small industries - toys, artificial flowers, and
electronics. The tourist sector has accounted for roughly 25% of
GDP, and the clothing industry has provided about three-fourths of
export earnings; the gambling industry probably represents over 40%
of GDP. More than 8 million tourists visited Macau in 2000. Macau
depends on China for most of its food, fresh water, and energy