imports. Japan and Hong Kong are the main suppliers of raw materials
and capital goods. Output dropped 5% in 1998 and 3% in 1999, with a
small 2% gain in 2000. Macau reverted to Chinese administration on
20 December 1999. Gang violence, a dark spot in the economy,
probably will be reduced in 2000-01 to the advantage of the tourism
sector.

Macedonia, The Former Yugoslav Republic of:
At independence in
November 1991, Macedonia was the least developed of the Yugoslav
republics, producing a mere 5% of the total federal output of goods
and services. The collapse of Yugoslavia ended transfer payments
from the center and eliminated advantages from inclusion in a de
facto free trade area. An absence of infrastructure, UN sanctions on
its largest market Yugoslavia, and a Greek economic embargo hindered
economic growth until 1996. GDP has subsequently increased each
year, rising by 5% in 2000. Successful privatization in 2000 boosted
the country's reserves to over $700 million. Also, the leadership
demonstrated a continuing commitment to economic reform, free trade,
and regional integration. Inflation jumped to 11% in 2000, largely
due to higher oil prices.

Madagascar:
Madagascar faces problems of chronic malnutrition,
underfunded health and education facilities, a roughly 3% annual
population growth rate, and severe loss of forest cover, accompanied
by erosion. Agriculture, including fishing and forestry, is the
mainstay of the economy, accounting for 30% of GDP and contributing
more than 70% to export earnings. Industry features textile
manufacturing and the processing of agricultural products. Growth in
output in 1992-97 averaged less than the growth rate of the
population. Growth has been held back by antigovernment strikes and
demonstrations, a decline in world coffee prices, and the erratic
commitment of the government to economic reform. The extent of
government reforms, outside financial aid, and foreign investment
will be key determinants of future growth. For 2001, growth should
again be about 5%.

Malawi:
Landlocked Malawi ranks among the world's least developed
countries. The economy is predominately agricultural, with about 90%
of the population living in rural areas. Agriculture accounts for
37% of GDP and 85% of export revenues. The economy depends on
substantial inflows of economic assistance from the IMF, the World
Bank, and i