ndividual donor nations. In late 2000, Malawi was
approved for relief under the Heavily Indebted Poor Countries (HIPC)
program. The government faces strong challenges, e.g., to fully
develop a market economy, to improve educational facilities, to face
up to environmental problems, and to deal with the rapidly growing
problem of HIV/AIDS.

Malaysia:
GDP grew at 8.6% in 2000, mainly on the strength of
double-digit export growth and continued government fiscal stimulus.
As an oil exporter, Malaysia also benefited from higher petroleum
prices. Higher export revenues allowed the country to register a
current account surplus, but foreign exchange reserves have been
declining - from a peak of $34.5 billion in April 2000 to $29.7
billion by December - as foreign investors pulled money out of the
country. Despite this development, Kuala Lumpur is unlikely to
abandon its currency peg soon. An economic slowdown in key Western
markets, especially the United States, and lower world demand for
electronics products will slow GDP growth to 3%-6% in 2001,
according to private forecasters. Over the longer term, Malaysia's
failure to make substantial progress on key reforms of the corporate
and financial sectors clouds prospects for sustained growth and the
return of critical foreign investment.

Maldives:
Tourism, Maldives largest industry, accounts for 20% of
GDP and more than 60% of the Maldives' foreign exchange receipts.
Over 90% of government tax revenue comes from import duties and
tourism-related taxes. Almost 400,000 tourists visited the islands
in 1998. Fishing is a second leading sector. The Maldivian
Government began an economic reform program in 1989 initially by
lifting import quotas and opening some exports to the private
sector. Subsequently, it has liberalized regulations to allow more
foreign investment. Agriculture and manufacturing continue to play a
minor role in the economy, constrained by the limited availability
of cultivable land and the shortage of domestic labor. Most staple
foods must be imported. Industry, which consists mainly of garment
production, boat building, and handicrafts, accounts for about 18%
of GDP. Maldivian authorities worry about the impact of erosion and
possible global warming on their low-lying country; 80% of the area
is one meter or less above sea level.

Mali:
Mali is among the poorest countries in the world,