nemployment, which amounts to more than 40% of the labor force. The
gap in Reunion between the well-off and the poor is extraordinary
and accounts for the persistent social tensions. The white and
Indian communities are substantially better off than other segments
of the population, often approaching European standards, whereas
minority groups suffer the poverty and unemployment typical of the
poorer nations of the African continent. The outbreak of severe
rioting in February 1991 illustrates the seriousness of
socioeconomic tensions. The economic well-being of Reunion depends
heavily on continued financial assistance from France.

Romania:
Romania, one of the poorest countries in Central and
Eastern Europe, began the transition from communism in 1989 with a
largely obsolete industrial base and a pattern of output unsuited to
the country's needs. Over the past decade economic restructuring has
lagged behind most other countries in the region. Consequently,
living standards have continued to fall - real wages are down over
40%. Corruption too has worsened. The EU ranks Romania last among
enlargement candidates, and the European Bank for Reconstruction and
Development (EBRD) rates Romania's transition progress the region's
worst. The country emerged in 2000 from a punishing three-year
recession thanks to strong demand in EU export markets. A new
government elected in November 2000 promises to promote economic
reform. Bucharest hopes to receive financial and technical
assistance from international financial institutions and Western
governments; negotiations over a new IMF standby agreement are to
begin early in 2001. If reform stalls, Romania's ability to borrow
from both public and private sources could quickly dry up, leading
to another financial crisis.

Russia:
A decade after the implosion of the Soviet Union in 1991,
Russia is still struggling to establish a modern market economy and
achieve strong economic growth. In contrast to its trading partners
in Central Europe - which were able to overcome the initial
production declines that accompanied the launch of market reforms
within three to five years - Russia saw its economy contract for
five years, as the executive and legislature dithered over the
implementation of many of the basic foundations of a market economy.
Russia achieved a slight recovery in 1997, but the government's
stubborn bu