the kingdom's dependence on oil and increase
employment opportunities for the swelling Saudi population.
Shortages of water and rapid population growth will constrain
government efforts to increase self-sufficiency in agricultural
products.

Senegal:
In January 1994, Senegal undertook a bold and ambitious
economic reform program with the support of the international donor
community. This reform began with a 50% devaluation of Senegal's
currency, the CFA franc, which is linked at a fixed rate to the
French franc. Government price controls and subsidies have been
steadily dismantled. After seeing its economy contract by 2.1% in
1993, Senegal made an important turnaround, thanks to the reform
program, with real growth in GDP averaging 5% annually in 1995-99.
Annual inflation has been pushed down to 2%, and the fiscal deficit
has been cut to less than 1.5% of GDP. Investment rose steadily from
13.8% of GDP in 1993 to 16.5% in 1997. As a member of the West
African Economic and Monetary Union (UEMOA), Senegal is working
toward greater regional integration with a unified external tariff.
Senegal also realized full Internet connectivity in 1996, creating a
miniboom in information technology-based services. Private activity
now accounts for 82% of GDP. On the negative side, Senegal faces
deep-seated urban problems of chronic unemployment, juvenile
delinquency, and drug addiction. Real GDP growth is expected to rise
above 6%, while inflation is likely to hold at 2% in 2001-02.

Seychelles:
Since independence in 1976, per capita output in this
Indian Ocean archipelago has expanded to roughly seven times the old
near-subsistence level. Growth has been led by the tourist sector,
which employs about 30% of the labor force and provides more than
70% of hard currency earnings, and by tuna fishing. In recent years
the government has encouraged foreign investment in order to upgrade
hotels and other services. At the same time, the government has
moved to reduce the dependence on tourism by promoting the
development of farming, fishing, and small-scale manufacturing. The
vulnerability of the tourist sector was illustrated by the sharp
drop in 1991-92 due largely to the Gulf war. Although the industry
has rebounded, the government recognizes the continuing need for
upgrading the sector in the face of stiff international competition.
Other issues facing the gover