e which provides a living for 65% of the
population. Fishing, offshore financial services, and tourism, with
about 50,000 visitors in 1997, are other mainstays of the economy.
Mineral deposits are negligible; the country has no known petroleum
deposits. A small light industry sector caters to the local market.
Tax revenues come mainly from import duties. Economic development is
hindered by dependence on relatively few commodity exports,
vulnerability to natural disasters, and long distances from main
markets and between constituent islands. The most recent natural
disaster, a severe earthquake in November 1999 followed by a
tsunami, caused extensive damage to the northern island of Pentecote
and left thousands homeless. GDP growth has risen less than 3% on
average in the 1990s. In response to foreign concerns, the
government is moving to tighten regulation of its offshore financial
center.

Venezuela:
The petroleum sector dominates the economy, accounting
for roughly a third of GDP, around 80% of export earnings, and more
than half of government operating revenues. Venezuelan officials
estimate that GDP grew by 3.2% in 2000. A strong rebound in
international oil prices fueled the recovery from the steep
recession in 1999. Nevertheless, a weak nonoil sector and capital
flight undercut the recovery. The bolivar is widely believed to be
overvalued by as much as 50%. The government is still rebuilding
after massive flooding and landslides in December 1999 caused an
estimated $15 billion to $20 billion in damage.

Vietnam:
Vietnam is a poor, densely populated country that has had
to recover from the ravages of war, the loss of financial support
from the old Soviet Bloc, and the rigidities of a centrally planned
economy. Substantial progress was achieved from 1986 to 1996 in
moving forward from an extremely low starting point - growth
averaged around 9% per year from 1993 to 1997. The 1997 Asian
financial crisis highlighted the problems existing in the Vietnamese
economy but, rather than prompting reform, reaffirmed the
government's belief that shifting to a market oriented economy leads
to disaster. GDP growth of 8.5% in 1997 fell to 6% in 1998 and 5% in
1999. Growth continued at the moderately strong level of 5.5%, a
level that should be matched in 2001. These numbers mask some major
difficulties in economic performance. Many domestic industries,