e its conflict with Armenia over the Azerbaijani
Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan
has lost 16% of its territory and must support some 600,000
internally displaced persons as a result of the conflict. Corruption
is ubiquitous, and the government has been accused of
authoritarianism. Although the poverty rate has been reduced in
recent years, the promise of widespread wealth from development of
Azerbaijan's energy sector remains largely unfulfilled.

Bahamas, The
Lucayan Indians inhabited the islands when Christopher
COLUMBUS first set foot in the New World on San Salvador in 1492.
British settlement of the islands began in 1647; the islands became
a colony in 1783. Since attaining independence from the UK in 1973,
The Bahamas have prospered through tourism and international banking
and investment management. Because of its geography, the country is
a major transshipment point for illegal drugs, particularly
shipments to the US and Europe, and its territory is used for
smuggling illegal migrants into the US.

Bahrain
In 1783, the al-Khalifa family captured Bahrain from the
Persians. In order to secure these holdings, it entered into a
series of treaties with the UK during the 19th century that made
Bahrain a British protectorate. The archipelago attained its
independence in 1971. Bahrain's small size and central location
among Persian Gulf countries require it to play a delicate balancing
act in foreign affairs among its larger neighbors. Facing declining
oil reserves, Bahrain has turned to petroleum processing and
refining and has transformed itself into an international banking
center. King HAMAD bin Isa al-Khalifa, after coming to power in
1999, pushed economic and political reforms to improve relations
with the Shia community. Shia political societies participated in
2006 parliamentary and municipal elections. Al Wifaq, the largest
Shia political society, won the largest number of seats in the
elected chamber of the legislature. However, Shi'a discontent has
resurfaced in recent years with street demonstrations and occasional
low-level violence.

Bangladesh
Europeans began to set up trading posts in the area of
Bangladesh in the 16th century; eventually the British came to
dominate the region and it became part of British India. In 1947,
West Pakistan and East Bengal (both primarily Muslim) separated from