but underlying weaknesses - a high
poverty rate, poor education rates, a weak legal system, and low
administrative capacity - risk undermining planned economic reforms.
Burundi will continue to remain heavily dependent on aid from
bilateral and multilateral donors; the delay of funds after a
corruption scandal cut off bilateral aid in 2007 reduced
government's revenues and its ability to pay salaries.

Cambodia
From 2001 to 2004, the economy grew at an average rate of
6.4%, driven largely by an expansion in the garment sector and
tourism. The US and Cambodia signed a Bilateral Textile Agreement,
which gave Cambodia a guaranteed quota of US textile imports and
established a bonus for improving working conditions and enforcing
Cambodian labor laws and international labor standards in the
industry. With the January 2005 expiration of a WTO Agreement on
Textiles and Clothing, Cambodia-based textile producers were forced
to compete directly with lower-priced producing countries such as
China and India. Better-than-expected garment sector performance led
to more than 9% growth in 2007. Its vibrant garment industry employs
more than 350,000 people and contributes more than 70% of Cambodia's
exports. The Cambodian government has committed itself to a policy
supporting high labor standards in an attempt to maintain buyer
interest. In 2005, exploitable oil and natural gas deposits were
found beneath Cambodia's territorial waters, representing a new
revenue stream for the government if commercial extraction begins.
Mining also is attracting significant investor interest,
particularly in the northeastern parts of the country, and the
government has said opportunities exist for mining bauxite, gold,
iron and gems. In 2006, a US-Cambodia bilateral Trade and Investment
Framework Agreement (TIFA) was signed and the first round of
discussions took place in early 2007. The tourism industry continues
to grow rapidly, with foreign arrivals reaching 2 million in 2007.
In 2007 the government signed a joint venture agreement with two
companies to form a new national airline. The long-term development
of the economy remains a daunting challenge. The Cambodian
government is working with bilateral and multilateral donors,
including the World Bank and IMF, to address the country's many
pressing needs. The major economic challenge for Cambodia over the
next decade will be