the country's strategic location and status as a free trade zone in
the Horn of Africa. Two-thirds of Djibouti's inhabitants live in the
capital city; the remainder are mostly nomadic herders. Scanty
rainfall limits crop production to fruits and vegetables, and most
food must be imported. Djibouti provides services as both a transit
port for the region and an international transshipment and refueling
center. Imports and exports from landlocked neighbor Ethiopia
represent 85% of port activity at Djibouti's container terminal.
Djibouti has few natural resources and little industry. The nation
is, therefore, heavily dependent on foreign assistance to help
support its balance of payments and to finance development projects.
An unemployment rate of nearly 60% continues to be a major problem.
While inflation is not a concern, due to the fixed tie of the
Djiboutian franc to the US dollar, the artificially high value of
the Djiboutian franc adversely affects Djibouti's balance of
payments. Per capita consumption dropped an estimated 35% between
1999 and 2006 because of recession, civil war, and a high population
growth rate (including immigrants and refugees). Faced with a
multitude of economic difficulties, the government has fallen in
arrears on long-term external debt and has been struggling to meet
the stipulations of foreign aid donors.

Dominica
The Dominican economy depends on agriculture, primarily
bananas, and remains highly vulnerable to climatic conditions and
international economic developments. Tourism has increased as the
government seeks to promote Dominica as an "ecotourism" destination.
In 2003, the government began a comprehensive restructuring of the
economy - including elimination of price controls, privatization of
the state banana company, and tax increases - to address Dominica's
economic and financial crisis of 2001-02 and to meet IMF targets.
This restructuring paved the way for the current economic recovery -
real growth for 2006 reached a two-decade high - and will help to
reduce the debt burden, which remains at about 100% of GDP. In order
to diversify the island's production base, the government is
attempting to develop an offshore financial sector and is
researching Dominica's capability to export geothermal energy.

Dominican Republic
The Dominican Republic has enjoyed strong GDP
growth since 2005, with double digit growth