ism in West Africa. The
government's 1998 seizure of the private peanut firm Alimenta
eliminated the largest purchaser of Gambian groundnuts. Despite an
announced program to begin privatizing key parastatals, no plans
have been made public that would indicate that the government
intends to follow through on its promises. Unemployment and
underemployment rates remain extremely high; short-run economic
progress depends on sustained bilateral and multilateral aid, on
responsible government economic management, on continued technical
assistance from the IMF and bilateral donors, and on expected growth
in the construction sector.

Gaza Strip
High population density, limited land access, and strict
internal and external security controls have kept economic
conditions in the Gaza Strip - the smaller of the two areas under
the Palestinian Authority (PA)- even more degraded than in the West
Bank. The beginning of the second intifada in September 2000 sparked
an economic downturn, largely the result of Israeli closure
policies; these policies, which were imposed to address security
concerns in Israel, disrupted labor and trade access to and from the
Gaza Strip. In 2001, and even more severely in 2003, Israeli
military measures in PA areas resulted in the destruction of
capital, the disruption of administrative structures, and widespread
business closures. The Israeli withdrawal from the Gaza Strip in
September 2005 offered some medium-term opportunities for economic
growth, but continued Israeli-imposed crossings closures, which
became more restrictive after Hamas violently took over the
territory in June 2007, have resulted in widespread private sector
layoffs and shortages of most goods.

Georgia
Georgia's economy has sustained robust GDP growth of close
to 10% in 2006 and 12% in 2007, based on strong inflows of foreign
investment and robust government spending. However, a widening trade
deficit and higher inflation are emerging risks to the economy.
Areas of recent improvement include increasing foreign direct
investment as well as growth in the construction, banking services
and mining sectors. Georgia's main economic activities include the
cultivation of agricultural products such as grapes, citrus fruits,
and hazelnuts; mining of manganese and copper; and output of a small
industrial sector producing alcoholic and nonalcoholic beverages,
metals