2003, and is working closely with technical
advisors from the U.S. Treasury Department, the World Bank and IMF,
seeking to return to a fully funded program. Growth rose slightly in
2006-07, primarily due to increases in global demand and commodity
prices on world markets, but the standard of living fell. The Guinea
franc depreciated sharply as the prices for basic necessities like
food and fuel rose beyond the reach of most Guineans.
Dissatisfaction with economic conditions prompted nationwide strikes
in February and June 2006.

Guinea-Bissau
One of the five poorest countries in the world,
Guinea-Bissau depends mainly on farming and fishing. Cashew crops
have increased remarkably in recent years, and the country now ranks
sixth in cashew production. Guinea-Bissau exports fish and seafood
along with small amounts of peanuts, palm kernels, and timber. Rice
is the major crop and staple food. However, intermittent fighting
between Senegalese-backed government troops and a military junta
destroyed much of the country's infrastructure and caused widespread
damage to the economy in 1998; the civil war led to a 28% drop in
GDP that year, with partial recovery in 1999-2002. Before the war,
trade reform and price liberalization were the most successful part
of the country's structural adjustment program under IMF
sponsorship. The tightening of monetary policy and the development
of the private sector had also begun to reinvigorate the economy.
Because of high costs, the development of petroleum, phosphate, and
other mineral resources is not a near-term prospect. Offshore oil
prospecting is underway in several sectors but has not yet led to
commercially viable crude deposits. The inequality of income
distribution is one of the most extreme in the world. The government
and international donors continue to work out plans to forward
economic development from a lamentably low base. In December 2003,
the World Bank, IMF, and UNDP were forced to step in to provide
emergency budgetary support in the amount of $107 million for 2004,
representing over 80% of the total national budget. Government drift
and indecision, however, resulted in continued low growth in
2002-06. Higher raw material prices boosted growth to 3.7% in 2007.

Guyana
The Guyanese economy exhibited moderate economic growth in
2001-07, based on expansion in the agricultural and mining sectors,
a