increasing in the face
of rising oil prices.

Kosovo
Over the past few years Kosovo's economy has shown
significant progress in transitioning to a market-based system, but
it is still highly dependent on the international community and the
diaspora for financial and technical assistance. Remittances from
the diaspora - located mainly in Germany and Switzerland - account
for about 30% of GDP. Kosovo's citizens are the poorest in Europe
with an average annual per capita income of only $1800 - about
one-third the level of neighboring Albania. Unemployment - at more
than 40% of the population - is a severe problem that encourages
outward migration. Most of Kosovo's population lives in rural towns
outside of the capital, Pristina. Inefficient, near-subsistence
farming is common - the result of small plots, limited
mechanization, and lack of technical expertise. Economic growth is
largely driven by the private sector - mostly small-scale retail
businesses. With international assistance, Kosovo has been able to
privatize 50% of its state-owned enterprises (SOEs) by number, and
over 90% of SOEs by value. Minerals and metals - including lignite,
lead, zinc, nickel, chrome, aluminum, magnesium, and a wide variety
of construction materials - once formed the backbone of industry,
but output has declined because investment has been insufficient to
replace ageing Eastern Bloc equipment. Technical and financial
problems in the power sector also impedes industrial development.
The US has worked with the World Bank to prepare a commercial tender
for the development of new power generating and mining capacity. The
official currency of Kosovo is the euro, but the Serbian dinar is
also used in the Serb enclaves. Kosovo's tie to the euro has helped
keep inflation low. Kosovo has maintained a budget surplus as a
result of efficient tax collection and inefficient budget execution.
While maintaining ultimate oversight, UNMIK continues to work with
the EU and with Kosovo's government to accelerate economic growth,
lower unemployment, and attract foreign investment. In order to help
integrate Kosovo into regional economic structures, UNMIK signed (on
behalf of Kosovo) its accession to the Central Europe Free Trade
Area (CEFTA) in 2006. In February 2008, UNMIK also represented
Kosovo at the newly established Regional Cooperation Council (RCC).

Kuwait
Kuwait is a small