, rich, relatively open economy with
self-reported crude oil reserves of about 104 billion barrels - 10%
of world reserves. Petroleum accounts for nearly half of GDP, 95% of
export revenues, and 80% of government income. High oil prices in
recent years have helped build Kuwait's budget and trade surpluses
and foreign reserves. As a result of this positive fiscal situation,
the need for economic reforms is less urgent and the government has
not earnestly pushed through new initiatives. Despite its vast oil
reserves, Kuwait experienced power outages during the summer months
in 2006 and 2007 because demand exceeded power generating capacity.
Power outages are likely to worsen, given its high population growth
rates, unless the government can increase generating capacity. In
May 2007 Kuwait changed its currency peg from the US dollar to a
basket of currencies in order to curb inflation and to reduce its
vulnerability to external shocks.

Kyrgyzstan
Kyrgyzstan is a poor, mountainous country with a
predominantly agricultural economy. Cotton, tobacco, wool, and meat
are the main agricultural products, although only tobacco and cotton
are exported in any quantity. Industrial exports include gold,
mercury, uranium, natural gas, and electricity. Following
independence, Kyrgyzstan was progressive in carrying out market
reforms such as an improved regulatory system and land reform.
Kyrgyzstan was the first Commonwealth of Independent States (CIS)
country to be accepted into the World Trade Organization. Much of
the government's stock in enterprises has been sold. Drops in
production had been severe after the breakup of the Soviet Union in
December 1991, but by mid-1995, production began to recover and
exports began to increase. The economy is heavily weighted toward
gold export and a drop in output at the main Kumtor gold mine
sparked a 0.5% decline in GDP in 2002 and a 0.6% decline in 2005.
GDP grew more than 6% in 2007, partly due to higher gold prices
internationally. The government made steady strides in controlling
its substantial fiscal deficit, nearly closing the gap between
revenues and expenditures in 2006, before boosting expenditures more
than 20% in 2007. The government and international financial
institutions have been engaged in a comprehensive medium-term
poverty reduction and economic growth strategy. In 2005, Bishkek
agreed to pursue much-n