ct and for other promising energy projects. Upon taking
office, President GARCIA announced Sierra Exportadora, a program
aimed at promoting economic growth in Peru's southern and central
highlands.

Philippines
The Philippine economy grew at its fastest pace in three
decades with real GDP growth exceeding 7% in 2007. Higher government
spending contributed to the growth, but a resilient service sector
and large remittances from the millions of Filipinos who work abroad
have played an increasingly important role. Economic growth has
averaged 5% since President MACAPAGAL-ARROYO took office in 2001.
Nevertheless, the Philippines will need still higher, sustained
growth to make progress in alleviating poverty, given its high
population growth and unequal distribution of income.
MACAPAGAL-ARROYO averted a fiscal crisis by pushing for new revenue
measures and, until recently, tightening expenditures. Declining
fiscal deficits, tapering debt and debt service ratios, as well as
recent efforts to increase spending on infrastructure and social
services have heightened optimism over Philippine economic
prospects. Although the general macroeconomic outlook has improved
significantly, the Philippines continues to face important
challenges and must maintain the reform momentum in order to catch
up with regional competitors, improve employment opportunities, and
alleviate poverty. Longer-term fiscal stability will require more
sustainable revenue sources, rather than non-recurring revenues from
privatization.

Pitcairn Islands
The inhabitants of this tiny isolated economy exist
on fishing, subsistence farming, handicrafts, and postage stamps.
The fertile soil of the valleys produces a wide variety of fruits
and vegetables, including citrus, sugarcane, watermelons, bananas,
yams, and beans. Bartering is an important part of the economy. The
major sources of revenue are the sale of postage stamps to
collectors and the sale of handicrafts to passing ships. In October
2004, more than one-quarter of Pitcairn's small labor force was
arrested, putting the economy in a bind, since their services were
required as lighter crew to load or unload passing ships.

Poland
Poland has pursued a policy of economic liberalization since
1990 and today stands out as a success story among transition
economies. In 2007, GDP grew an estimated 6.5%, based on rising
private consu