r information technology
products - it has attracted major investments in pharmaceuticals and
medical technology production - and will continue efforts to
establish Singapore as Southeast Asia's financial and high-tech hub.

Slovakia
Slovakia has mastered much of the difficult transition from
a centrally planned economy to a modern market economy. The DZURINDA
government made excellent progress during 2001-04 in macroeconomic
stabilization and structural reform. Major privatizations are nearly
complete, the banking sector is almost completely in foreign hands,
and the government has helped facilitate a foreign investment boom
with business friendly policies such as labor market liberalization
and a 19% flat tax. Foreign investment in the automotive sector has
been strong. Slovakia's economic growth exceeded expectations in
2001-07 despite the general European slowdown. Unemployment, at an
unacceptable 18% in 2003-04, dropped to 8.6% in 2007 but remains the
economy's Achilles heel. Slovakia joined the EU on 1 May 2004 and
will be the second of the new EU member states to adopt the euro in
2009 if it continues to meet euro adoption criteria in 2008. Despite
its 2006 pre-election promises to loosen fiscal policy and reverse
the previous DZURINDA government's pro-market reforms, FICO's
cabinet has thus far been careful to keep a lid on spending in order
to meet euro adoption criteria. The FICO government is pursuing a
state-interventionist economic policy, however, and has pushed to
regulate energy and food prices.

Slovenia
Slovenia, which on 1 January 2007 became the first 2004
European Union entrant to adopt the euro, is a model of economic
success and stability for the region. With the highest per capita
GDP in Central Europe, Slovenia has excellent infrastructure, a
well-educated work force, and a strategic location between the
Balkans and Western Europe. Privatization has lagged since 2002, and
the economy has one of highest levels of state control in the EU.
Structural reforms to improve the business environment have allowed
for somewhat greater foreign participation in Slovenia's economy and
have helped to lower unemployment. In March 2004, Slovenia became
the first transition country to graduate from borrower status to
donor partner at the World Bank. In December 2007, Slovenia was
invited to begin the accession process for joining the OECD.