t, to encourage direct foreign investment, and to
privatize remaining state-owned enterprises. The economy contracted
in 2002-03 mainly due to a decline in tourism. Growth probably was
positive in 2004, as economic conditions in the US and Europe
moderately improved.

Bassas da India
no economic activity

Belarus
Belarus's economy in 2003-04 posted 6.1% and 6.4% growth.
Still, the economy continues to be hampered by high inflation,
persistent trade deficits, and ongoing rocky relations with Russia,
Belarus' largest trading partner and energy supplier. Belarus has
seen little structural reform since 1995, when President LUKASHENKO
launched the country on the path of "market socialism." In keeping
with this policy, LUKASHENKO reimposed administrative controls over
prices and currency exchange rates and expanded the state's right to
intervene in the management of private enterprises. In addition,
businesses have been subject to pressure on the part of central and
local governments, e.g., arbitrary changes in regulations, numerous
rigorous inspections, retroactive application of new business
regulations, and arrests of "disruptive" businessmen and factory
owners. A wide range of redistributive policies has helped those at
the bottom of the ladder; the Gini coefficient is among the lowest
in the world. For the time being, Belarus remains self-isolated from
the West and its open-market economies. Growth has been strong in
recent years, despite the roadblocks in a tough, centrally directed
economy and the high, but decreasing, rate of inflation. Growth has
been buoyed by increased Russian demand for generally noncompetitive
Belarusian goods.

Belgium
This modern private enterprise economy has capitalized on
its central geographic location, highly developed transport network,
and diversified industrial and commercial base. Industry is
concentrated mainly in the populous Flemish area in the north. With
few natural resources, Belgium must import substantial quantities of
raw materials and export a large volume of manufactures, making its
economy unusually dependent on the state of world markets. Roughly
three-quarters of its trade is with other EU countries. Public debt
is nearly 100% of GDP. On the positive side, the government has
succeeded in balancing its budget, and income distribution is
relatively equal. Belgium began circulating the euro curre