ay for imports, therefore, rests primarily on weather
conditions and international coffee and tea prices. The Tutsi
minority, 14% of the population, dominates the government and the
coffee trade at the expense of the Hutu majority, 85% of the
population. Since October 1993 an ethnic-based war has resulted in
more than 200,000 deaths, forced 450,000 refugees into Tanzania, and
displaced 140,000 others internally. Doubts about the prospects for
sustainable peace continue to impede development. Only one in two
children go to school, and approximately one in ten adults has
HIV/AIDS. Food, medicine, and electricity remain in short supply.
Cambodia
Cambodia's economy slowed dramatically in 1997 and 1998 due
to the regional economic crisis, civil violence, and political
infighting, and foreign investment and tourism decreased. In 1999,
the first full year of peace in 30 years, the government made
progress on economic reforms. Growth resumed and remained about 5%
from 2000 to 2004. Economic growth has been largely driven by
expansion in the garment sector and tourism, but is expected to fall
in 2005 as growth in the garment sector stalls. Clothing exports
were fostered by a US-Cambodian Bilateral Textile Agreement signed
in 1999 which gave Cambodia a guaranteed quota of US textile imports
and established a bonus for improving working conditions and
enforcing Cambodian labor laws and international labor standards in
the industry. With the January 2005 expiration of a WTO Agreement on
Textiles and Clothing, Cambodia-based textile producers are in
direct competition with lower priced producing countries such as
China and India. Faced with the possibility that over the next five
years Cambodia may lose orders and some of the 250,000 well-paid
jobs the industry provides, Cambodia has committed itself to a
policy of continued support for high labor standards in an attempt
to maintain favor with buyers. Tourism growth remains strong, with
arrivals up 15% in 2004. The long-term development of the economy
after decades of war remains a daunting challenge. The population
lacks education and productive skills, particularly in the
poverty-ridden countryside, which suffers from an almost total lack
of basic infrastructure. Fully 75% of the population remains engaged
in subsistence farming. Fear of renewed political instability and a
dysfunctional legal system coupled
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