state for pipelines and trade. The construction on the
Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas
pipeline have brought much-needed investment and job opportunities.

Germany
Germany's affluent and technologically powerful economy -
the fifth largest in the world - has become one of the slowest
growing economies in the euro zone. A quick turnaround is not in the
offing in the foreseeable future. Growth in 2001-03 fell short of
1%, rising to 1.7% in 2004. The modernization and integration of the
eastern German economy continues to be a costly long-term process,
with annual transfers from west to east amounting to roughly $70
billion. Germany's aging population, combined with high
unemployment, has pushed social security outlays to a level
exceeding contributions from workers. Structural rigidities in the
labor market - including strict regulations on laying off workers
and the setting of wages on a national basis - have made
unemployment a chronic problem. Corporate restructuring and growing
capital markets are setting the foundations that could allow Germany
to meet the long-term challenges of European economic integration
and globalization, particularly if labor market rigidities are
further addressed. In the short run, however, the fall in government
revenues and the rise in expenditures have raised the deficit above
the EU's 3% debt limit.

Ghana
Well endowed with natural resources, Ghana has roughly twice
the per capita output of the poorer countries in West Africa. Even
so, Ghana remains heavily dependent on international financial and
technical assistance. Gold, timber, and cocoa production are major
sources of foreign exchange. The domestic economy continues to
revolve around subsistence agriculture, which accounts for 34% of
GDP and employs 60% of the work force, mainly small landholders.
Ghana opted for debt relief under the Heavily Indebted Poor Country
(HIPC) program in 2002. Priorities include tighter monetary and
fiscal policies, accelerated privatization, and improvement of
social services. Receipts from the gold sector helped sustain GDP
growth in 2004. Inflation should ease, but remain a major internal
problem.

Gibraltar
Self-sufficient Gibraltar benefits from an extensive
shipping trade, offshore banking, and its position as an
international conference center. The British military presence has
be